SB 236 — METRO DEVELOPMENT PROJECT GRT INCREMENTS

SENATE BILL 236 56TH LEGISLATURE -STATEOFNEWMEXICO- SECOND SESSION , 2024 INTRODUCED BY Carrie Hamblen and Cristina Parajón 6 8 10 AN ACT RELATING TO THE METROPOLITAN REDEVELOPMENT CODE;

167 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

e t 17 SECTION 1.

That version of Section 3-60A-21 NMSA 1978 w l n d 18 (being Laws 1979, Chapter 391, Section 21, as amended) that is = = 19 a l to become effective January 1, 2025 is amended to read:

i a e r 20 "3-60A-21.

PROPERTY AND GROSS RECEIPTS TAX INCREMENTS-- a t m m 21 PROCEDURES.-- d r e 22 A.

The procedures to be used in determining a c e s k 23 property tax increment are:

e a n b 24 (1) the local government shall, after approval u [ of a metropolitan redevelopment plan, notify the county .227480.5 assessor of the taxable parcels of property within the metropolitan redevelopment area;

(2) upon receipt of the notification, the county assessor shall identify the parcels of property within the metropolitan redevelopment area within their respective jurisdictions and certify to the county treasurer the net taxable value of the property at the time of notification as the base value for the distribution of property tax revenues SB 236 authorized by the Property Tax Code.

If because of Page 1 acquisition by the local government the property becomes tax exempt, the county assessor shall note that fact on their respective records and so notify the county treasurer, but the county assessor and the county treasurer shall preserve a record of the net taxable value at the time of inclusion of the property within the metropolitan redevelopment area as the base value for the purpose of distribution of property tax revenues when e t 17 the parcel again becomes taxable.

The county assessor is not w l n d 18 required by this section to preserve the new taxable value at = = 19 a l the time of inclusion of the property within the metropolitan i a e r 20 redevelopment area as the base value for the purposes of a t m m 21 valuation of the property;

d r e 22 (3) if because of acquisition by the local c e s k 23 government the property becomes tax exempt, when the parcel e a n b 24 again becomes taxable, the local government shall notify the u [ county assessor of the parcels of property that because of .227480.5 - 2 - their rehabilitation or other improvement are to be revalued for property tax purposes.

and SB 236 Page 2 (4) current tax rates shall then be applied to the new taxable value of property included in the metropolitan redevelopment area.

The amount by which the revenue received exceeds that which would have been received by application of the same rates to the base value before inclusion in the metropolitan redevelopment area shall be multiplied by the percentage of the increment dedicated by the local government e t 17 pursuant to Section 3-60A-23 NMSA 1978, credited to the local w l n d 18 government and deposited in the metropolitan redevelopment = = 19 a l fund.

This transfer shall take place only after the county i a e r 20 treasurer has been notified to apply the procedures pursuant to a t m m 21 this subsection to property included in a metropolitan d r e 22 redevelopment area.

Unless the entire metropolitan c e s k 23 redevelopment area is specifically included by the local e a n b 24 government for purposes of tax increment financing, the payment u [ by the county treasurer to the local government shall be .227480.5 - 3 - limited to those properties specifically included.

[(1)(1) after approval of a metropolitan redevelopment area, a dedication is made pursuant to Section 3-60A-23 NMSA 1978 and at least one hundred twenty days before the effective date of the dedication, the local government shall notify the taxation and revenue department of the geographicalgeographic areaboundaries withinof the metropolitan redevelopment areaarea; and the percentages of a gross receipts tax increment;

(2)SB within236 ninetyPage days3 of(2) receiptby of the notification,January the1 taxationor andJuly revenue1 departmentfollowing shallat certifyleast toninety thedays localafter governmentreceipt of the basenotice yearof gross receipts tax revenue amounts, which shall be calculated as] e t 17 (1) the localgeographic governmentboundaries, shall notify the w l n d 18 taxation and revenue department ofshall thedesignate geographica boundariesreporting oflocation =code =for 19 a l the metropolitan redevelopment area;area pursuant to Section 7-1-14 NMSA 1978;

i(3) ausing edata rfrom 20 (2) by the Januarytwelve 1months orof Julyreporting 1periods following atdesignation a t m m 21 least ninety days after receipt of the noticereporting oflocation thecode, geographic d r e 22 boundaries, the taxation and revenue department shall designatecalculate cthe egross sreceipts ktax 23revenue a reporting location code for the metropolitanbase redevelopmentyear eas afollows: n b 24 area pursuant to Section 7-1-14 NMSA 1978;

u(a) [the (3)amount usingof data from the twelvelocal monthsgovernment's oflocal .227480.5option -gross 4receipts -tax reportingrevenue periodsattributable followingto designation of the reportinggross locationreceipts code,sourced to the taxationmetropolitan andredevelopment revenuearea departmentpursuant shallto calculateSection the7-1-14 grossNMSA receipts1978 taxin revenue for the baseprevious yeartwelve asmonths; follows:

