New Mexico 2025 Regular Session

New Mexico Senate Bill SB383 Compare Versions

Version 1 (Old)

Version 2 (New)

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1		-	~~STBTC/SB 383~~
2		-	~~Page 1~~
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	28	+	SENATE BILL 383
	29	+	57
	30	+	TH LEGISLATURE
	31	+	-
	32	+
	33	+	STATE
	34	+
	35	+	OF
	36	+
	37	+	NEW
	38	+
	39	+	MEXICO
	40	+
	41	+	-
	42	+	FIRST SESSION
	43	+	,
	44	+
	45	+	2025
	46	+	INTRODUCED BY
	47	+	Candy Spence Ezzell
28	48		AN ACT
29		-	RELATING TO MUNICIPALITIES; PROVIDING FOR THE ISSUANCE OF
30		-	FLOOD RECOVERY REVENUE BONDS FOR REBUILDING, REPAIRING,
31		-	REPLACING AND HARDENING OF MUNICIPAL PROPERTY DAMAGED BY A
32		-	FLOOD; CREATING A MUNICIPAL FLOOD RECOVERY GROSS RECEIPTS TAX
33		-	FOR THE PAYMENT OF FLOOD RECOVERY REVENUE BONDS; DECLARING AN
34		-	EMERGENCY.
	49	+	RELATING TO MUNICIPALITIES; PROVIDING FOR THE ISSUANCE OF FLOOD
	50	+	RECOVERY REVENUE BONDS FOR REBUILDING, REPAIRING, REPLACING AND
	51	+	HARDENING OF MUNICIPAL PROPERTY DAMAGED BY A FLOOD; CREATING A
	52	+	MUNICIPAL FLOOD RECOVERY GROSS RECEIPTS TAX FOR THE PAYMENT OF
	53	+	FLOOD RECOVERY REVENUE BONDS; PROVIDING A GOVERNMENTAL GROSS
	54	+	RECEIPTS TAX DEDUCTION FOR THE SALE OF SERVICES AND PROPERTY TO
	55	+	A MUNICIPALITY FOR THE REBUILDING, REPAIRING, REPLACING OR
	56	+	HARDENING OF THE MUNICIPALITY'S PROPERTY DAMAGED BY A FLOOD;
	57	+	PROVIDING A DELAYED REPEAL OF THE GOVERNMENTAL GROSS RECEIPTS
	58	+	TAX DEDUCTION; DECLARING AN EMERGENCY.
35	59		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
36	60		SECTION 1. Section 3-31-1 NMSA 1978 (being Laws 1973,
37	61		Chapter 395, Section 3, as amended) is amended to read:
38	62		"3-31-1. REVENUE BONDS--AUTHORITY TO ISSUE--PLEDGE OF
39		-	REVENUES--LIMITATION ON TIME OF ISSUANCE.--
40		-	A. In addition to any other law and constitutional
41		-	home rule powers authorizing a municipality to issue revenue
42		-	bonds, a municipality may issue revenue bonds pursuant to
43		-	Chapter 3, Article 31 NMSA 1978 for the purposes specified
44		-	in this section.
45		-	B. Utility revenue bonds may be issued for
46		-	acquiring, extending, enlarging, bettering, repairing or
47		-	otherwise improving a municipal utility or for any
48		-	combination of the foregoing purposes. The municipality may
49		-	pledge irrevocably any or all of the net revenues from the
50		-	operation of the municipal utility or of any one or more of
51		-	other such municipal utilities for payment of the interest on STBTC/SB 383
52		-	Page 2
	63	+	.230270.2 underscored material = new
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78		-	and principal of the revenue bonds.
