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SENATE BILL 559
57TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 2025
INTRODUCED BY
William E. Sharer
AN ACT
RELATING TO TAXATION; AMENDING THE TAX BRACKETS PURSUANT TO THE
INCOME TAX ACT AND CORPORATE INCOME AND FRANCHISE TAX ACT;
REDUCING THE RATES OF THE GROSS RECEIPTS TAX, GOVERNMENTAL
GROSS RECEIPTS TAX, COMPENSATING TAX, LEASED VEHICLE GROSS
RECEIPTS TAX AND GAMING TAX ON MANUFACTURER LICENSEES ON THE
TRANSFER OF GAMING DEVICES AND INCREASING THE RATE OF THE BINGO
AND RAFFLE TAX; REMOVING AUTHORIZATION FOR THE USE OF A STATE
GROSS RECEIPTS TAX INCREMENT TO FUND A METROPOLITAN
REDEVELOPMENT PROJECT; REMOVING AUTHORIZATION FOR A TAX
INCREMENT DEVELOPMENT DISTRICT TO DEDICATE AN INCREMENT OF THE
STATE GROSS RECEIPTS TAX; REPEALING THE ESTATE TAX ACT, ART
ACCEPTANCE ACT, INTERSTATE TELECOMMUNICATIONS GROSS RECEIPTS
TAX ACT, RAILROAD CAR COMPANY TAX ACT, MOTOR VEHICLE EXCISE TAX
ACT, ALTERNATIVE FUEL TAX ACT, COUNTY AND MUNICIPAL GASOLINE
TAX ACT AND INSURANCE PREMIUM TAX ACT; REPEALING THE RURAL JOB
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TAX CREDIT, INVESTMENT CREDIT ACT, LABORATORY PARTNERSHIP WITH
SMALL BUSINESS TAX CREDIT ACT, TECHNOLOGY JOBS AND RESEARCH AND
DEVELOPMENT TAX CREDIT ACT, HIGH-WAGE JOBS TAX CREDIT,
AFFORDABLE HOUSING TAX CREDIT ACT, ALTERNATIVE ENERGY PRODUCT
MANUFACTURERS TAX CREDIT ACT AND CERTAIN CREDITS, DEDUCTIONS
AND EXEMPTIONS PURSUANT TO THE INCOME TAX ACT, CORPORATE INCOME
AND FRANCHISE TAX ACT AND GROSS RECEIPTS AND COMPENSATING TAX
ACT; PROVIDING SUNSET DATES FOR CERTAIN CREDITS, DEDUCTIONS AND
EXEMPTIONS PURSUANT TO THE INCOME TAX ACT, CORPORATE INCOME AND
FRANCHISE TAX ACT AND GROSS RECEIPTS AND COMPENSATING TAX ACT;
PROVIDING A DELAYED REPEAL OF THE FILM PRODUCTION TAX CREDIT
ACT; REDUCING THE CAPITAL GAINS DEDUCTION PURSUANT TO THE
INCOME TAX ACT; ENACTING A GROSS RECEIPTS TAX EXEMPTION FOR
DONATIONS TO NONPROFIT ORGANIZATIONS; IMPOSING ADDITIONAL
REGISTRATION FEES FOR ELECTRIC AND PLUG-IN HYBRID ELECTRIC
VEHICLES; REPEALING CERTAIN GROSS RECEIPTS TAX DISTRIBUTIONS TO
MUNICIPALITIES; REPEALING CERTAIN SESSION LAWS THAT ARE NOT YET
IN EFFECT; MAKING AN APPROPRIATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 3-31-1 NMSA 1978 (being Laws 1973,
Chapter 395, Section 3, as amended) is amended to read:
"3-31-1. REVENUE BONDS--AUTHORITY TO ISSUE--PLEDGE OF
REVENUES--LIMITATION ON TIME OF ISSUANCE.--
A. In addition to any other law and constitutional
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home rule powers authorizing a municipality to issue revenue
bonds, a municipality may issue revenue bonds pursuant to
Chapter 3, Article 31 NMSA 1978 for the purposes specified in
this section.
B. Utility revenue bonds may be issued for
acquiring, extending, enlarging, bettering, repairing or
otherwise improving a municipal utility or for any combination
of the foregoing purposes. The municipality may pledge
irrevocably any or all of the net revenues from the operation
of the municipal utility or of any one or more of other such
municipal utilities for payment of the interest on and
principal of the revenue bonds.
C. Joint utility revenue bonds may be issued for
acquiring, extending, enlarging, bettering, repairing or
otherwise improving joint water facilities, sewer facilities,
gas facilities or electric facilities or for any combination of
the foregoing purposes. The municipality may pledge
irrevocably any or all of the net revenues from the operation
of these municipal utilities for the payment of the interest on
and principal of the bonds.
D. Gross receipts tax revenue bonds may be issued
for any municipal purpose. A municipality may pledge
irrevocably any or all of the gross receipts tax revenue
received by the municipality pursuant to Section [7-1-6.4 or ]
7-1-6.12 NMSA 1978 to the payment of the interest on and
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principal of the gross receipts tax revenue bonds or for any
area of municipal government services. A law that imposes or
authorizes the imposition of a tax authorized by the Municipal
Local Option Gross Receipts and Compensating Taxes Act or that
affects the tax, or a law supplemental thereto or otherwise
appertaining thereto, shall not be repealed or amended or
otherwise directly or indirectly modified in such a manner as
to impair adversely any outstanding revenue bonds that may be
secured by a pledge of such tax unless the outstanding revenue
bonds have been discharged in full or provision has been fully
made therefor. Revenues in excess of the annual principal and
interest due on gross receipts tax revenue bonds secured by a
pledge of gross receipts tax revenue may be accumulated in a
debt service reserve account. The governing body of the
municipality may appoint a commercial bank trust department to
act as trustee of the gross receipts tax revenue and to
administer the payment of principal of and interest on the
bonds.
E. Gasoline tax revenue bonds may be issued for
laying off, opening, constructing, reconstructing, resurfacing,
maintaining, acquiring rights of way, repairing and otherwise
improving municipal buildings, alleys, streets, public roads
and bridges or any combination of the foregoing purposes. The
municipality may pledge irrevocably any or all of the gasoline
tax revenue received by the municipality to the payment of the
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interest on and principal of the gasoline tax revenue bonds.
F. Project revenue bonds may be issued for
acquiring, extending, enlarging, bettering, repairing,
improving, constructing, purchasing, furnishing, equipping and
rehabilitating any revenue-producing project, including, where
applicable, purchasing, otherwise acquiring or improving the
ground therefor, including acquiring and improving parking
lots, or for any combination of the foregoing purposes. The
municipality may pledge irrevocably any or all of the net
revenues from the operation of the revenue-producing project
for which the particular project revenue bonds are issued to
the payment of the interest on and principal of the project
revenue bonds. The net revenues of any revenue-producing
project may not be pledged to the project revenue bonds issued
for a revenue-producing project that clearly is unrelated in
nature; but nothing in this subsection shall prevent the pledge
to such project revenue bonds of any revenues received from
existing, future or disconnected facilities and equipment that
are related to and that may constitute a part of the particular
revenue-producing project. A general determination by the
governing body that any facilities or equipment is reasonably
related to and constitutes a part of a specified revenue-
producing project shall be conclusive if set forth in the
proceedings authorizing the project revenue bonds.
G. Fire district revenue bonds may be issued for
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acquiring, extending, enlarging, bettering, repairing,
improving, constructing, purchasing, furnishing, equipping and
rehabilitating any fire district project, including, where
applicable, purchasing, otherwise acquiring or improving the
ground therefor, or for any combination of the foregoing
purposes. The municipality may pledge irrevocably any or all
of the revenues received by the fire district from the fire
protection fund as provided in the Fire Protection Fund Law and
any or all of the revenues provided for the operation of the
fire district project for which the particular bonds are issued
to the payment of the interest on and principal of the bonds.
The revenues of any fire district project shall not be pledged
to the bonds issued for a fire district project that clearly is
unrelated in its purpose; but nothing in this section prevents
the pledge to such bonds of any revenues received from
existing, future or disconnected facilities and equipment that
are related to and that may constitute a part of the particular
fire district project. A general determination by the
governing body of the municipality that any facilities or
equipment is reasonably related to and constitutes a part of a
specified fire district project shall be conclusive if set
forth in the proceedings authorizing the fire district bonds.
H. Law enforcement protection revenue bonds may be
issued for the repair and purchase of law enforcement apparatus
and equipment that meet nationally recognized standards. The
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municipality may pledge irrevocably any or all of the revenues
received by the municipality from the law enforcement
protection fund distributions pursuant to the Law Enforcement
Protection Fund Act to the payment of the interest on and
principal of the law enforcement protection revenue bonds.
I. Except for the purpose of refunding previous
revenue bond issues, no municipality may sell revenue bonds
payable from pledged revenues after the expiration of two years
from the date of the ordinance authorizing the issuance of the
bonds or, for bonds to be issued and sold to the New Mexico
finance authority as authorized in Subsection C of Section
3-31-4 NMSA 1978, after the expiration of two years from the
date of the resolution authorizing the issuance of the bonds.
However, any period of time during which a particular revenue
bond issue is in litigation shall not be counted in determining
the expiration date of that issue."
SECTION 2. Section 3-31-1.1 NMSA 1978 (being Laws 2019,
Chapter 274, Section 2) is amended to read:
"3-31-1.1. DEFINITIONS.--As used in Chapter 3, Article 31
NMSA 1978:
A. "bond" means any obligation of a municipality
issued under Chapter 3, Article 31 NMSA 1978, whether
designated as a bond, note, loan, warrant, debenture, lease-
purchase agreement or other instrument evidencing an obligation
of a municipality to make payments;
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B. "gasoline tax revenue" means all or portions of
the amounts of tax revenues distributed to municipalities
pursuant to Sections 7-1-6.9 and 7-1-6.27 NMSA 1978;
C. "gasoline tax revenue bonds" means the bonds
authorized by Subsection E of Section 3-31-1 NMSA 1978;
D. "gross receipts tax revenue" means the amount of
money [distributed to a municipality pursuant to Section
7-1-6.4 NMSA and] transferred to a municipality pursuant to
Section 7-1-6.12 NMSA 1978 for any municipal gross receipts tax
imposed pursuant to the Municipal Local Option Gross Receipts
and Compensating Taxes Act;
E. "gross receipts tax revenue bonds" means the
bonds authorized by Subsection D of Section 3-31-1 NMSA 1978;
F. "joint utility revenue bonds" or "joint utility
bonds" means the bonds authorized by Subsection C of Section
3-31-1 NMSA 1978;
G. "pledged revenues" means the revenues, net
income or net revenues authorized to be pledged to the payment
of revenue bonds as specifically provided in Chapter 3, Article
31 NMSA 1978;
H. "project revenue bonds" means the bonds
authorized by Subsection F of Section 3-31-1 NMSA 1978; and
I. "utility revenue bonds" or "utility bonds" means
the bonds authorized by Subsection B of Section 3-31-1 NMSA
1978."
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SECTION 3. Section 3-60A-21 NMSA 1978 (being Laws 2024,
Chapter 62, Section 1) is amended to read:
"3-60A-21. PROPERTY AND GROSS RECEIPTS TAX INCREMENTS--
PROCEDURES.--
A. The procedures to be used in determining a
property tax increment are:
(1) the local government shall, after approval
of a metropolitan redevelopment plan, notify the county
assessor of the taxable parcels of property within the
metropolitan redevelopment area;
(2) upon receipt of the notification, the
county assessor shall identify the parcels of property within
the metropolitan redevelopment area within their respective
jurisdictions and certify to the county treasurer the net
taxable value of the property at the time of notification as
the base value for the distribution of property tax revenues
authorized by the Property Tax Code. If because of acquisition
by the local government the property becomes tax exempt, the
county assessor shall note that fact on their respective
records and so notify the county treasurer, but the county
assessor and the county treasurer shall preserve a record of
the net taxable value at the time of inclusion of the property
within the metropolitan redevelopment area as the base value
for the purpose of distribution of property tax revenues when
the parcel again becomes taxable. The county assessor is not
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required by this section to preserve the new taxable value at
the time of inclusion of the property within the metropolitan
redevelopment area as the base value for the purposes of
valuation of the property;
(3) if because of acquisition by the local
government the property becomes tax exempt, when the parcel
again becomes taxable, the local government shall notify the
county assessor of the parcels of property that because of
their rehabilitation or other improvement are to be revalued
for property tax purposes. A new taxable value of this
property shall then be determined by the county assessor. If
no acquisition by the local government occurs, improvement or
rehabilitation of property subject to valuation by the assessor
shall be reported to the assessor as required by the Property
Tax Code, and the new taxable value shall be determined as of
January 1 of the tax year following the year in which the
improvement or rehabilitation is completed; and
(4) current tax rates shall then be applied to
the new taxable value of property included in the metropolitan
redevelopment area. The amount by which the revenue received
exceeds that which would have been received by application of
the same rates to the base value before inclusion in the
metropolitan redevelopment area shall be multiplied by the
percentage of the increment dedicated by the local government
pursuant to Section 3-60A-23 NMSA 1978, credited to the local
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government and deposited in the metropolitan redevelopment
fund. This transfer shall take place only after the county
treasurer has been notified to apply the procedures pursuant to
this subsection to property included in a metropolitan
redevelopment area. Unless the entire metropolitan
redevelopment area is specifically included by the local
government for purposes of tax increment financing, the payment
by the county treasurer to the local government shall be
limited to those properties specifically included. The
remaining revenue shall be distributed to participating units
of government as authorized by the Property Tax Code.
B. The procedures to be used in determining a gross
receipts tax increment are:
(1) the local government shall notify the
taxation and revenue department of the geographic boundaries of
the metropolitan redevelopment area;
(2) by the January 1 or July 1 following at
least ninety days after receipt of the notice of the geographic
boundaries, the taxation and revenue department shall designate
a reporting location code for the metropolitan redevelopment
area pursuant to Section 7-1-14 NMSA 1978;
(3) using data from the twelve months of
reporting periods following designation of the reporting
location code, the taxation and revenue department shall
calculate the gross receipts tax revenue for the base year as
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follows [(a)] the amount of the local government's local option
gross receipts tax revenue attributable to the gross receipts
sourced to the metropolitan redevelopment area pursuant to
Section 7-1-14 NMSA 1978 in the previous twelve months; and
[(b) the amount of state gross receipts
tax revenue attributable to gross receipts sourced to the
metropolitan redevelopment area pursuant to Section 7-1-14 NMSA
1978 in the previous twelve months, less any amount distributed
to the municipality pursuant to Section 7-1-6.4 NMSA 1978
attributable to gross receipts sourced to the metropolitan
redevelopment area; and ]
(4) following making the calculation of the
gross receipts tax revenue for the base year:
(a) the taxation and revenue department
shall compare the amounts of gross receipts tax revenues of the
base year with the amounts of gross receipts tax revenues of
that following twelve months, using the same calculation
methods as provided in Paragraph (3) of this subsection; and
(b) if there is an increase between the
gross receipts tax revenue of the base year and the gross
receipts tax revenue of that following twelve months, the
taxation and revenue department shall distribute, pursuant to
Section 7-1-6.71 NMSA 1978, [the sum of: 1) ] the product of
the total rate of the local government's local option gross
receipts tax multiplied by the increased amount of the local
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government's local option gross receipts tax revenue, further
multiplied by the percentage of the gross receipts tax
increment dedicated by the local government pursuant to Section
3-60A-23 NMSA 1978 [plus 2) the product of the state gross
receipts tax rate multiplied by the increased amount of the
state gross receipts tax revenue, further multiplied by the
percentage of the gross receipts tax increment dedicated by the
state board of finance pursuant to Section 3-60A-23 NMSA 1978 ].
C. The procedures specified in this section shall
be followed annually for a maximum period of twenty years
following the date of notification provided by this section.
D. As used in this section, [(1) ] "local option
gross receipts tax revenue" means revenue transferred to the
local government pursuant to Section 7-1-6.12 or 7-1-6.13 NMSA
1978, as appropriate [and
(2) "state gross receipts tax revenue" means
revenue received from the gross receipts tax imposed pursuant
to Section 7-9-4 NMSA 1978 ]."
SECTION 4. Section 3-60A-23 NMSA 1978 (being Laws 1979,
Chapter 391, Section 23, as amended) is amended to read:
"3-60A-23. APPROVAL OF ALTERNATIVE FUNDING METHOD.--
A. A metropolitan redevelopment plan, as originally
approved or as later modified, may contain a provision that a
portion of a property tax increment or gross receipts tax
increment may be dedicated for the purpose of funding a
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metropolitan redevelopment project for a period of up to twenty
years.
B. A local government may dedicate up to seventy-
five percent of a property tax increment or gross receipts tax
increment, [and the state board of finance, subject to the
provisions of Subsection C of this section, may dedicate up to
seventy-five percent of a gross receipts tax increment, each ]
as determined pursuant to Section 3-60A-21 NMSA 1978, with the
agreement of the municipality or county, [or state board of
finance] evidenced by a resolution adopted by a majority vote
of those entities. A resolution to dedicate a property tax
increment or gross receipts tax increment shall become
effective only on January 1 or July 1 of the calendar year.
[C. The state board of finance shall condition a
dedication of a gross receipts tax increment attributable to
the state gross receipts tax on the approval required pursuant
to Section 6 of this 2023 act and that the initial bonds
issuance secured by such an increment shall be issued no later
than four years after the state board of finance has adopted
the resolution making the dedication. A resolution of the
state board of finance shall find that:
(1) the state board of finance has reviewed
the request for the use of the state gross receipts tax
increment; and
(2) based upon review by the state board of
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finance of the applicable metropolitan redevelopment plan, the
dedication by the state board of finance of the gross receipts
tax increment within the metropolitan redevelopment area for
use in meeting the required goals of the metropolitan
redevelopment plan is reasonable and in the best interest of
the state.
D.] C. The governing body of the jurisdiction in
which a metropolitan redevelopment area has been established
shall timely notify the assessor of the county in which the
area has been established, the taxation and revenue department
and the local government division of the department of finance
and administration when:
(1) a metropolitan redevelopment plan has been
approved that contains a provision for the allocation and
percentage of property tax increments and gross receipts tax
increments;
(2) any outstanding bonds of the area have
been paid off; and
(3) the purposes of the area have otherwise
been achieved."
SECTION 5. Section 3-60A-23.1 NMSA 1978 (being Laws 2000,
Chapter 103, Section 4, as amended) is amended to read:
"3-60A-23.1. TAX INCREMENT BONDS.--
A. For the purpose of financing metropolitan
redevelopment projects, in whole or in part, a local government
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may issue tax increment bonds or tax increment bond
anticipation notes that are payable from and secured by revenue
from a gross receipts tax increment allocated to the
metropolitan redevelopment fund pursuant to Sections 3-60A-21
and 3-60A-23 NMSA 1978. The principal of, premium, if any, and
interest on the bonds or notes shall be payable from and
secured by a pledge of such revenues, and the local government
shall irrevocably pledge all or part of the revenues to the
payment of the bonds or notes. The revenues deposited in the
metropolitan redevelopment fund or the designated part thereof
may thereafter be used only for the payment of the principal
of, premium, if any, and interest on the bonds or notes, and a
holder of the bonds or notes shall have a first lien against
the revenues deposited in the metropolitan redevelopment fund
or the designated part thereof for the payment of principal of,
premium, if any, and interest on the bonds or notes. To
increase the security and marketability of the tax increment
bonds or notes, the local government may:
(1) create a lien for the benefit of the
bondholders on any public improvements or public works used
solely by the metropolitan redevelopment project or portion of
a project financed by the bonds or notes, or on the revenues of
such improvements or works;
(2) provide that the proceeds from the sale of
real and personal property acquired with the proceeds from the
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sale of bonds or notes issued pursuant to the Tax Increment Law
shall be deposited in the metropolitan redevelopment fund and
used for the purposes of repayment of principal of, premium, if
any, and interest on the bonds or notes; and
(3) make covenants and do any and all acts not
inconsistent with law as may be necessary, convenient or
desirable in order to additionally secure the bonds or notes or
make the bonds or notes more marketable in the exercise of the
discretion of the local government.
B. Bonds and notes issued pursuant to this section
shall not constitute an indebtedness within the meaning of any
constitutional or statutory debt limitation or restriction,
shall not be general obligations of the local government, shall
be collectible only from the proper pledged revenues and shall
not be subject to the provisions of any other law or charter
relating to the authorization, issuance or sale of tax
increment bonds or tax increment bond anticipation notes.
Bonds and notes issued pursuant to the Tax Increment Law are
declared to be issued for an essential public and governmental
purpose and, together with interest thereon, shall be exempted
from all taxes by the state.
C. The bonds or notes shall be authorized by an
ordinance of the local government; shall be in a denomination
or denominations, bear a date and mature, in the case of bonds,
at a time not exceeding twenty years from their date, and in
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the case of notes, not exceeding five years from the date of
the original note; bear interest at a rate or have appreciated
principal value not exceeding the maximum net effective
interest rate permitted by the Public Securities Act; and be in
a form, carry registration privileges, be executed in a manner,
be payable at a place within or without the state, be payable
at intervals or at maturity and be subject to terms of
redemption as the authorizing ordinance or supplemental
resolution of the local government may provide.
D. The bonds or notes may be sold in one or more
series at, below or above par, at public or private sale, in a
manner and for a price as the local government, in its
discretion, shall determine; provided that the price at which
the bonds or notes are sold shall not result in a net effective
interest rate that exceeds the maximum permitted by the Public
Securities Act. As an incidental expense of a metropolitan
redevelopment project or the portion financed with the bonds or
notes, the local government in its discretion may employ
financial and legal consultants with regard to the financing of
the project.
E. In case any of the public officials of the local
government whose signatures appear on any bonds or notes issued
pursuant to the Tax Increment Law cease to be public officials
before the delivery of the bonds or notes, the signatures
shall, nevertheless, be valid and sufficient for all purposes,
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the same as if the officials had remained in office until
delivery. Any provision of law to the contrary
notwithstanding, any bonds or notes issued pursuant to the Tax
Increment Law shall be fully negotiable.
F. In any suit, action or proceeding involving the
validity or enforceability of any bond or note issued pursuant
to the Tax Increment Law or the security therefor, any bond or
note reciting in substance that it has been issued by the local
government in connection with a metropolitan redevelopment
project shall be conclusively deemed to have been issued for
that purpose and the project shall be conclusively deemed to
have been planned, located and carried out in accordance with
the provisions of the Metropolitan Redevelopment Code.
G. The proceedings under which tax increment bonds
or tax increment bond anticipation notes are authorized to be
issued and any mortgage, deed of trust, trust indenture or
other lien or security device on real and personal property
given to secure the same may contain provisions customarily
contained in instruments securing bonds and notes and
constituting a covenant with the bondholders.
H. A local government may issue bonds or notes
pursuant to this section with the proceeds from the bonds or
notes to be used as other money is authorized to be used in the
Metropolitan Redevelopment Code.
I. [Subject to the provisions of Section 6 of this
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2023 act] The local government shall have the power to issue
renewal notes, to issue bonds to pay notes and, whenever it
deems refunding expedient, to refund any bonds by the issuance
of new bonds, whether the bonds to be refunded have or have not
matured, and to issue bonds partly to refund bonds then
outstanding and partly for other purposes in connection with
financing metropolitan redevelopment projects, in whole or in
part. Refunding bonds issued pursuant to the Tax Increment Law
to refund outstanding tax increment bonds shall be payable from
a gross receipts tax increment, out of which the bonds to be
refunded thereby are payable or from other lawfully available
revenues.
J. The proceeds from the sale of any bonds or notes
shall be applied only for the purpose for which the bonds or
notes were issued, and if, for any reason, any portion of the
proceeds are not needed for the purpose for which the bonds or
notes were issued, the unneeded portion of the proceeds shall
be applied to the payment of the principal of or the interest
on the bonds or notes.
K. The cost of financing a metropolitan
redevelopment project shall be deemed to include the actual
cost of acquiring a site and the cost of the construction of
any part of a project, including architects' and engineers'
fees, the purchase price of any part of a project that may be
acquired by purchase and all expenses in connection with the
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authorization, sale and issuance of the bonds or notes to
finance the acquisition and any related costs incurred by the
local government.
L. No action shall be brought questioning the
legality of any contract, mortgage, deed of trust, trust
indenture or other lien or security device, proceeding or bonds
or notes executed in connection with any project authorized by
the Metropolitan Redevelopment Code on and after thirty days
from the effective date of the ordinance authorizing the
issuance of such bonds or notes."
SECTION 6. Section 3-65-8 NMSA 1978 (being Laws 2001,
Chapter 231, Section 8) is amended to read:
"3-65-8. AUTHORIZATION OF PROJECT.--
A. Pursuant to the provisions of Section 6-21-6
NMSA 1978, the legislature authorizes the authority to make a
loan from the public project revolving fund to a municipality
to acquire land for and to design, purchase, construct,
remodel, renovate, rehabilitate, improve, equip or furnish a
minor league baseball stadium on terms and conditions
established by the authority.
B. Prior to receiving the loan, the governing body
shall approve the loan and related documents by an ordinance to
be adopted by a majority of the members of the governing body.
The ordinance shall pledge the stadium surcharge receipts to
make the loan payments. In addition to pledging stadium
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surcharge receipts for making loan payments, the ordinance
shall pledge legally available gross receipts tax revenues
[distributed] transferred to a municipality pursuant to Section
[7-1-6.4 or] 7-1-6.12 NMSA 1978 in an amount satisfactory to
the authority and in an amount at least sufficient to make the
loan payments. No action shall be brought questioning the
legality of the pledge of receipts and revenues, the ordinance,
the loan, the proceedings, the stadium surcharge or any other
matter concerning the loan after thirty days from the date of
publication of the ordinance approving the loan and related
documents and pledging stadium surcharge receipts and gross
receipts tax revenues of the municipality to make the loan
payments.
C. The legislature or a municipality shall not
repeal, amend or otherwise modify any law or ordinance that
adversely affects or impairs the stadium surcharge or any loan
from the authority secured by a pledge of the stadium surcharge
and gross receipts tax revenues, unless the loan has been paid
in full or provisions have been made for full payment."
SECTION 7. Section 3-66-8 NMSA 1978 (being Laws 2005,
Chapter 351, Section 10) is amended to read:
"3-66-8. ISSUANCE OF BONDS.--
A. A municipality may issue revenue bonds, in
accordance with the procedures set forth in Sections 3-31-3
through 3-31-7 NMSA 1978, to acquire land for and to design,
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purchase, construct, remodel, renovate, rehabilitate, improve,
equip or furnish a municipal event center.
B. Revenue bonds issued by a municipality may be
secured by event center revenues, event center surcharge
receipts or gross receipts tax revenues [distributed ]
transferred to that municipality pursuant to Section [7-1-6.4
or] 7-1-6.12 NMSA 1978.
C. An action shall not be brought questioning the
legality of the pledge of event center revenues, event center
surcharge receipts or gross receipts tax revenues, bonds issued
pursuant to the Municipal Event Center Funding Act, issuance of
those bonds, an event center surcharge included in a vendor
contract or any other matter concerning the bonds after thirty
days from the date of publication of the ordinance authorizing
issuance of the bonds and the pledging of event center
receipts, event center surcharge receipts or gross receipts tax
revenues of a municipality to make debt service payments.
D. The legislature or a municipality shall not
repeal, amend or otherwise modify any law or ordinance that
adversely affects or impairs the event center surcharge or any
bonds secured by a pledge of the event center revenues, event
center surcharge receipts or gross receipts tax revenues,
unless the bonds have been paid in full or provisions have been
made for full payment."