(a)and (b) the amount of thestate local government's local option gross receipts tax revenue attributable to the gross receipts [of persons engaging in business in] sourced to the metropolitan redevelopment area pursuant to Section 7-1-14 NMSA 1978 in the previous [fiscaltwelve year,months, less any localamount optiondistributed grossto receiptsthe taxmunicipality revenuepursuant to Section 7-1-6.4 NMSA 1978 attributable to constructiongross activitiesreceipts locatedsourced withinto the metropolitan redevelopment area]area; twelve months;

and (b)(4) thefollowing amountmaking of state gross receipts tax revenue attributable to [the] gross receipts [of persons engaging in business in] sourced to the metropolitancalculation redevelopmentof area pursuant to Section 7-1-14 NMSA 1978 in the e t 17 previous [fiscal year] twelve months, less any [state gross w l n d 18 receipts tax revenue attributablefor to construction activities = = 19 a l located within the metropolitanbase redevelopmentyear: area and, if the i a e r 20 local government is a municipality, any] amount distributed to a t m m 21 the municipality pursuant to Section 7-1-6.4 NMSA 1978 d r e 22 attributable to [the] gross receipts [of persons engaging in c e s k 23 business in] sourced to the metropolitan redevelopment area;

eSB a236 nPage b4 24(a) the taxation and urevenue [department [(3)shall withincompare sixthe monthsamounts of thegross endreceipts tax revenues of eachthe .227480.5base -year 5with -the fiscalamounts yearof following]gross (4)receipts tax revenues of that following makingtwelve months, using the same calculation ofmethods theas grossprovided receiptsin taxParagraph revenue(3) forof thethis basesubsection; year:

(a)and the(b) taxationif andthere revenueis departmentan shallincrease comparebetween the amounts of gross receipts tax revenuesrevenue of the base year withand the amounts of gross receipts tax revenuesrevenue of that following [fiscal year] twelve months, using the sametaxation calculationand methodsrevenue asdepartment provided in Paragraph [(2)] (3) of this subsection [except the amounts of gross receipts tax revenues of the following fiscal year shall includedistribute, revenuepursuant attributable to constructionSection activities7-1-6.71 locatedNMSA within1978, the metropolitansum redevelopmentof: area];

and1) (b)the ifproduct thereof isthe antotal increaserate betweenof the local government's local option gross receipts tax revenuemultiplied ofby the baseincreased yearamount andof the local government's local option gross receipts tax revenuerevenue, offurther thatmultiplied followingby [fiscalthe year]percentage twelveof months, the taxationgross andreceipts revenuetax departmentincrement shalldedicated distribute,by ethe tlocal 17government pursuant to Section 7-1-6.713-60A-23 NMSA 1978,1978; the sum of:

1)plus 2) the w l n d 18 product of the totalstate rate of the local government's local = = 19 a l option gross receipts tax rate multiplied by the increased amount of i a e r 20 the localstate government's local option gross receipts tax revenue, a t m m 21 further multiplied by the percentage of the gross receipts tax d r e 22 increment dedicated by the localstate governmentboard of finance pursuant to Section c e s k 23 3-60A-23 NMSA 1978;1978.

plus 2) the product of the state gross e a n b 24 receipts tax rate multiplied by the increased amount of the u [ state gross receipts tax revenue, further multiplied by the .227480.5 - 6 - percentage of the gross receipts tax increment dedicated by the state board of finance pursuant to Section 3-60A-23 NMSA 1978.

SB 236 Page 5 (1) "local option gross receipts tax revenue" means revenue transferred to the local government pursuant to Section 7-1-6.12 or 7-1-6.13 NMSA 1978, as appropriate;

DISTRIBUTION--METROPOLITAN REDEVELOPMENT FUND.--A distribution for a metropolitan redevelopment project e t 17 pursuant to the Metropolitan Redevelopment Code shall be made w l n d 18 to the metropolitan redevelopment fund in accordance with [a = = 19 a l notice filed by a municipality or county pursuant to] the i a e r 20 provisions of Subparagraph (b) of Paragraph (4) of Subsection B a t m m 21 of Section 3-60A-21 NMSA 1978 with respect to a dedication of a d r e 22 gross receipts tax increment." c e s k 23 SECTION 3.

Laws 2023, Chapter 112, Section 15 is amended e a n b 24 to read:

u [ "SECTION 15.

EFFECTIVE DATE.--The effective date of the .227480.5 - 7 - provisions of this act is [July 1, 2024] January 1, 2025." SECTION 4.

-SB 8236 -Page 6 825 10 12 14 16 e t 17 w l n d 18 = = 19 a l i a e r 20 a t m m 21 d r e 22 c e s k 23 e a n b 24 u [ .227480.5