HB 290

                                1  HOUSE BILL 290
                                2      57TH LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 2026
                                3  INTRODUCED BY
                                4  Cynthia Borrego and Meredith A. Dixon
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                                10  AN ACT
                                11   RELATING TO TAXATION; EXTENDING THE PROPERTY TAX EXEMPTION
                                12   PERIOD FOR PROJECT PROPERTY IN METROPOLITAN REDEVELOPMENT
                                13   AREAS.
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                                15   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
                                16        SECTION 1.      Section 3-60A-13.1 NMSA 1978 (being Laws 1985,
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                                17   Chapter 225, Section 2, as amended) is amended to read:
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                                18        "3-60A-13.1.      PAYMENTS IN LIEU OF PROPERTY TAXES AND
                                19   ASSESSMENTS.--
                                20  A.    If interests in project property are exempt from
                                21   property taxation and assessments under Subsection B of Section
                                22   3-60A-13 NMSA 1978 or Section 7-36-3.1 NMSA 1978, then during
                                23   the period extending from the date of acquisition of the
                                24   property by the local government through December 31 of the
                                25   year in which the [seventh] twentieth anniversary of that
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                                1    acquisition date occurs, any lessee of the project property or
                                2    owner of a substantial beneficial interest in the project
                                3    property, in whose ownership the property would not be exempt
                                4    from property taxation except for the exemption granted under
                                5    Section 7-36-3.1 NMSA 1978, shall pay to the county treasurer
                                6    annually, at the same time property tax payments are due under
                                7    the Property Tax Code, an amount equal to the sum of:
                                8  (1)   general property taxes that would have
                                9    been imposed under Subsection B of Section 7-37-7 NMSA 1978 had
                                10   it not been exempt and had it been valued at the valuation for
                                11   property taxation purposes that existed in the year immediately
                                12   preceding the year of acquisition by the local government;
                                13  (2)   amounts that would have been imposed under
                                14   Subsection C of Section 7-37-7 NMSA 1978 on the project
                                15   property had it not been exempt and had it been valued at the
                                16   valuation for property taxation purposes that existed in the
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                                17   year immediately preceding the year of acquisition by the local
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                                18   government; and
                                19  (3)   amounts that would have been imposed as
                                20   benefit assessments on the project property had it not been
                                21   exempt and had it been valued at the valuation for property
                                22   taxation purposes that existed in the year immediately
                                23   preceding the year of acquisition by the local government if
                                24   those benefit assessments are authorized by law and are
                                25   expressed in mills per dollar or dollars per thousand dollars
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                                1    of net taxable value of property, assessed value of property or
                                2    similar terms.
                                3  B.   The county treasurer shall distribute all
                                4    amounts collected under Subsection A of this section in the
                                5    same manner as the amounts would have been distributed if they
                                6    had been collected as taxes or assessments on nonexempt
                                7    property.
                                8  C.   The provisions of this section shall apply only
                                9    to project property acquired by a local government under the
                                10   provisions of the Metropolitan Redevelopment Code on or after
                                11   January 1, 1986."
                                12        SECTION 2.     Section 7-36-3.1 NMSA 1978 (being Laws 1979,
                                13   Chapter 56, Section 2, as amended) is amended to read:
                                14        "7-36-3.1.     METROPOLITAN REDEVELOPMENT PROPERTY--TAX
                                15   STATUS OF LESSEE'S INTERESTS.--Property interests of a lessee
                                16   in project property held under a lease with respect to a
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                                17   project authorized by the Metropolitan Redevelopment Code and
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                                18   acquired or held by a municipality prior to January 1, 1986
                                19   under the provisions of that code are exempt from property
                                20   taxation for as long as there is an outstanding bonded
                                21   indebtedness, but in any event for a period not to exceed [ten]
                                22   twenty years from the date of execution of the first lease of
                                23   the project by the municipality.    Property interests of a
                                24   lessee of or an owner of a substantial beneficial interest in
                                25   project property acquired or held by a municipality on or after
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                                1    January 1, 1986 with respect to a project authorized by the
                                2    Metropolitan Redevelopment Code are exempt from property
                                3    taxation for a period extending from the date of acquisition of
                                4    the project property by the municipality through December 31 of
                                5    the year in which the [seventh] twentieth anniversary of that
                                6    acquisition date occurs."
                                7  SECTION 3.   APPLICABILITY.--The provisions of this act
                                8    apply to leases of project property executed on or after the
                                9    effective date of this act.
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