SECTION 8. Section 5-10-17 NMSA 1978 (being Laws 2021
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(1st S.S.), Chapter 2, Section 2) is amended to read:
"5-10-17. GROSS RECEIPTS TAX AND COMPENSATING TAX REVENUE
AS PUBLIC SUPPORT FOR CERTAIN PROJECTS.--
A. Prior to July 1, 2034 , a qualifying entity that
meets the following requirements may receive public support for
the qualifying entity's economic development project from funds
in the Local Economic Development Act fund pursuant to
Subsection B of Section 5-10-14 NMSA 1978 in an amount equal to
fifty percent of the net receipts attributable to the state
gross receipts tax and state compensating tax imposed on the
expenses related to the construction of the qualifying entity's
project, as determined by the department, related to the
economic development project and the amount dedicated pursuant
to Subsection B of this section; provided that the public
support shall be provided for a period of no more than ten
years, beginning on the date the applicable project
participation agreement with the qualifying entity is executed:
(1) the qualifying entity signs a project
participation agreement with the governing body of each local
government that has jurisdiction of the area in which the
qualifying entity's economic development project is located and
the local government has passed an ordinance dedicating local
government gross receipts tax revenue pursuant to Subsection B
of this section;
(2) the qualifying entity signs a project
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participation agreement with the department; provided that the
department shall not sign the agreement unless the applicable
local governments have signed a project participation agreement
pursuant to Paragraph (1) of this subsection; and provided
further that the project participation agreement shall provide
that if, at the end of the ten-year period, the economic
development project fails to meet the three-hundred-fifty-
million-dollar ($350,000,000) requirement pursuant to Paragraph
(3) of this subsection, the department shall seek to recover
some or all of the public support provided to the qualifying
entity and shall transfer any amount recovered to the general
fund and to the contributing local government based on each
entity's pro rata share of public support to the economic
development project;
(3) the economic development project has a
reasonable expectation to incur, within ten years of the date
the project participation agreement with the local government
and the department is executed, at least three hundred fifty
million dollars ($350,000,000) in expenses related to the
construction and infrastructure of the project in the state;
(4) the qualifying entity and the economic
development project meet all other requirements to receive
public support pursuant to the Local Economic Development Act;
and
(5) prior to the end of each month, the
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qualifying entity submits the appropriate documents, including
tax documents of the qualifying entity and its contractors
submitted to the taxation and revenue department, to the
department and to the local governments with which the
qualifying entity signed a project participation agreement, on
forms and in a manner determined by the department, of the
taxable expenses related to the construction of the economic
development project for the previous month.
B. A local government may dedicate, by ordinance,
fifty percent of the tax revenue attributable to the gross
receipts and compensating taxes imposed by the local government
on the qualifying entity's receipts for expenses related to the
construction of the economic development project to the Local
Economic Development Act fund for the purposes provided in
Subsection B of Section 5-10-14 NMSA 1978.
C. Within thirty days after execution of a project
participation agreement with a qualifying entity, the
department shall issue a report to the department of finance
and administration and the legislative finance committee that
shall identify the qualifying entity intended to receive public
support pursuant to this section, the estimated expenses
related to the construction of the qualifying entity's project
as determined by the department, the location of the project,
the amount of public support pledged by the department and each
local government for the project pursuant to this section and
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the amount of any other public support pledged for the project
pursuant to the Local Economic Development Act.
D. As soon as practicable, the taxation and revenue
department shall implement a rate type to identify gross
receipts and compensating taxes reported and paid to the
taxation and revenue department for expenses related to the
construction of an economic development project. Once
implemented, all such gross receipts and compensating taxes
shall be reported and paid with that rate type.
E. If the taxation and revenue department has not
implemented the rate type provided in Subsection D of this
section, and if the requirements of Subsection A of this
section have been met, the economic development department and
the local governments that signed a project participation
agreement with the qualifying entity shall:
(1) review the documents submitted by a
qualifying entity pursuant to Paragraph (5) of Subsection A of
this section;
(2) estimate the amount equal to fifty percent
of the tax revenue attributable to the gross receipts tax and
compensating tax imposed on the taxable expenses related to the
construction of the economic development project appropriate
to:
(a) the local government's gross
receipts and compensating taxes if a local government; and
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(b) the state gross receipts and
compensating taxes if the department;
(3) if a local government, on the first
business day of each month, submit the estimated amount and the
supporting documents to the department; and
(4) if the department, on or before the
twenty-fifth day of December, March, June and September,
provide the estimates and any supporting documentation to the
taxation and revenue department, on forms and in a manner
determined by that department.
F. The taxation and revenue department shall review
the amounts estimated pursuant to Subsection E of this section
for accuracy and computation, make any necessary corrections or
adjustments and make a final determination of the amounts to be
distributed from the relevant tax revenue pursuant to Section
[5 of this 2021 act] 7-1-6.67 NMSA 1978."
SECTION 9. Section 5-15-3 NMSA 1978 (being Laws 2006,
Chapter 75, Section 3, as amended by Laws 2019, Chapter 212,
Section 199 and also by Laws 2019, Chapter 275, Section 1) is
amended to read:
"5-15-3. DEFINITIONS.--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
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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
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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 and Compensating Taxes Act 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
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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 county
and municipal option 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 and Compensating
Taxes Act 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
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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;
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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;
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,
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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;
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(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, 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;
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U.] T. "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.] U. "tax increment development area" means the
land included within the boundaries of a tax increment
development district;
[W.] V. "tax increment development district" means
a district formed for the purposes of carrying out tax
increment development projects;
[X.] W. "tax increment development plan" means a
plan for the undertaking of a tax increment development
project;
[Y.] X. "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
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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.] Y. "taxing entity" means the governing body of
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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.] Z. "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."
SECTION 10. Section 5-15-15 NMSA 1978 (being Laws 2006,
Chapter 75, Section 15, as amended by Laws 2019, Chapter 274,
Section 8 and by Laws 2019, Chapter 275, Section 2) is amended
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to read:
"5-15-15. TAX INCREMENT FINANCING--GROSS RECEIPTS TAX
INCREMENT TO SECURE BONDS.--
A. A tax increment development plan, as originally
approved or as later modified, may contain a provision that
gross receipts tax increments collected within the tax
increment development area after the effective date of approval
of the tax increment development plan may be dedicated for the
purpose of securing gross receipts tax increment bonds pursuant
to the Tax Increment for Development Act.
B. A municipality may dedicate a portion of [a
gross receipts tax increment from any of the following taxes ]
an increment of a municipal option gross receipts tax that is
dedicated by the ordinance imposing the increment to the
project to pay the principal of, the interest on and any
premium due in connection with the bonds of, loans or advances
to, or any indebtedness incurred by, whether funded, refunded,
assumed or otherwise, the authority for financing or
refinancing, in whole or in part, a tax increment development
project within the tax increment development area
[(1) an increment of a municipal option gross
receipts tax that is dedicated by the ordinance imposing the
increment to the tax increment development project; and
(2) an amount distributed to municipalities
pursuant to Sections 7-1-6.4 and 7-1-6.46 NMSA 1978 ].
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C. A county may dedicate a portion of [a gross
receipts tax increment from any of the following taxes ] an
increment of a county option gross receipts tax that is
dedicated by the ordinance imposing the increment to the
project to pay the principal of, the interest on and any
premium due in connection with the bonds of, loans or advances
to or any indebtedness incurred by, whether funded, refunded,
assumed or otherwise, the district for financing or
refinancing, in whole or in part, a tax increment development
project within the tax increment development area.
[(1) an increment of a county option gross
receipts tax that is dedicated by the ordinance imposing the
increment to the tax increment development project; and
(2) the amount distributed to counties
pursuant to Section 7-1-6.47 NMSA 1978.
D. Subject to the provisions of Subsection G of
this section, the state board of finance may dedicate a gross
receipts tax increment attributable to the state gross receipts
tax to pay the financing and refinancing costs, the principal
of, the interest on and any premium due in connection with
gross receipts tax increment bonds issued to finance a tax
increment development project within the tax increment
development area; provided that:
(1) beginning July 1, 2029 the increment from
the state gross receipts tax is no more than the average of:
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(a) the increment from municipal option
gross receipts taxes dedicated by resolution by the
municipality, if the district is located in a municipality; and
(b) the increment from county option
gross receipts taxes dedicated by resolution by the county;
(2) the state board of finance has adopted a
resolution dedicating an increment attributable to the state
gross receipts tax for the purpose of securing gross receipts
tax increment bonds pursuant to Subsection G of this section;
and
(3) the dedication shall be conditioned on the
gross receipts tax increment bonds being issued no later than
four years after the state board of finance has adopted the
resolution dedicating the increment.
E.] D. The gross receipts tax increment generated
by the imposition of municipal or county option gross receipts
taxes specified by statute for particular purposes may
nonetheless be dedicated for the purposes of the Tax Increment
for Development Act if intent to do so is set forth in the tax
increment development plan approved by the governing body, if
the purpose for which the increment is intended to be used is
consistent with the purposes set forth in the statute
authorizing the municipal or county option gross receipts tax.
[F.] E. An imposition of a gross receipts tax
increment attributable to a gross receipts tax by a taxing
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entity may be dedicated for the purpose of securing gross
receipts tax increment bonds with the agreement of the taxing
entity, evidenced by a resolution adopted by a majority vote of
that taxing entity. A taxing entity shall not agree to
dedicate for the purposes of securing gross receipts tax
increment bonds more than seventy-five percent of its gross
receipts tax increment attributable to gross receipts taxes by
the taxing entity. A resolution of the taxing entity to
dedicate a gross receipts tax increment or to increase the
dedication of a gross receipts tax increment shall become
effective only on January 1 or July 1 of the calendar year.
[G. The state board of finance shall condition a
dedication of a gross receipts tax increment attributable to
the state gross receipts tax on the approval required pursuant
to Section 5-15-21 NMSA 1978 and that the initial gross
receipts tax increment bonds issuance secured by a portion of
the gross receipts tax increment attributable to the state
gross receipts tax shall be issued no later than four years
after the state board of finance has adopted the resolution
making the dedication. Subject to the limitations provided in
Subsection D of this section, the state board of finance shall
not agree to dedicate more than seventy-five percent of the
gross receipts tax increment attributable to the state gross
receipts tax within the district. The resolution of the state
board of finance shall become effective on January 1 or July 1
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of the calendar year following the notification period pursuant
to Section 5-15-27 NMSA 1978 and shall find that:
(1) the state board of finance has reviewed
the request for the use of the state gross receipts tax;
(2) based upon review by the state board of
finance of the applicable tax increment development plan, the
dedication by the state board of finance of a portion of the
gross receipts tax increment within the district for use in
meeting the required goals of the tax increment plan is
reasonable and in the best interest of the state; and
(3) based upon the review by the state board
of finance, the use of the state gross receipts tax is likely
to stimulate the creation of jobs, economic opportunities and
general revenue for the state through the addition of new
businesses to the state and the expansion of existing
businesses within the state; provided that, when reviewing the
applicable tax increment development plan to create jobs and
economic opportunities, the state board of finance shall
prioritize in its consideration net, new full-time economic
base jobs that would not have occurred on a similar scale and
time line but for the use of the state gross receipts tax
increment. The benefit to be evaluated is the marginal benefit
of the speed-up in time or the incremental change in job
creation above expected normal growth and shall exclude retail
jobs, call center jobs and service jobs where the customer is
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typically on site.
H.] F. The governing body of the jurisdiction in
which a tax increment development district has been established
shall timely notify the assessor of the county in which the
district has been established, the taxation and revenue
department and the local government division of the department
of finance and administration when:
(1) a tax increment development plan has been
approved that contains a provision for the allocation of a
gross receipts tax increment;
(2) any outstanding bonds of the district have
been paid off; and
(3) the purposes of the district have
otherwise been achieved.
G. The changes made by this 2025 act shall not
impair outstanding revenue bonds or loan guarantees that are
secured by a pledge of the state gross receipts tax. A pledge
of the state gross receipts tax made prior to the effective
date of this 2025 act shall continue to be dedicated until the
revenue bond or loan guarantee has been discharged in full or
provision has been fully made therefor. "
SECTION 11. Section 5-15-20 NMSA 1978 (being Laws 2006,
Chapter 75, Section 20, as amended) is amended to read:
"5-15-20. GENERAL BONDING AUTHORITY OF A TAX INCREMENT
DEVELOPMENT DISTRICT--OTHER LIMITATIONS.--
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A. A district board shall not issue bonds against
gross receipts tax increments attributable to
[(1) the state gross receipts tax without:
(a) the state board of finance adopting
a resolution dedicating a gross receipts tax increment
attributable to the state gross receipts tax for the purpose of
securing the gross receipts tax increment bonds pursuant to
Subsection G of Section 5-15-15 NMSA 1978; and
(b) the approval required by Section
5-15-21 NMSA 1978; and
(2)] a gross receipts tax imposed by a taxing
entity without the agreement of the taxing entity as evidenced
by a resolution adopted pursuant to Subsection B or C of
Section 5-15-15 NMSA 1978.
B. Except as otherwise provided in this section, a
district board shall not issue bonds against either gross
receipts tax increments or property tax increments without the
express written authorization of the department of finance and
administration, as evidenced by a letter signed by the
secretary of finance and administration. A district formed and
approved by a class A county or by a municipality within a
class A county if the municipality has a population of more
than sixty-five thousand persons, according to the most recent
federal decennial census, is not required to obtain express
written authorization of the department of finance and
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administration for the issuance of gross receipts tax increment
bonds or property tax increment bonds.
C. Prior to the issuance of indebtedness evidenced
by the gross receipts tax increment bonds or property tax
increment bonds issued by a district pursuant to the Tax
Increment for Development Act, the property owners within the
district shall contribute a minimum of twenty percent of the
initial public infrastructure costs, which may be reimbursed
with proceeds of gross receipts tax increment bonds or property
tax increment bonds; unless the project to be financed with
gross receipts tax increment bonds or property tax increment
bonds is a metropolitan redevelopment project pursuant to the
Metropolitan Redevelopment Code.
D. The amount of indebtedness evidenced by the
gross receipts tax increment bonds or property tax increment
bonds issued pursuant to the Tax Increment for Development Act
shall not exceed the estimated cost of the public improvements
plus all costs connected with the public infrastructure
purposes and the issuance and sale of bonds, including, without
limitation, formation costs, credit enhancement and liquidity
support fees and costs.
E. The indebtedness evidenced by the gross receipts
tax increment bonds or property tax increment bonds shall not
affect the general obligation bonding capacity of the
municipality or county in which the tax increment development
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district is located.
F. The indebtedness evidenced by the gross receipts
tax increment bonds or property tax increment bonds shall be
payable only from the special funds into which are deposited
the gross receipts tax increments and property tax increments
as set forth in the Tax Increment for Development Act.
G. Bonds issued by a tax increment development
district shall not be a general obligation of the state, the
county or the municipality in which the tax increment
development district is located and shall not pledge the full
faith and credit of the state, the county or the municipality
in which the tax increment development district is located."
SECTION 12. Section 5-15-27 NMSA 1978 (being Laws 2006,
Chapter 75, Section 27, as amended) is amended to read:
"5-15-27. DEDICATION OF GROSS RECEIPTS TAX INCREMENT--
NOTICE TO TAXATION AND REVENUE DEPARTMENT.--[A. ] If [the state
board of finance or] a taxing entity approves a dedication or
increase in the dedication of a gross receipts tax increment to
a district, [the state board of finance or ] the taxing entity
shall notify the taxation and revenue department of that
approval at least one hundred twenty days before the effective
date of the dedication or increase in the dedication [provided
that the effective date of the dedication by the state board of
finance is on or after the date the bonds are approved by the
legislature pursuant to Section 5-15-21 NMSA 1978.
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B. In regard to a dedication of a gross receipts
tax increment attributable to the state gross receipts tax, if
the approval required pursuant to Section 5-15-21 NMSA 1978 has
not occurred when the notice pursuant to Subsection A of this
section is made, the state board of finance shall include in
the notice that legislative approval is needed prior to a
distribution pursuant to Section 7-1-6.54 NMSA 1978
attributable to the state gross receipts tax can be made. Upon
approval pursuant to Section 5-15-21 NMSA 1978, the state board
of finance shall notify the department of the approval ]."
SECTION 13. Section 6-22-2 NMSA 1978 (being Laws 1992,
Chapter 105, Section 2, as amended) is amended to read:
"6-22-2. DEFINITIONS.--As used in the State Aid Intercept
Act:
A. "default" means the actual nonpayment of
principal or interest on a local revenue bond when payment is
scheduled by the indenture relating to the local revenue bond;
B. "local government" means a municipality or
county;
C. "local revenue bond" means a bond issued after
July 1, 1992 pursuant to Sections 3-33-1 through 3-33-43 NMSA
1978 or Chapter 4, Article 62 NMSA 1978;
D. "qualified local revenue bond" means a local
revenue bond for which a state distributions intercept
authorization has been granted pursuant to this section;
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E. "secretary" means the secretary of finance and
administration; and
F. "state distributions" means any or all of the
funds distributed to local governments pursuant to [Sections
7-1-6.4 and] Section 7-1-6.9 NMSA 1978."
SECTION 14. Section 6-23-8 NMSA 1978 (being Laws 1993,
Chapter 231, Section 8, as amended) is amended to read:
"6-23-8. MUNICIPALITIES--USE OF CERTAIN REVENUES
AUTHORIZED.--Upon adoption of an ordinance or resolution by an
affirmative vote of a majority of the members of the governing
body at any regular or special meeting of the governing body
called for this purpose, a municipality may pledge utility cost
savings, conservation-related cost savings or any or all
revenues not otherwise pledged or obligated from gross receipts
taxes received by the municipality pursuant to [Section 7-1-6.4
NMSA 1978 and] Section 7-1-6.12 NMSA 1978 for payments pursuant
to a guaranteed utility savings contract with a qualified
provider and any installment payment contract or lease-purchase
agreement pursuant to that guaranteed utility savings contract.
The ordinance or resolution shall declare the necessity for the
guaranteed utility savings contract and related contracts or
agreements and shall designate the source of the pledged
revenues. Any revenues pledged for such contract payments
shall be deposited in a special fund, and the municipality
shall not use any other revenues to make such payments. At the
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end of each fiscal year, any money remaining in the special
fund after payment obligations are met may be transferred to
any other fund of the municipality."
SECTION 15. Section 7-1-2 NMSA 1978 (being Laws 1965,
Chapter 248, Section 2, as amended) is amended to read:
"7-1-2. APPLICABILITY.--The Tax Administration Act
applies to and governs:
A. the administration and enforcement of the
following taxes or tax acts as they now exist or may hereafter
be amended:
(1) Income Tax Act;
(2) Withholding Tax Act;
(3) Oil and Gas Proceeds and Pass-Through
Entity Withholding Tax Act;
(4) Gross Receipts and Compensating Tax Act
[Interstate Telecommunications Gross Receipts Tax Act ] and
Leased Vehicle Gross Receipts Tax Act;
(5) Liquor Excise Tax Act;
(6) Local Liquor Excise Tax Act;
(7) any municipal local option gross receipts
tax or municipal compensating tax;
(8) any county local option gross receipts tax
or county compensating tax;
(9) Special Fuels Supplier Tax Act;
(10) Gasoline Tax Act;
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(11) petroleum products loading fee, which fee
shall be considered a tax for the purpose of the Tax
Administration Act;
[(12) Alternative Fuel Tax Act;
(13)] (12) Cigarette Tax Act;
[(14) Estate Tax Act;
(15) Railroad Car Company Tax Act;
(16) Investment Credit Act, rural job tax
credit, Laboratory Partnership with Small Business Tax Credit
Act, Technology Jobs and Research and Development Tax Credit
Act]
(13) Film Production Tax Credit Act,
Affordable Housing Tax Credit Act and high-wage jobs tax
credit;
[(17)] (14) Corporate Income and Franchise Tax
Act;
[(18)] (15) Uniform Division of Income for Tax
Purposes Act;
[(19)] (16) Multistate Tax Compact;
[(20)] (17) Tobacco Products Tax Act;
[(21)] (18) the telecommunications relay
service surcharge imposed by Section 63-9F-11 NMSA 1978, which
surcharge shall be considered a tax for the purposes of the Tax
Administration Act;
[(22) the Insurance Premium Tax Act;
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(23)] (19) the Health Care Quality Surcharge
Act;
[(24)] (20) the Cannabis Tax Act; and
[(25)] (21) the Health Care Delivery and
Access Act;
B. the administration and enforcement of the
following taxes, surtaxes, advanced payments or tax acts as
they now exist or may hereafter be amended:
(1) Resources Excise Tax Act;
(2) Severance Tax Act;
(3) any severance surtax;
(4) Oil and Gas Severance Tax Act;
(5) Oil and Gas Conservation Tax Act;
(6) Oil and Gas Emergency School Tax Act;
(7) Oil and Gas Ad Valorem Production Tax Act;
(8) Natural Gas Processors Tax Act;
(9) Oil and Gas Production Equipment Ad
Valorem Tax Act;
(10) Copper Production Ad Valorem Tax Act;
(11) any advance payment required to be made
by any act specified in this subsection, which advance payment
shall be considered a tax for the purposes of the Tax
Administration Act;
(12) Enhanced Oil Recovery Act;
(13) Natural Gas and Crude Oil Production
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Incentive Act; and
(14) intergovernmental production tax credit
and intergovernmental production equipment tax credit;
C. the administration and enforcement of the
following taxes, surcharges, fees or acts as they now exist or
may hereafter be amended:
(1) Weight Distance Tax Act;
(2) the workers' compensation fee authorized
by Section 52-5-19 NMSA 1978, which fee shall be considered a
tax for purposes of the Tax Administration Act;
(3) Uniform Unclaimed Property Act (1995);
(4) 911 emergency surcharge and the network
and database surcharge, which surcharges shall be considered
taxes for purposes of the Tax Administration Act;
(5) the solid waste assessment fee authorized
by the Solid Waste Act, which fee shall be considered a tax for
purposes of the Tax Administration Act;
(6) the water conservation fee imposed by
Section 74-1-13 NMSA 1978, which fee shall be considered a tax
for the purposes of the Tax Administration Act; and
(7) the gaming tax imposed pursuant to the
Gaming Control Act; and
D. the administration and enforcement of all other
laws, with respect to which the department is charged with
responsibilities pursuant to the Tax Administration Act, but
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only to the extent that the other laws do not conflict with the
Tax Administration Act."
SECTION 16. Section 7-1-6.15 NMSA 1978 (being Laws 1983,
Chapter 211, Section 20, as amended) is amended to read:
"7-1-6.15. ADJUSTMENTS OF DISTRIBUTIONS OR TRANSFERS TO
MUNICIPALITIES OR COUNTIES.--
A. The provisions of this section apply to:
[(1) any distribution to a municipality
pursuant to Section 7-1-6.4, 7-1-6.36 or 7-1-6.46 NMSA 1978;
(2)] (1) any transfer to a municipality with
respect to any local option gross receipts tax imposed by that
municipality;
[(3)] (2) any transfer to a county with
respect to any local option gross receipts tax imposed by that
county;
[(4)] (3) any distribution to a county
pursuant to Section 7-1-6.16 [or 7-1-6.47 ] NMSA 1978;
[(5)] (4) any distribution to a municipality
or a county of gasoline taxes pursuant to Section 7-1-6.9 NMSA
1978;
[(6)] (5) any transfer to a county with
respect to any tax imposed in accordance with the Local Liquor
Excise Tax Act;
[(7)] (6) any distribution to a county from
the county government road fund pursuant to Section 7-1-6.26
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NMSA 1978;
[(8)] (7) any distribution to a municipality
of gasoline taxes pursuant to Section 7-1-6.27 NMSA 1978; and
[(9) any distribution to a municipality of
compensating taxes pursuant to Section 7-1-6.55 NMSA 1978; and
(10)] (8) any distribution to a municipality
or a county of cannabis excise taxes pursuant to the Cannabis
Tax Act.
B. Before making a distribution or transfer
specified in Subsection A of this section to a municipality or
county for the month, amounts comprising the net receipts shall
be segregated into two mutually exclusive categories. One
category shall be for amounts relating to the current month,
and the other category shall be for amounts relating to prior
periods. The total of each category for a municipality or
county shall be reported each month to that municipality or
county. If the total of the amounts relating to prior periods
is less than zero and its absolute value exceeds the greater of
one hundred dollars ($100) or an amount equal to twenty percent
of the average distribution or transfer amount for that
municipality or county, then the following procedures shall be
carried out:
(1) all negative amounts relating to any
period prior to the three calendar years preceding the year of
the current month, net of any positive amounts in that same
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time period for the same taxpayers to which the negative
amounts pertain, shall be excluded from the total relating to
prior periods. Except as provided in Paragraph (2) of this
subsection, the net receipts to be distributed or transferred
to the municipality or county shall be adjusted to equal the
amount for the current month plus the revised total for prior
periods; and
(2) if the revised total for prior periods
determined pursuant to Paragraph (1) of this subsection is
negative and its absolute value exceeds the greater of one
hundred dollars ($100) or an amount equal to twenty percent of
the average distribution or transfer amount for that
municipality or county, the revised total for prior periods
shall be excluded from the distribution or transfers and the
net receipts to be distributed or transferred to the
municipality or county shall be equal to the amount for the
current month.
C. The department shall recover from a municipality
or county the amount excluded by Paragraph (2) of Subsection B
of this section. This amount may be referred to as the
"recoverable amount".
D. Prior to or concurrently with the distribution
or transfer to the municipality or county of the adjusted net
receipts, the department shall notify the municipality or
county whose distribution or transfer has been adjusted
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pursuant to Paragraph (2) of Subsection B of this section:
(1) that the department has made such an
adjustment, that the department has determined that a specified
amount is recoverable from the municipality or county and that
the department intends to recover that amount from future
distributions or transfers to the municipality or county;
(2) that the municipality or county has ninety
days from the date notice is made to enter into a mutually
agreeable repayment agreement with the department;
(3) that if the municipality or county takes
no action within the ninety-day period, the department will
recover the amount from the next six distributions or transfers
following the expiration of the ninety days; and
(4) that the municipality or county may
inspect, pursuant to Section 7-1-8.9 NMSA 1978, an application
for a claim for refund that gave rise to the recoverable
amount, exclusive of any amended returns that may be attached
to the application.
E. No earlier than ninety days from the date notice
pursuant to Subsection D of this section is given, the
department shall begin recovering the recoverable amount from a
municipality or county as follows:
(1) the department may collect the recoverable
amount by:
(a) decreasing distributions or
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transfers to the municipality or county in accordance with a
repayment agreement entered into with the municipality or
county; or
(b) except as provided in Paragraphs (2)
and (3) of this subsection, if the municipality or county fails
to act within the ninety days, decreasing the amount of the
next six distributions or transfers to the municipality or
county following expiration of the ninety-day period in
increments as nearly equal as practicable and sufficient to
recover the amount;
(2) if, pursuant to Subsection B of this
section, the secretary determines that the recoverable amount
is more than fifty percent of the average distribution or
transfer of net receipts for that municipality or county, the
secretary:
(a) shall recover only up to fifty
percent of the average distribution or transfer of net receipts
for that municipality or county; and
(b) may, in the secretary's discretion,
waive recovery of any portion of the recoverable amount,
subject to approval by the state board of finance; and
(3) if, after application of a refund claim,
audit adjustment, correction of a mistake by the department or
other adjustment of a prior period, but prior to any recovery
of the department pursuant to this section, the total net
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receipts of a municipality or county for the twelve-month
period beginning with the current month are reduced or are
projected to be reduced to less than fifty percent of the
average distribution or transfer of net receipts, the secretary
may waive recovery of any portion of the recoverable amount,
subject to approval by the state board of finance.
F. No later than ninety days from the date notice
pursuant to Subsection D of this section is given, the
department shall provide the municipality or county adequate
opportunity to review an application for a claim for refund
that gave rise to the recoverable amount, exclusive of any
amended returns that may be attached to the application,
pursuant to Section 7-1-8.9 NMSA 1978.
