As used in the Tax Increment for Development Act:
A. "base gross receipts taxes" means:
(1) the total amount of gross receipts taxes collected within a tax increment development district, as estimated by the governing body that adopted a resolution to form that district, in consultation with the taxation and revenue department, in the calendar year preceding the formation of the tax increment development district or, when an area is added to an existing district, the amount of gross receipts taxes collected in the calendar year preceding the effective date of the modification of the tax increment development plan and designated by the governing body to be available as part of the gross receipts tax increment; and
(2) any amount of gross receipts taxes that would have been collected in such year if any applicable additional gross receipts taxes imposed after that year had been imposed in that year;
B. "base property taxes" means:
(1) the portion of property taxes produced by the total of all property tax levied at the rate fixed each year by each governing body levying a property tax on the assessed value of taxable property within the tax increment development area last certified for the year ending immediately prior to the year in which a tax increment development plan is approved for the tax increment development area, or, when an area is added to an existing tax increment development area, "base property taxes" means that portion of property taxes produced by the total of all property tax levied at the rate fixed each year by each governing body levying a property tax upon the assessed value of taxable property within the tax increment development area on the date of the modification of the tax increment development plan and designated by the governing body to be available as part of the property tax increment; and
(2) any amount of property taxes that would have been collected in such year if any applicable additional property taxes imposed after that year had been imposed in that year;
C. "county option gross receipts taxes" means gross receipts taxes imposed by counties pursuant to the County Local Option Gross Receipts Taxes Act [Chapter 7, Article 20E NMSA 1978] and designated by the governing body of the county to be available as part of the gross receipts tax increment;
D. "district" means a tax increment development district;
E. "district board" means a board formed in accordance with the provisions of the Tax Increment for Development Act to govern a tax increment development district;
F. "enhanced services" means public services provided by a municipality or county within the district at a higher level or to a greater degree than otherwise available to the land located in the district from the municipality or county, including such services as public safety, fire protection, street or sidewalk cleaning or landscape maintenance in public areas; provided that "enhanced services" does not include the basic operation and maintenance related to infrastructure improvements financed by the district pursuant to the Tax Increment for Development Act;
G. "governing body" means the city council or city commission of a city, the board of trustees or council of a town or village or the board of county commissioners of a county;
H. "gross receipts tax increment" means the gross receipts taxes collected within a tax increment development district in excess of the base gross receipts taxes collected in the district;
I. "gross receipts tax increment bonds" means bonds issued by a district in accordance with the Tax Increment for Development Act, the pledged revenue for which is a gross receipts tax increment;
J. "local government" means a municipality or county;
K. "municipal option gross receipts taxes" means those gross receipts taxes imposed by municipalities pursuant to the Municipal Local Option Gross Receipts Taxes Act [Chapter 7, Article 19D NMSA 1978] and designated by the governing body of the municipality to be available as part of the gross receipts tax increment;
L. "municipality" means an incorporated city, town or village;
M. "new full-time economic base job" means a job:
(1) that is primarily performed in New Mexico;
(2) that is held by an employee who is hired to work an average of at least thirty-two hours per week for at least forty-eight weeks per year;
(3) that is:
(a) involved, directly or in a supervisory capacity, with the production of: 1) a service; provided that the majority of the revenue generated from the service is from sources outside the state; or 2) tangible or intangible personal property for sale; or
(b) held by an employee that is employed at a regional, national or international headquarters operation or at an operation that primarily provides services for other operations of the qualifying entity that are located outside the state; and
(4) that is not directly involved with natural resources extraction or processing, on-site services where the customer is present for the delivery of the service, retail, construction or agriculture except for value-added processing performed on agricultural products that would then be sold for wholesale or retail consumption;
N. "owner" means a person owning real property within the boundaries of a district;
O. "person" means an individual, corporation, association, partnership, limited liability company or other legal entity;
P. "project" means a tax increment development project;
Q. "property tax increment" means all property tax collected on real property within the designated tax increment development area that is in excess of the base property tax until termination of the district and distributed to the district in the same manner as distributions are made under the provisions of the Tax Administration Act [Chapter 7, Article 1, NMSA 1978];
R. "property tax increment bonds" means bonds issued by a district in accordance with the Tax Increment for Development Act, the pledged revenue for which is a property tax increment;
S. "public improvements" means on-site improvements and off-site improvements that directly or indirectly benefit a tax increment development district or facilitate development within a tax increment development area and that are dedicated to the governing body in which the district lies. "Public improvements" includes:
(1) sanitary sewage systems, including collection, transport, treatment, dispersal, effluent use and discharge;
(2) drainage and flood control systems, including collection, transport, storage, treatment, dispersal, effluent use and discharge;
(3) water systems for domestic, commercial, office, hotel or motel, industrial, irrigation, municipal or fire protection purposes, including production, collection, storage, treatment, transport, delivery, connection and dispersal;
(4) highways, streets, roadways, bridges, crossing structures and parking facilities, including all areas for vehicular use for travel, ingress, egress and parking;
(5) trails and areas for pedestrian, equestrian, bicycle or other non-motor vehicle use for travel, ingress, egress and parking;
