Approval required for issuance of bonds against state gross receipts tax increments.

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A. In addition to all other requirements of the Tax Increment for Development Act, prior to a district board issuing bonds that are issued in whole or in part against a gross receipts tax increment attributable to the state gross receipts tax within a district and before a distribution attributable to the state gross receipts tax is made pursuant to Section 7-1-6.54 NMSA 1978, the New Mexico finance authority shall review the proposed issuance of the bonds and determine that the proceeds of the bonds will be used for a tax increment development project in accordance with the district's tax increment development plan and present the proposed issuance of the bonds to the legislature for approval.

B. The issuance of the bonds and the maximum amount of bonds to be issued shall be specifically authorized by law.

History: Laws 2006, ch. 75, § 21; 2009, ch. 179, § 7; 2019, ch. 275, § 6.

ANNOTATIONS

The 2019 amendment, effective July 1, 2019, clarified that legislative approval is required not only prior to the issuance of gross receipts tax increment bonds, but also before a distribution is made pursuant to Section 7-1-6.54 NMSA 1978; in Subsection A, after "within a district", added "and before a distribution attributable to the state gross receipts tax is made pursuant to Section 7-1-6.54 NMSA 1978".

Applicability. — Laws 2019, ch. 275, § 10 provided that the provisions of this act shall not apply to dedications of gross receipts tax increments by the state board of finance made prior to July 1, 2019.

The 2009 amendment, effective June 19, 2009, after "district board issuing bonds", added "that are issued in whole or in part"; and in Subsection B, after "issuance of the bonds", added "and the maximum amount of bonds to be issued".


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