79		-	C. Joint utility revenue bonds may be issued
80		-	for acquiring, extending, enlarging, bettering, repairing or
81		-	otherwise improving joint water facilities, sewer facilities,
82		-	gas facilities or electric facilities or for any combination
	90	+	REVENUES--LIMITATION ON TIME OF ISSUANCE.--
	91	+	A. In addition to any other law and constitutional
	92	+	home rule powers authorizing a municipality to issue revenue
	93	+	bonds, a municipality may issue revenue bonds pursuant to
	94	+	Chapter 3, Article 31 NMSA 1978 for the purposes specified in
	95	+	this section.
	96	+	B. Utility revenue bonds may be issued for
	97	+	acquiring, extending, enlarging, bettering, repairing or
	98	+	otherwise improving a municipal utility or for any combination
83	99		of the foregoing purposes. The municipality may pledge
84	100		irrevocably any or all of the net revenues from the operation
85		-	of these municipal utilities for the payment of the interest
86		-	on and principal of the bonds.
87		-	D. Gross receipts tax revenue bonds may be
88		-	issued for any municipal purpose. A municipality may pledge
	101	+	of the municipal utility or of any one or more of other such
	102	+	municipal utilities for payment of the interest on and
	103	+	principal of the revenue bonds.
	104	+	C. Joint utility revenue bonds may be issued for
	105	+	acquiring, extending, enlarging, bettering, repairing or
	106	+	otherwise improving joint water facilities, sewer facilities,
	107	+	gas facilities or electric facilities or for any combination of
	108	+	the foregoing purposes. The municipality may pledge
	109	+	irrevocably any or all of the net revenues from the operation
	110	+	of these municipal utilities for the payment of the interest on
	111	+	and principal of the bonds.
	112	+	D. Gross receipts tax revenue bonds may be issued
	113	+	for any municipal purpose. A municipality may pledge
89	114		irrevocably any or all of the gross receipts tax revenue
90		-	received by the municipality pursuant to Section 7-1-6.4
91		-	or 7-1-6.12 NMSA 1978 to the payment of the interest on and
92		-	principal of the gross receipts tax revenue bonds or for any
93		-	area of municipal government services. A law that imposes
94		-	or authorizes the imposition of a tax authorized by the
95		-	Municipal Local Option Gross Receipts and Compensating Taxes
96		-	Act or that affects the tax, or a law supplemental thereto
97		-	or otherwise appertaining thereto, shall not be repealed or
98		-	amended or otherwise directly or indirectly modified in such
99		-	a manner as to impair adversely any outstanding revenue
100		-	bonds that may be secured by a pledge of such tax unless the
101		-	outstanding revenue bonds have been discharged in full or
102		-	provision has been fully made therefor. Revenues in excess STBTC/SB 383
103		-	Page 3
	115	+	.230270.2
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129		-	of the annual principal and interest due on gross receipts
130		-	tax revenue bonds secured by a pledge of gross receipts tax
131		-	revenue may be accumulated in a debt service reserve account.
132		-	The governing body of the municipality may appoint a
133		-	commercial bank trust department to act as trustee of the
134		-	gross receipts tax revenue and to administer the payment of
135		-	principal of and interest on the bonds.
	143	+	received by the municipality pursuant to Section 7-1-6.4 or
	144	+	7-1-6.12 NMSA 1978 to the payment of the interest on and
	145	+	principal of the gross receipts tax revenue bonds or for any
	146	+	area of municipal government services. A law that imposes or
	147	+	authorizes the imposition of a tax authorized by the Municipal
	148	+	Local Option Gross Receipts and Compensating Taxes Act or that
	149	+	affects the tax, or a law supplemental thereto or otherwise
	150	+	appertaining thereto, shall not be repealed or amended or
	151	+	otherwise directly or indirectly modified in such a manner as
	152	+	to impair adversely any outstanding revenue bonds that may be
	153	+	secured by a pledge of such tax unless the outstanding revenue
	154	+	bonds have been discharged in full or provision has been fully
	155	+	made therefor. Revenues in excess of the annual principal and
	156	+	interest due on gross receipts tax revenue bonds secured by a
	157	+	pledge of gross receipts tax revenue may be accumulated in a
	158	+	debt service reserve account. The governing body of the
	159	+	municipality may appoint a commercial bank trust department to
	160	+	act as trustee of the gross receipts tax revenue and to
	161	+	administer the payment of principal of and interest on the
	162	+	bonds.
