Section 5-15-15 - Tax increment financing; gross receipts tax increment. - New Mexico Statutes

5-15-15. Tax increment financing; gross receipts tax increment.

A.     Notwithstanding any law to the contrary, but in accordance with the provisions of the Tax Increment for Development Act [5-15-1 NMSA 1978], a tax increment development plan, as originally approved or as later modified, may contain a provision that a portion of certain gross receipts tax increments collected within the tax increment development area after the effective date of approval of the tax increment development plan may be dedicated for the purpose of securing gross receipts tax increment bonds pursuant to the Tax Increment for Development Act.

B.     As to a district formed by a municipality, a portion of any of the following gross receipts tax increments may be paid by the state directly into a special fund of the district to pay the principal of, the interest on and any premium due in connection with the bonds of, loans or advances to, or any indebtedness incurred by, whether funded, refunded, assumed or otherwise, the authority for financing or refinancing, in whole or in part, a tax increment development project within the tax increment development area:

(1)     municipal gross receipts tax authorized pursuant to the Municipal Local Option Gross Receipts Taxes Act [7-19D-1 NMSA 1978];

(2)     municipal environmental services gross receipts tax authorized pursuant to the Municipal Local Option Gross Receipts Taxes Act;

(3)     municipal infrastructure gross receipts tax authorized pursuant to the Municipal Local Option Gross Receipts Taxes Act;

(4)     municipal capital outlay gross receipts tax authorized pursuant to the Municipal Local Option Gross Receipts Taxes Act;

(5)     municipal regional transit gross receipts tax authorized pursuant to the Municipal Local Option Gross Receipts Taxes Act;

(6)     an amount distributed to municipalities pursuant to Sections 7-1-6.4 and 7-1-6.46 NMSA 1978; and

(7)     the state gross receipts tax.

C.     As to a district formed by a county, all or a portion of any of the following gross receipts tax increments may be paid by the state directly into a special fund of the district to pay the principal of, the interest on and any premium due in connection with the bonds of, loans or advances to or any indebtedness incurred by, whether funded, refunded, assumed or otherwise, the district for financing or refinancing, in whole or in part, a tax increment development project within the tax increment development area:

(1)     county gross receipts tax authorized pursuant to the County Local Option Gross Receipts Taxes Act [7-20E-1 NMSA 1978];

(2)     county environmental services gross receipts tax authorized pursuant to the County Local Option Gross Receipts Taxes Act;

(3)     county infrastructure gross receipts tax authorized pursuant to the County Local Option Gross Receipts Taxes Act;

(4)     county capital outlay gross receipts tax authorized pursuant to the County Local Option Gross Receipts Taxes Act;

(5)     county regional transit gross receipts tax authorized pursuant to the County Local Option Gross Receipts Taxes Act;

(6)     the amount distributed to counties pursuant to Section 7-1-6.47 NMSA 1978; and

(7)     the state gross receipts tax.

D.     The gross receipts tax increment generated by the imposition of municipal or county local option gross receipts taxes specified by statute for particular purposes may nonetheless be dedicated for the purposes of the Tax Increment for Development Act if intent to do so is set forth in the tax increment development plan approved by the governing body, if the purpose for which the increment is intended to be used is consistent with the purposes set forth in the statute authorizing the municipal or county local option gross receipts tax.

E.     An imposition of a gross receipts tax increment attributable to the imposition of a gross receipts tax by a taxing entity may be dedicated for the purpose of securing gross receipts tax increment bonds with the agreement of the taxing entity, evidenced by a resolution adopted by a majority vote of that taxing entity.  A taxing entity shall not agree to dedicate for the purposes of securing gross receipts tax increment bonds more than seventy-five percent of its gross receipts tax increment attributable to the imposition of gross receipts taxes by the taxing entity.  A resolution of the taxing entity to dedicate a gross receipts tax increment or to increase the dedication of a gross receipts tax increment shall become effective only on January 1 or July 1 of the calendar year.

F.     An imposition of a gross receipts tax increment attributable to the imposition of the state gross receipts tax within a district less the distributions made pursuant to Section 7-1-6.4 NMSA 1978 may be dedicated for the purpose of securing gross receipts tax increment bonds with the agreement of the state board of finance, evidenced by a resolution adopted by a majority vote of the state board of finance.  The state board of finance shall not agree to dedicate more than seventy-five percent of the gross receipts tax increment attributable to the imposition of the state gross receipts tax within the district.  The resolution of the state board of finance shall become effective only on January 1 or July 1 of the calendar year and shall find that:

(1)     the state board of finance has reviewed the request for the use of the state gross receipts tax;

(2)     based upon review by the state board of finance of the applicable tax increment development plan, the dedication by the state board of finance of a portion of the gross receipts tax increment attributable to the imposition of the state gross receipts tax within the district for use in meeting the required goals of the tax increment plan is reasonable and in the best interest of the state; and

(3)     the use of the state gross receipts tax is likely to stimulate the creation of jobs, economic opportunities and general revenue for the state through the addition of new businesses to the state and the expansion of existing businesses within the state.

G.     The governing body of the jurisdiction in which a tax increment development district has been established shall timely notify the assessor of the county in which the district has been established, the taxation and revenue department and the local government division of the department of finance and administration when:

(1)     a tax increment development plan has been approved that contains a provision for the allocation of a gross receipts tax increment;

(2)     any outstanding bonds of the district have been paid off; and

(3)     the purposes of the district have otherwise been achieved.