G. On or before September 1 of each year beginning
in 2016, the secretary shall report to the state board of
finance and the legislative finance committee the total
recoverable amount waived pursuant to Subparagraph (b) of
Paragraph (2) and Paragraph (3) of Subsection E of this section
for each municipality and county in the prior fiscal year.
H. The secretary is authorized to decrease a
distribution or transfer to a municipality or county upon being
directed to do so by the secretary of finance and
administration pursuant to the State Aid Intercept Act or to
redirect a distribution or transfer to the New Mexico finance
authority pursuant to an ordinance or a resolution passed by
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the county or municipality and a written agreement of the
municipality or county and the New Mexico finance authority.
Upon direction to decrease a distribution or transfer or notice
to redirect a distribution or transfer to a municipality or
county, the secretary shall decrease or redirect the next
designated distribution or transfer, and succeeding
distributions or transfers as necessary, by the amount of the
state distributions intercept authorized by the secretary of
finance and administration pursuant to the State Aid Intercept
Act or by the amount of the state distribution intercept
authorized pursuant to an ordinance or a resolution passed by
the county or municipality and a written agreement with the New
Mexico finance authority. The secretary shall transfer the
state distributions intercept amount to the municipal or county
treasurer or other person designated by the secretary of
finance and administration or to the New Mexico finance
authority pursuant to written agreement to pay the debt service
to avoid default on qualified local revenue bonds or meet other
local revenue bond, loan or other debt obligations of the
municipality or county to the New Mexico finance authority. A
decrease to or redirection of a distribution or transfer
pursuant to this subsection that arose:
(1) prior to an adjustment of a distribution
or transfer of net receipts creating a recoverable amount owed
to the department takes precedence over any collection of any
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recoverable amount pursuant to Paragraph (2) of Subsection B of
this section, which may be made only from the net amount of the
distribution or transfer remaining after application of the
decrease or redirection pursuant to this subsection; and
(2) after an adjustment of a distribution or
transfer of net receipts creating a recoverable amount owed to
the department shall be subordinate to any collection of any
recoverable amount pursuant to Paragraph (2) of Subsection B of
this section.
I. Upon the direction of the secretary of finance
and administration pursuant to Section 9-6-5.2 NMSA 1978, the
secretary shall temporarily withhold the balance of a
distribution to a municipality or county, net of any decrease
or redirected amount pursuant to Subsection H of this section
and any recoverable amount pursuant to Paragraph (2) of
Subsection B of this section, that has failed to submit an
audit report required by the Audit Act or a financial report
required by Subsection F of Section 6-6-2 NMSA 1978. The
amount to be withheld, the source of the withheld distribution
and the number of months that the distribution is to be
withheld shall be as directed by the secretary of finance and
administration. A distribution withheld pursuant to this
subsection shall remain in the tax administration suspense fund
until distributed to the municipality or county and shall not
be distributed to the general fund. An amount withheld
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pursuant to this subsection shall be distributed to the
municipality or county upon direction of the secretary of
finance and administration.
J. As used in this section:
(1) "amounts relating to the current month"
means any amounts included in the net receipts of the current
month that represent payment of tax due for the current month,
correction of amounts processed in the current month that
relate to the current month or that otherwise relate to
obligations due for the current month;
(2) "amounts relating to prior periods" means
any amounts processed during the current month that adjust
amounts processed in a period or periods prior to the current
month regardless of whether the adjustment is a correction of a
department error or due to the filing of amended returns,
payment of department-issued assessments, filing or approval of
claims for refund, audit adjustments or other cause;
(3) "average distribution or transfer amount"
means the following amounts; provided that a distribution or
transfer that is negative shall not be used in calculating the
amounts:
(a) the annual average of the total
amount distributed or transferred to a municipality or county
in each of the three twelve-month periods preceding the current
month;
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(b) if a distribution or transfer to a
municipality or county has been made for less than three years,
the total amount distributed or transferred in the year
preceding the current month; or
(c) if a municipality or county has not
received distributions or transfers of net receipts for twelve
or more months, the monthly average of net receipts distributed
or transferred to the municipality or county preceding the
current month multiplied by twelve;
(4) "current month" means the month for which
the distribution or transfer is being prepared; and
(5) "repayment agreement" means an agreement
between the department and a municipality or county under which
the municipality or county agrees to allow the department to
recover an amount determined pursuant to Paragraph (2) of
Subsection B of this section by decreasing distributions or
transfers to the municipality or county for one or more months
beginning with the distribution or transfer to be made with
respect to a designated month. No interest shall be charged."
SECTION 17. Section 7-1-6.42 NMSA 1978 (being Laws 2001,
Chapter 199, Section 12, as amended) is amended to read:
"7-1-6.42. DISTRIBUTION--STATE BUILDING BONDING FUND--
GROSS RECEIPTS TAX.--A distribution pursuant to Section 7-1-6.1
NMSA 1978 shall be made to the state building bonding fund in
the amount of six hundred eighty thousand dollars ($680,000)
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from the net receipts attributable to the gross receipts tax
imposed by the Gross Receipts and Compensating Tax Act. The
distribution shall be made:
[A. after the required distribution pursuant to
Section 7-1-6.4 NMSA 1978;
B.] A. contemporaneously with other distributions
of net receipts attributable to the gross receipts tax for
payment of debt service on outstanding bonds or to a fund
dedicated for that purpose; and
[C.] B. prior to any other distribution of net
receipts attributable to the gross receipts tax."
SECTION 18. Section 7-1-6.53 NMSA 1978 (being Laws 2005,
Chapter 176, Section 11) is amended to read:
"7-1-6.53. DISTRIBUTION--ENERGY EFFICIENCY AND RENEWABLE
ENERGY BONDING FUND--GROSS RECEIPTS TAX.--A distribution
pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the
energy efficiency and renewable energy bonding fund from the
net receipts attributable to the gross receipts tax imposed by
the Gross Receipts and Compensating Tax Act in an amount
necessary to make the required bond debt service payments
pursuant to the Energy Efficiency and Renewable Energy Bonding
Act as determined by the New Mexico finance authority. The
distribution shall be made:
[A. after the required distribution pursuant to
Section 7-1-6.4 NMSA 1978;
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B.] A. contemporaneously with other distributions
of net receipts attributable to the gross receipts tax for
payment of debt service on outstanding bonds or to a fund
dedicated for that purpose; and
[C.] B. prior to any other distribution of net
receipts attributable to the gross receipts tax."
SECTION 19. Section 7-1-6.62 NMSA 1978 (being Laws 2019,
Chapter 47, Section 2, as amended) is amended to read:
"7-1-6.62. DISTRIBUTION--[PREMIUM ] GROSS RECEIPTS TAX--
LAW ENFORCEMENT PROTECTION FUND--FIRE PROTECTION FUND--
EMERGENCY MEDICAL SERVICES FUND .--
A. A distribution pursuant to Section 7-1-6.1 NMSA
1978 shall be made to the law enforcement protection fund in an
amount equal to [ten] three-hundredths percent of the net
receipts attributable to the [premium ] gross receipts tax [from
life, health, general casualty and title insurance business ].
B. A distribution pursuant to Section 7-1-6.1 NMSA
1978 shall be made to the fire protection fund in an amount
equal to twenty-one hundredths percent of the net receipts
attributable to the [premium ] gross receipts tax [derived from
property and vehicle insurance business ].
C. A distribution pursuant to Section 7-1-6.1 NMSA
1978 shall be made to the emergency medical services fund in an
amount equal to [five ] fifteen-thousandths percent of the net
receipts attributable to the [premium ] gross receipts tax [from
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health insurance business ]."
SECTION 20. Section 7-1-6.69 NMSA 1978 (being Laws 2021,
Chapter 136, Section 1, as amended) is amended to read:
"7-1-6.69. DISTRIBUTION--[HEALTH INSURANCE PREMIUM
SURTAX] GROSS RECEIPTS TAX--HEALTH CARE AFFORDABILITY FUND.--A
distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be
made to the health care affordability fund in an amount equal
to [the following amounts ] seventeen-hundredths percent of the
net receipts attributable to the [health insurance premium
surtax; provided that if the rate of the health insurance
premium surtax is reduced pursuant to Subsection F of Section
7-40-3 NMSA 1978, no distribution pursuant to this section
shall be made:
A. prior to July 1, 2024, fifty-five percent;
B. beginning July 1, 2024 and prior to September 1,
2025, thirty percent; and
C. beginning September 1, 2025, fifty-five percent ]
gross receipts tax."
SECTION 21. Section 7-1-6.70 NMSA 1978 (being Laws 2022,
Chapter 32, Section 1) is amended to read:
"7-1-6.70. DISTRIBUTION--LAND GRANT-MERCED ASSISTANCE
FUND.--A distribution pursuant to Section 7-1-6.1 NMSA 1978
shall be made to the land grant-merced assistance fund in an
amount equal to five-hundredths percent of the net receipts
attributable to the gross receipts tax [after distributions
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have been made pursuant to Sections 7-1-6.46 and 7-1-6.47 NMSA
1978]."
SECTION 22. A new section of the Tax Administration Act
is enacted to read:
"[NEW MATERIAL] DISTRIBUTION--GROSS RECEIPTS TAX--STATE
ROAD FUND--TRANSPORTATION PROJECT FUND--BOAT FUND.--A
distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be
made of the following percentages of the net receipts
attributable to the gross receipts tax:
A. twelve-hundredths percent to the state road
fund;
B. eleven-hundredths percent to the transportation
project fund; and
C. fifty-four hundredths percent to the boat fund."
SECTION 23. Section 7-1-8.8 NMSA 1978 (being Laws 2019,
Chapter 87, Section 2, as amended) is amended to read:
"7-1-8.8. INFORMATION THAT MAY BE REVEALED TO OTHER STATE
AND LEGISLATIVE AGENCIES.--An employee of the department may
reveal confidential return information to the following
agencies; provided that a person who receives the information
on behalf of the agency shall be subject to the penalties in
Section 7-1-76 NMSA 1978 if the person fails to maintain the
confidentiality required:
A. a committee of the legislature for a valid
legislative purpose, return information concerning any tax or
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fee imposed pursuant to the Cigarette Tax Act;
B. the attorney general, return information
acquired pursuant to the Cigarette Tax Act for purposes of
Section 6-4-13 NMSA 1978 and the master settlement agreement
defined in Section 6-4-12 NMSA 1978;
C. the commissioner of public lands, return
information for use in auditing that pertains to rentals,
royalties, fees and other payments due the state under land
sale, land lease or other land use contracts;
D. the secretary of health care authority or the
secretary's delegate under a written agreement with the
department:
(1) the last known address with date of all
names certified to the department as being absent parents of
children receiving public financial assistance, but only for
the purpose of enforcing the support liability of the absent
parents by the child support enforcement division or any
successor organizational unit;
(2) return information needed for reports
required to be made to the federal government concerning the
use of federal funds for low-income working families;
(3) return information of low-income taxpayers
for the limited purpose of outreach to those taxpayers;
provided that the health care authority [department ] shall pay
the department for expenses incurred by the department to
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derive the information requested by the health care authority
[department] if the information requested is not readily
available in reports for which the department's information
systems are programmed;
(4) return information required to administer
the Health Care Quality Surcharge Act and the Health Care
Delivery and Access Act; and
(5) return information in accordance with the
provisions of the Easy Enrollment Act;
E. the department of information technology, by
electronic media, a database updated quarterly that contains
the names, addresses, county of address and taxpayer
identification numbers of New Mexico personal income tax
filers, but only for the purpose of producing the random jury
list for the selection of petit or grand jurors for the state
courts pursuant to Section 38-5-3 NMSA 1978;
F. the state courts, the random jury lists produced
by the department of information technology under Subsection E
of this section;
G. the director of the New Mexico department of
agriculture or the director's authorized representative, upon
request of the director or representative, the names and
addresses of all gasoline or special fuel distributors,
wholesalers and retailers;
[H. the public regulation commission, return
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information with respect to the Corporate Income and Franchise
Tax Act required to enable the commission to carry out its
duties;
I.] H. the state racing commission, return
information with respect to the state, municipal and county
gross receipts taxes paid by racetracks;
[J.] I. the gaming control board, tax returns of
license applicants and their affiliates as provided in
Subsection E of Section 60-2E-14 NMSA 1978;
[K.] J. the director of the workers' compensation
administration or to the director's representatives authorized
for this purpose, return information to facilitate the
identification of taxpayers that are delinquent or noncompliant
in payment of fees required by Section 52-1-9.1 or 52-5-19 NMSA
1978;
[L.] K. the secretary of workforce solutions or the
secretary's delegate, return information for use in enforcement
of unemployment insurance collections pursuant to the terms of
a written reciprocal agreement entered into by the department
with the secretary of workforce solutions for exchange of
information;
[M.] L. the New Mexico finance authority,
information with respect to the amount of municipal and county
gross receipts taxes collected by municipalities and counties
pursuant to any local option municipal or county gross receipts
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taxes imposed, and information with respect to the amount of
governmental gross receipts taxes paid by every agency,
institution, instrumentality or political subdivision of the
state pursuant to Section 7-9-4.3 NMSA 1978;
[N.] M. the superintendent of insurance, return
information with respect to the [premium ] gross receipts tax
[and the health insurance premium surtax ] imposed on insurance
companies or any agent thereof and a property bondsman, as that
person is defined in Section 59A-51-2 NMSA 1978, as security or
surety for a bail bond in connection with a judicial
proceeding;
[O.] N. the secretary of finance and administration
or the secretary's designee, return information concerning a
credit pursuant to the Film Production Tax Credit Act;
[P.] O. the secretary of economic development or
the secretary's designee, return information concerning a
credit pursuant to the Film Production Tax Credit Act;
[Q.] P. the secretary of public safety or the
secretary's designee, return information concerning the Weight
Distance Tax Act;
[R.] Q. the secretary of transportation or the
secretary's designee, return information concerning the Weight
Distance Tax Act;
[S.] R. the secretary of energy, minerals and
natural resources or the secretary's designee, return
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information concerning tax credits or deductions for which
eligibility is certified or otherwise determined by the
secretary or the secretary's designee;
[T.] S. the secretary of environment or the
secretary's designee, return information concerning tax credits
for which eligibility is certified or otherwise determined by
the secretary or the secretary's designee; and
[U.] T. the secretary of state or the secretary's
designee, taxpayer information required to maintain voter
registration records and as otherwise provided in the Election
Code."
SECTION 24. Section 7-1-13.1 NMSA 1978 (being Laws 1988,
Chapter 99, Section 3, as amended) is amended to read:
"7-1-13.1. METHOD OF PAYMENT OF CERTAIN TAXES DUE.--
A. Payment of the taxes, including any applicable
penalties and interest, described in Paragraph (1), (2), (3) or
(4) of this subsection shall be made on or before the date due
in accordance with Subsection B of this section if the
taxpayer's average tax payment for the group of taxes during
the preceding calendar year equaled or exceeded twenty-five
thousand dollars ($25,000):
(1) Group 1: all taxes due under the
Withholding Tax Act, the Gross Receipts and Compensating Tax
Act, the local option gross receipts tax acts [the Interstate
Telecommunications Gross Receipts Tax Act ] and the Leased
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Vehicle Gross Receipts Tax Act;
(2) Group 2: all taxes due under the Oil and
Gas Severance Tax Act, the Oil and Gas Conservation Tax Act,
the Oil and Gas Emergency School Tax Act and the Oil and Gas Ad
Valorem Production Tax Act;
(3) Group 3: the tax due under the Natural
Gas Processors Tax Act; or
(4) Group 4: all taxes and fees due under the
Gasoline Tax Act, the Special Fuels Supplier Tax Act and the
Petroleum Products Loading Fee Act.
For taxpayers who have more than one identification number
issued by the department, the average tax payment shall be
computed by combining the amounts paid under the several
identification numbers.
B. Taxpayers who are required to make payment in
accordance with the provisions of this section shall make
payment by one or more of the following means on or before the
due date so that funds are immediately available to the state
on or before the due date:
(1) electronic payment; provided that a result
of the payment is that funds are immediately available to the
state of New Mexico on or before the due date;
(2) currency of the United States;
(3) check drawn on and payable at any New
Mexico financial institution provided that the check is
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received by the department at the place and time required by
the department at least one banking day prior to the due date;
or
(4) check drawn on and payable at any domestic
non-New Mexico financial institution provided that the check is
received by the department at the time and place required by
the department at least two banking days prior to the due date.
C. If the taxes required to be paid under this
section are not paid in accordance with Subsection B of this
section, the payment is not timely and is subject to the
provisions of Sections 7-1-67 and 7-1-69 NMSA 1978.
D. For the purposes of this section, "average tax
payment" means the total amount of taxes paid with respect to a
group of taxes listed under Subsection A of this section during
a calendar year divided by the number of months in that
calendar year containing a due date on which the taxpayer was
required to pay one or more taxes in the group."
SECTION 25. Section 7-1-26 NMSA 1978 (being Laws 1965,
Chapter 248, Section 28, as amended) is amended to read:
"7-1-26. DISPUTING LIABILITIES--CLAIM FOR CREDIT, REBATE
OR REFUND.--
A. A person who believes that an amount of tax has
been paid by or withheld from that person in excess of that for
which the person was liable, who has been denied a credit or
rebate claimed or who claims a prior right to property in the
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possession of the department pursuant to a levy made pursuant
to the authority of Sections 7-1-31 through 7-1-34 NMSA 1978
may claim a refund by directing to the secretary, within the
time limitations provided by Subsections F and G of this
section, a written claim for refund that, except as provided in
Subsection K of this section, includes:
(1) the taxpayer's name, address and
identification number;
(2) the type of tax for which a refund is
being claimed, the credit or rebate denied or the property
levied upon;
(3) the sum of money or other property being
claimed;
(4) with respect to a refund, the period for
which overpayment was made;
(5) a brief statement of the facts and the law
on which the claim is based, which may be referred to as the
"basis for the refund", which may include documentation that
substantiates the written claim and supports the taxpayer's
basis for the refund; and
(6) if applicable, a copy of an amended return
for each tax period for which the refund is claimed.
B. A claim for refund that meets the requirements
of Subsection A of this section and that is filed within the
time limitations provided by Subsections F and G of this
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section is deemed to be properly before the department for
consideration, regardless of whether the department requests
additional documentation after receipt of the claim for refund.
C. If the department requests additional relevant
documentation from a taxpayer who has submitted a claim for
refund, the claim for refund shall not be considered incomplete
provided the taxpayer submits sufficient information for the
department to make a determination.
D. The secretary or the secretary's delegate may
allow the claim in whole or in part or may deny the claim. If
the:
(1) claim is denied in whole or in part in
writing, the person shall not refile the denied claim, but the
person, within ninety days after either the mailing or delivery
of the denial of all or any part of the claim, may elect to
pursue only one of the remedies provided in Subsection E of
this section; and
(2) department has neither granted nor denied
any portion of a complete claim for refund within one hundred
eighty days after the claim was mailed or otherwise delivered
to the department, the person may elect to treat the claim as
denied and elect to pursue only one of the remedies provided in
Subsection E of this section.
E. A person may elect to pursue only one of the
remedies provided in this subsection. A person who timely
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pursues more than one remedy is deemed to have elected the
first. The person may:
(1) direct to the secretary, pursuant to the
provisions of Section 7-1-24 NMSA 1978, a written protest that
sets forth:
(a) the circumstances of: 1) an alleged
overpayment; 2) a denied credit; 3) a denied rebate; or 4) a
denial of a prior right to property levied upon by the
department;
(b) an allegation that, because of that
overpayment or denial, the state is indebted to the taxpayer
for a specified amount, including any allowed interest, or for
the property;
(c) a demand for the refund to the
taxpayer of that amount or that property; and
(d) a recitation of the facts of the
claim for refund; or
(2) commence a civil action in the district
court for Santa Fe county by filing a complaint setting forth
the circumstance of the claimed overpayment, denied credit or
rebate or denial of a prior right to property levied upon by
the department alleging that on account thereof the state is
indebted to the plaintiff in the amount or property stated,
together with any interest allowable, demanding the refund to
the plaintiff of that amount or property and reciting the facts
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of the claim for refund. The plaintiff or the secretary may
appeal from any final decision or order of the district court
to the court of appeals.
F. Except as otherwise provided in Subsection G of
this section, a credit or refund of any amount of overpaid tax,
penalty or interest may be allowed or made to a person if a
claim is properly filed:
(1) only within three years after the end of
the calendar year in which the applicable event occurs:
(a) in the case of tax paid with an
original or amended state return, the date the related tax was
originally due;
(b) in the case of tax paid in response
to an assessment by the department pursuant to Section 7-1-17
NMSA 1978, the date the tax was paid;
(c) in the case of tax with respect to
which a net-negative federal adjustment, as that term is used
in Section 7-1-13 NMSA 1978, relates, the final determination
date of that federal adjustment, as provided in Section 7-1-13
NMSA 1978;
(d) the final determination of value
occurs with respect to any overpayment that resulted from a
disapproval by any agency of the United States or the state of
New Mexico or any court of increase in value of a product
subject to taxation pursuant to the Oil and Gas Severance Tax
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Act, the Oil and Gas Conservation Tax Act, the Oil and Gas
Emergency School Tax Act, the Oil and Gas Ad Valorem Production
Tax Act or the Natural Gas Processors Tax Act; or
(e) in the case of a claim related to
property taken by levy, the date the property was levied upon
as provided in the Tax Administration Act;
[(2) in the case of a denial of a claim for
credit pursuant to the Investment Credit Act, Laboratory
Partnership with Small Business Tax Credit Act or Technology
Jobs and Research and Development Tax Credit Act or for the
rural job tax credit provided by Section 7-2E-1.1 NMSA 1978 or
similar credit, only within one year after the date of the
denial;
(3)] (2) in the case of a taxpayer under audit
by the department who has signed a waiver of the limitation on
assessments on or after July 1, 1993 pursuant to Subsection F
of Section 7-1-18 NMSA 1978, only for a refund of the same tax
paid for the same period for which the waiver was given, and
only until a date one year after the later of the date of the
mailing of an assessment issued pursuant to the audit, the date
of the mailing of final audit findings to the taxpayer or the
date a proceeding is begun in court by the department with
respect to the same tax and the same period;
[(4)] (3) in the case of a payment of an
amount of tax not made within three years of the end of the
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calendar year in which the original due date of the tax or date
of the assessment of the department occurred, only for a claim
for refund of that amount of tax and only within one year of
the date on which the tax was paid; or
[(5)] (4) in the case of a taxpayer who has
been assessed a tax on or after July 1, 1993 pursuant to
Subsection B, C or D of Section 7-1-18 NMSA 1978 and an
assessment that applies to a period ending at least three years
prior to the beginning of the year in which the assessment was
made, only for a refund for the same tax for the period of the
assessment or for any period following that period within one
year of the date of the assessment unless a longer period for
claiming a refund is provided in this section.
G. No credit or refund shall be allowed or made to
a person claiming a refund of gasoline tax pursuant to Section
7-13-11 NMSA 1978 unless notice of the destruction of the
gasoline was given to the department within thirty days of the
actual destruction and the claim for refund is made within six
months of the date of destruction. No credit or refund shall
be allowed or made to a person claiming a refund of gasoline
tax pursuant to Section 7-13-17 NMSA 1978 unless the refund is
claimed within six months of the date of purchase of the
gasoline and the gasoline has been used at the time the claim
for refund is made.
H. If, as a result of an audit by the department or
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a managed audit covering multiple periods, an overpayment of
tax is found in any period under the audit and if the taxpayer
files a claim for refund for the overpayments identified in the
audit, that overpayment may be credited against an underpayment
of the same tax found in another period under audit pursuant to
Section 7-1-29 NMSA 1978.
I. A refund of tax paid under any tax or tax act
administered pursuant to Subsection B of Section 7-1-2 NMSA
1978 may be made, at the discretion of the department, in the
form of credit against future tax payments if future tax
liabilities in an amount at least equal to the credit amount
reasonably may be expected to become due.
J. For the purposes of this section, "oil and gas
tax return" means a return reporting tax due with respect to
oil, natural gas, liquid hydrocarbons, carbon dioxide, helium
or nonhydrocarbon gas pursuant to the Oil and Gas Severance Tax
Act, the Oil and Gas Conservation Tax Act, the Oil and Gas
Emergency School Tax Act, the Oil and Gas Ad Valorem Production
Tax Act, the Natural Gas Processors Tax Act or the Oil and Gas
Production Equipment Ad Valorem Tax Act.
K. The filing of a fully completed original income
tax return, corporate income tax return, corporate income and
franchise tax return [estate tax return ] or special fuel excise
tax return [or annual insurance premium tax return ] that shows
a balance due the taxpayer or a fully completed amended income
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tax return, an amended corporate income tax return, an amended
corporate income and franchise tax return, [an amended estate
tax return] an amended special fuel excise tax return or an
amended oil and gas tax return [or an amended insurance premium
tax return] that shows a lesser tax liability than the original
return constitutes the filing of a claim for refund for the
difference in tax due shown on the original and amended
returns.
L. In no case may a credit or refund be claimed if
the related federal adjustment is taken into account by a
partnership in the partnership's tax return for the adjustment
year and allocated to the partners in a manner similar to other
partnership tax items."
SECTION 26. Section 7-1-29 NMSA 1978 (being Laws 1965,
Chapter 248, Section 31, as amended) is amended to read:
"7-1-29. AUTHORITY TO MAKE REFUNDS OR CREDITS.--
A. In response to a claim for refund, credit or
rebate made as provided in Section 7-1-26 NMSA 1978, but before
a court acquires jurisdiction of the matter, the secretary or
the secretary's delegate may authorize payment to a person in
the amount of the credit or rebate claimed or refund an
overpayment of tax determined by the secretary or the
secretary's delegate to have been erroneously made by the
person, together with allowable interest. A payment of a
credit rebate claimed or a refund of tax and interest
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erroneously paid amounting to twenty thousand dollars ($20,000)
or more shall be made with the prior approval of the attorney
general, except that the secretary or the secretary's delegate
may make refunds with respect to the Oil and Gas Severance Tax
Act, the Oil and Gas Conservation Tax Act, the Oil and Gas
Emergency School Tax Act, the Oil and Gas Ad Valorem Production
Tax Act, the Natural Gas Processors Tax Act or the Oil and Gas
Production Equipment Ad Valorem Tax Act, Section 7-13-17 NMSA
1978 and the Cigarette Tax Act without the prior approval of
the attorney general regardless of the amount.
B. Pursuant to the final order of the district
court, the court of appeals, the supreme court of New Mexico or
a federal court, from which order, appeal or review is not
successfully taken, adjudging that a person has properly
claimed a credit, rebate or a refund of overpaid tax, the
secretary shall authorize the payment to the person of the
amount thereof. After a court acquires jurisdiction but before
it issues a final order, the secretary may authorize payment of
a credit, rebate or refund pursuant to a closing agreement
pursuant to Section 7-1-20 NMSA 1978.
C. In the discretion of the secretary, any amount
of credit or rebate to be paid or tax to be refunded may be
offset against any amount of tax for which the person due to
receive the credit, rebate payment or refund is liable. The
secretary or the secretary's delegate shall give notice to the
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taxpayer that the credit, rebate payment or refund will be made
in this manner, and the taxpayer shall be entitled to interest
pursuant to Section 7-1-68 NMSA 1978 until the tax liability is
credited with the credit, rebate or refund amount.
D. In an audit by the department or a managed audit
covering multiple reporting periods in which both underpayments
and overpayments of a tax have been made in different reporting
periods, the department shall credit the tax overpayments
against the underpayments; provided that the taxpayer files a
claim for refund of the overpayments. An overpayment shall be
applied as a credit first to the earliest underpayment and then
to succeeding underpayments. An underpayment of tax to which
an overpayment is credited pursuant to this section shall be
deemed paid in the period in which the overpayment was made or
the period to which the overpayment was credited against an
underpayment, whichever is later. If the overpayments credited
pursuant to this section exceed the underpayments of a tax, the
amount of the net overpayment for the periods covered in the
audit shall be refunded to the taxpayer.
