Property interests of a lessee in project property held under a lease with respect to a project authorized by the Metropolitan Redevelopment Code [Chapter 3, Article 60A NMSA 1978] and acquired or held by a municipality prior to January 1, 1986 under the provisions of that code are exempt from property taxation for as long as there is an outstanding bonded indebtedness, but in any event for a period not to exceed fourteen years from the date of execution of the first lease of the project by the municipality. Property interests of a lessee of or an owner of a substantial beneficial interest in project property acquired or held by a municipality on or after January 1, 1986 with respect to a project authorized by the Metropolitan Redevelopment Code are exempt from property taxation for a period extending from the date of acquisition of the project property by the municipality through December 31 of a year that shall not exceed the fourteenth anniversary of that acquisition date.

History: 1978 Comp., § 7-36-3.1, enacted by Laws 1979, ch. 56, § 2; 1985, ch. 225, § 5; 2026, ch. 23, § 2.

ANNOTATIONS

Cross references. — For Community Development Incentive Act, see 3-64-1 NMSA 1978 et seq.

The 2026 amendment, effective May 20, 2026, extended the period during which project property in a metropolitan redevelopment area is exempt from property taxation, and clarified that the extended property tax exemption period is capped at fourteen years; after "period not to exceed" changed "ten" to "fourteen", after "December 31 of" deleted "the year in which" and added "a year that shall not exceed", and changed "seventh" to "fourteenth" preceding "anniversary".

Applicability. — Laws 2026, ch. 23, § 3 provided that the provisions of Laws 2026, ch. 23 apply to leases of project property executed on or after May 20, 2026.