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.
“The fact that we produce a lot of oil and gas is no secret, that’s why we have a surplus, but how we get it and where we get it is interesting and not known to everybody,” Anklam said.
Gov. Michelle Lujan Grisham has already mentioned investing $500 million of additional money into state education.
The governor and state lawmakers will ultimately decide how the money from oil and gas will be spent.
“These resources are finite and they really belong to current and future generations of New Mexicans,” Anklam said.
Oil and gas money goes into a trust that distributes to New Mexico’s General Fund, which provides money for education and public safety.
New Mexico currently ranks third in the nation for oil production, and ninth for natural gas.