E. When a taxpayer makes a payment identified to a
particular return or assessment, and the department determines
that the payment exceeds the amount due pursuant to that return
or assessment, the secretary may apply the excess to the
taxpayer's other liabilities pursuant to the tax acts to which
the return or assessment applies, without requiring the
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taxpayer to file a claim for a refund. The liability to which
an overpayment is applied pursuant to this section shall be
deemed paid in the period in which the overpayment was made or
the period to which the overpayment was applied, whichever is
later.
F. If the department determines, upon review of an
original or amended income tax return, corporate income and
franchise tax return, [estate tax return ] special [fuels] fuel
excise tax return or oil and gas tax return, that there has
been an overpayment of tax for the taxable period to which the
return or amended return relates in excess of the amount due to
be refunded to the taxpayer pursuant to the provisions of
Subsection K of Section 7-1-26 NMSA 1978, the department may
refund that excess amount to the taxpayer without requiring the
taxpayer to file a refund claim.
G. Records of refunds and credits made in excess of
ten thousand dollars ($10,000) shall be available for
inspection by the public. The department shall keep such
records for a minimum of three years from the date of the
refund or credit.
H. In response to a timely refund claim pursuant to
Section 7-1-26 NMSA 1978 and notwithstanding any other
provision of the Tax Administration Act, the secretary or the
secretary's delegate may refund or credit a portion of an
assessment of tax paid, including applicable penalties and
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interest representing the amount of tax previously paid by
another person on behalf of the taxpayer on the same
transaction; provided that the requirements of equitable
recoupment are met. For purposes of this subsection, the
refund claim may be filed by the taxpayer to whom the
assessment was issued or by another person who claims to have
previously paid the tax on behalf of the taxpayer. Prior to
granting the refund or credit, the secretary may require a
waiver of all rights to claim a refund or credit of the tax
previously paid by another person paying a tax on behalf of the
taxpayer.
I. If, as a result of an audit by the department or
a managed audit, a person is determined to owe gross receipts
tax on receipts from the sale of property or services, the
department may credit against the amount owed an amount of
compensating tax paid by the purchaser if the person can
demonstrate that the purchaser timely paid the compensating tax
on the same property or services. The credit provided by this
subsection shall not be denied solely because the purchaser
cannot timely file for a refund of the compensating tax paid
and, if the credit is to be granted, the department shall
require, for the purpose of granting the credit, that the
purchaser give up any right to claim a refund of that tax."
SECTION 27. Section 7-1-68 NMSA 1978 (being Laws 1965,
Chapter 248, Section 69, as amended) is amended to read:
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"7-1-68. INTEREST ON OVERPAYMENTS.--
A. As provided in this section, interest shall be
allowed and paid on the amount of tax overpaid by a person that
is subsequently refunded or credited to that person.
B. Interest on overpayments of tax shall accrue and
be paid at the underpayment rate established pursuant to
Section 6621 of the Internal Revenue Code, computed on a daily
basis; provided that if a different rate is specified by a
compact or other interstate agreement to which New Mexico is a
party, that rate shall apply to amounts due under the compact
or other agreement.
C. Unless otherwise provided by this section,
interest on an overpayment not arising from an assessment by
the department shall be paid from the date of the claim for
refund until a date preceding by not more than thirty days the
date of the credit or refund to any person; and interest on an
overpayment arising from an assessment by the department shall
be paid from the date of overpayment until a date preceding by
not more than thirty days the date of the credit or refund to
any person.
D. No interest shall be allowed or paid with
respect to an amount credited or refunded if:
(1) the amount of interest due is less than
one dollar ($1.00);
(2) the credit or refund is made within:
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(a) fifty-five days of the date of the
complete claim for refund of income tax pursuant to [either ]
the Income Tax Act or the Corporate Income and Franchise Tax
Act for the tax year immediately preceding the tax year in
which the claim is made;
(b) sixty days of the date of the
complete claim for refund of any tax not provided for in this
paragraph;
(c) seventy-five days of the date of the
complete claim for refund of gasoline tax to users of gasoline
off the highways;
(d) one hundred twenty days of the date
of the complete claim for refund of tax imposed pursuant to the
Resources Excise Tax Act, the Severance Tax Act, the Oil and
Gas Severance Tax Act, the Oil and Gas Conservation Tax Act,
the Oil and Gas Emergency School Tax Act, the Oil and Gas Ad
Valorem Production Tax Act, the Natural Gas Processors Tax Act
or the Oil and Gas Production Equipment Ad Valorem Tax Act; or
(e) one hundred twenty days of the date
of the complete claim for refund of income tax, pursuant to the
Income Tax Act or the Corporate Income and Franchise Tax Act
for any tax year more than one year prior to the year in which
the claim is made;
(3) Sections 6611(f) and 6611(g) of the
Internal Revenue Code, as those sections may be amended or
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renumbered, prohibit payment of interest for federal income tax
purposes;
(4) the credit results from overpayments found
in an audit of multiple reporting periods and applied to
underpayments found in that audit or refunded as a net
overpayment to the taxpayer pursuant to Section 7-1-29 NMSA
1978;
(5) the department applies the credit or
refund to an intercept program, to the taxpayer's estimated
payment prior to the due date for the estimated payment or to
offset prior liabilities of the taxpayer pursuant to Subsection
E of Section 7-1-29 NMSA 1978;
(6) the credit or refund results from
overpayments the department finds pursuant to Subsection F of
Section 7-1-29 NMSA 1978 that exceed the refund claimed by the
taxpayer on the return; or
(7) the refund results from a tax credit
pursuant to the [Investment Credit Act, Laboratory Partnership
with Small Business Tax Credit Act, Technology Jobs and
Research and Development Tax Credit Act ] Film Production Tax
Credit Act [Affordable Housing Tax Credit Act or a rural job
tax credit or high-wage jobs tax credit ].
E. Nothing in this section shall be construed to
require the payment of interest upon interest."
SECTION 28. Section 7-2-7 NMSA 1978 (being Laws 2005,
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Chapter 104, Section 4, as amended) is repealed and a new
Section 7-2-7 NMSA 1978 is enacted to read:
"7-2-7. [NEW MATERIAL ] INDIVIDUAL INCOME TAX RATES.--
A. The tax imposed by Section 7-2-3 NMSA 1978 shall
be at the following rates for any taxable year beginning on or
after January 1, 2025:
(1) for married individuals filing separate
returns:
If the taxable income is: The tax shall be:
Not over $10,000 2.0% of taxable income
Over $10,000 but not over $30,000 $200.00 plus 4.0% of
excess over $10,000
Over $30,000 $1,000.00 plus 6.0% of
excess over $30,000;
(2) for heads of household, surviving spouses
and married individuals filing joint returns:
If the taxable income is: The tax shall be:
Not over $20,000 2.0% of taxable income
Over $20,000 but not over $60,000 $400.00 plus 4.0% of
excess over $20,000
Over $60,000 $2,000.00 plus 6.0% of
excess over $60,000; and
(3) for single individuals and for estates and
trusts:
If the taxable income is: The tax shall be:
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Not over $13,500 2.0% of taxable income
Over $13,500 but not over $40,000 $270.00 plus 4.0% of
excess over $13,500
Over $40,000 $1,330.00 plus 6.0% of
excess over $40,000.
B. The tax on the sum of any lump-sum amounts
included in net income is an amount equal to five multiplied by
the difference between:
(1) the amount of tax due on the taxpayer's
taxable income; and
(2) the amount of tax that would be due on an
amount equal to the taxpayer's taxable income and twenty
percent of the taxpayer's lump-sum amounts included in net
income."
SECTION 29. Section 7-2-34 NMSA 1978 (being Laws 1999,
Chapter 205, Section 1, as amended) is amended to read:
"7-2-34. DEDUCTION--NET CAPITAL GAIN INCOME.--
A. A taxpayer may claim a deduction from net income
in an amount equal to [the greater of: (1) ] the taxpayer's net
capital gain income for the taxable year for which the
deduction is being claimed, but not to exceed two thousand five
hundred dollars ($2,500) [or (2) forty percent of up to one
million dollars ($1,000,000) of the taxpayer's net capital gain
income from the sale of a business that is allocated or
apportioned to New Mexico pursuant to Section 7-2-11 NMSA 1978
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for the taxable year for which the deduction is being claimed ].
B. Married individuals who file separate returns
for a taxable year in which they could have filed a joint
return may each claim only one-half of the deduction provided
by this section that would have been allowed on the joint
return.
C. The deduction provided by this section shall be
included in the tax expenditure budget pursuant to Section
7-1-84 NMSA 1978, including the annual aggregate cost of the
deduction.
[C.] D. As used in this section, "net capital gain"
means "net capital gain" as defined in Section 1222 (11) of the
Internal Revenue Code."
SECTION 30. Section 7-2A-5 NMSA 1978 (being Laws 1981,
Chapter 37, Section 38, as amended) is repealed and a new
Section 7-2A-5 NMSA 1978 is enacted to read:
"7-2A-5. [NEW MATERIAL ] CORPORATE INCOME TAX RATES.--The
corporate income tax imposed on corporations by Section 7-2A-3
NMSA 1978 shall be at the following rates for any taxable year
beginning on or after January 1, 2025:
If the taxable income is: The tax shall be:
Not over $250,000 2.0% of taxable income
Over $250,000 but not over $500,000 $5,000.00 plus 4.0% of
excess over $250,000
Over $500,000 $15,000.00 plus 6.0% of
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excess over $500,000."
SECTION 31. Section 7-9-4 NMSA 1978 (being Laws 1966,
Chapter 47, Section 4, as amended) is amended to read:
"7-9-4. IMPOSITION AND RATE OF TAX--DENOMINATION AS
"GROSS RECEIPTS TAX".--
A. For the privilege of engaging in business, an
excise tax equal to [the following percentages ] two percent of
gross receipts is imposed on any person engaging in business in
New Mexico
[(1) prior to July 1, 2023, five percent; and
(2) beginning July 1, 2023, four and seven-
eighths percent, except as provided in Subsection C of this
section].
B. The tax imposed by this section shall be
referred to as the "gross receipts tax".
[C. If, for any single fiscal year occurring after
fiscal year 2025 and prior to fiscal year 2030, gross receipts
tax revenues are less than ninety-five percent of the gross
receipts tax revenues for the previous fiscal year, as
determined by the secretary of finance and administration, the
rate of the gross receipts tax shall be five and one-eighth
percent beginning on the July 1 following the determination
made by the secretary of finance and administration.
D. On or before February 1 of each year, until the
rate of the gross receipts tax is adjusted to five and one-
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eighth percent pursuant to Subsection C of this section, the
secretary of finance and administration shall make a
determination for the purposes of Subsection C of this section.
If the rate of tax is adjusted pursuant to that subsection, the
secretary shall certify to the secretary of taxation and
revenue that the rate of the gross receipts tax shall be five
and one-eighth percent, effective on the following July 1.
E. As used in this section, "gross receipts tax
revenues" means the net receipts attributable to the gross
receipts tax and distributed to the general fund. ]"
SECTION 32. Section 7-9-4.3 NMSA 1978 (being Laws 1991,
Chapter 8, Section 2, as amended) is amended to read:
"7-9-4.3. IMPOSITION AND RATE OF TAX--DENOMINATION AS
"GOVERNMENTAL GROSS RECEIPTS TAX".--For the privilege of
engaging in certain activities by governments, there is imposed
on every agency, institution, instrumentality or political
subdivision of the state, except any school district and an
entity licensed by the department of health, other than a
hospital, that is principally engaged in providing health care
services, an excise tax of [five ] two percent of governmental
gross receipts. The tax imposed by this section shall be
referred to as the "governmental gross receipts tax"."
SECTION 33. Section 7-9-7 NMSA 1978 (being Laws 1966,
Chapter 47, Section 7, as amended) is amended to read:
"7-9-7. IMPOSITION AND RATE OF TAX--DENOMINATION AS
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"COMPENSATING TAX".--
A. For the privilege of making taxable use of
tangible personal property in New Mexico, there is imposed on
the person using the property an excise tax equal to [five ] two
percent [prior to July 1, 2023 and four and seven-eighths
percent beginning July 1, 2023, except as provided in
Subsection G of this section ] of the value of tangible property
that was:
(1) manufactured by the person using the
property in the state; or
(2) acquired in a transaction for which the
seller's receipts were not subject to the gross receipts tax.
B. For the purpose of Subsection A of this section,
value of tangible personal property shall be the adjusted basis
of the property for federal income tax purposes determined as
of the time of acquisition or introduction into this state or
of conversion of the property to taxable use, whichever is
later. If no adjusted basis for federal income tax purposes is
established for the property, a reasonable value of the
property shall be used.
C. For the privilege of making taxable use of a
license or franchise in New Mexico, there is imposed on the
person using the license or franchise an excise tax equal to
the rate provided in Subsection A [or G ] of this section [as
applicable] against the value of the license or franchise in
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its use in this state. The department by rule, ruling or
instruction shall fairly apportion, where appropriate, the
value of a license or franchise to its value in use in New
Mexico. The tax shall apply only to the value of a license or
franchise used in New Mexico where the license or franchise was
acquired in a transaction the receipts from which were not
subject to the gross receipts tax.
D. For the privilege of making taxable use of
services in New Mexico, there is imposed on the person using
the services an excise tax equal to the rate provided in
Subsection A [or G] of this section [as applicable ] against the
value of the services at the time the services were performed
or the product of the service was acquired. For use of
services to be a taxable use pursuant to this subsection, the
services shall have been acquired in a transaction the receipts
from which were not subject to the gross receipts tax.
E. For purposes of this section, receipts are not
subject to the gross receipts tax if the person responsible for
the gross receipts tax on those receipts lacked nexus in New
Mexico or the receipts were exempt or allowed to be deducted
pursuant to the Gross Receipts and Compensating Tax Act.
F. The tax imposed by this section shall be
referred to as the "compensating tax".
[G. If the gross receipts tax is increased to five
and one-eighth percent pursuant to Subsection C of Section
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7-9-4 NMSA 1978, the rate of the compensating tax shall be five
and one-eighth percent.
H.] G. As used in this section, "taxable use" means
use by a person who acquires tangible personal property, a
license, a franchise or a service, and the use of which would
not have qualified for an exemption or deduction pursuant to
the Gross Receipts and Compensating Tax Act."
SECTION 34. Section 7-9-13.2 NMSA 1978 (being Laws 1992,
Chapter 100, Section 3, as amended) is amended to read:
"7-9-13.2. EXEMPTION--GOVERNMENTAL GROSS RECEIPTS TAX--
RECEIPTS SUBJECT TO CERTAIN OTHER TAXES.--Exempted from the
governmental gross receipts tax are receipts from transactions
involving tangible personal property or services on which
receipts or transactions the gross receipts tax, compensating
tax, [motor vehicle excise tax ] gasoline tax, [special fuel
tax] special fuel excise tax, oil and gas emergency school tax,
resources tax, processors tax or service tax [or the excise tax
imposed under Section 66-12-6.1 NMSA 1978 ] is imposed."
SECTION 35. Section 7-9-18 NMSA 1978 (being Laws 1969,
Chapter 144, Section 11, as amended) is amended to read:
"7-9-18. [EXEMPTION] DEDUCTION--GROSS RECEIPTS TAX AND
GOVERNMENTAL GROSS RECEIPTS TAX--AGRICULTURAL PRODUCTS.--
A. [Exempted from the gross receipts tax and from
the governmental gross receipts tax are the ] Prior to July 1,
2028, receipts from selling livestock and receipts of growers,
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producers, trappers or nonprofit marketing associations from
selling livestock, live poultry, unprocessed agricultural
products, hides or pelts may be deducted from gross receipts
and governmental gross receipts . Persons engaged in the
business of buying and selling wool or mohair or of buying and
selling livestock on their own account are producers for the
purposes of this section.
B. Receipts from selling dairy products at retail
[are] shall not [exempted] be deducted from [the] gross
receipts [tax] pursuant to this section.
C. A taxpayer allowed a deduction pursuant to this
section shall report the amount of the deduction separately in
a manner required by the department.
D. The deductions provided by this section shall be
included in the tax expenditure budget pursuant to Section
7-1-84 NMSA 1978, including the annual aggregate cost of the
deductions.
[C.] E. As used in this section, "livestock" means
all domestic or domesticated animals that are used or raised on
a farm or ranch, including the carcasses thereof, and also
includes horses, asses, mules, cattle, sheep, goats, swine,
bison, poultry, ostriches, emus, rheas, camelids and farmed
cervidae upon any land in New Mexico; provided that for the
purposes of Chapter 77, Article 9 NMSA 1978, "animals" or
"livestock" have the meaning defined in that article.
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"Animals" or "livestock" does not include canine or feline
animals. For the purpose of the rules governing meat
inspection, wild animals, poultry and birds used for human
consumption shall also be included within the meaning of
"animals" or "livestock"."
SECTION 36. Section 7-9-26 NMSA 1978 (being Laws 1969,
Chapter 144, Section 19, as amended) is amended to read:
"7-9-26. EXEMPTION--GROSS RECEIPTS AND COMPENSATING TAX--
FUEL.--Exempted from the gross receipts and compensating tax
are the receipts from selling and the use of gasoline or
special fuel [or alternative fuel ] on which the gasoline tax
[imposed by Section 7-13-3, 7-16A-3 or 7-16B-4 NMSA 1978 ] or
special fuel excise tax has been paid and not refunded."
SECTION 37. Section 7-9-41.5 NMSA 1978 (being Laws 2019,
Chapter 270, Section 34) is amended to read:
"7-9-41.5. EXEMPTION--NONPROFIT HOSPITALS FROM LOCAL
OPTION GROSS RECEIPTS TAXES.--
A. [Exempted from any local option gross receipts
tax, but not the state gross receipts tax, are ] Prior to July
1, 2034, receipts of a nonprofit hospital licensed by the
department of health are exempted from any local option gross
receipts tax but not the state gross receipts tax .
B. As used in this section, "nonprofit hospital"
means a hospital that has been granted exemption from federal
income tax by the United States commissioner of internal
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revenue as an organization described in Section 501(c)(3) of
the Internal Revenue Code."
SECTION 38. Section 7-9-46 NMSA 1978 (being Laws 1969,
Chapter 144, Section 36, as amended) is amended to read:
"7-9-46. DEDUCTION--GROSS RECEIPTS--GOVERNMENTAL GROSS
RECEIPTS--SALES TO MANUFACTURERS AND MANUFACTURING SERVICE
PROVIDERS.--
A. Prior to July 1, 2034 , receipts from selling
tangible personal property may be deducted from gross receipts
or from governmental gross receipts if the sale is made to a
person engaged in the business of manufacturing who delivers a
nontaxable transaction certificate to the seller or provides
alternative evidence pursuant to Section 7-9-43 NMSA 1978. The
buyer must incorporate the tangible personal property as an
ingredient or component part of the product that the buyer is
in the business of manufacturing.
B. Prior to July 1, 2034 , receipts from selling a
manufacturing consumable to a manufacturer or a manufacturing
service provider may be deducted from gross receipts or from
governmental gross receipts if the buyer delivers a nontaxable
transaction certificate to the seller or provides alternative
evidence pursuant to Section 7-9-43 NMSA 1978; provided that if
the seller is a utility company, an agreement with the
department pursuant to Section 7-1-21.1 NMSA 1978 and a
nontaxable transaction certificate shall be required.
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C. Prior to July 1, 2034 , receipts from selling or
leasing qualified equipment may be deducted from gross receipts
if the sale is made to, or the lease is entered into with, a
person engaged in the business of manufacturing or a
manufacturing service provider who delivers a nontaxable
transaction certificate to the seller or provides alternative
evidence pursuant to Section 7-9-43 NMSA 1978. [provided that
a manufacturer or manufacturing service provider delivering a
nontaxable transaction certificate or alternative evidence with
respect to the qualified equipment shall not claim an
investment credit pursuant to the Investment Credit Act for
that same equipment.]
D. The purpose of the deductions provided in this
section is to encourage manufacturing businesses to locate in
New Mexico and to reduce the tax burden, including reducing
pyramiding, on the tangible personal property that is consumed
in the manufacturing process and that is purchased by
manufacturing businesses in New Mexico.
E. [The department shall annually report to the
revenue stabilization and tax policy committee the aggregate
amount of deductions taken pursuant to this section, the number
of taxpayers claiming each of the deductions and any other
information that is necessary to determine that the deductions
are performing the purposes for which they are enacted ] The
deductions provided by this section shall be included in the
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tax expenditure budget pursuant to Section 7-1-84 NMSA 1978,
including the annual aggregate cost of the deductions .
F. A taxpayer deducting gross receipts pursuant to
this section shall report the amount deducted separately for
each deduction provided in this section and attribute the
amount of the deduction to the appropriate authorization
provided in this section in a manner required by the department
that facilitates the evaluation by the legislature of the
benefit to the state of these deductions.
G. As used in this section:
(1) "manufacturing consumable" means tangible
personal property, other than qualified equipment or an
ingredient or component part of a manufactured product, that is
incorporated into, destroyed, depleted or transformed in the
process of manufacturing a product, including electricity,
fuels, water, manufacturing aids and supplies, chemicals, gases
and other tangibles used to manufacture a product;
(2) "manufacturing operation" means a plant
operated by a manufacturer or manufacturing service provider
that employs personnel to perform production tasks to produce
goods, in conjunction with machinery and equipment; and
(3) "qualified equipment" means machinery,
equipment and tools, including component, repair, replacement
and spare parts thereof, that are used directly in the
manufacturing process of a manufacturing operation. "Qualified
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equipment" includes computer hardware and software used
directly in the manufacturing process of a manufacturing
operation but excludes any motor vehicle that is required to be
registered in this state pursuant to the Motor Vehicle Code."
SECTION 39. Section 7-9-46.1 NMSA 1978 (being Laws 2022,
Chapter 47, Section 14) is amended to read:
"7-9-46.1. DEDUCTION--GROSS RECEIPTS--GOVERNMENTAL GROSS
RECEIPTS--SALES OF SERVICES TO MANUFACTURERS.--
A. Prior to July 1, 2034 , receipts from selling
professional services may be deducted from gross receipts or
from governmental gross receipts if the sale is made to a
person engaged in the business of manufacturing who delivers a
nontaxable transaction certificate to the seller or provides
alternative evidence pursuant to Section 7-9-43 NMSA 1978. The
professional services shall be related to the product that the
buyer is in the business of manufacturing.
B. The purpose of the deductions provided in this
section is to encourage manufacturing businesses to locate in
New Mexico and to reduce the tax burden, including reducing
pyramiding, on the professional services that are purchased by
manufacturing businesses in New Mexico.
C. A taxpayer allowed a deduction pursuant to this
section shall report the amount of the deduction separately in
a manner required by the department.
D. [The department shall compile an annual report
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on the deduction provided by this section that shall include
the number of taxpayers that claimed the deduction, the
aggregate amount of deductions claimed and any other
information necessary to evaluate the effectiveness of the
deduction. The department shall compile and present the report
to the revenue stabilization and tax policy committee and the
legislative finance committee with an analysis of the cost of
the deduction and whether the deduction is performing the
purpose for which it was created ] The deduction provided by
this section shall be included in the tax expenditure budget
pursuant to Section 7-1-84 NMSA 1978, including the annual
aggregate cost of the deduction .
E. As used in this section:
(1) "accounting services" means the systematic
and comprehensive recording of financial transactions
pertaining to a business entity and the process of summarizing,
analyzing and reporting these transactions to oversight
agencies or tax collection entities, including certified public
auditing, attest services and preparing financial statements,
bookkeeping, tax return preparation, advice and consulting and,
where applicable, representing taxpayers before tax collection
agencies. "Accounting services" does not include, except as
provided with respect to financial management services,
investment advice, wealth management advice or consulting or
any tax return preparation, advice, counseling or
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representation for individuals, regardless of whether those
individuals are owners of pass-through entities, such as
partnerships, limited liability companies or S corporations;
(2) "architectural services" means services
related to the art and science of designing and building
structures for human habitation or use and includes planning,
providing preliminary studies, designs, specifications and
working drawings and providing for general administration of
construction contracts;
(3) "engineering services" means consultation,
the production of a creative work, investigation, evaluation,
planning and design, the performance of studies and reviewing
planning documents when performed by, or under the supervision
of, a licensed engineer, including the design, development and
testing of mechanical, electrical, hydraulic, chemical,
pneumatic or thermal machinery or equipment, industrial or
commercial work systems or processes and military equipment.
"Engineering services" does not include medical or medical
laboratory services, any engineering performed in connection
with a construction service or the design and installation of
computer or computer network infrastructure;
(4) "information technology services" means
separately stated services for installing and maintaining a
business's computers and computer network, including performing
computer network design; installing, repairing, maintaining or
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restoring computer networks, hardware or software; and
performing custom software programming or making custom
modifications to existing software programming. "Information
technology services" does not include:
(a) software maintenance and update
agreements, unless made in conjunction with custom programming;
(b) computers, servers, chilling
equipment and pre-programmed software;
(c) data processing services or the
processing or storage of information to compile and produce
records of transactions for retrieval or use, including data
entry, data retrieval, data searches and information
compilation; or
(d) access to telecommunications or
internet;
(5) "legal services" means services performed
by a licensed attorney or under the supervision of a licensed
attorney for a client, regardless of the attorney's form of
business entity or whether the services are prepaid, including
legal representation before courts or administrative agencies;
drafting legal documents, such as contracts or patent
applications; legal research; advising and counseling;
arbitration; mediation; and notary public and other ancillary
legal services performed for a client in conjunction with and
under the supervision of a licensed attorney. "Legal services"
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does not include lobbying or government relations services,
title insurance agent services, licensing or selling legal
software or legal document templates, insurance investigation
services or any legal representation involving financial crimes
or tax evasion in New Mexico; and
(6) "professional services" means accounting
services, architectural services, engineering services,
information technology services and legal services."
SECTION 40. Section 7-9-58 NMSA 1978 (being Laws 1969,
Chapter 144, Section 48, as amended) is amended to read:
"7-9-58. DEDUCTION--GROSS RECEIPTS TAX--FEED--
FERTILIZERS.--
A. Prior to July 1, 2028 , receipts from selling
feed [for livestock], including the baling wire or twine used
to contain the feed, for livestock , fish raised for human
consumption, poultry or animals raised for their hides or pelts
and receipts from selling seeds, roots, bulbs, plants, soil
conditioners, fertilizers, insecticides, germicides, insects
used to control populations of other insects, fungicides or
weedicides or water for irrigation purposes may be deducted
from gross receipts if the sale is made to a person who states
in writing that [he] the person is regularly engaged in the
business of farming, ranching or raising animals for their
hides or pelts.
B. Prior to July 1, 2028 , receipts of auctioneers
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from selling livestock or other agricultural products at
auction may also be deducted from gross receipts.
C. A taxpayer allowed a deduction pursuant to this
section shall report the amount of the deduction separately in
a manner required by the department.
D. The deductions provided by this section shall be
included in the tax expenditure budget pursuant to Section
7-1-84 NMSA 1978, including the annual aggregate cost of the
deductions."
SECTION 41. Section 7-9-59 NMSA 1978 (being Laws 1969,
Chapter 144, Section 49, as amended) is amended to read:
"7-9-59. DEDUCTION--GROSS RECEIPTS TAX--WAREHOUSING,
THRESHING, HARVESTING, GROWING, CULTIVATING AND PROCESSING
AGRICULTURAL PRODUCTS--TESTING OR TRANSPORTING MILK.--
A. Prior to July 1, 2028 , receipts from warehousing
grain or other agricultural products may be deducted from gross
receipts.
