ALBUQUERQUE, N.M. - According to a study of the nine oil-producing states, New Mexico gets the biggest cut from taxing oil and gas in the entire nation.
New Mexico’s tax rate is 20 percent, compared to about 15 percent for Wyoming and Texas, which get the second and third highest cuts.
“The government gets the largest share of oil and gas revenue as a percentage of production,” President of the New Mexico Tax Research Institute Richard Anklam said.
The estimated amount of money from last year is estimated in the billions.Read more
New Mexico is No. 1 in the share of oil and gas revenue it captures from local production, compared with eight other Western states, according to a new study released Thursday by the New Mexico Tax and Research Institute and Moss Adams.
The study, to be presented today to the House Appropriations and Finance Committee, shows that state and local governments reaped 20.7 percent of all revenue generated from oil and gas in 2017 through taxes and royalties. That’s significantly higher than the percentage for all other states in the study, including Texas, the runner-up, with a 14.9 percent share of revenue.
New Mexico received more than $3 billion from oil and gas last year, contributing to a record surplus of more than $1 billion to state coffers as the Legislature begins debate over next year’s budget.Read more
New Mexico tapped into billions of dollars out of its oil hotbeds this past fiscal year.
According to a report from the New Mexico Tax Research Institute and Moss Adams, a Seattle-based accounting, consulting and wealth management firm, the state collected more than $4 billion in revenue from activities related to oil and natural gas production in FY18, which is more than $1 billion higher than what New Mexico took the year before. The revenue was made up of royalties and taxes, land income and investment income.
The Tax Research Institute examined oil and gas production in New Mexico and eight surrounding states. It found the Land of Enchantment to have the greatest percentage share of total oil and gas production value directly contributed to government revenue compared to the other states.Read more
The end of the year brought the lowest oil prices of 2018, as global market tensions and a lack of infrastructure caused a significant decline in the price per barrel even as one of the largest underground shale deposits ever discovered was found in the Permian Basin.Read more
Many people will tell you that the production rate of Saudi Arabia’s Ghawar oil field, which has yielded 5 million barrels of petroleum per day for decades, will never be surpassed. In fact, no other oil field has ever come close to topping the production rate of Ghawar, and up until recently I would have agreed its production would never be topped.Read more
‘Bragging rights is one thing and it’s always nice to have bragging rights, but what it means to the county is more revenue. The bottom line is it’s going to increase the revenue to the county and it’s going to increase the revenue to the state. It’s real simple.’ - Chip Low, Lea Finance DirectorRead more