136	163		E. Gasoline tax revenue bonds may be issued for
137		-	laying off, opening, constructing, reconstructing,
138		-	resurfacing, maintaining, acquiring rights of way, repairing
139		-	and otherwise improving municipal buildings, alleys, streets,
140		-	public roads and bridges or any combination of the foregoing
141		-	purposes. The municipality may pledge irrevocably any or all
142		-	of the gasoline tax revenue received by the municipality to
143		-	the payment of the interest on and principal of the gasoline
144		-	tax revenue bonds.
145		-	F. Project revenue bonds may be issued for
146		-	acquiring, extending, enlarging, bettering, repairing,
147		-	improving, constructing, purchasing, furnishing, equipping
148		-	and rehabilitating any revenue-producing project, including,
149		-	where applicable, purchasing, otherwise acquiring or
150		-	improving the ground therefor, including acquiring and
151		-	improving parking lots, or for any combination of the
152		-	foregoing purposes. The municipality may pledge irrevocably
153		-	any or all of the net revenues from the operation of the STBTC/SB 383
154		-	Page 4
	164	+	laying off, opening, constructing, reconstructing, resurfacing,
	165	+	maintaining, acquiring rights of way, repairing and otherwise
	166	+	improving municipal buildings, alleys, streets, public roads
	167	+	and bridges or any combination of the foregoing purposes. The
	168	+	.230270.2
	169	+	- 3 - underscored material = new
	170	+	[bracketed material] = delete
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180		-	revenue-producing project for which the particular project
181		-	revenue bonds are issued to the payment of the interest on
182		-	and principal of the project revenue bonds. The net revenues
183		-	of any revenue-producing project may not be pledged to the
184		-	project revenue bonds issued for a revenue-producing project
185		-	that clearly is unrelated in nature; but nothing in this
186		-	subsection shall prevent the pledge to such project revenue
187		-	bonds of any revenues received from existing, future or
188		-	disconnected facilities and equipment that are related
189		-	to and that may constitute a part of the particular
190		-	revenue-producing project. A general determination
191		-	by the governing body that any facilities or equipment is
192		-	reasonably related to and constitutes a part of a specified
193		-	revenue-producing project shall be conclusive if set forth
194		-	in the proceedings authorizing the project revenue bonds.
195		-	G. Fire district revenue bonds may be issued for
	196	+	municipality may pledge irrevocably any or all of the gasoline
	197	+	tax revenue received by the municipality to the payment of the
	198	+	interest on and principal of the gasoline tax revenue bonds.
	199	+	F. Project revenue bonds may be issued for
196	200		acquiring, extending, enlarging, bettering, repairing,
197		-	improving, constructing, purchasing, furnishing, equipping
198		-	and rehabilitating any fire district project, including,
199		-	where applicable, purchasing, otherwise acquiring or
200		-	improving the ground therefor, or for any combination of the
201		-	foregoing purposes. The municipality may pledge irrevocably
202		-	any or all of the revenues received by the fire district from
203		-	the fire protection fund as provided in the Fire Protection
204		-	Fund Law and any or all of the revenues provided for the STBTC/SB 383
205		-	Page 5
	201	+	improving, constructing, purchasing, furnishing, equipping and
	202	+	rehabilitating any revenue-producing project, including, where
	203	+	applicable, purchasing, otherwise acquiring or improving the
	204	+	ground therefor, including acquiring and improving parking
	205	+	lots, or for any combination of the foregoing purposes. The
	206	+	municipality may pledge irrevocably any or all of the net
	207	+	revenues from the operation of the revenue-producing project
	208	+	for which the particular project revenue bonds are issued to
	209	+	the payment of the interest on and principal of the project
	210	+	revenue bonds. The net revenues of any revenue-producing
	211	+	project may not be pledged to the project revenue bonds issued
	212	+	for a revenue-producing project that clearly is unrelated in
	213	+	nature; but nothing in this subsection shall prevent the pledge
	214	+	to such project revenue bonds of any revenues received from
