The entire amount of oil and gas proceeds and an allocable share of net income upon which the tax was deducted and withheld or upon which payments were made by owners in lieu of withholding shall be included in the base income of the remittee for purposes of the Income Tax Act [Chapter 7, Article 2 NMSA 1978] and the Corporate Income and Franchise Tax Act [Chapter 7, Article 2A NMSA 1978]. The amount of tax deducted and withheld or payments made by owners in lieu of withholding pursuant to the Oil and Gas Proceeds and Pass-Through Entity Withholding Tax Act during the taxable year shall be credited against any income tax or corporate income tax due from the remittee or owner.

History: 1978 Comp., § 7-3A-8, enacted by Laws 2003, ch. 86, § 11; 2010, ch. 53, § 15; 2012, ch. 40, § 7.

The 2012 amendment, effective May 16, 2012, measured net income by allocable shares and in the first sentence, after "gas proceeds and", added "an allocable share of".

Applicability. — Laws 2012, ch. 40, § 8 provided that the provisions of Laws 2012, ch. 40, §§ 1 through 7 are applicable to taxable years beginning on or after January 1, 2012.

The 2010 amendment, effective May 19, 2010, in the first sentence, after "oil and gas proceeds", added "and net income" and after "deducted and withheld", added "or upon which payments were made by owners in lieu of withholding"; and in the second sentence, after "deducted and withheld", added "or payments made by owners in lieu of withholding"; after "Oil and Gas Proceeds", added "and Pass-Through Entity; and after "tax due from the remittee", added "or owner".

Temporary provisions. — Laws 2010, ch. 53, § 17 provided that for a taxable year beginning on or after January 1, 2011, but before January 1, 2012, no remitter or pass-through entity shall be subject to the penalty imposed pursuant to Section 7-1-69 NMSA 1978 for failure to comply with the provisions of the Oil and Gas Proceeds and Pass-Through Entity Withholding Tax Act.