Nick Piatek IPANM Northwest Vice President | Independent Petrolium Association of New Mexico
The recent debate over the HB 548 Oil & Gas Equalization Tax Act has resulted in a $150 million industry-specific tax intended to support the $75 million HB14 on the House side and an unspecified initiative in the Senate. The discussion took place on Saturday during a three-hour session in the House, where Republican legislators from oil-producing regions opposed the tax increase proposed by Democrat committee leaders.
Republican Representatives Mark Murphy, Mark Duncan, Rod Montoya, and Jon Henry expressed strong opposition to what they termed a "money grab," arguing that it unfairly targets the oil and gas industry. In contrast, Democrats like House Appropriations Chair Nathan Small and House Tax Chair Derrick Lente defended the measure as necessary "Tax Justice" for New Mexico's citizens against an industry they claim reaps "billion dollar profits."
During this debate, concerns about potential negative impacts on independent operators were raised by Republicans but not addressed by Democrat proponents of the bill. Rep. Mark Murphy proposed an amendment with HB403 to adjust how funds are allocated to the Oil Reclamation Fund, highlighting that only a small portion of existing payments goes into this fund. This amendment was ultimately rejected by Democrats.
After extensive discussions, the final version of HB14 was passed with a vote of 40-27, driven primarily by Democratic support. Moderate Democrat Joseph Sanchez joined Republicans in opposing the tax hike.
