When an increase in the value of any product is subject to the approval of any agency of the United States of America or the state of New Mexico or any court, the increased value shall be subject to this tax. In the event the increase in value is disapproved, either in whole or in part, then the amount of tax which has been paid on the disapproved part of the value shall be considered excess tax. Any person who has paid any such excess tax may apply for a refund of that excess tax in accordance with the provisions of Section 7-1-26 NMSA 1978.

History: 1978 Comp., § 7-29-4.3, enacted by Laws 1980, ch. 62, § 8; 1985, ch. 65, § 28.

Federal class action settlement agreement. — Where taxpayer was party to a settlement agreement that was approved by a federal district court in a class action involving the underpayment of royalties on the production of carbon dioxide gas; the settlement agreement settled the allegation that taxpayer had suppressed the price of carbon dioxide gas; and part of the proceeds of the settlement agreement were compensation to royalty interest owners for the failure to obtain a reasonable sales price for the carbon dioxide gas, the settlement agreement constituted an order that increased the value of the carbon dioxide gas previously reported by taxpayer and a taxable event under Section 7-29-4.3 NMSA 1978. Hess Corp. v. N.M. Taxation & Revenue Dep't, 2011-NMCA-043, 149 N.M. 527, 252 P.3d 751, cert. denied, 2011-NMCERT-003, 150 N.M. 619, 264 P.3d 520.