Form Rpd-41284 - Quarterly Oil And Gas Proceeds Withholding Tax Return (Page 2 of 3) in pdf

RPD-41284

STATE OF NEW MEXICO - TAXATION AND REVENUE DEPARTMENT

Rev. 07/2010

Quarterly Oil and Gas Proceeds Withholding Tax Return Instructions

Page 1 of 2

ABOUT THIS TAX: Effective October 1, 2003, remitters of oil and gas proceeds from oil and gas production from

a well located in New Mexico must deduct and withhold tax from each payment of oil and gas proceeds to a non-

resident of New Mexico (remittee). To calculate the withholding amount multiply the effective rate for the report-

ing period by the gross amount of oil and gas proceeds that otherwise would have been payable to the remittee.

IMPORTANT DEFINITIONS:

"Remittee" means a person who is entitled to payment of oil and gas proceeds by a remitter.

"Remitter" means a person who pays oil and gas proceeds to any remittee.

"Oil and gas" means crude oil, natural gas, liquid hydrocarbons or any combination thereof, or carbon dioxide.

For definitions of "Oil and gas proceeds" and "Gross oil and gas proceeds" see "What are gross oil and gas proceeds?" on

page 2 of the instructions.

INSTRUCTIONS FOR COMPLETING THIS FORM: Complete all information requested. Round all money amounts to

the nearest whole dollar; for example; enter $10.49 as $10 and $10.50 as $11. Enter the remitter's federal employer

identification number (FEIN) or social security number (SSN) and the report period. A report period is based on a cal-

endar quarter. Enter the month, day and year of the first and last day of the reporting period in which the tax was with-

held; for example, for the last quarter of 2002, enter 10-01-02 and 12-31-02. Enter the name and mailing address of the

remitter of the oil and gas proceeds. Check the amended box if amending a previously filed return. See the instructions

below to complete lines 1 through 5. Upon completion of the form, sign, date and enter your E-mail address on return.

Line 1:

Enter the total gross New Mexico oil and gas proceeds paid to nonresidents from which oil and gas pro-

ceeds withholding tax was withheld during the report period regardless of production date. Do not include oil

and gas proceeds for which the oil and gas proceeds withholding tax was not deducted during the report period.

Line 2:

Enter the amount of tax withheld from the oil and gas proceeds reported on line 1 above. Calculate withholding

by multiplying the gross amount payable to the remittee (line 1) by 0.0675. The rate of withholding is 6.75% for the period

October 1, 2003 through December 31, 2004. Thereafter the rate shall be set by Department regulation to the maximum

personal income tax bracket rate (7-2-7 NMSA 1978). See the Oil and Gas Proceeds Withholding Tax Rate Table below.

Line 3:

Penalty. Add penalty if the entity fails to file timely or to pay the amount on line 2 when due. Calculate

the penalty by multiplying the unpaid amount on line 2 by 2%, then by the number of months or partial months for

which the return or payment is late, not to exceed 20% of the tax due. The penalty may not be less than $5.00.

Line 4:

Interest. Interest accrues daily on the unpaid principal of tax due, and can change on a quarterly basis. The effec-

tive annual and daily interest rates are posted on the Department's web page at

or can be obtained

by contacting the Department.

Line 5:

Add lines 2, 3 and 4.

If requesting a refund of oil and gas proceeds withholding tax paid due to an over-payment of tax withheld, com-

plete Form RPD-41071, Application for Tax Refund, and submit an amended Form RPD-41284, Quarterly Oil

and Gas Withholding Tax Return, for the report period in which you over-reported the withholding tax with-

held. Be sure to check the amended return indicator to ensure proper processing of your amended return.

Oil and Gas Proceeds Withholding Tax Rate Table

If your report period falls between:

the effective rate is:

6.75%

Oct 1, 2003

and

Dec 31, 2004..............................................................

5.70%

Jan 1, 2005

and

Dec 31, 2005 ............................................................

5.30%

Jan 1, 2006

and

Dec 31, 2006 .............................................................

5.30%

Jan 1, 2007

and

Dec 31, 2007 ...........................................................

4.90%

Jan 1, 2008

and

Thereafter ..................................................................

Form Rpd-41284 - Quarterly Oil And Gas Proceeds Withholding Tax Return Page 2

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