B. Prior to July 1, 2028 , receipts from threshing,
cleaning, growing, cultivating or harvesting agricultural
products, including the ginning of cotton, may be deducted from
gross receipts.
C. Prior to July 1, 2028 , receipts from testing or
transporting milk for the producer or nonprofit marketing
association from the farm to a milk processing or dairy product
manufacturing plant may be deducted from gross receipts.
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D. Prior to July 1, 2028 , receipts from processing
for growers, producers or nonprofit marketing associations of
agricultural products raised for food and fiber, including
livestock, may be deducted from gross receipts.
E. A taxpayer allowed a deduction pursuant to this
section shall report the amount of the deduction separately in
a manner required by the department.
F. The deductions provided by this section shall be
included in the tax expenditure budget pursuant to Section
7-1-84 NMSA 1978, including the annual aggregate cost of the
deductions."
SECTION 42. Section 7-9-62 NMSA 1978 (being Laws 1969,
Chapter 144, Section 52, as amended) is amended to read:
"7-9-62. DEDUCTION--GROSS RECEIPTS TAX--AGRICULTURAL
IMPLEMENTS--[AIRCRAFT MANUFACTURERS--VEHICLES THAT ARE NOT
REQUIRED TO BE REGISTERED--AIRCRAFT PARTS AND MAINTENANCE
SERVICES] FARM TRACTORS--REPORTING REQUIREMENTS.--
A. Except for receipts deductible under Subsection
B of this section and prior to July 1, 2028 , fifty percent of
the receipts from selling agricultural implements or farm
tractors [aircraft or vehicles that are not required to be
registered under the Motor Vehicle Code ] may be deducted from
gross receipts; provided that, with respect to agricultural
implements, the sale is made to a person who states in writing
that the person is regularly engaged in the business of farming
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or ranching. [Any deduction allowed under Section 7-9-71 NMSA
1978 must be taken before the deduction allowed by this
subsection is computed.
B. Receipts of an aircraft manufacturer or
affiliate from selling aircraft or from selling aircraft flight
support, pilot training or maintenance training services may be
deducted from gross receipts. Any deduction allowed under
Section 7-9-71 NMSA 1978 must be taken before the deduction
allowed by this subsection is computed.
C. Receipts from selling aircraft parts or
maintenance services for aircraft or aircraft parts may be
deducted from gross receipts. Any deduction allowed under
Section 7-9-71 NMSA 1978 must be taken before the deduction
allowed by this subsection is computed.
D.] B. A taxpayer allowed a deduction pursuant to
this section shall report the amount of the deduction
separately in a manner required by the department.
[E. The department shall compile an annual report
on the deductions provided by this section that shall include
the number of taxpayers approved by the department to receive
the deductions, the aggregate amount of deductions approved and
any other information necessary to evaluate the effectiveness
of the deductions. Beginning in 2019 and every five years
thereafter that the deductions are in effect. The department
shall compile and present the annual reports to the revenue
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stabilization and tax policy committee and the legislative
finance committee with an analysis of the effectiveness and ]
C. The deductions provided by this section shall be
included in the tax expenditure budget pursuant to Section
7-1-84 NMSA 1978, including the annual aggregate cost of the
deductions.
[F.] D. As used in this section,
[(1) "affiliate" means a business entity that
directly or indirectly through one or more intermediaries
controls, is controlled by or is under common control with the
aircraft manufacturer;
(2)] "agricultural implement" means a tool,
utensil or instrument that is depreciable for federal income
tax purposes and that is:
[(a)] (1) designed to irrigate agricultural
crops above ground or below ground at the place where the crop
is grown; or
[(b)] (2) designed primarily for use with a
source of motive power, such as a tractor, in planting,
growing, cultivating, harvesting or processing agricultural
crops at the place where the crop is grown; in raising poultry
or livestock; or in obtaining or processing food or fiber, such
as eggs, milk, wool or mohair, from living poultry or livestock
at the place where the poultry or livestock are kept for this
purpose
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[(3) "aircraft manufacturer" means a business
entity that in the ordinary course of business designs and
builds private or commercial aircraft certified by the federal
aviation administration;
(4) "business entity" means a corporation,
limited liability company, partnership, limited partnership,
limited liability partnership or real estate investment trust,
but does not mean an individual or a joint venture;
(5) "control" means equity ownership in a
business entity that:
(a) represents at least fifty percent of
the total voting power of that business entity; and
(b) has a value equal to at least fifty
percent of the total equity of that business entity; and
(6) "flight support" means providing
navigation data, charts, weather information, online
maintenance records and other aircraft or flight-related
information and the software needed to access the
information]."
SECTION 43. Section 7-9-77 NMSA 1978 (being Laws 1966,
Chapter 47, Section 15, as amended) is amended to read:
"7-9-77. DEDUCTIONS--COMPENSATING TAX--AGRICULTURAL
IMPLEMENTS--FARM TRACTORS .--
A. Prior to July 1, 2028 , fifty percent of the
value of agricultural implements and farm tractors [aircraft
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not exempted under Section 7-9-30 NMSA 1978 or vehicles that
are not required to be registered under the Motor Vehicle Code ]
may be deducted from the value in computing the compensating
tax due; provided that, with respect to use of agricultural
implements, the person using the property is regularly engaged
in the business of farming or ranching. [Any deduction allowed
under Subsection B of this section is to be taken before the
deduction allowed by this subsection is computed. ]
B. A taxpayer allowed a deduction pursuant to this
section shall report the amount of the deduction separately in
a manner required by the department.
C. The deductions provided by this section shall be
included in the tax expenditure budget pursuant to Section
7-1-84 NMSA 1978, including the annual aggregate cost of the
deductions.
D. As used in this subsection, "agricultural
implement" means a tool, utensil or instrument that is:
(1) designed primarily for use with a source
of motive power, such as a tractor, in planting, growing,
cultivating, harvesting or processing agricultural produce at
the place where the produce is grown; in raising poultry or
livestock; or in obtaining or processing food or fiber, such as
eggs, milk, wool or mohair, from living poultry or livestock at
the place where the poultry or livestock are kept for this
purpose; and
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(2) depreciable for federal income tax
purposes.
[B.] E. That portion of the value of tangible
personal property on which an allowance was granted to the
buyer for a trade-in of tangible personal property of the same
type that was bought may be deducted from the value in
computing the compensating tax due."
SECTION 44. Section 7-9-78.1 NMSA 1978 (being Laws 1999,
Chapter 231, Section 4) is amended to read:
"7-9-78.1. DEDUCTION--COMPENSATING TAX--URANIUM
ENRICHMENT PLANT EQUIPMENT.--Prior to July 1, 2034 , the value
of equipment and replacement parts for that equipment may be
deducted in computing the compensating tax due if the person
uses the equipment and replacement parts to enrich uranium in a
uranium enrichment plant."
SECTION 45. Section 7-9-90 NMSA 1978 (being Laws 1999,
Chapter 231, Section 3, as amended) is amended to read:
"7-9-90. DEDUCTIONS--GROSS RECEIPTS TAX--SALES OF URANIUM
HEXAFLUORIDE AND ENRICHMENT OF URANIUM.--
A. Prior to July 1, 2034 , receipts from selling
uranium hexafluoride and from providing the service of
enriching uranium may be deducted from gross receipts.
B. [The department shall annually report to the
revenue stabilization and tax policy committee aggregate
amounts of deductions taken pursuant to this section, the
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number of taxpayers claiming the deduction and any other
information that is necessary to determine that the deduction
is performing a purpose that is beneficial to the state ] The
deductions provided by this section shall be included in the
tax expenditure budget pursuant to Section 7-1-84 NMSA 1978,
including the annual aggregate cost of the deductions .
C. A taxpayer deducting gross receipts pursuant to
this section shall report the amount deducted separately and
attribute the amount of the deduction to the authorization
provided in this section in a manner required by the department
that facilitates the evaluation by the legislature for the
benefit to the state of this deduction."
SECTION 46. Section 7-9-110.1 NMSA 1978 (being Laws 2011,
Chapter 60, Section 1 and Laws 2011, Chapter 61, Section 1) is
amended to read:
"7-9-110.1. DEDUCTION--GROSS RECEIPTS TAX--COMPENSATING
TAX--LOCOMOTIVE ENGINE FUEL.--
A. Prior to July 1, 2034 , receipts from the sale of
fuel to a common carrier to be loaded or used in a locomotive
engine may be deducted from gross receipts.
B. Prior to July 1, 2034, the value of fuel to be
loaded or used by a common carrier in a locomotive engine may
be deducted in computing the compensating tax due. To be
eligible for the deduction provided by this subsection, a
common carrier shall deliver an appropriate nontaxable
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transaction certificate to the seller and the sale shall be
made to a common carrier that, on or after July 1, 2012, made a
capital investment of fifty million dollars ($50,000,000) or
more in new railroad infrastructure improvements, including
railroad facilities, track, signals and supporting railroad
network, located in New Mexico; provided that the new railroad
infrastructure improvements are not required by a regulatory
agency to correct problems, such as regular or preventative
maintenance, specifically identified by that agency as
requiring necessary corrective action.
C. To be eligible for the deductions provided by
this section, the fuel shall be used or loaded by a common
carrier that, on or after July 1, 2012, made a capital
investment of fifty million dollars ($50,000,000) or more in
new railroad infrastructure improvements, including railroad
facilities, track, signals and supporting railroad network,
located in New Mexico; provided that the new railroad
infrastructure improvements are not required by a regulatory
agency to correct problems, such as regular or preventive
maintenance, specifically identified by that agency as
requiring necessary corrective action.
D. The economic development department shall
promulgate rules for the issuance of a certificate of
eligibility for the purposes of claiming a deduction on fuel
loaded or used by a common carrier in a locomotive engine from
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gross receipts or compensating tax. A common carrier may
request a certificate of eligibility from the economic
development department to provide to the taxation and revenue
department to establish eligibility for a nontaxable
transaction certificate for the deduction on fuel loaded or
used by a common carrier in a locomotive engine from gross
receipts. The taxation and revenue department shall issue
nontaxable transaction certificates to a common carrier upon
the presentation of a certificate of eligibility obtained from
the economic development department pursuant to this
subsection.
E. The economic development department shall keep a
record of temporary and permanent jobs from all railroad
activity where a capital investment is made by a common carrier
that claims a deduction on fuel loaded or used by a common
carrier in a locomotive engine from gross receipts tax or from
compensating tax. The economic development department and the
taxation and revenue department shall estimate the amount of
state revenue that is attributable to all railroad activity
where a capital investment is made by a common carrier that
claims a deduction on fuel loaded or used by a common carrier
in a locomotive engine from gross receipts tax or from
compensating tax.
F. The economic development department and the
taxation and revenue department shall compile an annual report
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with the number of taxpayers who claim a deduction pursuant to
this section, the number of jobs created as a result of that
deduction, the amount of deduction taken, the net revenue to
the state as a result of that deduction and any other
information required by the legislature to aid in evaluating
the effectiveness of that deduction. A taxpayer shall provide
the departments with the information required to compile the
report. The departments shall present the report before the
revenue stabilization and tax policy committee by November of
each year.
G. For the purposes of this section, "locomotive
engine" means a wheeled vehicle consisting of a self-propelled
engine that is used to draw trains along railway tracks."
SECTION 47. Section 7-9-120 NMSA 1978 (being Laws 2022,
Chapter 47, Section 15) is amended to read:
"7-9-120. DEDUCTION--GROSS RECEIPTS AND GOVERNMENTAL
GROSS RECEIPTS--FEMININE HYGIENE PRODUCTS.--
A. Prior to July 1, 2034 , receipts from the sale of
feminine hygiene products may be deducted from gross receipts
and governmental gross receipts.
B. A taxpayer allowed a deduction pursuant to this
section shall report the amount of the deduction separately in
a manner required by the department.
C. [The department shall compile an annual report
on the deduction provided by this section that shall include
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the number of taxpayers that claimed the deduction, the
aggregate amount of deductions claimed and any other
information necessary to evaluate the effectiveness of the
deduction. The department shall present the report to the
revenue stabilization and tax policy committee and the
legislative finance committee with an analysis of the ] The
deduction provided by this section shall be included in the tax
expenditure budget pursuant to Section 7-1-84 NMSA 1978,
including the annual aggregate cost of the deduction.
D. As used in this section, "feminine hygiene
products" means tampons, menstrual pads and sanitary napkins,
pantiliners, menstrual sponges and menstrual cups."
SECTION 48. A new section of the Gross Receipts and
Compensating Tax Act is enacted to read:
"[NEW MATERIAL] EXEMPTION--GROSS RECEIPTS--DONATIONS TO
CERTAIN NONPROFIT ORGANIZATIONS.--Exempted from the gross
receipts tax are the receipts of donations to an organization
that is exempt from the federal income tax as an organization
described in Section 501(c)(3) of the Internal Revenue Code of
1986, as amended or renumbered."
SECTION 49. Section 7-14A-3 NMSA 1978 (being Laws 1991,
Chapter 197, Section 7) is amended to read:
"7-14A-3. IMPOSITION AND RATE OF TAX--DENOMINATION AS
"LEASED VEHICLE GROSS RECEIPTS TAX".--
A. For the privilege of engaging in business, an
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excise tax equal to [five ] two percent of gross receipts is
imposed on any person engaging in business in New Mexico.
B. The tax imposed by this section shall be
referred to as the "leased vehicle gross receipts tax"."
SECTION 50. Section 7-16A-21 NMSA 1978 (being Laws 1995,
Chapter 16, Section 15) is amended to read:
"7-16A-21. [TEMPORARY PROVISION ] CONTINUITY OF ACTIONS.--
A. All taxes due but not paid on liquefied
petroleum gas or natural gas or on motor vehicles propelled by
such a fuel under the Special Fuels Supplier Tax Act on [the
effective date of the Alternative Fuel Tax Act ] January 1, 1996
remain due until paid or until a final determination is made
that the taxes are not due.
B. Any protests, claims for refund, court
proceedings or other actions ongoing with respect to liquefied
petroleum gas or natural gas or to motor vehicles propelled by
such a fuel pursuant to the provisions of the Special Fuels
Supplier Tax Act on [the effective date of the Alternative Fuel
Tax Act] January 1, 1996 shall be finally determined with
respect to the applicable provisions of the Special Fuels
Supplier Tax Act."
SECTION 51. Section 7-27-5.26 NMSA 1978 (being Laws 2000
(2nd S.S.), Chapter 6, Section 2, as amended) is amended to
read:
"7-27-5.26. INVESTMENT IN FILMS TO BE PRODUCED IN NEW
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MEXICO.--
A. No more than six percent of the market value of
the severance tax permanent fund may be invested in New Mexico
film private equity funds or a New Mexico film project under
this section.
B. If an investment is made under this section, not
more than fifteen million dollars ($15,000,000) of the amount
authorized for investment pursuant to Subsection A of this
section shall be invested in any one New Mexico film private
equity fund or any one New Mexico film project.
C. The state investment officer shall make
investments pursuant to this section only upon approval of the
council after a review by the New Mexico film division of the
economic development department. The state investment officer
may make debt or equity investments pursuant to this section
only in New Mexico film projects or New Mexico film private
equity funds that invest only in film projects that:
(1) are filmed wholly or substantially in New
Mexico;
(2) have shown to the satisfaction of the New
Mexico film division that a distribution contract is in place
with a reputable distribution company;
(3) have agreed that, while filming in New
Mexico, a majority of the production crew will be New Mexico
residents;
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(4) have posted a completion bond that has
been approved by the New Mexico film division; provided that a
completion bond shall not be required if the fund or project is
guaranteed pursuant to Paragraph (5) of this subsection; and
(5) have obtained a full, unconditional and
irrevocable guarantee of repayment of the invested amount in
favor of the severance tax permanent fund:
(a) from an entity that has a credit
rating of not less than Baa or BBB by a national rating agency;
(b) from a substantial subsidiary of an
entity that has a credit rating of not less than Baa or BBB by
a national rating agency;
(c) by providing a full, unconditional
and irrevocable letter of credit from a United States
incorporated bank with a credit rating of not less than A by a
national rating agency; or
(d) from a substantial and solvent
entity as determined by the council in accordance with its
standards and practices; or
(6) if not guaranteed pursuant to Paragraph
(5) of this subsection, have obtained no less than one-third of
the estimated total production costs from other sources as
approved by the state investment officer.
[D. The state investment officer may loan at a
market rate of interest, with respect to an eligible New Mexico
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film project, up to eighty percent of an expected and estimated
film production tax credit available to a film production
company pursuant to the provisions of Section 7-2F-1 NMSA 1978;
provided that the film production company agrees to name the
state investment officer as its agent for the purpose of filing
an application for the film production tax credit to which the
company is entitled if the company does not apply for the film
production tax credit. The New Mexico film division of the
economic development department shall determine the estimated
amount of a film production tax credit. The council shall
establish guidelines for the state investment officer's
initiation of a loan and the terms of the loan.
E.] D. As used in this section:
(1) "film project" means a single [media ]
medium or multimedia program, including advertising messages,
fixed on film, videotape, computer disc, laser disc or other
similar delivery medium from which the program can be viewed or
reproduced and that is intended to be exhibited in theaters;
licensed for exhibition by individual television stations,
groups of stations, networks, cable television stations or
other means or licensed for the home viewing market; and
(2) "New Mexico film private equity fund"
means any limited partnership, limited liability company or
corporation organized and operating in the United States that:
(a) has as its primary business activity
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the investment of funds in return for equity in film projects
produced wholly or partly in New Mexico;
(b) holds out the prospects for capital
appreciation from such investments; and
(c) accepts investments only from
accredited investors as that term is defined in Section 2 of
the federal Securities Act of 1933, as amended, and rules
promulgated pursuant to that section."
SECTION 52. Section 7-27-5.27 NMSA 1978 (being Laws 2020
(1st S.S.), Chapter 6, Section 8) is amended to read:
"7-27-5.27. LOCAL GOVERNMENT EMERGENCY ECONOMIC RELIEF.--
A. Within thirty days of [the effective date of
this 2020 act] July 7, 2020, the state investment officer shall
make a commitment to the authority to invest one percent of the
average of the year-end market values of the severance tax
permanent fund for the immediately preceding five calendar
years for the purpose of making loans to local governments
pursuant to this section; provided that investments made
pursuant to this section are in compliance with the prudent
investor rule set forth in the Uniform Prudent Investor Act.
The authority may expend no more than one percent of the
funding made available to it pursuant to this section for
administering the provisions of this section.
B. The authority shall receive and review
applications for loans from the amount committed pursuant to
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Subsection A of this section to a local government that can
demonstrate that the local government experienced at least a
ten percent decline in local option gross receipts tax revenue
for the last quarter of fiscal year 2020 due to the economic
impacts of the coronavirus disease 2019 pandemic. The
authority shall adopt rules to govern the application
procedures and requirements for disbursing the loans.
C. The authority shall make loans from the amount
committed pursuant to Subsection A of this section in
accordance with the following:
(1) an application for a loan shall be
received by the authority no later than December 31, 2020;
(2) the authority shall determine the proper
amount for a loan in consultation with the local government
division of the department of finance and administration and
the local government; provided that:
(a) the authority shall take into
consideration the local government's actual decline of local
gross receipts tax revenue in the determination of a loan
amount; and
(b) a loan shall not exceed fifty
percent of the local government's actual decline of local gross
receipts tax revenue; and
(3) terms of the loan shall include that:
(a) a local government may use loan
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proceeds for general operating expenses and revenue
replacement;
(b) a local government shall dedicate
future local option gross receipts tax revenue to secure the
loan at a lien level as determined by the authority;
(c) a loan shall bear an annual interest
rate equal to two percent;
(d) a loan shall be structured as an
interest-only loan for a period of three years, at which time
the local government shall begin making monthly payments on the
principal and interest of any balance of the loan;
(e) interest on a loan shall not
compound until twelve months following the date the loan
proceeds are made available to the local government; and
(f) a loan shall be made for a period of
no more than five years.
D. Receipts from the repayment of loans made
pursuant to this section shall be transferred to the severance
tax permanent fund.
E. No provision in a loan or the evidence of
indebtedness of a loan shall include a penalty or premium for
prepayment of the balance of the indebtedness.
F. On or before October 1 of a year that a loan
made pursuant to this section is outstanding, the authority
shall audit the loan program and submit a report of the
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findings to the New Mexico finance authority oversight
committee, the legislative finance committee and the office of
the governor. The report shall provide details regarding the
loans made pursuant to this section, including:
(1) the name of each local government that
received a loan, the loan amount, the balance owed and if the
loan is in a delinquent status or default; and
(2) the number of jobs saved that can be
attributed to receiving the loan, with evidence of how the loan
saved each job.
G. The authority may exercise any power provided to
the authority in the New Mexico Finance Authority Act to assist
in the administration of this section; provided that the power
is consistent with the provisions of this section.
H. As used in this section:
(1) "authority" means the New Mexico finance
authority;
(2) "local government" means a municipality or
county; and
(3) "local option gross receipts tax revenue"
means:
(a) for a municipality, revenue
[distributed to the municipality pursuant to Section 7-1-6.4
NMSA 1978 and] transferred to the municipality pursuant to
Section 7-1-6.12 NMSA 1978; and
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(b) for a county, revenue transferred to
the county pursuant to Section 7-1-6.13 NMSA 1978."
SECTION 53. Section 7-36-8 NMSA 1978 (being Laws 1973,
Chapter 373, Section 1, as amended) is amended to read:
"7-36-8. TANGIBLE PERSONAL PROPERTY EXEMPT FROM PROPERTY
TAX--EXCEPTIONS.--
A. Except as provided in Subsection B of this
section, tangible personal property owned by a person is exempt
from property taxation.
B. The following tangible personal property owned
by a person is subject to valuation and taxation under the
Property Tax Code:
(1) livestock;
(2) manufactured homes;
(3) aircraft not registered under the Aircraft
Registration Act;
(4) private railroad cars [the earnings of
which are not taxed under the provisions of the Railroad Car
Company Tax Act];
(5) tangible personal property subject to
valuation under Sections 7-36-22 through 7-36-25 and 7-36-27
through 7-36-32 NMSA 1978;
(6) vehicles not registered under the
provisions of the Motor Vehicle Code and for which the owner
has claimed a deduction for depreciation for federal income tax
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purposes during any federal income taxable year occurring in
whole or in part during the twelve months immediately preceding
the first day of the property tax year; and
(7) other tangible personal property not
specified in Paragraphs (1) through (6) of this subsection:
(a) that is used, produced,
manufactured, held for sale, leased or maintained by a person
for purposes of the person's profession, business or
occupation; and
(b) for which the owner has claimed a
deduction for depreciation for federal income tax purposes
during any federal income taxable year occurring in whole or in
part during the twelve months immediately preceding the first
day of the property tax year."
SECTION 54. Section 52-6-23 NMSA 1978 (being Laws 1986,
Chapter 22, Section 97, as amended) is amended to read:
"52-6-23. REVOCATION OF CERTIFICATE OF APPROVAL.--
A. After notice and opportunity for a hearing, the
director may revoke a group's certificate of approval if it:
(1) is found to be insolvent;
(2) fails to pay any [premium ] gross receipts
tax, regulatory fee or assessment or special fund contribution
imposed upon it; or
(3) fails to comply with any of the provisions
of the Group Self-Insurance Act, with any rules or regulations
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promulgated [thereunder ] pursuant to that act or with any
lawful order of the director within the time prescribed.
B. The director may revoke a group's certificate of
approval if, after notice and opportunity for hearing, [he ] the
director finds that:
(1) any certificate of approval that was
issued to the group was obtained by fraud;
(2) there was a material misrepresentation in
the application for the certificate of approval; or
(3) the group or its administrator has
misappropriated, converted, illegally withheld or refused to
pay over, upon proper demand, any money that belongs to a
member, an employee of a member or a person otherwise entitled
to it and that has been entrusted to the group or its
administrator in its fiduciary capacities."
SECTION 55. Section 59A-5-11 NMSA 1978 (being Laws 1984,
Chapter 127, Section 78) is amended to read:
"59A-5-11. EXEMPTIONS FROM AUTHORITY REQUIREMENT.--A
certificate of authority shall not be required of an insurer
with respect to any of the following:
A. investigation, settlement or litigation of
claims under its policies lawfully written in this state, or
liquidation of assets and liabilities of the insurer (other
than collection of new premiums), all as resulting from its
former authorized operations in this state;
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B. collection of premiums on and servicing policies
remaining in force by an insurer [which ] that has withdrawn
from this state, and lawfully written in this state while the
insurer held a certificate of authority issued by the
superintendent, is transacting insurance in New Mexico for
purpose of [premium] tax requirements only;
C. transactions thereunder subsequent to issuance
of a policy covering only subjects of insurance not resident,
located or expressly to be performed in this state at time of
issuance, and lawfully solicited, written and delivered outside
this state;
D. prosecution or defense of suits at law; but no
insurer unlawfully transacting insurance in this state without
certificate of authority shall be permitted to institute or
maintain (other than defend) any action at law or in equity in
any court of this state, either directly or through an assignee
or successor in interest, to enforce any right, claim or demand
arising out of such an insurance transaction until such insurer
or assignee or successor has obtained a certificate of
authority in this state. This provision does not apply to any
suit or action by the duly constituted receiver, rehabilitator
or liquidator of the insurer, assignee or successor under laws
similar to those contained in Chapter 59A , Article 41
[(conservation, rehabilitation, liquidation) of the Insurance
Code] NMSA 1978;
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E. transactions pursuant to surplus line coverages
lawfully written under Chapter 59A , Article 14 [(surplus line)
of the Insurance Code ] NMSA 1978;
F. suit, action or proceeding by the insurer for
enforcement or defense of its rights relative to an investment
in this state;
G. reinsurance, except as to a domestic reinsurer;
or
H. transactions in this state involving group life
insurance, group health or blanket health insurance, or group
annuities, where the master policy or contract of such group
was lawfully solicited, issued and delivered pursuant to the
laws of a state in which the insurer was authorized to transact
such insurance, to a group organized for purposes other than
procurement of insurance, and where the policyholder is
domiciled or otherwise has a bona fide business situs. Except,
that such an insurer is subject to Section [261 (superintendent
is attorney of unauthorized insurer for service of process) ]
59A-15-6 NMSA 1978 and related sections of the Insurance Code
with respect to contracts and certificates of insurance under
any such master policy or contract, issued for delivery and
delivered in this state to residents thereof."
SECTION 56. Section 59A-5-23 NMSA 1978 (being Laws 1984,
Chapter 127, Section 90, as amended) is amended to read:
"59A-5-23. CONTINUANCE, EXPIRATION, REINSTATEMENT OF
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CERTIFICATE OF AUTHORITY.--
A. A certificate of authority shall continue in
force as long as the insurer is entitled thereto under the
Insurance Code, and until suspended or revoked by the
superintendent or terminated at the insurer's request, subject,
however, to continuance of the certificate by the insurer each
year by:
(1) payment on or before March 1 of the
continuation fee referred to in Section 59A-6-1 NMSA 1978;
(2) due filing by the insurer of its annual
statement for the next preceding calendar year as required by
Section 59A-5-29 NMSA 1978; and
(3) payment by the insurer when due of
[premium] gross receipts taxes with respect to the preceding
calendar year.
B. If not so continued by the insurer, its
certificate of authority shall expire at midnight on the date
of failure of the insurer to continue it in force, unless
earlier revoked as provided in Sections 59A-5-24 through
59A-5-26 NMSA 1978.
C. Upon the insurer's request made within three
months after expiration, the superintendent may reinstate a
certificate of authority that the insurer inadvertently
permitted to expire, after the insurer has fully cured all its
failures that resulted in the expiration, and upon payment by
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the insurer of the fee for reinstatement specified in Section
59A-6-1 NMSA 1978. Otherwise the superintendent shall grant
the insurer another certificate of authority only after filing
an application therefor and meeting all other requirements as
for an original certificate of authority in this state.
