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SENATE BILL 348
57
TH LEGISLATURE
-
STATE
OF
NEW
MEXICO
-
FIRST SESSION
,
2025
INTRODUCED BY
James G. Townsend and Gabriel Ramos and Jay C. Block
AN ACT
RELATING TO PUBLIC FUNDS; REQUIRING THE STATE TO MAKE PAYMENTS
IN LIEU OF TAXES TO POLITICAL SUBDIVISIONS WHEN ACQUIRING REAL
PROPERTY; PROVIDING AN EXEMPTION FOR THE DEPARTMENT OF
TRANSPORTATION; CREATING THE PAYMENTS IN LIEU OF TAXES FUND;
MAKING AN APPROPRIATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. [NEW MATERIAL] PAYMENTS IN LIEU OF TAXES FOR
STATE-ACQUIRED REAL PROPERTY--ADJUSTMENTS IN PAYMENTS.--
A. Whenever the state acquires fee simple ownership
of real property by purchase or eminent domain, the state shall
annually make payments in lieu of taxes to any political
subdivision of the state that imposed and received the revenues
of a property tax on the acquired real property prior to
acquisition by the state. The payments in lieu of taxes shall
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commence with the calendar year following state acquisition and
shall continue so long as the state retains ownership.
B. A state agency that intends to acquire fee
simple ownership of real property shall inquire with the clerk
of the county in which the property is situated as to the
annual property tax liability of the property for the prior
year. Annually, that state agency shall remit to the state
treasurer for deposit in the payments in lieu of taxes fund an
amount equal to the annual property tax liability for the
property being acquired.
C. All payments in lieu of taxes are contingent
upon sufficient appropriations and authorization being made by
the New Mexico legislature for the performance of the
provisions of this section. If sufficient appropriations and
authorization are not made by the legislature in any year, the
provisions of this section are suspended for that year.
D. The property tax division of the taxation and
revenue department shall promulgate rules to specify how
payments in lieu of taxes shall be paid pursuant to Subsection
A of this section and shall be adjusted from year to year,
taking into consideration factors that include changes in
property values and tax rates.
E. The provisions of this section shall not apply
to property purchased by or on behalf of the department of
transportation for the purposes of a public roadway or highway.
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SECTION 2. [NEW MATERIAL] PAYMENTS IN LIEU OF TAXES FUND
CREATED--AUTHORIZED PAYMENTS IN LIEU OF TAXES.--The "payments
in lieu of taxes fund" is created as a nonreverting fund within
the state treasury. The fund consists of appropriations,
gifts, grants, donations, income from investment of the fund
and any other money distributed or otherwise allocated to the
fund. The taxation and revenue department shall administer the
fund, and money in the fund is appropriated to the taxation and
revenue department to make payments to political subdivisions
of the state in lieu of taxes for state-acquired real property
pursuant to Section 1 of this 2025 act. Disbursements from the
fund shall be made by warrant of the secretary of finance and
administration pursuant to vouchers signed by the secretary of
taxation and revenue or the secretary's authorized
representative.
SECTION 3. EFFECTIVE DATE.--The effective date of the
provisions of this act is July 1, 2025.
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