	215	+	existing, future or disconnected facilities and equipment that
	216	+	are related to and that may constitute a part of the particular
	217	+	revenue-producing project. A general determination by the
	218	+	governing body that any facilities or equipment is reasonably
	219	+	related to and constitutes a part of a specified revenue-
	220	+	producing project shall be conclusive if set forth in the
	221	+	.230270.2
	222	+	- 4 - underscored material = new
	223	+	[bracketed material] = delete
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231		-	operation of the fire district project for which the
232		-	particular bonds are issued to the payment of the interest
233		-	on and principal of the bonds. The revenues of any fire
234		-	district project shall not be pledged to the bonds issued
235		-	for a fire district project that clearly is unrelated in its
236		-	purpose; but nothing in this section prevents the pledge to
237		-	such bonds of any revenues received from existing, future or
238		-	disconnected facilities and equipment that are related to and
239		-	that may constitute a part of the particular fire district
240		-	project. A general determination by the governing body
241		-	of the municipality that any facilities or equipment is
242		-	reasonably related to and constitutes a part of a specified
243		-	fire district project shall be conclusive if set forth in the
244		-	proceedings authorizing the fire district bonds.
245		-	H. Law enforcement protection revenue bonds may
246		-	be issued for the repair and purchase of law enforcement
247		-	apparatus and equipment that meet nationally recognized
248		-	standards. The municipality may pledge irrevocably any or
249		-	all of the revenues received by the municipality from the law
250		-	enforcement protection fund distributions pursuant to the
251		-	Law Enforcement Protection Fund Act to the payment of the
252		-	interest on and principal of the law enforcement protection
253		-	revenue bonds.
254		-	I. Flood recovery revenue bonds may be issued for
255		-	rebuilding, repairing, replacing and hardening of municipal STBTC/SB 383
256		-	Page 6
	249	+	proceedings authorizing the project revenue bonds.
	250	+	G. Fire district revenue bonds may be issued for
	251	+	acquiring, extending, enlarging, bettering, repairing,
	252	+	improving, constructing, purchasing, furnishing, equipping and
	253	+	rehabilitating any fire district project, including, where
	254	+	applicable, purchasing, otherwise acquiring or improving the
	255	+	ground therefor, or for any combination of the foregoing
	256	+	purposes. The municipality may pledge irrevocably any or all
	257	+	of the revenues received by the fire district from the fire
	258	+	protection fund as provided in the Fire Protection Fund Law and
	259	+	any or all of the revenues provided for the operation of the
	260	+	fire district project for which the particular bonds are issued
	261	+	to the payment of the interest on and principal of the bonds.
	262	+	The revenues of any fire district project shall not be pledged
	263	+	to the bonds issued for a fire district project that clearly is
	264	+	unrelated in its purpose; but nothing in this section prevents
	265	+	the pledge to such bonds of any revenues received from
	266	+	existing, future or disconnected facilities and equipment that
	267	+	are related to and that may constitute a part of the particular
	268	+	fire district project. A general determination by the
	269	+	governing body of the municipality that any facilities or
	270	+	equipment is reasonably related to and constitutes a part of a
	271	+	specified fire district project shall be conclusive if set
	272	+	forth in the proceedings authorizing the fire district bonds.
	273	+	H. Law enforcement protection revenue bonds may be
	274	+	.230270.2
	275	+	- 5 - underscored material = new
	276	+	[bracketed material] = delete
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	302	+	issued for the repair and purchase of law enforcement apparatus
	303	+	and equipment that meet nationally recognized standards. The
	304	+	municipality may pledge irrevocably any or all of the revenues
	305	+	received by the municipality from the law enforcement
	306	+	protection fund distributions pursuant to the Law Enforcement
	307	+	Protection Fund Act to the payment of the interest on and
	308	+	principal of the law enforcement protection revenue bonds.
