The Severance Tax Permanent Fund (STPF) was established by the legislature as an endowment fund in 1973, to receive severance taxes collected on natural resources extracted from New Mexico lands. The State's severance taxes have historically been used to retire debt from bond issues that have funded various capital projects.  

Currently, severance tax revenues first pay the required debt service on severance tax bonds issued by the state, and the remaining (approximately 12.5%) severance tax receipts are then transferred to the Severance Tax Permanent Fund.  The STPF is now a broadly diversified permanent fund, and except for its Economically Targeted Investments, the STPF investment statutes and asset allocations are very similar to those in the LGPF.   

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