Over half of oil and gas rigs in Eddy County were not paying taxes. An assessment has changed all that.
Accurate mapping of oil and gas land in Eddy County led to significant increases of property tax revenue during a five-year period, according to an Arkansas-based assessment company.
Total Assessment Solutions Corporation (TASC) collected data from oil and gas properties in Eddy County giving the Eddy County Assessor’s Office a precise count on taxable land used for development.
Eddy County Assessor Rhonda Hatch said assessed value for oil and gas property increased nearly 36% from 2018 to 2023.
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She said New Mexico is a self-rendering state, which means the New Mexico Taxation and Revenue Department (NMTRD) relies on oil and gas companies to report assets.
“Property taxes are a personal obligation of the property owner. The owner is still responsible for finding out about the tax and paying it,” said NMTRD’s website.
Jerry Wisdom, personal property appraisal manager for TASC, presented figures for 2023 to the Eddy County Board of County Commissioners March 5.
He said new wells drilled in Eddy County has increased since 2020 as 534 wells were drilled that year. Wisdom said Eddy County had 988 new wells drilled in 2023. He said active rig counts in Eddy County have fluctuated since 2021. This year 58 active rigs are active in Eddy County.
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Since TASC started assessing oil and gas properties in Eddy County in 2016, he said drilling rig percentage reporting has increased.
“Sixty-six percent of the rigs were not being reported. Last year in Eddy County you had a 96% report ratio,” Wisdom said.
Revenue from oil and gas taxes fund a large portion of government services in Eddy County and New Mexico, according to a study conducted by the New Mexico Oil and Gas Association (NMOGA).
Last year oil and gas provided $13 billion to the State of New Mexico’s overall budget, read the NMOGA study. Eddy County produced $50.4 million in total funding for the State of New Mexico, according to NMOGA.
Eddy County Community Services Director Steve McCroskey said the information in TASC’s study has value to the County aside from providing property valuations.
“(There is) value for first responding information most above anything else,” he said.
Eddy County has 2,469 miles of oil and gas leased roads, read a map compiled by TASC.
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Eddy County Fire and Rescue (ECFR) was looking at TASC’s information to assist in pre-planning and response for certain emergencies in parts of the county, said Chief Joshua Mack.
“This is very informative to me. I think we really need to bolster this as much as possible,” said District 5 County Commissioner Sarah Cordova.
Mike Smith can be reached at 575-628-5546 or by email at MSmith@currentargus.com or @ArgusMichae on X, formerly known as Twitter.
This article originally appeared on Carlsbad Current-Argus: Eddy County improves rate of oil and gas operators paying property taxes