D. If an insurer allows a certificate of authority
issued by the superintendent to expire, the holder of the
expired certificate shall remain subject to the provisions of
the Insurance Code but is not authorized to transact any
insurance business. If the insurer reinstates the expired
certificate of authority within three months after expiration,
the reinstatement shall relate back to the date of the
expiration; provided that this shall not excuse any violation
of the Insurance Code that occurred during the intervening
period."
SECTION 57. Section 59A-6-3 NMSA 1978 (being Laws 1984,
Chapter 127, Section 103, as amended) is amended to read:
"59A-6-3. INSURER MUST PAY TAX ON WITHDRAWAL FROM
STATE.--Any insurer holding certificate of authority to
transact insurance in New Mexico that ceases to do business in
the state shall thereupon file with the secretary of taxation
and revenue a report of its premiums collected to date of such
cessation of business that are subject to the [premium tax or
the health insurance premium surtax ] gross receipts tax and not
theretofore reported, and forthwith pay to the secretary the
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tax thereon and surrender its certificate of authority to the
superintendent. Upon receipt, the secretary shall submit a
copy of the report to the superintendent and shall certify that
all tax obligations have been satisfied by the withdrawing
insurer."
SECTION 58. Section 59A-6-6 NMSA 1978 (being Laws 1984,
Chapter 127, Section 106, as amended) is amended to read:
"59A-6-6. PREEMPTION AND IN LIEU PROVISION.--The state
government of New Mexico preempts the field of taxation of
insurers, nonprofit health care plans, health maintenance
organizations, prepaid dental plans, prearranged funeral plans
and insurance producers as such. The payment of [the ] state
and local gross receipts taxes and licenses and fees provided
for in the [Insurance Premium Tax Act and the ] Insurance Code
shall be in lieu of all other taxes, licenses and fees of every
kind now or hereafter imposed by this state or any political
subdivision thereof on any of the foregoing specified entities
excepting the regular state, county and city taxes on property
located in New Mexico and excepting the income tax on insurance
producers. The provisions of this section shall not apply to
revenues or receipts that are not directly attributable to
persons, entities and activities subject to the provisions of
the Insurance Code."
SECTION 59. Section 59A-6-8 NMSA 1978 (being Laws 2019,
Chapter 47, Section 3) is amended to read:
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"59A-6-8. SUPERINTENDENT SHALL PROVIDE INFORMATION TO THE
TAXATION AND REVENUE DEPARTMENT [NECESSARY TO ADMINISTER THE
INSURANCE PREMIUM TAX ACT ].--The superintendent shall provide
to the taxation and revenue department information regarding an
insurer or plan subject to [the Insurance Premium Tax Act ]
state and local option gross receipts taxes that is necessary
to that department to administer the provisions of [the
Insurance Premium Tax Act ] those taxes."
SECTION 60. Section 59A-15-4 NMSA 1978 (being Laws 1984,
Chapter 127, Section 259.1, as amended) is amended to read:
"59A-15-4. INSURANCE INDEPENDENTLY PROCURED--DUTY TO FILE
RETURNS.--
A. Each insured who in this state procures or
continues or renews insurance with a nonadmitted insurer on a
risk located or to be performed in whole or in part in this
state, other than insurance procured through a surplus lines
licensee pursuant to Chapter 59A, Article 14 NMSA 1978, shall
file returns pursuant to the [Insurance Premium ] Gross Receipts
and Compensating Tax Act.
B. If an independently procured policy covers risks
or exposures only partially located or to be performed in this
state, the taxes, fees and penalties imposed pursuant to the
Insurance Code and the [Insurance Premium ] Gross Receipts and
Compensating Tax Act shall be computed on the portion of the
premium properly attributable to the risks or exposures located
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or to be performed in this state and reported to the secretary
of taxation and revenue. In no event, however, shall a tax be
payable solely because the risk in question, or any portion
thereof, is located or to be performed in this state.
C. This section does not abrogate or modify, and
shall not be construed or deemed to abrogate or modify, any
provision of the Insurance Code.
D. This section does not apply to life insurance,
health insurance or annuities."
SECTION 61. Section 59A-20-33 NMSA 1978 (being Laws 1984,
Chapter 127, Section 398, as amended) is amended to read:
"59A-20-33. STANDARD NONFORFEITURE LAW--INDIVIDUAL
DEFERRED ANNUITIES.--
A. This section shall not apply to any reinsurance,
group annuity purchased under a retirement plan or plan of
deferred compensation established or maintained by an employer,
including a partnership or sole proprietorship or by an
employee organization, or by both, other than a plan providing
individual retirement accounts or individual retirement
annuities under Section 408 of the Internal Revenue Code of
1986, as now or hereafter amended, premium deposit fund,
variable annuity, investment annuity, immediate annuity, any
deferred annuity contract after annuity payments have commenced
or reversionary annuity, nor to any contract that shall be
delivered outside this state through an agent or other
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representative of the insurer issuing the contract.
B. In the case of contracts issued on or after the
operative date of this section as defined in Subsection P of
this section, no contract of annuity, except as stated in
Subsection A of this section, shall be delivered or issued for
delivery in this state unless it contains in substance the
following provisions, or corresponding provisions that in the
opinion of the superintendent are at least as favorable to the
contractholder, upon cessation of payment of considerations
under the contract:
(1) that upon cessation of payment of
considerations under a contract or upon the written request of
the contract owner, the insurer shall grant a paid-up annuity
benefit on a plan stipulated in the contract of such value as
is specified in Subsections H, I, J, K and M of this section;
(2) if a contract provided for a lump sum
settlement at maturity, or at any other time, that upon
surrender of the contract at or prior to the commencement of
any annuity payments, the insurer shall pay in lieu of any
paid-up annuity benefit a cash surrender benefit of such amount
as is specified in Subsections H, I, K and M of this section.
The insurer may reserve the right to defer the payment of such
cash surrender benefit for a period not to exceed six months
after demand therefor with surrender of the contract after
making written request and receiving written approval of the
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superintendent. The request shall address the necessity and
equatability to all policyholders of the deferral;
(3) a statement of the mortality table, if
any, and interest rates used in calculating any minimum paid-up
annuity, cash surrender or death benefits that are guaranteed
under the contract, together with sufficient information to
determine the amounts of such benefits; and
(4) a statement that any paid-up annuity, cash
surrender or death benefits that may be available under the
contract are not less than the minimum benefits required by any
statute of the state in which the contract is delivered and an
explanation of the manner in which such benefits are altered by
the existence of any additional amounts credited by the insurer
to the contract, any indebtedness to the insurer on the
contract or any prior withdrawals from or partial surrenders of
the contract.
C. Notwithstanding the requirements of this
section, any deferred annuity contract may provide that if no
considerations have been received under a contract for a period
of two full years and the portion of the paid-up annuity
benefit at maturity on the plan stipulated in the contract
arising from prior considerations paid would be less than
twenty dollars ($20.00) monthly, the insurer may at its option
terminate such contract by payment in cash of the then present
value of such portion of the paid-up annuity benefit,
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calculated on the basis of the mortality table, if any, and
interest rate specified in the contract for determining the
paid-up annuity benefit, and by such payment shall be relieved
of any further obligation under such contract.
D. The minimum values as specified in Subsections
H, I, J, K and M of this section of any paid-up annuity, cash
surrender or death benefits available under an annuity contract
shall be based upon minimum nonforfeiture amounts as defined in
this section. The minimum nonforfeiture amount at any time at
or prior to the commencement of any annuity payments shall be
equal to an accumulation up to such time at rates of interest
as indicated in Subsection E of this section of the net
considerations, as hereinafter defined, paid prior to such
time, decreased by the sum of Paragraphs (1) through (4) of
this subsection:
(1) any prior withdrawals from or partial
surrenders of the contract accumulated at rates of interest as
indicated in Subsection E of this section;
(2) an annual contract charge of fifty dollars
($50.00), accumulated at rates of interest as indicated in
Subsection E of this section;
(3) any state or local option gross receipts
tax [pursuant to the Insurance Premium Tax Act ] paid by the
insurer for the contract, accumulated at rates of interest as
indicated in Subsection E of this section; and
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(4) the amount of any indebtedness to the
insurer on the contract, including interest due and accrued.
E. The net considerations for a given contract year
used to define the minimum nonforfeiture amount shall be an
amount equal to eighty-seven and one-half percent of the gross
considerations credited to the contract during that contract
year. The interest rate used in determining minimum
nonforfeiture amounts shall be an annual rate of interest
determined as the lesser of three percent per annum and the
following, which shall be specified in the contract if the
interest rate will be reset:
(1) the five-year constant maturity treasury
rate reported by the federal reserve as of a date, or average
over a period, rounded to the nearest one-twentieth percent,
specified in the contract no longer than fifteen months prior
to the contract issue date or redetermination date pursuant to
Paragraph (2) of this subsection reduced by one hundred twenty-
five basis points, where the resulting interest rate is not
less than one percent; and
(2) the interest rate shall apply for an
initial period and may be redetermined for additional periods.
The redetermination date, basis and period, if any, shall be
stated in the contract. The basis is the date or average over
a specified period that produces the value of the five-year
constant maturity treasury rate to be used at each
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redetermination date.
F. Notwithstanding the provisions of Subsections D
and E of this section, during the period or term that a
contract provides substantive participation in an equity
indexed benefit, it may increase the reduction described in
Paragraph (1) of Subsection E of this section by up to an
additional one hundred basis points to reflect the value of the
equity index benefit. The present value at the contract issue
date, and at each redetermination date thereafter, of the
additional reduction shall not exceed the market value of the
benefit. The superintendent may require a demonstration that
the present value of the reduction does not exceed the market
value of the benefit. Lacking such a demonstration that is
acceptable to the superintendent, the superintendent may
disallow or limit the additional reduction.
G. The superintendent may adopt rules to implement
the provisions of Subsection F of this section and to provide
for further adjustments to the calculation of minimum
nonforfeiture amounts for contracts that provide substantive
participation in an equity index benefit and for other
contracts that the superintendent determines adjustments are
justified.
H. Any paid-up annuity benefit available under a
contract shall be such that its present value on the date
annuity payments are to commence is at least equal to the
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minimum nonforfeiture amount on that date. Such present value
shall be computed using the mortality table, if any, and the
interest rates specified in the contract for determining the
minimum paid-up annuity benefits guaranteed in the contract.
I. For contracts that provide cash surrender
benefits, such cash surrender benefits available prior to
maturity shall not be less than the present value as of the
date of surrender of that portion of the maturity value of the
paid-up annuity benefit that would be provided under the
contract at maturity arising from considerations paid prior to
the time of cash surrender reduced by the amount appropriate to
reflect any prior withdrawals from or partial surrenders of the
contract, such present value being calculated on the basis of
an interest rate not more than one percent higher than the
interest rate specified in the contract for accumulating the
net considerations to determine such maturity value, decreased
by the amount of any indebtedness to the insurer on the
contract, including interest due and accrued, and increased by
any existing additional amounts credited by the insurer to the
contract. In no event shall any cash surrender benefit be less
than the minimum nonforfeiture amount at that time. The death
benefit under such contracts shall be at least equal to the
cash surrender benefit.
J. For contracts that do not provide cash surrender
benefits, the present value of any paid-up annuity benefit
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available as a nonforfeiture option at any time prior to
maturity shall not be less than the present value of that
portion of the maturity value of the paid-up annuity benefit
provided under the contract arising from considerations paid
prior to the time the contract is surrendered in exchange for,
or changed to, a deferred paid-up annuity, such present value
being calculated for the period prior to the maturity date on
the basis of the interest rate specified in the contract for
accumulating the net considerations to determine such maturity
value, and increased by any existing additional amounts
credited by the insurer to the contract. For contracts that do
not provide any death benefits prior to the commencement of any
annuity payments, such present values shall be calculated on
the bases of such interest rate and the mortality table
specified in the contract for determining the maturity value of
the paid-up annuity benefit. However, in no event shall the
present value of a paid-up annuity benefit be less than the
minimum nonforfeiture amount at that time.
K. For the purpose of determining the benefits
calculated under Subsections I and J of this section, in the
case of annuity contracts under which an election may be made
to have annuity payments commence at optional maturity dates,
the maturity date shall be deemed to be the latest date for
which election shall be permitted by the contract, but shall
not be deemed to be later than the anniversary of the contract
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next following the annuitant's seventieth birthday or the tenth
anniversary of the contract, whichever is later.
L. Any contract that does not provide cash
surrender benefits or does not provide death benefits at least
equal to the minimum nonforfeiture amount prior to the
commencement of any annuity payments shall include a statement
in a prominent place in the contract that such benefits are not
provided.
M. Any paid-up annuity, cash surrender or death
benefits available at any time, other than on the contract
anniversary under any contract with fixed scheduled
considerations, shall be calculated with allowance for the
lapse of time and the payment of any scheduled considerations
beyond the beginning of the contract year in which cessation of
payment of considerations under the contract occurs.
N. For any contract that provides, within the same
contract by rider or supplemental contract provision, both
annuity benefits and life insurance benefits that are in excess
of the greater of cash surrender benefits or a return of the
gross considerations with interest, the minimum nonforfeiture
benefits shall be equal to the sum of the minimum nonforfeiture
benefits for the annuity portion and the minimum nonforfeiture
benefits, if any, for the life insurance portion computed as if
each portion were a separate contract. Notwithstanding the
provisions of Subsections H, I, J, K and M of this section,
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additional benefits payable in the event of total and permanent
disability, as reversionary annuity or deferred reversionary
annuity benefits, or as other policy benefits additional to
life insurance, endowment and annuity benefits, and
considerations for all such additional benefits, shall be
disregarded in ascertaining the minimum nonforfeiture amounts,
paid-up annuity, cash surrender and death benefits that may be
required by this section. The inclusion of such additional
benefits shall not be required in any paid-up benefits, unless
such additional benefits separately would require minimum
nonforfeiture amounts, paid-up annuity, cash surrender and
death benefits.
O. The superintendent may adopt rules to implement
the provisions of this section.
P. After July 1, 2003, an insurer may elect to
apply its provisions to annuity contracts on a contract-form
by contract-form basis before July 1, 2005. In all other
instances this section shall become operative with respect to
annuity contracts issued by the insurer after June 30, 2005."
SECTION 62. Section 59A-22-50 NMSA 1978 (being Laws 2010,
Chapter 94, Section 1, as amended) is amended to read:
"59A-22-50. HEALTH INSURERS--DIRECT SERVICES.--
A. A health insurer shall reimburse direct services
as follows:
(1) for small groups, at no less than eighty
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percent of aggregate premiums for all such products; and
(2) for large groups, at no less than eighty-
five percent of aggregate premiums for all such products.
B. Reimbursement for direct services shall be
determined based on services provided over the preceding three
calendar years, but not earlier than calendar year 2010, as
determined by reports filed with the office of superintendent
of insurance. Reimbursement calculations shall include short-
term plans, but exclude all other excepted benefits plans
governed by the provisions of Chapter 59A, Article 23G NMSA
1978.
C. For individually underwritten health care
policies, plans or contracts, the superintendent shall
establish, after notice and informal hearing, the level of
reimbursement for direct services, as determined by the reports
filed with the office of superintendent of insurance, as a
percent of premiums. Additional informal hearings may be held
at the superintendent's discretion. In establishing the level
of reimbursement for direct services, the superintendent shall
consider the costs associated with the individual marketing and
medical underwriting of these policies, plans or contracts at a
level not less than seventy-five percent of premiums. A health
insurer writing these policies shall make reimbursement for
direct services at a level not less than that level established
by the superintendent pursuant to this subsection over the
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three calendar years preceding the date upon which that rate is
established, but not earlier than calendar year 2010. Nothing
in this subsection shall be construed to preclude a purchaser
of one of these policies, plans or contracts from negotiating
an agreement with a health insurer that requires a higher
amount of premiums paid to be used for reimbursement for direct
services.
D. An insurer that fails to comply with the
reimbursement requirements pursuant to this section shall issue
a dividend or credit against future premiums to all
policyholders in an amount sufficient to ensure that the
benefits paid in the preceding three calendar years plus the
amount of the dividends or credits are equal to the required
direct services reimbursement level pursuant to Subsection A of
this section for group health coverage and blanket health
coverage or the required direct services reimbursement level
pursuant to Subsection B of this section for individually
underwritten health policies, contracts or plans for the
preceding three calendar years. If the insurer fails to issue
the dividend or credit in accordance with the requirements of
this section, the superintendent shall enforce these
requirements and may pursue any other penalties as provided by
law, including general penalties pursuant to Section 59A-1-18
NMSA 1978.
E. After notice and hearing, the superintendent may
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adopt and promulgate reasonable rules necessary and proper to
carry out the provisions of this section.
F. For the purposes of this section:
(1) "direct services" means services rendered
to an individual by a health insurer or a health care
practitioner, facility or other provider, including case
management, disease management, health education and promotion,
preventive services, quality incentive payments to providers
and any portion of an assessment that covers services rather
than administration and for which an insurer does not receive a
tax credit pursuant to the Medical Insurance Pool Act;
provided, however, that "direct services" does not include care
coordination, utilization review or management or any other
activity designed to manage utilization or services;
(2) "health insurer" means a person duly
authorized to transact the business of health insurance in the
state pursuant to the Insurance Code, including a person that
issues a short-term plan and a person that only issues an
excepted benefit policy intended to supplement major medical
coverage, including medicare supplement, vision, dental,
disease-specific, accident-only or hospital indemnity-only
insurance policies, or that only issues policies for long-term
care or disability income;
(3) "premium" means all income received from
individuals and private and public payers or sources for the
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procurement of health coverage, including capitated payments,
self-funded administrative fees, self-funded claim
reimbursements, recoveries from third parties or other insurers
and interests less any state and local option gross receipts
tax paid [pursuant to the Insurance Premium Tax Act ] and fees
associated with participating in a health insurance exchange
that serves as a clearinghouse for insurance; and
(4) "short-term plan" means a nonrenewable
health benefits plan covering a resident of the state,
regardless of where the plan is delivered, that:
(a) has a maximum specified duration of
not more than three months after the effective date of the
plan;
(b) is issued only to individuals who
have not been enrolled in a health benefits plan that provides
the same or similar nonrenewable coverage from any health
insurance carrier within the three months preceding enrollment
in the short-term plan; and
(c) is not an excepted benefit or
combination of excepted benefits."
SECTION 63. Section 59A-23C-10 NMSA 1978 (being Laws
2010, Chapter 94, Section 2, as amended) is amended to read:
"59A-23C-10. HEALTH INSURERS--DIRECT SERVICES.--
A. A health insurer shall make reimbursement for
direct services at a level not less than eighty-five percent of
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premiums across all health product lines over the preceding
three calendar years, but not earlier than calendar year 2010,
as determined by reports filed with the office of
superintendent of insurance. Nothing in this subsection shall
be construed to preclude a purchaser from negotiating an
agreement with a health insurer that requires a higher amount
of premiums paid to be used for reimbursement for direct
services for one or more products or for one or more years.
B. An insurer that fails to comply with the eighty-
five percent reimbursement requirement in Subsection A of this
section shall issue a dividend or credit against future
premiums to all policyholders in an amount sufficient to assure
that the benefits paid in the preceding three calendar years
plus the amount of the dividends or credits equal eighty-five
percent of the premiums collected in the preceding three
calendar years. If the insurer fails to issue the dividend or
credit in accordance with the requirements of this section, the
superintendent shall enforce the requirements and may pursue
any other penalties as provided by law, including general
penalties pursuant to Section 59A-1-18 NMSA 1978.
C. After notice and hearing, the superintendent may
adopt and promulgate reasonable rules necessary and proper to
carry out the provisions of this section.
D. For the purposes of this section:
(1) "direct services" means services rendered
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to an individual by a health insurer or a health care
practitioner, facility or other provider, including case
management, disease management, health education and promotion,
preventive services, quality incentive payments to providers
and any portion of an assessment that covers services rather
than administration and for which an insurer does not receive a
tax credit pursuant to the Medical Insurance Pool Act;
provided, however, that "direct services" does not include care
coordination, utilization review or management or any other
activity designed to manage utilization or services;
(2) "health insurer" means a person duly
authorized to transact the business of health insurance in the
state pursuant to the Insurance Code but does not include a
person that only issues a limited-benefit policy intended to
supplement major medical coverage, including medicare
supplement, vision, dental, disease-specific, accident-only or
hospital indemnity-only insurance policies, or that only issues
policies for long-term care or disability income; and
(3) "premium" means all income received from
individuals and private and public payers or sources for the
procurement of health coverage, including capitated payments,
self-funded administrative fees, self-funded claim
reimbursements, recoveries from third parties or other insurers
and interests less any state and local option gross receipts
tax paid [pursuant to the Insurance Premium Tax Act and ] fees
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associated with participating in a health insurance exchange
that serves as a clearinghouse for insurance."
SECTION 64. Section 59A-23F-6.1 NMSA 1978 (being Laws
2020, Chapter 35, Section 6) is amended to read:
"59A-23F-6.1. BOARD--ADDITIONAL DUTIES AND POWERS.--In
addition to other duties and powers in the New Mexico Health
Insurance Exchange Act, the board shall:
A. in consultation with the superintendent:
(1) establish policies and procedures for the
review and recommendation of health benefits plans to be
offered on the exchange;
(2) determine additional minimum requirements
for a health insurance issuer to be considered for
participation in the exchange; and
(3) determine standards and criteria for
health benefits plans to be offered through the exchange that
offer an optimal level of choice, value, quality and service
and that are in the best interests of qualified individuals and
qualified small employers;
B. establish policies and procedures that allow
city, county and state governments, Indian nations, tribes and
pueblos, tribal organizations, urban Native American
organizations, private foundations and other entities to pay
premiums and cost-sharing on behalf of qualified individuals
consistent with federal requirements;
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C. provide for the operation of a toll-free hotline
to respond to requests for assistance, using staff that is
trained to provide assistance in a culturally and
linguistically appropriate manner;
D. provide for an annual regular enrollment period
and special enrollment periods in the best interest of
qualified individuals and qualified small employers;
E. maintain an internet website through which
enrollees and prospective enrollees of qualified health plans
may obtain standardized comparative information on those plans;
F. use a standardized format for presenting health
benefit plan options in the exchange;
G. determine the criteria and process for
eligibility, enrollment and disenrollment of enrollees and
potential enrollees in the exchange and coordinate that process
with the [human services department ] health care authority in
order to ensure consistent eligibility and enrollment processes
and seamless transitions between coverages;
H. inform individuals of eligibility requirements
for medicaid, the children's health insurance program or other
applicable state or local public programs. If the exchange
assesses that an individual may be eligible for a program, the
board shall share information with that program to facilitate
the eligibility determination and enrollment of the individual;
I. establish and make available by electronic means
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a calculator to determine the actual cost of coverage after the
application of any [premium tax credits and ] cost-sharing
reductions under applicable federal or state law;
J. perform duties required of, or delegated to, the
exchange by the secretary of the United States department of
health and human services or the United States secretary of the
treasury related to determining eligibility for [premium tax
credits or] reduced cost sharing;
K. maintain a statewide consumer assistance
program, including a navigator program; and
L. maintain a small business health options program
exchange through which qualified employers may access coverage
for their employees, providing as appropriate premium
aggregation and other related services to minimize the
administrative burdens for qualified employers and to:
(1) enable a qualified employer to specify a
level of coverage so that its employees may enroll in a
qualified health plan offered through the small business health
options program exchange at the specified level of coverage; or
(2) enable a qualified employer to provide a
specific amount or other payment formulated in accordance with
federal law to be used as part of an employee's choice of
plan."
SECTION 65. Section 59A-23F-11 NMSA 1978 (being Laws
2021, Chapter 136, Section 4, as amended) is amended to read:
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"59A-23F-11. HEALTH CARE AFFORDABILITY FUND.--
A. The "health care affordability fund" is created
in the state treasury. The fund consists of distributions,
appropriations, gifts, grants and donations. Money in the fund
at the end of a fiscal year shall not revert to any other fund.
The health care authority shall administer the fund, and money
in the fund is subject to appropriation by the legislature for
purposes provided by this section. Disbursements from the fund
shall be made by warrant of the secretary of finance and
administration pursuant to vouchers signed by the secretary of
health care authority or the secretary's authorized
representative.
B. The purpose of the fund is to:
(1) reduce health care premiums and cost
sharing for New Mexico residents who purchase health care
coverage on the New Mexico health insurance exchange;
(2) reduce premiums for small businesses and
their employees purchasing health care coverage in the fully
insured small group market;
(3) provide resources for planning, design and
implementation of health care coverage initiatives for
uninsured New Mexico residents; and
(4) provide resources for administration of
state health care coverage initiatives for uninsured New Mexico
residents.
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C. If the federal Patient Protection and Affordable
Care Act is repealed in full or in part by an act of congress
or invalidated by the United States supreme court and
eliminates or reduces comprehensive health care coverage for
New Mexico residents through medicaid or the New Mexico health
insurance exchange, the fund may be used to maintain coverage
through the New Mexico health insurance exchange or through
medical assistance programs administered by the health care
authority; provided that coverage is prioritized for New Mexico
residents with incomes below two hundred percent of the federal
poverty level.
[D. Prior to July 1, 2025, the staff of the
legislative finance committee shall conduct a program
evaluation to measure the impact of changes to the health
insurance premium surtax and the creation of the health care
affordability fund as it relates to the purpose of the fund.
E.] D. Prior to July 1 of each year, the health
care authority shall provide actuarial data from the health
care affordability fund to the legislative finance committee.
[F.] E. Prior to July 1 of each year, the secretary
of health care authority, in consultation with the
superintendent, the secretary of taxation and revenue and the
chief executive officer of the New Mexico health insurance
exchange, shall work with the legislative finance committee and
the department of finance and administration to develop and
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report on performance measures relating to the health care
affordability fund and any programs or initiatives funded by
the fund."
SECTION 66. Section 59A-34-33 NMSA 1978 (being Laws 1984,
Chapter 127, Section 579) is amended to read:
"59A-34-33. UNAUTHORIZED BUSINESS IN OTHER STATES.--
A. No domestic insurer shall transact insurance in
any other state without first being legally authorized to do so
under the laws of [such ] that state.
B. Subsection A [above ] of this section shall not
apply to:
(1) contracts entered into where the
prospective insured when [he ] the prospective insured signs the
application for the insurance is personally present in a state
in which the insurer is then authorized to transact the kind of
insurance involved;
(2) issuance of certificates under a lawfully
transacted group life or group health insurance policy where
the master policy or contract was entered into in a state in
which the insurer was then authorized to transact the insurance
involved and in which the policyholder was then domiciled or
otherwise had a bona fide situs; or
(3) renewal or continuance in force, with or
without modification, of policies and insurance contracts
otherwise lawful and not originally issued in violation of
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Subsection A [above] of this section.
C. The superintendent may revoke the certificate of
authority of an insurer [which ] that violates this section, and
may require the insurer to pay to the state in which the
business was so unlawfully written the [premium ] taxes
otherwise applicable as provided by the laws of [such ] the
state."
SECTION 67. Section 59A-39-5 NMSA 1978 (being Laws 1984,
Chapter 127, Section 662, as amended) is amended to read:
"59A-39-5. ATTORNEY.--
A. "Attorney", as used in Chapter 59A, Article 39
NMSA 1978, refers to the attorney-in-fact of a reciprocal
insurer. The attorney may be an individual, firm or
corporation.
B. The attorney of a foreign reciprocal insurer,
which insurer is duly authorized to transact insurance in this
state, shall not, by virtue of the discharge of its duties as
such attorney with respect to the insurer's transactions in
this state, be thereby deemed to be doing business in this
state within the meaning of any laws of this state applying to
foreign persons, firms or corporations.
