1. A. If the state board of finance or a taxing entity approves a dedication or increase in the dedication of a gross receipts tax increment to a district, the state board of finance or the taxing entity shall notify the taxation and revenue department of that approval at least one hundred twenty days before the date on which the taxation and revenue department is requested to designate a reporting location code pursuant to Section 7-1-14 NMSA 1978 for the district in order to calculate the district's base gross receipts taxes; provided that the effective date of the dedication by the state board of finance is on or after the date base gross receipts taxes have been calculated and the bonds are approved by the legislature pursuant to Section 5-15-21 NMSA 1978.
2. B. In regard to a dedication of a gross receipts tax increment attributable to the state gross receipts tax, if the approval required pursuant to Section 5-15-21 NMSA 1978 has not occurred when the notice pursuant to Subsection A of this section is made, the state board of finance shall include in the notice that legislative approval is needed prior to a distribution pursuant to Section 7-1-6.54 NMSA 1978 attributable to the state gross receipts tax can be made. Upon approval pursuant to Section 5-15-21 NMSA 1978, the state board of finance shall notify the department of the approval.

History: Laws 2006, ch. 75, § 27; 2019, ch. 275, § 7; 2025, ch. 130, § 9.

ANNOTATIONS

The 2025 amendment, effective July 1, 2025, adjusted the date by when the state board of finance or the taxing entity must notify the taxation and revenue department of an approval or dedication of a gross receipts tax increment to a district; in Subsection A, after "twenty days before the" deleted "effective date of the dedication or increase in the dedication" and added "date on which the taxation and revenue department tis requested to designate a reporting location code pursuant to Section 7-1-14 NMSA 1978 for the district in order to calculate the district's base gross receipts taxes", and after "on or after the date" added "base gross receipts taxes have been calculated and".

The 2019 amendment, effective July 1, 2019, clarified that the effective date of a dedication of gross receipts tax made by the state board of finance or taxing entity cannot be before the date of legislative approval pursuant to Section 5-15-21 NMSA 1978, and required the state board of finance or a taxing entity to indicate in its notice that before any distribution attributable to the state gross receipts tax increment is made to a tax increment development district, legislative approval of the gross receipts tax increment bonds is required; in Subsection A, after "increase in the dedication", added "provided that the effective date of the dedication by the state board of finance is on or after the date the bonds are approved by the legislature pursuant to Section 5-15-21 NMSA 1978"; and added Subsection B.

Applicability. — Laws 2019, ch. 275, § 10 provided that the provisions of this act shall not apply to dedications of gross receipts tax increments by the state board of finance made prior to July 1, 2019.