During the 2012 Legislative Session, SB 212 was passed by both Houses and signed by Governor Martinez. The NM Taxation and Revenue department has come out with two bulletins outlining the changes in the withholding requirements for oil and gas proceeds paid after 1/1/12.

B-200.13_Withholding Tax on Oil and Gas Proceeds 4-12.pdf (42 KB)
B-200.25_Withholding Tax Owners of a Pass Through Entity 4-12.pdf (42 KB

Summary:

a. If you are already required to withhold, continue to use from RPD-41284 Quarterly Oil and Gas Proceeds withholding tax form
b. If the remitee is a NM resident or maintains a principal place of business in NM and the remitter has reasonable cause NOT to withhold, the remitter may rely on the remittee’s NM address on Form 1099 Misc, pro forma 1099 or RPD-41285.
c. If there is no NM address on the Form 1099, the remitter may have the remittee sign Form RPD-41354, Declaration of Principal Place of Business or Residence in NM.
d.. Remitees can enter into an agreement with the remitter to pay the tax required with be withhold by the remitter on Form RPD-41353. This form must be completed and on file with the remitter when it filed annual reports. Note that the remitee remits the tax required to be withheld as a quarterly tax payment.
e. Remitters must file annual statements of withholding for each remittee to the Department.
f. Remitters must provide each remitee annual statements of withholding by 2/15 of the year following the year for which the statement is made.

Please find attached the two guidance documents provided to IPANM by the Tax Department. If you have any questions, please call (505) 827-0825 in Santa Fe, or toll free at (866) 809-2335 and select option 4.