Court Opinion

ID: 9591644
Source: CourtListenerOpinion
Date Created: 2023-08-22 00:06:12.816879+00
Date Added: 2024-06-11T09:03:48.751392
License: Public Domain

COMPTON, Chief Justice (dissenting). Appellee is a Delaware Corporation, with its principal office in Fort Worth, Texas, and is authorized to transact business in New Mexico, Texas, Louisiana, North Dakota, South Dakota, Wyoming, Montana, Utah and Colorado. Appellee’s intention to use the drilling rigs when purchased in any state where the demands of its business might require, including New Mexico, fixes the taxable event as provided by § 72-17-3, 1953 Comp. Appellee has an extensive covering of New Mexico oil fields, particularly Eastern New Mexico. The facts here are so unlike the Iowa case relied on by the majority, where the drilling rigs were first used in states remote from Iowa, as to destroy the force of that case as authority for the conclusion announced. The majority permits the bringing into the State rigs of the value of $236,000, purchased elsewhere and to be used in drilling oil and gas wells in New Mexico tax free. This discriminates against purchases made within New Mexico. The mere fact that the rigs may have been used in another state first is unimportant, and the judgment should be reversed. The majority having concluded otherwise, I dissent.