	309	+	I. Flood recovery revenue bonds may be issued for
	310	+	rebuilding, repairing, replacing and hardening of municipal
282	311		property damaged by a flood. The municipality shall pledge
283	312		irrevocably all of the revenue received by the municipality
284	313		from the municipal flood recovery gross receipts tax to the
285	314		payment of the interest on and principal of the bonds.
286		-	J. Except for the purpose of refunding ~~previous~~
287		-	revenue bond issues, no municipality may sell revenue ~~bonds~~
288		-	payable from pledged revenues after the expiration of two
	315	+	[I.] J. Except for the purpose of refunding
	316	+	previous revenue bond issues, no municipality may sell revenue
	317	+	bonds payable from pledged revenues after the expiration of two
289	318		years from the date of the ordinance authorizing the issuance
290		-	of the bonds or, for bonds to be issued and sold to the
291		-	New Mexico finance authority as authorized in Subsection C
292		-	of Section 3-31-4 NMSA 1978, after the expiration of two
293		-	years from the date of the resolution authorizing the
294		-	issuance of the bonds. However, any period of time during
295		-	which a particular revenue bond issue is in litigation shall
296		-	not be counted in determining the expiration date of that
297		-	issue."
	319	+	of the bonds or, for bonds to be issued and sold to the New
	320	+	Mexico finance authority as authorized in Subsection C of
	321	+	Section 3-31-4 NMSA 1978, after the expiration of two years
	322	+	from the date of the resolution authorizing the issuance of the
	323	+	bonds. However, any period of time during which a particular
	324	+	revenue bond issue is in litigation shall not be counted in
	325	+	determining the expiration date of that issue."
298	326		SECTION 2. Section 3-31-1.1 NMSA 1978 (being Laws 2019,
299		-	Chapter 274, Section 2) is amended to read:
300		-	"3-31-1.1. DEFINITIONS.--As used in Chapter 3,
301		-	Article 31 NMSA 1978:
302		-	A. "bond" means any obligation of a municipality
303		-	issued under Chapter 3, Article 31 NMSA 1978, whether
304		-	designated as a bond, note, loan, warrant, debenture,
305		-	lease-purchase agreement or other instrument evidencing an
306		-	obligation of a municipality to make payments; STBTC/SB 383
307		-	Page 7
	327	+	.230270.2
	328	+	- 6 - underscored material = new
	329	+	[bracketed material] = delete
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	355	+	Chapter 274, Section 2) is amended to read:
	356	+	"3-31-1.1. DEFINITIONS.--As used in Chapter 3, Article 31
	357	+	NMSA 1978:
	358	+	A. "bond" means any obligation of a municipality
	359	+	issued under Chapter 3, Article 31 NMSA 1978, whether
	360	+	designated as a bond, note, loan, warrant, debenture, lease-
	361	+	purchase agreement or other instrument evidencing an obligation
	362	+	of a municipality to make payments;
333	363		B. "flood recovery revenue bonds" means the bonds
334	364		authorized by Subsection I of Section 3-31-1 NMSA 1978;
335		-	C. "gasoline tax revenue" means all or portions
336		-	of the amounts of tax revenues distributed to municipalities
337		-	pursuant to Sections 7-1-6.9 and 7-1-6.27 NMSA 1978;
338		-	D. "gasoline tax revenue bonds" means the bonds
339		-	authorized by Subsection E of Section 3-31-1 NMSA 1978;
340		-	E. "gross receipts tax revenue" means the
	365	+	[B.] C. "gasoline tax revenue" means all or
	366	+	portions of the amounts of tax revenues distributed to
	367	+	municipalities pursuant to Sections 7-1-6.9 and 7-1-6.27 NMSA
	368	+	1978;
	369	+	[C.] D. "gasoline tax revenue bonds" means the