C. The subscribers and the attorney-in-fact
comprise a reciprocal insurer and single entity for the
purposes of the [Insurance Premium ] Gross Receipts and
Compensating Tax Act and Sections 59A-6-3 through 59A-6-6 NMSA
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1978 as to all operations under the insurer's certificate of
authority."
SECTION 68. Section 59A-46-2 NMSA 1978 (being Laws 1993,
Chapter 266, Section 2, as amended by Laws 2019, Chapter 235,
Section 10 and by Laws 2019, Chapter 259, Section 17) is
amended to read:
"59A-46-2. DEFINITIONS.--As used in the Health
Maintenance Organization Law:
A. "basic health care services" means medically
necessary services consisting of preventive care, emergency
care, inpatient and outpatient hospital and physician care,
diagnostic laboratory, diagnostic and therapeutic radiological
services and services of pharmacists and pharmacist clinicians;
B. "capitated basis" means fixed per member per
month payment or percentage of premium payment wherein the
provider assumes the full risk for the cost of contracted
services without regard to the type, value or frequency of
services provided and includes the cost associated with
operating staff model facilities;
C. "carrier" means a health maintenance
organization, an insurer, a nonprofit health care plan or other
entity responsible for the payment of benefits or provision of
services under a group contract;
D. "copayment" means an amount an enrollee must pay
in order to receive a specific service that is not fully
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prepaid;
E. "credentialing" means the process of obtaining
and verifying information about a provider and evaluating that
provider when that provider seeks to become a participating
provider;
F. "deductible" means the amount an enrollee is
responsible to pay out-of-pocket before the health maintenance
organization begins to pay the costs associated with treatment;
G. "direct services" means services rendered to an
individual by a carrier or a health care practitioner, facility
or other provider, which services include case management,
disease management, health education and promotion, preventive
services, quality incentive payments to providers and any
proportion of an assessment that covers services rather than
administration and for which a carrier does not receive a tax
credit pursuant to the Medical Insurance Pool Act; provided
that "direct services" does not include care coordination,
utilization review or management or any other activity designed
to manage utilization or services;
H. "enrollee" means an individual who is covered by
a health maintenance organization;
I. "evidence of coverage" means a policy, contract
or certificate showing the essential features and services of
the health maintenance organization coverage that is given to
the subscriber by the health maintenance organization or by the
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group contract holder;
J. "extension of benefits" means the continuation
of coverage under a particular benefit provided under a
contract or group contract following termination with respect
to an enrollee who is totally disabled on the date of
termination;
K. "grievance" means a written complaint submitted
in accordance with the health maintenance organization's formal
grievance procedure by or on behalf of the enrollee regarding
any aspect of the health maintenance organization relative to
the enrollee;
L. "group contract" means a contract for health
care services that by its terms limits eligibility to members
of a specified group and may include coverage for dependents;
M. "group contract holder" means the person to whom
a group contract has been issued;
N. "health care services" means any services
included in the furnishing to any individual of medical,
mental, dental, pharmaceutical or optometric care or
hospitalization or nursing home care or incident to the
furnishing of such care or hospitalization, as well as the
furnishing to any person of any and all other services for the
purpose of preventing, alleviating, curing or healing human
physical or mental illness or injury;
O. "health maintenance organization" means a person
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that undertakes to provide or arrange for the delivery of basic
health care services to enrollees on a prepaid basis, except
for enrollee responsibility for copayments or deductibles,
including a carrier that issues:
(1) a short-term contract;
(2) an excepted benefit policy or contract
intended to supplement major medical coverage, including
medicare supplement, vision, dental, disease-specific,
accident-only or hospital indemnity-only insurance policies; or
(3) a policy for long-term care or disability
income;
P. "health maintenance organization agent" means a
person who solicits, negotiates, effects, procures, delivers,
renews or continues a policy or contract for health maintenance
organization membership or who takes or transmits a membership
fee or premium for such a policy or contract, other than for
that person, or a person who advertises or otherwise makes any
representation to the public as such;
Q. "individual contract" means a contract for
health care services issued to and covering an individual, and
it may include dependents of the subscriber;
R. "insolvent" or "insolvency" means that the
organization has been declared insolvent and placed under an
order of liquidation by a court of competent jurisdiction;
S. "managed hospital payment basis" means
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agreements in which the financial risk is related primarily to
the degree of utilization rather than to the cost of services;
T. "net worth" means the excess of total admitted
assets over total liabilities, but the liabilities shall not
include fully subordinated debt;
U. "participating provider" means a provider as
defined in Subsection Z of this section that, under an express
contract with the health maintenance organization or with its
contractor or subcontractor, has agreed to provide health care
services to enrollees with an expectation of receiving payment,
other than copayment or deductible, directly or indirectly from
the health maintenance organization;
V. "person" means an individual or other legal
entity;
W. "pharmacist" means a person licensed as a
pharmacist pursuant to the Pharmacy Act;
X. "pharmacist clinician" means a pharmacist who
exercises prescriptive authority pursuant to the Pharmacist
Prescriptive Authority Act;
Y. "premium" means all income received from
individuals and private and public payers or sources for the
procurement of health coverage, including capitated payments,
self-funded administrative fees, self-funded claim
reimbursements, recoveries from third parties or other carriers
and interests less any [premium ] state and local option gross
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receipts tax paid [pursuant to Section 59A-6-2 NMSA 1978 ] and
fees associated with participating in a health insurance
exchange that serves as a clearinghouse for insurance;
Z. "provider" means a physician, pharmacist,
pharmacist clinician, hospital or other person licensed or
otherwise authorized to furnish health care services;
AA. "replacement coverage" means the benefits
provided by a succeeding carrier;
BB. "short-term contract" means a nonrenewable
health maintenance organization contract covering a resident of
the state, regardless of where the contract is delivered, that:
(1) has a maximum specified duration of not
more than three months after the effective date of the
contract; and
(2) is issued only to individuals who have not
been enrolled in a health maintenance organization contract
that provides the same or similar nonrenewable coverage from
any carrier within the three months preceding enrollment in the
short-term contract;
CC. "subscriber" means an individual whose
employment or other status, except family dependency, is the
basis for eligibility for enrollment in the health maintenance
organization or, in the case of an individual contract, the
person in whose name the contract is issued; and
DD. "uncovered expenditures" means the costs to the
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health maintenance organization for health care services that
are the obligation of the health maintenance organization, for
which an enrollee may also be liable in the event of the health
maintenance organization's insolvency and for which no
alternative arrangements have been made that are acceptable to
the superintendent."
SECTION 69. Section 59A-47-3 NMSA 1978 (being Laws 1984,
Chapter 127, Section 879.1, as amended) is amended to read:
"59A-47-3. DEFINITIONS.--As used in Chapter 59A, Article
47 NMSA 1978:
A. "acquisition expenses" includes all expenses
incurred in connection with the solicitation and enrollment of
subscribers;
B. "administration expenses" means all expenses of
the health care plan other than the cost of health care expense
payments and acquisition expenses;
C. "agent" means a person appointed by a health
care plan authorized to transact business in this state to act
as its representative in any given locality for soliciting
health care policies and other related duties as may be
authorized;
D. "chiropractor" means any person holding a
license provided for in the Chiropractic Physician Practice
Act;
E. "credentialing" means the process of obtaining
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and verifying information about a provider and evaluating that
provider when that provider seeks to become a participating
provider;
F. "direct services" means services rendered to an
individual by a health care plan, health insurer or a health
care practitioner, facility or other provider, including case
management, disease management, health education and promotion,
preventive services, quality incentive payments to providers
and any portion of an assessment that covers services rather
than administration and for which a health care plan or a
health insurer does not receive a tax credit pursuant to the
Medical Insurance Pool Act; provided, however, that "direct
services" does not include care coordination, utilization
review or management or any other activity designed to manage
utilization or services;
G. "doctor of oriental medicine" means any person
licensed as a doctor of oriental medicine under the Acupuncture
and Oriental Medicine Practice Act;
H. "health care" means the treatment of persons for
the prevention, cure or correction of any illness or physical
or mental condition, including optometric services;
I. "health care expense payment" means a payment
for health care to a purveyor on behalf of a subscriber, or
such a payment to the subscriber;
J. "health care plan" means an organization that
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demonstrates to the superintendent that it has been granted
exemption from the federal income tax by the United States
commissioner of internal revenue as an organization described
in Section 501(c)(3) of the United States Internal Revenue Code
of 1986, as that section may be amended or renumbered, and is
authorized by the superintendent to enter into contracts with
subscribers and to make health care expense payments, including
an organization that issues:
(1) a short-term health care plan;
(2) an excepted benefit health care plan
intended to supplement major medical coverage, including
medicare supplement, vision, dental, disease-specific,
accident-only or hospital indemnity-only insurance policies; or
(3) a policy or plan for long-term care or
disability income;
K. "indemnity benefit" means a payment that the
purveyor has not agreed to accept as payment in full for health
care furnished the subscriber;
L. "item of health care" means a service or
material used in health care;
M. "pharmacist" means a person licensed as a
pharmacist pursuant to the Pharmacy Act;
N. "pharmacist clinician" means a pharmacist who
exercises prescriptive authority pursuant to the Pharmacist
Prescriptive Authority Act;
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O. "premium" means all income received from
individuals and private and public payers or sources for the
procurement of health coverage, including capitated payments,
self-funded administrative fees, self-funded claim
reimbursements, recoveries from third parties or other insurers
and interests less any [premium ] state and local option gross
receipts tax paid [pursuant to Section 59A-6-2 NMSA 1978 ] and
fees associated with participating in a health insurance
exchange that serves as a clearinghouse for insurance;
P. "provider" means a physician or other individual
licensed or otherwise authorized to furnish health care
services in the state;
Q. "purveyor" means a person who furnishes any item
of health care and charges for that item;
R. "service benefit" means a payment that the
purveyor has agreed to accept as payment in full for health
care furnished the subscriber;
S. "short-term health care plan" means a
nonrenewable health care plan covering a resident of the state,
regardless of where the plan is delivered, that:
(1) has a maximum specified duration of not
more than three months after the effective date of the plan;
and
(2) is issued only to individuals who have not
been enrolled in a health care plan that provides the same or
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similar nonrenewable coverage from any nonprofit health care
plan within the three months preceding enrollment in the
short-term plan;
T. "solicitor" means a person employed by the
licensed agent of a health care plan for the purpose of
soliciting health care policies and other related duties in
connection with the handling of the business of the agent as
may be authorized and paid for the person's services either on
a commission basis or salary basis or part by commission and
part by salary;
U. "subscriber" means any individual who, because
of a contract with a health care plan entered into by or for
the individual, is entitled to have health care expense
payments made on the individual's behalf or to the individual
by the health care plan; and
V. "underwriting manual" means the health care
plan's written criteria, approved by the superintendent, that
defines the terms and conditions under which subscribers may be
selected. The underwriting manual may be amended from time to
time, but the amendment will not be effective until approved by
the superintendent. The superintendent shall notify the health
care plan filing the underwriting manual or the amendment
thereto of the superintendent's approval or disapproval thereof
in writing within thirty days after filing or within sixty days
after filing if the superintendent shall so extend the time.
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If the superintendent fails to act within such period, the
filing shall be deemed to be approved."
SECTION 70. Section 59A-47-8 NMSA 1978 (being Laws 1984,
Chapter 127, Section 879.6, as amended) is amended to read:
"59A-47-8. CERTIFICATE OF AUTHORITY REQUIRED--APPLICATION
AND CONDITIONS--EXCEPTIONS.--
A. No health care plan shall make health care
expense payments unless and until it has obtained from the
superintendent a certificate of authority to do business.
Violation of this provision shall constitute a misdemeanor
punishable upon conviction by a fine of not to exceed one
thousand dollars ($1,000).
B. A newly formed health care plan's application
for initial certificate of authority must be filed with the
superintendent prior to expiration of one year from date of
issuance of the preliminary permit referred to in Section
59A-47-6 NMSA 1978.
C. The application for certificate of authority
shall be in the form prescribed and furnished by the
superintendent consistent with Chapter 59A, Article 47 NMSA
1978, and be verified by two of the applicant's officers. The
application shall include or be accompanied by such proof as
the superintendent may reasonably require that the applicant is
qualified for the certificate of authority under this article.
At filing of the application, the applicant shall pay to the
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superintendent the applicable filing fee as specified in
Section 59A-6-1 NMSA 1978. The filing fee shall not be
refundable.
D. No such certificate of authority shall be
required for a health care plan formerly so authorized, to
enable it to investigate and settle losses under its contracts
lawfully written in New Mexico, or to liquidate assets and
liabilities (other than collection of new premiums) resulting
from its former authorized operations in this state. A health
care plan not transacting new business in this state but
continuing collection of premiums on and servicing contracts
remaining in force as to residents of or risks located in this
state, is transacting business in New Mexico for the purpose of
[premium] gross receipts tax requirements only and is not
required to have a certificate of authority."
SECTION 71. Section 59A-54-3 NMSA 1978 (being Laws 1987,
Chapter 154, Section 3, as amended) is amended to read:
"59A-54-3. DEFINITIONS.--As used in the Medical Insurance
Pool Act:
A. "board" means the board of directors of the
pool;
B. "creditable coverage" means, with respect to
an individual, coverage of the individual pursuant to:
(1) a group health plan;
(2) health insurance coverage;
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(3) Part A or Part B of Title 18 of the Social
Security Act;
(4) Title 19 of the Social Security Act except
coverage consisting solely of benefits pursuant to Section 1928
of that title;
(5) 10 USCA Chapter 55;
(6) the Medical Insurance Pool Act;
(7) a health plan offered pursuant to
5 USCA Chapter 89;
(8) a public health plan as defined in federal
regulations; or
(9) a health benefit plan offered pursuant to
Section 5(e) of the federal Peace Corps Act;
C. "federally defined eligible individual" means an
individual:
(1) for whom, as of the date on which the
individual seeks coverage under the Medical Insurance Pool Act,
the aggregate of the periods of creditable coverage is eighteen
or more months;
(2) whose most recent prior creditable
coverage was under a group health plan, governmental plan,
church plan or health insurance coverage, as those plans or
coverage are defined in Section 59A-23E-2 NMSA 1978, offered in
connection with that plan;
(3) who is not eligible for coverage under
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a group health plan, Part A or Part B of Title 18 of the Social
Security Act or a state plan under Title 19 or Title 21 of the
Social Security Act or a successor program and who does not
have other health insurance coverage;
(4) with respect to whom the most recent
coverage within the period of aggregate creditable coverage was
not terminated based on a factor relating to nonpayment of
premiums or fraud;
(5) who, if offered the option of continuation
of coverage under a continuation provision pursuant to the
federal Consolidated Omnibus Budget Reconciliation Act of 1985
or a similar state program, elected this coverage; and
(6) who has exhausted continuation coverage
under this provision or program, if the individual elected the
continuation coverage described in Paragraph (5) of this
subsection;
D. "health care facility" means an entity providing
health care services that is licensed by the department of
health;
E. "health care services" means services or
products included in the furnishing to an individual of medical
care or hospitalization, or incidental to the furnishing of
that care or hospitalization, as well as the furnishing to a
person of other services or products for the purpose of
preventing, alleviating, curing or healing human illness or
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injury;
F. "health insurance" means a hospital and medical
expense-incurred policy; nonprofit health care service plan
contract; health maintenance organization subscriber contract;
short-term, accident, fixed indemnity or specified disease
policy; disability income contracts; limited benefit insurance;
credit insurance; or as the term is defined by Section 59A-7-3
NMSA 1978. "Health insurance" does not include insurance
arising out of the Workers' Compensation Act or similar law,
automobile medical payment insurance or insurance under which
benefits are payable with or without regard to fault and that
is required by law to be contained in a liability insurance
policy;
G. "health maintenance organization" means [a
person who provides, at a minimum, either directly or through
contractual or other arrangements with others, basic health
care services to enrollees on a fixed prepayment basis and who
is responsible for the availability, accessibility and quality
of the health care services provided or arranged, or ] "health
maintenance organization" as defined by Subsection [M ] O of
Section 59A-46-2 NMSA 1978;
H. "health plan" means an arrangement by which
persons, including dependents or spouses, covered or making
application to be covered under the pool have access to
hospital and medical benefits or reimbursement, including group
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or individual insurance or subscriber contract; coverage
through health maintenance organizations, preferred provider
organizations or other alternate delivery systems; coverage
under prepayment, group practice or individual practice plans;
coverage under uninsured arrangements of group or group-type
contracts, including employer self-insured, cost-plus or other
benefits methodologies not involving insurance or not subject
to [New Mexico premium ] state and local option gross receipts
taxes; coverage under group-type contracts that are not
available to the general public and can be obtained only
because of connection with a particular organization or group;
and coverage by medicare or other governmental benefits.
"Health plan" includes coverage through health insurance;
I. "insured" means an individual resident of this
state who is eligible to receive benefits from an insurer or
other health plan;
J. "insurer" means an insurance company authorized
to transact health insurance business in this state, a
nonprofit health care plan, a health maintenance organization
and self-insurers not subject to federal preemption. "Insurer"
does not include an insurance company that is licensed under
the Prepaid Dental Plan Law or a company that is solely engaged
in the sale of dental insurance and is licensed not under that
act, but under another provision of the Insurance Code;
K. "medicare" means coverage under Part A or Part B
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of Title 18 of the Social Security Act, as amended;
L. "pool" means the New Mexico medical insurance
pool;
M. "preexisting condition" means a physical or
mental condition for which medical advice, medication,
diagnosis, care or treatment was recommended for or received by
an applicant within six months before the effective date of
coverage, except that pregnancy is not considered a preexisting
condition for a federally defined eligible individual; and
N. "therapist" means a licensed physical,
occupational, speech or respiratory therapist."
SECTION 72. Section 59A-54-7.1 NMSA 1978 (being Laws
2003, Chapter 396, Section 1) is amended to read:
"59A-54-7.1. PRESCRIPTION DRUG PROGRAM--COST-SHARING.--
A. The board may establish a prescription drug
program, in whole or in part, including a pilot or phase-in
program, to offer selected eligible persons the ability to
purchase prescription drugs. The board may establish varying
levels of eligibility and cost-sharing criteria as needed for
selected eligible persons and, if established, shall ensure
that cost-containment mechanisms are included in the program.
B. The board may establish the cost-sharing amounts
payable by a person enrolled in the prescription drug program,
including the premium, deductible, coinsurance, co-payment and
other out-of-pocket expenses.
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C. If the board establishes a prescription drug
program, the board shall establish the assessments pursuant to
Section 59A-54-10 NMSA 1978.
[D. If the board establishes a prescription drug
program, the assessment for a pool member shall be determined
in the same manner as provided in this section provided that a
pool member shall be allowed a fifty percent credit for the
prescription drug program assessment on the premium tax return
for that member.
E.] D. The board may issue a pool prescription drug
program benefit policy for a person who is over the age of
sixty-five and unable to purchase or is ineligible for a
similar prescription drug program. The board may issue a pool
prescription drug program benefit policy for a person who is
eligible for a state-funded or state-operated low-income
pharmacy benefit program.
[F.] E. If the board establishes a prescription
drug program, the board shall cooperate with other state and
federal prescription drug initiatives."
SECTION 73. Section 60-2E-47 NMSA 1978 (being Laws 1997,
Chapter 190, Section 49, as amended by Laws 2023, Chapter 122,
Section 1 and by Laws 2023, Chapter 154, Section 2) is amended
to read:
"60-2E-47. GAMING TAX--IMPOSITION--ADMINISTRATION.--
A. An excise tax is imposed on the privilege of
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engaging in gaming activities in the state. This tax shall be
known as the "gaming tax".
B. The gaming tax is an amount equal to: [ten ]
(1) two percent of the gross receipts of
manufacturer licensees from the sale, lease or other transfer
of gaming devices in or into the state, except receipts of a
manufacturer from the sale, lease or other transfer to a
licensed distributor for subsequent sale or lease may be
excluded from gross receipts;
(2) ten percent of the gross receipts of
distributor licensees from the sale, lease or other transfer of
gaming devices in or into the state;
(3) ten percent of the net take of a gaming
operator licensee that is a nonprofit organization; and
(4) prior to July 1, 2028:
(a) twenty-four and eight-tenths percent
of the net take [of every other gaming operator licensee. For
the purposes of this section, "gross receipts" means the total
amount of money or the value of other consideration received
from selling, leasing or otherwise transferring gaming
devices]; and
(b) beginning July 1, 2028, twenty-six
percent of the net take .
C. The gaming tax imposed on a licensee is in lieu
of all state and local gross receipts taxes on that portion of
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the licensee's gross receipts attributable to gaming
activities.
D. The gaming tax is to be paid on or before the
fifteenth day of the month following the month in which the
taxable event occurs. The gaming tax shall be administered and
collected by the taxation and revenue department in cooperation
with the board. The provisions of the Tax Administration Act
apply to the collection and administration of the tax.
E. In addition to the gaming tax, a gaming operator
licensee that is a racetrack shall pay:
(1) twenty percent of its net take solely to
purses in accordance with rules adopted by the state racing
commission; and
(2) prior to July 1, 2028 , one and two-tenths
percent of its net take solely to offset the costs of jockey
and exercise rider insurance and to comply with federal and
state laws affecting horse racing.
F. An amount not to exceed twenty percent of the
interest earned on the balance of any fund consisting of money
for purses distributed by racetrack gaming operator licensees
pursuant to this subsection may be expended for the costs of
administering the distributions. The state racing commission
is responsible for regulatory oversight of funds withdrawn for
exercise rider and jockey insurance and compliance with federal
and state laws affecting horse racing. The state racing
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commission is also responsible for regulatory oversight of the
twenty percent and one and two-tenths percent fees funding from
gaming. A racetrack gaming operator licensee shall spend no
less than one-fourth percent of the net take of its gaming
machines to fund or support programs for the treatment and
assistance of compulsive gamblers.
G. A nonprofit gaming operator licensee shall
distribute at least twenty percent of the balance of its net
take, after payment of the gaming tax, any income taxes and
allowable gaming expenses, for charitable or educational
purposes.
H. As used in this section, "gross receipts" means
the total amount of money or the value of other consideration
received from selling, leasing or otherwise transferring gaming
devices."
SECTION 74. Section 60-2F-21 NMSA 1978 (being Laws 2009,
Chapter 81, Section 21) is amended to read:
"60-2F-21. TAX IMPOSITION.--
A. A bingo and raffle tax equal to [one-half ] two
percent of the gross receipts of any game of chance held,
operated or conducted for or by a qualified organization shall
be imposed on the qualified organization.
B. No other state or local gross receipts tax shall
apply to a qualified organization's receipts generated by a
game of chance authorized by the New Mexico Bingo and Raffle
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Act.
C. The tax imposed pursuant to this section shall
be submitted quarterly to the taxation and revenue department
on or before April 25, July 25, October 25 and January 25.
D. The taxation and revenue department shall
administer the tax imposed in this section pursuant to the Tax
Administration Act."
SECTION 75. A new section of the Motor Vehicle Code is
enacted to read:
"[NEW MATERIAL] ADDITIONAL REGISTRATION FEE--ELECTRIC AND
PLUG-IN HYBRID ELECTRIC VEHICLES.--
A. For registration of vehicles subject to the
registration fees imposed by Sections 66-6-2 and 66-6-4 NMSA
1978, there is imposed an additional annual fee of six hundred
fifty dollars ($650) for which an electric vehicle with a gross
vehicle weight of twenty-six thousand pounds or less is
registered.
B. For registration of vehicles subject to the
registration fees imposed by Sections 66-6-2 and 66-6-4 NMSA
1978, there is imposed an additional annual fee of three
hundred twenty-five dollars ($325) for which a plug-in hybrid
electric vehicle with a gross vehicle weight of twenty-six
thousand pounds or less is registered.
C. All fees collected pursuant to this section
shall be paid to the state treasurer to the credit of the motor
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vehicle suspense fund with distribution in accordance with
Section 66-6-23 NMSA 1978.
D. As used in this section:
(1) "electric vehicle" means a motor vehicle
that derives all of the vehicle's power from electricity stored
in a battery that:
(a) has a capacity of not less than six
kilowatt-hours;
(b) is capable of powering the vehicle
for a range of at least forty miles; and
(c) is capable of being recharged from
an external source of electricity; and
(2) "plug-in hybrid electric vehicle" means a
motor vehicle that derives part of the vehicle's power from
electricity stored in a battery that:
(a) has a capacity of not less than six
kilowatt-hours;
(b) is capable of powering the vehicle
for a range of at least forty miles; and
(c) is capable of being recharged from
an external source of electricity."
SECTION 76. Section 66-3-7 NMSA 1978 (being Laws 1978,
Chapter 35, Section 27, as amended) is amended to read:
"66-3-7. GROUNDS FOR REFUSING, SUSPENDING OR REVOKING
REGISTRATION OR CERTIFICATE OF TITLE.--The division may refuse,
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suspend or revoke registration or issuance of a certificate of
title or a transfer of registration upon the [ground ] grounds
that:
A. the application contains a false or fraudulent
statement or that the applicant failed to furnish the required
information or reasonable additional information requested by
the division or that the applicant is not entitled to the
issuance of a certificate of title or registration of the
vehicle under the Motor Vehicle Code;
B. the vehicle is mechanically unfit or unsafe to
be operated or moved upon the highways;
C. a commercial motor vehicle is operated by a
commercial motor carrier that is prohibited from operating the
vehicle by order of a state or federal agency;
D. the division has [a ] reasonable [ground] grounds
to believe that the vehicle is a stolen or embezzled vehicle or
that the granting of registration or the issuance of a
certificate of title would constitute a fraud against the
rightful owner or other person having valid lien upon the
vehicle;
E. the registration of the vehicle stands suspended
or revoked for any reason as provided in the motor vehicle laws
of this state;
F. the required fee has not been paid;
[G. the motor vehicle excise tax has not been paid;
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H.] G. the weight distance tax has not been paid;
[I.] H. international fuel tax agreement taxes have
not been paid;
[J.] I. if the vehicle is a mobile home, the
property tax has not been paid;
[K.] J. the owner's address, as shown in the
records of the division, is within a class A county or within a
municipality that has a vehicle emission inspection and
maintenance program and the applicant has applied at an office
outside the designated county or municipality; or
[L.] K. the owner is required to but has failed to
provide proof of compliance with a vehicle emission inspection
and maintenance program, if required in the county or
municipality in which the owner resides."
SECTION 77. Section 66-3-118 NMSA 1978 (being Laws 1978,
Chapter 35, Section 65, as amended) is amended to read:
"66-3-118. MANUFACTURER'S CERTIFICATE OF ORIGIN--TRANSFER
OF VEHICLE NOT PREVIOUSLY REGISTERED.--
A. Whenever a manufacturer or the agent or
distributor of a manufacturer transfers a vehicle, not
previously registered, to a dealer in this state, the
manufacturer, agent or distributor at the time of transfer of
the vehicle shall deliver to the dealer a manufacturer's
certificate of origin. The certificate shall be signed by the
manufacturer and shall specify that the vehicle described has
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been transferred to the dealer named and that the transfer is
the first transfer of the vehicle in ordinary trade and
commerce.
B. The certificate shall contain a description of
the vehicle, number of cylinders, type of body, engine number,
serial number or other standard identification number provided
by the manufacturer of the vehicle and space for proper
reassignment to a New Mexico dealer or to a dealer duly
licensed or recognized as such in another state, territory or
possession of the United States.
C. Any dealer when transferring a vehicle, not
previously registered, to another dealer shall, at the time of
transfer, give the transferee the proper manufacturer's
certificate of origin fully assigned to the transferee.
D. When a vehicle not previously registered is
transferred to a dealer who does not hold a franchise granted
by the manufacturer of the vehicle to sell that type or model
of vehicle, the transferee must obtain a registration of the
vehicle and certificate of title [but shall not be required to
pay the excise tax imposed by Section 7-14-3 NMSA 1978 ]."
