1. A. A metropolitan redevelopment plan, as originally approved or as later modified, may contain a provision that a portion of a property tax increment or gross receipts tax increment may be dedicated for the purpose of funding a metropolitan redevelopment project for a period of up to twenty years.
2. B. A local government may dedicate up to seventy-five percent of a property tax increment or gross receipts tax increment and the state board of finance, subject to the provisions of Subsection C of this section, may dedicate up to seventy-five percent of a gross receipts tax increment, each as determined pursuant to Section 3-60A-21 NMSA 1978, with the agreement of the municipality, county or state board of finance, evidenced by a resolution adopted by a majority vote of those entities. A resolution to dedicate a property tax increment or gross receipts tax increment shall become effective only on January 1 or July 1 of the calendar year.

3. C. The state board of finance shall condition a dedication of a gross receipts tax increment attributable to the state gross receipts tax on the approval required pursuant to Section 6 [3-60A-49 NMSA 1978] of this 2023 act and that the initial bonds issuance secured by such an increment shall be issued no later than four years after the state board of finance has adopted the resolution making the dedication. A resolution of the state board of finance shall find that:

   1. (1) the state board of finance has reviewed the request for the use of the state gross receipts tax increment; and
   2. (2) based upon review by the state board of finance of the applicable metropolitan redevelopment plan, the dedication by the state board of finance of the gross receipts tax increment within the metropolitan redevelopment area for use in meeting the required goals of the metropolitan redevelopment plan is reasonable and in the best interest of the state.

4. D. The governing body of the jurisdiction in which a metropolitan redevelopment area has been established shall timely notify the assessor of the county in which the area has been established, the taxation and revenue department and the local government division of the department of finance and administration when:

   1. (1) a metropolitan redevelopment plan has been approved that contains a provision for the allocation and percentage of property tax increments and gross receipts tax increments;
   2. (2) any outstanding bonds of the area have been paid off; and
   3. (3) the purposes of the area have otherwise been achieved.

History: Laws 1979, ch. 391, § 23; 1987, ch. 316, § 2; 1995, ch. 92, § 1; 2000, ch. 103, § 3; 2018, ch. 60, § 22; 2023, ch. 112, § 5.

ANNOTATIONS

Compiler's notes. — Laws 2024, ch. 62, § 3 changed the effective date of Laws 2023, ch. 112 from July 1, 2024 to January 1, 2025.

The 2023 amendment, effective January 1, 2025, provided for the dedication of a portion of an increase in certain property tax revenue, local option gross receipts tax revenue and state gross receipts tax revenue to fund a metropolitan redevelopment project; in the section heading, after "approval", added "alternative funding method"; and deleted former Subsections A through C and added new Subsections A through D.

The 2018 amendment, effective May 16, 2018, extended the powers and duties as identified in the Metropolitan Redevelopment Code from only municipalities to now include counties; replaced "municipality" and "governing body" with "local government" throughout the section; added subsection designations "A" through "C"; and in Subsection A, after "tax revenue derived from", deleted "property within a metropolitan redevelopment project and approving the use of the tax increment method for that property and only to the extent of the approval. An approval may be restricted to certain types or sources of tax revenue", and after the next occurrence of "the", added "properties within the district".

The 2000 amendment, effective May 17, 2000, inserted the fifth sentence and inserted "municipality's" in the sixth sentence.

The 1995 amendment, effective June 16, 1995, substituted "up to a twenty-year period" for "a ten-year period" in the third sentence and "up to twenty tax years" for "ten tax years" at the end of the last sentence.

The 1987 amendment, effective June 19, 1987, in the first sentence, near the beginning, substituted "applicable only to" for "used only upon prior approval by a majority of" and added at the end "and approving the use of the tax increment method for that property and only to the extent of the approval", inserted the second sentence, in the third sentence substituted "ten-year period" for "five-year period", in the fourth sentence inserted "partially approve" preceding "or disapprove" both places it appears, and in the sixth sentence, substituted "at the expiration of that time" for "upon approval by a majority of the participating units of" at the beginning and "effective for a period of ten tax years" for "deemed approved for a period of five tax years."