New Mexico Administrative Code › Title 3 - TAXATION › Chapter 6 - PROPERTY TAXES › Part 5 - CLASSIFICATION OF PROPERTY › Section 3.6.5.30 - SPECIAL METHOD OF VALUATION - MINERAL PROPERTY AND PROPERTY USED IN CONNECTION WITH MINERAL PROPERTY - GENERAL

Current through Register Vol. 35, No. 13, July 16, 2024
A.
MINERAL PROPERTY - SURFACE VALUE FOR
				AGRICULTURAL OR OTHER PURPOSES:
The valuation methods to be used in
				determining the "surface value for agricultural or other purposes or class one
				productive of nonproductive mineral property when the surface interest is held
				in the same ownership as the mineral interests" as that phrase is used in
				Paragraph (2) of Subsection B of Section
				7-36-23
				NMSA 1978 are those methods described in Section
				7-36-15
				NMSA 1978 and regulations thereunder except that, when the surface is used
				primarily for agricultural purposes, the land shall be valued in accordance
				with Section
				7-36-20
				NMSA 1978 and regulations thereunder. Subsection E of Section
				7-36-23
				NMSA 1978 applies only as a valuation method for the mineral in place in
				mineral property determined to be class one nonproductive mineral
				property.
B.
MINERAL PROPERTY
				- IMPROVEMENTS, ETC., HELD OR USED IN CONNECTION WITH ALL CLASSES OF MINERAL
				PROPERTY:
(1) The valuation methods to
				be used in valuing "improvements, equipment, materials, supplies and other
				personal property held or used in connection with all classes of mineral
				property" as those terms are used in Paragraph (1) of Subsection B of Section
				7-36-23
				NMSA 1978 are those methods described in Section
				7-36-33
				NMSA 1978 and regulations thereunder. Equipment and other personal property
				used in "construction" as that term is defined in Paragraph (3) of Subsection C
				of Section
				7-36-2
				NMSA 1978 shall be valued pursuant to Section
				7-36-33
				NMSA 1978 and regulations thereunder.
(2) "Improvements,...held or used in
				connection with all classes of mineral property", as that phrase is used in
				Paragraph (1) of Subsection B of Section
				7-36-23
				NMSA 1978 includes, but is not limited to, improvements constructed on property
				other than mineral property as defined in Section
				7-36-22
				NMSA 1978 when those improvements are held or used in connection with any class
				of mineral property. The value of the land upon which such improvements are
				constructed is to be a part of the value of the improvements. Therefore,
				property such as office buildings, company houses and processing facilities
				affixed to the land which is held or used in connection with any class of
				mineral property is to be valued by the division either when such improvements
				are on mineral property or when such improvements are not on mineral property.
				The methods for valuation of these improvements are those methods described in
				Section
				7-36-33
				NMSA 1978 and regulations thereunder. The methods for valuation of the land
				upon which these improvements are located are those methods described in
				Section
				7-36-15
				NMSA 1978 and regulations thereunder.
(3) The valuation of construction work in
				progress for uncompleted improvements on mineral property subject to valuation
				under Section
				7-36-23
				or
				7-36-25
				NMSA 1978 is fifty percent of the actual amount expended for the uncompleted
				improvements as of January 1 of the tax year.