	370	+	bonds authorized by Subsection E of Section 3-31-1 NMSA 1978;
	371	+	[D.] E. "gross receipts tax revenue" means the
341	372		amount of money distributed to a municipality pursuant to
342	373		Section 7-1-6.4 NMSA 1978 and transferred to a municipality
343		-	pursuant to Section 7-1-6.12 NMSA 1978 for any municipal
344		-	gross receipts tax imposed pursuant to the Municipal Local
345		-	Option Gross Receipts and Compensating Taxes Act;
346		-	F. "gross receipts tax revenue bonds" means the
347		-	bonds authorized by Subsection D of Section 3-31-1 NMSA 1978;
348		-	G. "joint utility revenue bonds" or "joint
349		-	utility bonds" means the bonds authorized by Subsection C of
350		-	Section 3-31-1 NMSA 1978;
351		-	H. "pledged revenues" means the revenues, net
352		-	income or net revenues authorized to be pledged to the
353		-	payment of revenue bonds as specifically provided in
354		-	Chapter 3, Article 31 NMSA 1978;
355		-	I. "project revenue bonds" means the bonds
356		-	authorized by Subsection F of Section 3-31-1 NMSA 1978; and
357		-	J. "utility revenue bonds" or "utility bonds" STBTC/SB 383
358		-	Page 8
	374	+	pursuant to Section 7-1-6.12 NMSA 1978 for any municipal gross
	375	+	receipts tax imposed pursuant to the Municipal Local Option
	376	+	Gross Receipts and Compensating Taxes Act;
	377	+	[E.] F. "gross receipts tax revenue bonds" means
	378	+	the bonds authorized by Subsection D of Section 3-31-1 NMSA
	379	+	1978;
	380	+	.230270.2
	381	+	- 7 - underscored material = new
	382	+	[bracketed material] = delete
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	408	+	[F.] G. "joint utility revenue bonds" or "joint
	409	+	utility bonds" means the bonds authorized by Subsection C of
	410	+	Section 3-31-1 NMSA 1978;
	411	+	[G.] H. "pledged revenues" means the revenues, net
	412	+	income or net revenues authorized to be pledged to the payment
	413	+	of revenue bonds as specifically provided in Chapter 3, Article
	414	+	31 NMSA 1978;
	415	+	[H.] I. "project revenue bonds" means the bonds
	416	+	authorized by Subsection F of Section 3-31-1 NMSA 1978; and
	417	+	[I.] J. "utility revenue bonds" or "utility bonds"
384	418		means the bonds authorized by Subsection B of Section 3-31-1
385	419		NMSA 1978."
386	420		SECTION 3. A new section of the Municipal Local Option
387	421		Gross Receipts and Compensating Taxes Act is enacted to read:
388		-	"MUNICIPAL FLOOD RECOVERY GROSS RECEIPTS TAX.--
	422	+	"[NEW MATERIAL] MUNICIPAL FLOOD RECOVERY GROSS RECEIPTS
	423	+	TAX.--
389	424		A. The majority of the members of the governing
390		-	body of a municipality may impose by ordinance an ~~excise tax~~
391		-	at a rate not to exceed ~~three-eighths~~ percent of the ~~gross~~
392		-	receipts of a person engaging in business in the ~~municipality~~
393		-	for the privilege of engaging in business. The ~~tax may be~~
394		-	imposed in increments of one-thousandth percent not ~~to exceed~~
395		-	an aggregate rate of ~~three-eighths~~ percent. The tax ~~shall~~
396		-	be imposed until the flood recovery revenue bonds issued
	425	+	body of an eligible municipality may impose by ordinance an
	426	+	excise tax at a rate not to exceed one-fourth percent of the
	427	+	gross receipts of a person engaging in business in the
	428	+	municipality for the privilege of engaging in business. The
	429	+	tax may be imposed in increments of one-thousandth percent not
	430	+	to exceed an aggregate rate of one-fourth percent. The tax
	431	+	shall be imposed until the flood recovery revenue bonds issued
397	432		pursuant to Section 3-31-1 NMSA 1978 are fully discharged or
398		-	otherwise provided for in full.