(6) pedestrian and transit facilities, parks, recreational facilities and open space areas for the use of members of the public for entertainment, assembly and recreation;
(7) landscaping, including earthworks, structures, plants, trees and related water delivery systems;
(8) public buildings, public safety facilities and fire protection and police facilities;
(9) electrical generation, transmission and distribution facilities;
(10) natural gas distribution facilities;
(11) lighting systems;
(12) cable or other telecommunications lines and related equipment;
(13) traffic control systems and devices, including signals, controls, markings and signage;
(14) school sites and facilities with the consent of the governing board of the public school district for which the facility is to be acquired, constructed or renovated;
(15) library and other public educational or cultural facilities;
(16) equipment, vehicles, furnishings and other personal property related to the items listed in this subsection;
(17) inspection, construction management, planning and program management and other professional services costs incidental to the project;
(18) workforce housing; and
(19) any other improvement that the governing body determines to be for the use or benefit of the public;
T. "state gross receipts tax" means the gross receipts tax imposed pursuant to the Gross Receipts and Compensating Tax Act [Chapter 7, Article 9 NMSA 1978], but does not include that portion distributed to municipalities pursuant to Sections 7-1-6.4 and 7-1-6.46 NMSA 1978 or to counties pursuant to Section 7-1-6.47 NMSA 1978;
U. "sustainable development" means land development that achieves sustainable economic and social goals in ways that can be supported for the long term by conserving resources, protecting the environment and ensuring human health and welfare using mixed-use, pedestrian-oriented, multimodal land use planning;
V. "tax increment development area" means the land included within the boundaries of a tax increment development district;
W. "tax increment development district" means a district formed for the purposes of carrying out tax increment development projects;
X. "tax increment development plan" means a plan for the undertaking of a tax increment development project;
Y. "tax increment development project" means activities undertaken within a tax increment development area to enhance the sustainability of the local, regional or statewide economy; to support the creation of jobs, schools and workforce housing; and to generate tax revenue for the provision of public improvements and may include:
(1) acquisition of land within a designated tax increment development area or a portion of that tax increment development area;
(2) demolition and removal of buildings and improvements and installation, construction or reconstruction of streets, utilities, parks, playgrounds and improvements necessary to carry out the objectives of the Tax Increment for Development Act;
(3) installation, construction or reconstruction of streets, water utilities, sewer utilities, parks, playgrounds and other public improvements necessary to carry out the objectives of the Tax Increment for Development Act;
(4) disposition of property acquired or held by a tax increment development district as part of the undertaking of a tax increment development project at the fair market value of such property for uses in accordance with the Tax Increment for Development Act;
(5) payments for professional services contracts necessary to implement a tax increment development plan or project;
(6) borrowing to purchase land, buildings or infrastructure in an amount not to exceed the revenue stream that may be derived from the gross receipts tax increment or the property tax increment estimated to be received by a tax increment development district; and
(7) grants for public improvements essential to the location or expansion of a business;
Z. "taxing entity" means the governing body of a political subdivision of the state, the gross receipts tax increment or property tax increment of which may be used for a tax increment development project; and
AA. "workforce housing" means decent, safe and sanitary dwellings, apartments, single-family dwellings or other living accommodations that are affordable for persons or families earning less than eighty percent of the median income within the county in which the tax increment development project is located; provided that an owner-occupied housing unit is affordable to a household if the expected sales price is reasonably anticipated to result in monthly housing costs that do not exceed thirty-three percent of the household's gross monthly income; provided that:
(1) determination of mortgage amounts and payments is to be based on down payment rates and interest rates generally available to lower- and moderate-income households; and
(2) a renter-occupied housing unit is affordable to a household if the unit's monthly housing costs, including rent and basic utility and energy costs, do not exceed thirty-three percent of the household's gross monthly income.
History: Laws 2006, ch. 75, § 3; 2019, ch. 212, § 199; 2019, ch. 275, § 1.
ANNOTATIONS2019 Multiple Amendments. — Laws 2019, ch. 212, § 199, effective April 3, 2019, and Laws 2019, ch. 275, § 1, effective July 1, 2019, enacted different amendments to this section that can be reconciled. Pursuant to 12-1-8 NMSA 1978, Laws 2019, ch. 275, § 1, as the last act signed by the governor, is set out above and incorporates both amendments. The amendments enacted by Laws 2019, ch. 212, § 199 and Laws 2019, ch. 275, § 1 are described below. To view the session laws in their entirety, see the 2019 session laws on NMOneSource.com.
The nature of the difference between the amendments is that Laws 2019, ch. 212, § 199, removed the definition of "resident qualified elector" from the Tax Increment for Development Act, and Laws 2019, ch. 275, § 1, defined "new full-time economic base job", and revised the definition of "gross receipts tax increment", as used in the Tax Increment for Development Act.
Laws 2019, ch. 275, § 1, effective July 1, 2019, defined "new full-time economic base job", and revised the definition of "gross receipts tax increment", as used in the Tax Increment for Development Act; in Subsection H, after "gross receipts taxes collected", deleted "for the duration of the existence of a tax increment development district and distributed to the district in the same manner as distributions are made under the provisions of the Tax Administration Act" and added "in the district"; and added new Subsection M and redesignated former Subsections M through AA as Subsections N through BB
Laws 2019, ch. 212, § 199, effective April 3, 2019, removed the definition of "resident qualified elector" from the Tax Increment for Development Act; and deleted Subsection S and redesignated former Subsections T through AA as Subsections S through Z, respectively.
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 the effective date of this act.