N.M. Code R. § 3.19.4.10 – Which Substances Are “Natural Resources”

A. GUANO IS NOT A NATURAL RESOURCE: Guano is a substance composed chiefly of the dung of sea birds or bats, accumulated along certain costal areas or in caves, and used as a fertilizer. The definitions of “natural resource” in Sections 7-25-3 and 7-26-2 NMSA 1978 do not include guano and therefore guano is not a natural resource from the purposes of the Resources Excise Tax Act and the Severance Tax Act.
B. CALICHE IS A NATURAL RESOURCE: Caliche is a natural resource for purposes of the Resources Excise Tax Act and the Severance Tax Act.
C. TREES:
(1) Trees felled for timber are a natural resource. The word “timber” connotes trees that are cut down for use as poles, masts, lumber or wood products or derivatives. Trees gathered, transplanted or felled for other purposes are not a natural resource for purposes of the Resources Excise Tax Act and the Severance Tax Act.
(2) Examples: Trees cut for use as Christmas trees or firewood and trees transplanted for use as landscaping are not timber. The taxes imposed by the Resources Excise Tax Act and the Severance Tax Act do not apply to these uses of trees.
D. BORROW MATERIALS ARE NOT NATURAL RESOURCES: Borrow materials, such as soil type materials, used for fill or embankment in a construction operation are not a “natural resource” as that term is used in the Resources Excise Tax Act or the Severance Tax Act.
[10/31/97; 3.19.4.10 NMAC - Rn & A, 3 NMAC 19.4.10, 1/15/01]