SENATE BILL 140

51st legislature - STATE OF NEW MEXICO - second session, 2014

INTRODUCED BY

Daniel A. Ivey-Soto

 

 

 

 

 

AN ACT

RELATING TO TAX INCREMENT DEVELOPMENT DISTRICTS; ESTABLISHING REQUIREMENTS FOR REVISING THE BASE YEAR USED TO DETERMINE A GROSS RECEIPTS TAX INCREMENT; REQUIRING THE RETURN OF CERTAIN GROSS RECEIPTS TAX INCREMENT REVENUE UPON A BASE-YEAR REVISION; DECLARING AN EMERGENCY.

 

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

     SECTION 1. A new section of the Tax Increment for Development Act is enacted to read:

     "[NEW MATERIAL] BASE YEAR REVISION--RESOLUTION--NOTICE OF RESOLUTION.--Prior to revising the base year that the district uses to determine its gross receipts tax increment, a district board shall:

          A. adopt a resolution declaring that intent; and

          B. no later than fifteen days after adopting the resolution, forward copies of the adopted resolution to the taxation and revenue department, the department of finance and administration and the governments that have dedicated a tax increment to the district."

     SECTION 2. A new section of the Tax Increment for Development Act is enacted to read:

     "[NEW MATERIAL] BASE YEAR REVISION--COMMENT PERIOD--SUBMISSION OF MATERIALS.--

          A. For fifteen days after receiving a copy of a district board's resolution indicating the board's intent to revise the base year used to determine the district's gross receipts tax increment, the taxation and revenue department, the department of finance and administration and the governments that have dedicated a tax increment to the district may submit written comments to the district on the matter of the base year revision.

          B. No more than forty-five days after adopting the resolution declaring the intent to revise the base year that the district uses to determine its gross receipts tax increment, the district board shall submit to the state board of finance:

                (1) a copy of the resolution;

                (2) all comments on the matter that the district received from the taxation and revenue department, the department of finance and administration and the governments that have dedicated a tax increment to the district; and

                (3) any other related documentation."

     SECTION 3. A new section of the Tax Increment for Development Act is enacted to read:

     "[NEW MATERIAL] BASE YEAR REVISION--APPROVAL.--

          A. The state board of finance may approve the revision of the base year used to determine a district's gross receipts tax increment:

                (1) once during the lifetime of the district;

                (2) if the revised year is a calendar year that is completed;

                (3) if no gross receipts tax increment bonds attributable to the district have been issued; and

                (4) upon a finding that the revision is reasonable and in the best interest of the state.

          B. If the state board of finance approves the revision of the base year used to determine a district's gross receipts tax increment, the state board of finance shall notify the district, the secretary of taxation and revenue and the governments that have dedicated a tax increment to the district."

     SECTION 4. A new section of the Tax Increment for Development Act is enacted to read:

     "[NEW MATERIAL] BASE YEAR REVISION--EFFECT.--

          A. Upon notice of the approval of a revision of the base year used to determine a district's gross receipts tax increment, the district shall:

                (1) return to the taxation and revenue department any gross receipts tax increment attributable to the district and collected in the period between the time that the revenue collection began and the beginning of the revised base year;

                (2) update the district tax increment development plan to reflect the revision; and

                (3) file with the clerk of the governing body that formed the district the revised tax increment development plan.

          B. Upon receipt of the revenue identified in Paragraph (1) of Subsection A of this section, the taxation and revenue department shall remit that amount to the governments that have dedicated a tax increment to the district in proportion to the amount of tax increment attributable to their dedication."

     SECTION 5. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.

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