METRO REDEV PROJECT PROPERTY TAX EXEMPTION

HB0290

HOUSE BILL 290

57th legislature - STATE OF NEW MEXICO - second session, 2026

INTRODUCED BY

Cynthia Borrego
and
Meredith A. Dixon

AN ACT

RELATING TO TAXATION; EXTENDING THE PROPERTY TAX EXEMPTION
PERIOD FOR PROJECT PROPERTY IN METROPOLITAN REDEVELOPMENT
AREAS.

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

SECTION 1.
Section 3-60A-13.1 NMSA 1978 (being Laws 1985,
Chapter 225, Section 2, as amended) is amended to read:

"3-60A-13.1. PAYMENTS IN LIEU OF PROPERTY TAXES AND
ASSESSMENTS.--

A. If interests in project property are exempt from
property taxation and assessments under Subsection B of Section
3-60A-13 NMSA 1978 or Section 7-36-3.1 NMSA 1978, then during
the period extending from the date of acquisition of the
property by the local government through December 31 of the
year in which the [
seventh
]
twentieth
anniversary of that
acquisition date occurs, any lessee of the project property or
owner of a substantial beneficial interest in the project
property, in whose ownership the property would not be exempt
from property taxation except for the exemption granted under
Section 7-36-3.1 NMSA 1978, shall pay to the county treasurer
annually, at the same time property tax payments are due under
the Property Tax Code, an amount equal to the sum of:

(1) general property taxes that would have
been imposed under Subsection B of Section 7-37-7 NMSA 1978 had
it not been exempt and had it been valued at the valuation for
property taxation purposes that existed in the year immediately
preceding the year of acquisition by the local government;

(2) amounts that would have been imposed under
Subsection C of Section 7-37-7 NMSA 1978 on the project
property had it not been exempt and had it been valued at the
valuation for property taxation purposes that existed in the
year immediately preceding the year of acquisition by the local
government; and

(3) amounts that would have been imposed as
benefit assessments on the project property had it not been
exempt and had it been valued at the valuation for property
taxation purposes that existed in the year immediately
preceding the year of acquisition by the local government if
those benefit assessments are authorized by law and are
expressed in mills per dollar or dollars per thousand dollars
of net taxable value of property, assessed value of property or
similar terms.

B. The county treasurer shall distribute all
amounts collected under Subsection A of this section in the
same manner as the amounts would have been distributed if they
had been collected as taxes or assessments on nonexempt
property.

C. The provisions of this section shall apply only
to project property acquired by a local government under the
provisions of the Metropolitan Redevelopment Code on or after
January 1, 1986."

SECTION 2.
Section 7-36-3.1 NMSA 1978 (being Laws 1979,
Chapter 56, Section 2, as amended) is amended to read:

"7-36-3.1. METROPOLITAN REDEVELOPMENT PROPERTY--TAX
STATUS OF LESSEE'S INTERESTS.--Property interests of a lessee
in project property held under a lease with respect to a
project authorized by the Metropolitan Redevelopment Code 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 [
ten
]

twenty
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
the year in which the [
seventh
]
twentieth
anniversary of that
acquisition date occurs."

SECTION 3.
APPLICABILITY.--The provisions of this act
apply to leases of project property executed on or after the
effective date of this act.

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