EXTEND PROPERTY TAX EXEMPTION PERIOD

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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 a year that shall not exceed the fourteenth anniversary of
that acquisition date, 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
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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.
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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
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."
SECTION 3. APPLICABILITY.--The provisions of this act
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apply to leases of project property executed on or after the
effective date of this act.