The severance tax on uranium is measured by the quantity of U3O8 contained in and recoverable from severed and saved uranium-bearing material whether that material is ore or solution, measured in a standard manner established by regulation of the director. The taxable event is the sale, transportation out of New Mexico or consumption of the uranium-bearing material, whichever first occurs. Upon each pound of severed and saved U3O8 contained in severed uranium-bearing material, there shall be collected from the severer a severance tax equal to three and one-half percent of taxable value.
History: 1953 Comp., § 72-18-7, enacted by Laws 1977, ch. 102, § 9; 1980, ch. 62, § 2; 1981, ch. 169, § 2; 1983, ch. 210, § 2; 1985, ch. 65, § 25.
ANNOTATIONSRepeals. — Laws 1971, ch. 65, § 7, repealed former 72-18-7, 1953 Comp., relating to deducting severance taxes from royalties, etc.
Cross references. — For conservation tax on uranium, see 7-30-1 to 7-30-27 NMSA 1978.
Severance alone does not give rise to taxable event. Yankee Atomic Elec. Co. v. N.M. & Ariz. Land Co., 632 F.2d 855 (10th Cir. 1980).
Severance coupled with sale, transportation or consumption triggers tax. — Severance, coupled with the "sale, transportation out of New Mexico, or consumption" triggers the imposition of the tax. Yankee Atomic Elec. Co. v. N.M. & Ariz. Land Co., 632 F.2d 855 (10th Cir. 1980).
"Taxable value" includes all moneys received. — The taxpayer must include in the taxable value all moneys received, including the amount of severance tax that it has billed its customers. United Nuclear Corp. v. Revenue Div., 1982-NMCA-067, 98 N.M. 296, 648 P.2d 335, cert. denied, 98 N.M. 336, 648 P.2d 794.
Taxable value of uranium-bearing material not affected by results of milling. — Taxable value of severed uranium-bearing material should be determined on the basis of the U3O8 content of severed and saved raw ore when raw ore is sold; the U3O8 later lost in the milling process is not involved. In re Ranchers-Tufco Limestone Project Joint Venture, 1983-NMCA-126, 100 N.M. 632, 674 P.2d 522, cert. denied, 100 N.M. 505, 672 P.2d 1136.
Law reviews. — For comment, "Taxation of the Uranium Industry: An Economic Proposal," see 7 N.M.L. Rev. 69 (1976-77).
For article, "Nonneutral Features of Energy Taxation," see 20 Nat. Resources J. 853 (1980).
For comment, "Constitutional Limitations On State Severance Taxes," see 20 Nat. Resources J. 887 (1980).
For comment, "An Outline For Development of Cost-Based State Severance Taxes," see 20 Nat. Resources J. 913 (1980).