399		-	B. The tax imposed pursuant to this section may be
400		-	referred to as the "municipal flood recovery gross receipts
401		-	tax".
402		-	C. A governing body, at the time of enacting an
403		-	ordinance imposing a rate of tax authorized in Subsection A
404		-	of this section, shall dedicate the revenue only for
405		-	payment of flood recovery revenue bonds issued pursuant to
406		-	Section 3-31-1 NMSA 1978."
407		-	SECTION 4. EMERGENCY.--It is necessary for the
408		-	public peace, health and safety that this act take effect STBTC/SB 383
409		-	Page 9
	433	+	.230270.2
	434	+	- 8 - underscored material = new
	435	+	[bracketed material] = delete
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435		-	immediately.
	461	+	otherwise provided for in full.
	462	+	B. The tax imposed pursuant to this section may be
	463	+	referred to as the "municipal flood recovery gross receipts
	464	+	tax".
	465	+	C. A governing body, at the time of enacting an
	466	+	ordinance imposing a rate of tax authorized in Subsection A of
	467	+	this section, shall dedicate the revenue only for payment of
	468	+	flood recovery revenue bonds issued pursuant to Section 3-31-1
	469	+	NMSA 1978.
	470	+	D. For the purposes of this section, "eligible
	471	+	municipality" means a municipality that has a population
	472	+	greater than forty-five thousand according to the most recent
	473	+	federal decennial census and that is located in a class B
	474	+	county having a net taxable value for rate-setting purposes for
	475	+	the 2023 property tax year or any subsequent year of more than
	476	+	one billion five hundred million dollars ($1,500,000,000)."
	477	+	SECTION 4. A new section of the Gross Receipts and
	478	+	Compensating Tax Act is enacted to read:
	479	+	"[NEW MATERIAL] DEDUCTION--GOVERNMENTAL GROSS RECEIPTS--
	480	+	CERTAIN RECEIPTS TO A MUNICIPALITY FOR FLOOD RECOVERY.--
	481	+	A. Prior to July 1, 2028, receipts from selling a
	482	+	service or tangible personal property to an eligible
	483	+	municipality may be deducted from governmental gross receipts
	484	+	if the services and tangible personal property are used
	485	+	exclusively for the rebuilding, repairing, replacing or
	486	+	.230270.2
	487	+	- 9 - underscored material = new
	488	+	[bracketed material] = delete
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	514	+	hardening of the municipality's property that was damaged by a
	515	+	flood.
	516	+	B. A taxpayer allowed a deduction pursuant to this
	517	+	section shall report separately the amount of the deduction and
	518	+	detail exactly what was sold in a manner required by the
	519	+	department.
	520	+	C. The deduction provided by this section shall be
	521	+	included in the tax expenditure budget pursuant to Section
	522	+	7-1-84 NMSA 1978, including the annual aggregate cost of the
	523	+	deductions.
	524	+	D. As used in this section, "eligible municipality"
	525	+	means a municipality that has a population greater than
	526	+	forty-five thousand according to the most recent federal
	527	+	decennial census and that is located in a class B county having
	528	+	a net taxable value for rate-setting purposes for the 2023
	529	+	property tax year or any subsequent year of more than one
	530	+	billion five hundred million dollars ($1,500,000,000)."
	531	+	SECTION 5. DELAYED REPEAL.--Section 4 of this act is
	532	+	repealed effective July 1, 2028.
	533	+	SECTION 6. EFFECTIVE DATE.--The effective date of the
	534	+	provisions of this act is the first day of the month following
	535	+	the date this act takes effect.
	536	+	SECTION 7. EMERGENCY.--It is necessary for the public
	537	+	peace, health and safety that this act take effect immediately.
	538	+	- 10 -
	539	+	.230270.2