SENATE CORPORATIONS AND TRANSPORTATION COMMITTEE SUBSTITUTE FOR

SENATE BILL 140

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

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--COMMENT PERIOD--SUBMISSION OF MATERIALS.--

          A. A district may revise the base year that the district uses to determine its gross receipts tax increment. To initiate the process of revising its base year, a district board shall:

                (1) adopt a resolution declaring that intent; and

                (2) forward copies of the adopted resolution to the secretary of taxation and revenue, the secretary of finance and administration, the developer and the local governments that have dedicated a tax increment to the district.

          B. The taxation and revenue department, the department of finance and administration, the developer and the local governments that have dedicated a tax increment to the district may submit written comments to the district 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.

          C. 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, the developer and the local governments that have dedicated a tax increment to the district; and

                (3) any other related documentation.

          D. As used in this section, "developer" means the owner or developer who has entered into an agreement pursuant to Subsection A of Section 5-15-4 NMSA 1978 with the governing body that formed the district."

     SECTION 2. 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;

                (4) if there is no unresolved objection to the revision by the developer or by a local government that has dedicated a tax increment to the district; and

                (5) 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, the developer and the local governments that have dedicated a tax increment to the district.

          C. As used in this section, "developer" means the owner or developer who has entered into an agreement pursuant to Subsection A of Section 5-15-4 NMSA 1978 with the governing body that formed the district."

     SECTION 3. 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 distributed to the district and credited to the period between the time that the revenue collection began and the end 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 to the taxing entities that have dedicated a gross receipts tax increment to the district an amount of that revenue in proportion to the amount of gross receipts tax increment attributable to their dedication."

     SECTION 4. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.

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