SECTION 78. Section 66-3-401 NMSA 1978 (being Laws 1978,
Chapter 35, Section 80, as amended) is amended to read:
"66-3-401. OPERATION OF VEHICLES UNDER DEALER PLATES.--
A. Any vehicle that is required to be registered
pursuant to the Motor Vehicle Code and that is included in the
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inventory of a dealer may be operated or moved upon the
highways for any purpose, provided that the vehicle display in
the manner prescribed in Section 66-3-18 NMSA 1978 a unique
plate issued to the dealer as provided in Section 66-3-402 NMSA
1978. This subsection shall not be construed as limiting the
use of temporary registration permits issued to dealers
pursuant to Section 66-3-6 NMSA 1978. Each dealer plate shall
be issued for a specific vehicle in a dealer's inventory. If a
dealer wishes to use the plate on a different vehicle, the
dealer must reregister that plate to the different vehicle.
B. The provisions of this section do not apply to
work or service vehicles used by a dealer. For the purposes of
this subsection, "work or service vehicle" includes any vehicle
used substantially as a:
(1) parts or delivery vehicle;
(2) vehicle used to tow another vehicle;
(3) courtesy shuttle; or
(4) vehicle loaned to customers for their
convenience.
C. Each vehicle included in a dealer's inventory
required to be registered pursuant to the provisions of
Subsection A of this section must conform to the registration
provisions of the Motor Vehicle Code, but is not required to be
titled pursuant to the provisions of that code. When a vehicle
is no longer included in a dealer's inventory, and is not sold
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or leased to an unrelated entity, the dealer must title the
vehicle [and pay the motor vehicle excise tax that would have
been due when the vehicle was first registered by the dealer ].
D. In lieu of the use of dealer plates pursuant to
this section, a dealer may register and title a vehicle
included in a dealer's inventory in the name of the dealer upon
payment of the registration fee applicable to that vehicle,
[but without payment of the motor vehicle excise tax ] provided
the vehicle is subsequently sold or leased in the ordinary
course of business in a transaction subject to the [motor
vehicle excise] gross receipts tax or the leased vehicle gross
receipts tax."
SECTION 79. Section 66-3-1006 NMSA 1978 (being Laws 1978,
Chapter 35, Section 202, as amended) is amended to read:
"66-3-1006. GROUNDS FOR REFUSING REGISTRATION OR
CERTIFICATE OF TITLE.--The division may refuse registration or
issuance of a certificate of title or any transfer of a
registration certificate if:
A. the division has reasonable grounds to believe
that the application contains any false or fraudulent statement
or that the applicant has failed to furnish the required
information or reasonable additional information requested by
the division or that the applicant is not entitled to the
issuance of a certificate of title or registration certificate
of the off-highway motor vehicle under the Motor Vehicle Code
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or laws of this state;
B. the division has reasonable grounds to believe
that the off-highway motor vehicle is stolen or embezzled or
that the granting of a registration certificate or the issuance
of a certificate of title would constitute a fraud against the
rightful owner or other person having a valid lien upon the
off-highway motor vehicle;
C. the division has reasonable grounds to believe
that a nonresident applicant is not entitled to registration
issuance under the laws of the nonresident applicant's state of
residence; or
D. the required fees have not been paid [or
E. the motor vehicle excise tax has not been paid
pursuant to Chapter 7, Article 14 NMSA 1978 ]."
SECTION 80. Section 66-6-23 NMSA 1978 (being Laws 1978,
Chapter 35, Section 358, as amended) is amended to read:
"66-6-23. DISPOSITION OF FEES.--
A. After the necessary disbursements for refunds
and other purposes have been made, the money remaining in the
motor vehicle suspense fund, except for remittances received
within the previous two months that are unidentified as to
source or disposition, shall be distributed as follows:
(1) to each municipality, county or fee agent
operating a motor vehicle field office:
(a) an amount equal to six dollars
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($6.00) per driver's license and five dollars ($5.00) per
identification card or motor vehicle or motorboat registration
or title transaction performed;
(b) for each such agent determined by
the secretary pursuant to Section 66-2-16 NMSA 1978 to have
performed ten thousand or more transactions in the preceding
fiscal year, other than a class A county with a population
exceeding three hundred thousand or a municipality with a
population exceeding three hundred thousand that has been
designated as an agent pursuant to Section 66-2-14.1 NMSA 1978,
an amount equal to one dollar ($1.00) in addition to the amount
distributed pursuant to Subparagraph (a) of this paragraph for
each driver's license, identification card, motor vehicle
registration, motorboat registration or title transaction
performed; and
(c) to each military installation
designated as a fee agent pursuant to Section 66-2-14.1 NMSA
1978, an amount equal to one dollar fifty cents ($1.50) in
addition to the amount distributed pursuant to Subparagraph (a)
of this paragraph for each administrative service fee remitted
by the military installation to the department pursuant to
Subsection A of Section 66-2-16 NMSA 1978;
(2) to each municipality or county, other than
a class A county with a population exceeding three hundred
thousand or a municipality with a population exceeding three
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hundred thousand that has been designated as an agent pursuant
to Section 66-2-14.1 NMSA 1978, operating a motor vehicle field
office, an amount equal to one dollar fifty cents ($1.50) for
each administrative service fee remitted by that county or
municipality to the department pursuant to the provisions of
Subsection A of Section 66-2-16 NMSA 1978;
(3) to the state road fund:
(a) an amount equal to the fees
collected pursuant to Sections 66-7-413 and 66-7-413.4 NMSA
1978;
(b) an amount equal to the fee collected
pursuant to Section 66-3-417 NMSA 1978;
(c) the remainder of each driver's
license fee collected by the department employees from an
applicant to whom a license is granted after deducting from the
driver's license fee the amount of the distribution authorized
in Paragraph (1) of this subsection with respect to that
collected driver's license fee; [and ]
(d) an amount equal to fifty percent of
the fees collected pursuant to Section 66-6-19 NMSA 1978; and
(e) an amount equal to fifty percent of
the fees collected pursuant to Section 75 of this 2025 act;
(4) to the transportation project fund, an
amount equal to fifty percent of the fees collected pursuant to
Section 75 of this 2025 act;
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[(4)] (5) to the local governments road fund,
the amount of the fees collected pursuant to Subsection B of
Section 66-5-33.1 NMSA 1978 and the remainder of the fees
collected pursuant to Subsection A of Section 66-5-408 NMSA
1978;
[(5)] (6) to the department:
(a) any amounts reimbursed to the
department pursuant to Subsection D of Section 66-2-14.1 NMSA
1978;
(b) an amount equal to two dollars
($2.00) of each motorcycle registration fee collected pursuant
to Section 66-6-1 NMSA 1978;
(c) an amount equal to the fees provided
for in Subsection D of Section 66-2-7 NMSA 1978, Subsection E
of Section 66-2-16 NMSA 1978, Subsections K and L of Section
66-3-6 NMSA 1978 other than the administrative fee, Subsection
C of Section 66-5-44 NMSA 1978 and Subsection B of Section
66-5-408 NMSA 1978;
(d) the amounts due to the department
for the manufacture and issuance of a special registration
plate collected pursuant to the section of law authorizing the
issuance of the specialty plate;
(e) an amount equal to the registration
fees collected pursuant to Section 66-6-6.1 NMSA 1978 for the
purposes of enforcing the provisions of the Mandatory Financial
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Responsibility Act and for creating and maintaining a
multilanguage noncommercial driver's license testing program;
and after those purposes are met, the balance of the
registration fees shall be distributed to the department to
defray the costs of operating the division;
(f) an amount equal to fifty cents
($.50) for each administrative fee remitted to the department
by a county or municipality operating a motor vehicle field
office pursuant to Subsection A of Section 66-2-16 NMSA 1978;
(g) an amount equal to one dollar
twenty-five cents ($1.25) for each administrative fee collected
by the department or any of its agents other than a county or
municipality operating a motor vehicle field office pursuant to
Subsection A of Section 66-2-16 NMSA 1978; and
(h) an amount equal to the royalties or
other consideration paid by commercial users of databases of
motor vehicle-related records of the department pursuant to
Subsection C of Section 14-3-15.1 NMSA 1978 for the purpose of
defraying the costs of maintaining databases of motor vehicle-
related records of the department; and after that purpose is
met, the balance of the royalties and other consideration shall
be distributed to the department to defray the costs of
operating the division or for use pursuant to Subsection F of
Section 66-6-13 NMSA 1978;
[(6)] (7) to each New Mexico institution of
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higher education, an amount equal to that part of the fees
distributed pursuant to Paragraph (2) of Subsection D of
Section 66-3-416 NMSA 1978 proportionate to the number of
special registration plates issued in the name of the
institution to all such special registration plates issued in
the name of all institutions;
[(7)] (8) to the armed forces veterans license
fund, the amount to be distributed pursuant to Paragraph (2) of
Subsection E of Section 66-3-419 NMSA 1978;
[(8)] (9) to the children's trust fund, the
amount to be distributed pursuant to Paragraph (2) of
Subsection D of Section 66-3-420 NMSA 1978;
[(9)] (10) to the department of
transportation, an amount equal to the fees collected pursuant
to Section 66-5-35 NMSA 1978;
[(10)] (11) to the state equalization
guarantee distribution made annually pursuant to the general
appropriation act, an amount equal to one hundred percent of
the driver safety fee collected pursuant to Subsection D of
Section 66-5-44 NMSA 1978;
[(11)] (12) to the motorcycle training fund,
seven dollars ($7.00) of each motorcycle registration fee
collected pursuant to Section 66-6-1 NMSA 1978;
[(12)] (13) to the recycling and illegal
dumping fund:
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(a) fifty cents ($.50) of the tire
recycling fee collected pursuant to the provisions of Section
66-6-1 NMSA 1978;
(b) fifty cents ($.50) of each of the
tire recycling fees collected pursuant to the provisions of
Sections 66-6-2 and 66-6-4 NMSA 1978; and
(c) twenty-five cents ($.25) of each of
the tire recycling fees collected pursuant to Sections 66-6-5
and 66-6-8 NMSA 1978;
[(13)] (14) to the highway infrastructure
fund:
(a) fifty cents ($.50) of the tire
recycling fee collected pursuant to the provisions of Section
66-6-1 NMSA 1978;
(b) one dollar ($1.00) of each of the
tire recycling fees collected pursuant to the provisions of
Sections 66-6-2 and 66-6-4 NMSA 1978; and
(c) twenty-five cents ($.25) of each of
the tire recycling fees collected pursuant to Sections 66-6-5
and 66-6-8 NMSA 1978;
[(14)] (15) to each county, an amount equal to
fifty percent of the fees collected pursuant to Section 66-6-19
NMSA 1978 multiplied by a fraction, the numerator of which is
the total mileage of public roads maintained by the county and
the denominator of which is the total mileage of public roads
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maintained by all counties in the state;
[(15)] (16) to the litter control and
beautification fund, an amount equal to the fees collected
pursuant to Section 66-6-6.2 NMSA 1978;
[(16)] (17) to the local government division
of the department of finance and administration, an amount
equal to the fees collected pursuant to Section 66-3-424.3 NMSA
1978 for distribution to each county to support animal control
spaying and neutering programs in an amount proportionate to
the number of residents of that county who have purchased pet
care special registration plates pursuant to Section 66-3-424.3
NMSA 1978; and
[(17)] (18) to the Cumbres and Toltec scenic
railroad commission, twenty-five dollars ($25.00) collected
pursuant to the Cumbres and Toltec scenic railroad special
registration plate.
B. The balance, exclusive of unidentified
remittances, shall be distributed in accordance with Section
66-6-23.1 NMSA 1978.
C. If any of the paragraphs, subsections or
sections referred to in Subsection A of this section are
recompiled or otherwise redesignated without a corresponding
change to Subsection A of this section, the reference in
Subsection A of this section shall be construed to be the
recompiled or redesignated paragraph, subsection or section."
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SECTION 81. Section 66-6-25 NMSA 1978 (being Laws 1978,
Chapter 35, Section 360, as amended) is amended to read:
"66-6-25. REGISTRATION BY COUNTY OR MUNICIPALITY
PROHIBITED.--
A. Except as provided in Subsection B of this
section, no county or municipality shall require registration
or charge fees for any vehicle subject to registration under
the Motor Vehicle Code.
B. [Notwithstanding the provisions of Subsection A
of this section] A county or municipality designated as an
agent pursuant to Section 66-2-14.1 NMSA 1978 may impose a fee
in an amount not to exceed five dollars ($5.00) per year in
addition to any other registration fee required. [This fee
shall not be imposed if the county or municipality has imposed
a gasoline tax pursuant to the County and Municipal Gasoline
Tax Act, the proceeds of which are used to fund a vehicle
emission inspection program. ] Any money collected as a result
of the imposition of an additional fee pursuant to this
subsection shall be used only to fund a vehicle emission
inspection program."
SECTION 82. Section 66-12-5.2 NMSA 1978 (being Laws 1987,
Chapter 247, Section 7) is amended to read:
"66-12-5.2. OWNER'S CERTIFICATE OF TITLE--FEES--
DUPLICATES.--
A. Except as provided in Subsection C of this
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section, every owner of a boat subject to titling under the
provisions of the Boat Act shall apply to the division for
issuance of a certificate of title for the boat within thirty
days after acquisition. The application shall be on forms the
division prescribes and accompanied by the required fee. The
application shall be signed and sworn to before a notary public
or other person who administers oaths, or include a
certification signed in writing containing substantially the
representation that statements made are true and correct to the
best of the applicant's knowledge, information and belief,
under penalty of perjury. The application shall contain the
date of sale and gross price of the boat or the fair market
value if no sale immediately preceded the transfer and any
additional information the division requires. If the
application is made for a boat last previously registered or
titled in another state or foreign country, it shall contain
this information and any other information the division
requires.
B. The division shall not issue or renew a
certificate of number to any boat required to be registered and
numbered in the state unless the division has issued a
certificate of title to the owner, if the boat is required to
be titled.
C. Any person who, on July 1, 1987, is the owner of
a boat with a valid certificate of number issued by the state
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is not required to file an application for a certificate of
title for the boat until [he ] the person transfers any part of
[his] the person's interest in the boat or he renews the
certificate of number for the boat.
D. If a dealer buys or acquires a used boat for
resale, [he] the dealer shall report the acquisition to the
division on forms the division provides, or [he ] the dealer may
apply for and obtain a certificate of title as provided in this
section. If a dealer buys or acquires a used unnumbered boat,
[he] the dealer shall apply for a certificate of title in [his ]
the dealer's name within thirty days. If a dealer buys or
acquires a new boat for resale, [he ] the dealer may apply for a
certificate of title in [his ] the dealer's name.
E. Every dealer transferring a boat requiring
titling under this section shall assign the title to the new
owner or, in the case of a new boat, assign the certificate of
origin. Within thirty days, the dealer or purchaser, as
applicable, shall file with the division the necessary
application and fee required under this section.
F. The division shall maintain a record of any
certificate of title it issues.
G. No person shall sell, assign or transfer a boat
titled by the state without delivering to the purchaser or
transferee a certificate of title with an assignment on it
showing title in the purchaser or transferee and with a
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statement of all liens upon the title. No person may purchase
or otherwise acquire a boat required to be titled by the state
without obtaining a certificate of title for it in [his ] the
person's name.
H. The division shall charge a ten dollar ($10.00)
fee to issue a certificate of title, a transfer of title, a
duplicate or corrected certificate of title.
I. If a certificate of title is lost, stolen,
mutilated, destroyed or becomes illegible, the first lienholder
or, if there is none, the owner named in the certificate, as
shown by the division's records, shall within thirty days
obtain a duplicate by applying to the division. The applicant
shall furnish information concerning the original certificate
and the circumstances of its loss, mutilation or destruction as
the division requires. Mutilated or illegible certificates
shall be returned to the division with the application for a
duplicate. [Issuance of a duplicate certificate of title is
not subject to the excise tax imposed under Section 66-12-6.1
NMSA 1978.]
J. The duplicate certificate of title shall be
plainly marked "duplicate" across its face and mailed or
delivered to the applicant.
K. If a lost or stolen original certificate of
title for which a duplicate has been issued is recovered, the
original shall be surrendered promptly to the division for
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cancellation."
SECTION 83. Section 66-12-6.1 NMSA 1978 (being Laws 1987,
Chapter 247, Section 9) is repealed and a new Section 66-12-6.1
NMSA 1978 is enacted to read:
"66-12-6.1. [NEW MATERIAL ] BOAT FUND.--The "boat fund" is
created as a nonreverting fund in the state treasury. The fund
consists of distributions, appropriations, gifts, grants,
donations and other transfers to the fund. The division shall
administer the fund, and money in the fund is appropriated to
the division for improvements and maintenance of lakes and
boating facilities owned or leased by the state and for
administration and enforcement of the Boat Act."
SECTION 84. TEMPORARY PROVISION--EXHAUSTION OF CREDITS.--
A. If a taxpayer has met the eligibility
requirements to apply for and claim a tax credit being repealed
by this act for a period prior to the effective date of the
repeal, the taxpayer may claim, and the taxation and revenue
department may approve, the credit for those periods, including
amounts that may be carried forward pursuant to those sections
as they were in effect prior to the effective date of the
repeal.
B. If a taxpayer has claimed and been awarded a tax
credit being repealed by this act but a portion of the credit
claimed remains unused, the taxpayer may claim the unused
portion, including amounts that could have been carried forward
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pursuant to those sections being repealed as they were in
effect prior to the effective date of the repeal.
SECTION 85. REPEAL--A PROVISION OF THE METROPOLITAN
REDEVELOPMENT CODE.--Section 3-60A-49 NMSA 1978 (being Laws
2023, Chapter 112, Section 6) is repealed.
SECTION 86. REPEAL--PROVISIONS OF THE TAX INCREMENT FOR
DEVELOPMENT ACT.--Sections 5-15-15.1, 5-15-21 and 5-15-29 NMSA
1978 (being Laws 2019, Chapter 275, Section 3, Laws 2006,
Chapter 75, Section 21 and Laws 2019, Chapter 275, Section 8,
as amended) are repealed.
SECTION 87. REPEAL--BONDS FOR COUNTY CORRECTIONAL
FACILITY LOANS--OUTDATED SECTION OF LAW.--Section 6-21-5.1 NMSA
1978 (being Laws 1998, Chapter 65, Section 1, as amended) is
repealed.
SECTION 88. REPEAL--PROVISIONS OF THE TAX ADMINISTRATION
ACT.--Sections 7-1-6.4, 7-1-6.36, 7-1-6.46, 7-1-6.47, 7-1-6.52,
7-1-6.60 and 7-1-6.66 NMSA 1978 (being Laws 1983, Chapter 211,
Section 9; Laws 1992, Chapter 50, Section 13 and Laws 1992,
Chapter 67, Section 13; Laws 2004, Chapter 116, Sections 1 and
2; Laws 2005, Chapter 104, Section 1; Laws 2010, Chapter 31,
Section 2; and Laws 2021, Chapter 4, Section 1, as amended) are
repealed.
SECTION 89. REPEAL--OUTDATED PROVISION OF THE INCOME TAX
ACT.--That version of 7-2-7 NMSA 1978 (being Laws 2005 (1st
S.S.), Chapter 3, Section 2) is repealed.
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SECTION 90. REPEAL--PROVISIONS OF THE INCOME TAX ACT AND
CORPORATE INCOME AND FRANCHISE TAX ACT.--Sections 7-2-7.2
through 7-2-7.7, 7-2-18.2, 7-2-18.10, 7-2-18.11, 7-2-18.14,
7-2-18.17 through 7-2-18.26, 7-2-18.30, 7-2-18.33, 7-2-38,
7-2A-8.6, 7-2A-8.9, 7-2A-14, 7-2A-17.1 through 7-2A-26, 7-2A-29
and 7-2A-30 NMSA 1978 (being Laws 2005 (1st S.S.), Chapter 3,
Sections 3 and 4, Laws 2021, Chapter 4, Section 2, Laws 2022
(3rd S.S.), Chapter 2, Section 1, Laws 2022, Chapter 47,
Section 4, Laws 2023, Chapter 211, Section 11, Laws 1984,
Chapter 34, Section 1, Laws 2003, Chapter 331, Section 7, Laws
2003, Chapter 400, Section 1, Laws 2006, Chapter 93, Section 1,
Laws 2007, Chapter 172, Section 1, Laws 2007, Chapter 204,
Sections 2 and 3, Laws 2007, Chapter 361, Section 2, Laws 2008
(2nd S.S.), Chapter 3, Section 1, Laws 2009, Chapter 271,
Section 1, Laws 2010, Chapter 84, Section 1, Laws 2018, Chapter
36, Section 1, Laws 2022, Chapter 47, Section 3, Laws 2019,
Chapter 264, Section 1, Laws 1984, Chapter 34, Section 2, Laws
2003, Chapter 331, Section 8, Laws 1983, Chapter 218, Section
1, Laws 2003, Chapter 400, Section 2, Laws 2002, Chapter 59,
Section 1, Laws 2007, Chapter 204, Section 4, Laws 2009,
Chapter 271, Section 2, Laws 2010, Chapter 84, Section 2, Laws
2018, Chapter 36, Section 2 and Laws 2019, Chapter 270, Section
20, as amended) are repealed.
SECTION 91. REPEAL--RURAL JOB TAX CREDIT.--Section
7-2E-1.1 NMSA 1978 (being Laws 2007, Chapter 172, Section 2, as
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amended) is repealed.
SECTION 92. DELAYED REPEAL--FILM PRODUCTION TAX CREDIT
ACT.--Sections 7-2F-1 through 7-2F-15 NMSA 1978 (being Laws
2002, Chapter 36, Section 1; Laws 2011, Chapter 165, Section 2
and Laws 2011, Chapter 177, Section 3; Laws 2003, Chapter 127,
Section 2; Laws 2015, Chapter 143, Section 4; Laws 2011,
Chapter 165, Sections 4 and 5; Laws 2015, Chapter 62, Section
1; Laws 2015, Chapter 143, Sections 5 through 10; and Laws
2019, Chapter 87, Sections 6 through 9, as amended) are
repealed effective July 1, 2034.
SECTION 93. REPEAL--ESTATE TAX ACT AND ART ACCEPTANCE
ACT.--Sections 7-7-1 through 7-7-20 NMSA 1978 (being Laws 1973,
Chapter 345, Sections 1 through 12 and Laws 1983, Chapter 209,
Sections 1 through 6, as amended) are repealed.
SECTION 94. REPEAL--PROVISIONS OF THE GROSS RECEIPTS AND
COMPENSATING TAX ACT.--Sections 7-9-13.1, 7-9-13.3 through
7-9-13.5, 7-9-15, 7-9-19 through 7-9-25, 7-9-26.1, 7-9-29
through 7-9-31, 7-9-38.1 through 7-9-41, 7-9-41.4, 7-9-41.6,
7-9-47 through 7-9-54.5, 7-9-56.1 through 7-9-57.2, 7-9-60
through 7-9-61.2, 7-9-62.1 through 7-9-69, 7-9-71 through
7-9-76.2, 7-9-77.1, 7-9-78, 7-9-79.2 through 7-9-87, 7-9-89,
7-9-91 through 7-9-95, 7-9-98 through 7-9-103.2, 7-9-107
through 7-9-109, 7-9-110.2 through 7-9-112 and 7-9-118 NMSA
1978 (being Laws 1989, Chapter 262, Section 4; Laws 2001,
Chapter 231, Section 12; Laws 2002, Chapter 20, Section 1; Laws
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2005, Chapter 351, Section 2; Laws 1970, Chapter 12, Section 1;
Laws 1969, Chapter 144, Section 12; Laws 1988, Chapter 82,
Section 1; Laws 1969, Chapter 144, Section 15; Laws 1987,
Chapter 247, Section 1; Laws 1969, Chapter 144, Section 16;
Laws 1987, Chapter 247, Section 2; Laws 1969, Chapter 144,
Sections 17 and 18; Laws 2003, Chapter 62, Section 1; Laws
1970, Chapter 12, Section 3; Laws 1969, Chapter 144, Sections
23 and 24; Laws 1992, Chapter 50, Section 12 and Laws 1992,
Chapter 67, Section 12; Laws 2002, Chapter 18, Section 2; Laws
1969, Chapter 144, Section 32; Laws 1970, Chapter 60, Section
2; Laws 1972, Chapter 61, Section 2; Laws 2009, Chapter 62,
Section 1; Laws 2020 (1st S.S.), Chapter 4, Section 3; Laws
1969, Chapter 144, Sections 37 through 42; Laws 2012, Chapter
5, Section 6; Laws 1969, Chapter 144, Sections 43 and 44; Laws
1992, Chapter 40, Section 1; Laws 1995, Chapter 183, Section 2;
Laws 2002, Chapter 37, Section 8; Laws 2003, Chapter 62,
Section 4; Laws 2004, Chapter 16, Section 3; Laws 1998, Chapter
92, Sections 1 and 2; Laws 2003, Chapter 232, Section 1; Laws
1969, Chapter 144, Section 47; Laws 2002, Chapter 10, Section
1; Laws 1970, Chapter 12, Section 4; Laws 1981, Chapter 37,
Section 52; Laws 2000, Chapter 48, Section 1; Laws 2000 (2nd
S.S.), Chapter 4, Section 2; Laws 1969, Chapter 144, Sections
53, 54, 56 and 57; Laws 1984, Chapter 129, Section 2; Laws
1969, Chapter 144, Sections 58, 60, 61 and 63; Laws 1970,
Chapter 78, Section 2; Laws 1991, Chapter 8, Section 3; Laws
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1998, Chapter 95, Section 2 and Laws 1998, Chapter 99, Section
4; Laws 2014, Chapter 26, Section 1; Laws 1971, Chapter 217,
Section 2; Laws 1972, Chapter 39, Section 2; Laws 1977, Chapter
288, Section 2; Laws 1979, Chapter 338, Section 7; Laws 1984,
Chapter 2, Section 6; Laws 1998, Chapter 96, Section 1; Laws
1969, Chapter 144, Section 65; Laws 2007, Chapter 204, Section
9; Laws 1993, Chapter 364, Sections 1 and 2; Laws 1994, Chapter
43, Section 1; Laws 1995, Chapter 155, Section 35; Laws 1998,
Chapter 89, Section 2; Laws 2001, Chapter 135, Section 1; Laws
2004, Chapter 116, Sections 5 and 6; Laws 2005, Chapter 104,
Sections 23 and 25; Laws 2005, Chapter 179, Section 1; Laws
2006, Chapter 35, Sections 1 and 2; Laws 2007, Chapter 3,
Sections 16 through 18; Laws 2012, Chapter 12, Sections 2 and
3; Laws 2007, Chapter 172, Sections 9 through 11; Laws 2011,
Chapter 60, Section 2 and Laws 2011, Chapter 61, Section 2;
Laws 2011, Chapter 60, Section 3 and Laws 2011, Chapter 61,
Section 3; Laws 2007, Chapter 361, Section 6; Laws 2007,
Chapter 204, Section 10; and Laws 2021, Chapter 4, Section 3,
as amended) are repealed.
SECTION 95. REPEAL--INVESTMENT CREDIT ACT.--Sections
7-9A-1 through 7-9A-11 NMSA 1978 (being Laws 1979, Chapter 347,
Sections 1 and 2; Laws 2001, Chapter 57, Section 2 and Laws
2001, Chapter 337, Section 2; Laws 1979, Chapter 347, Sections
3 through 7; Laws 1983, Chapter 206, Section 6; Laws 1979,
Chapter 347, Sections 8 and 9; and Laws 1997, Chapter 62,
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Section 2, as amended) are repealed.
SECTION 96. REPEAL--INTERSTATE TELECOMMUNICATIONS GROSS
RECEIPTS TAX ACT.--Sections 7-9C-1 through 7-9C-11 NMSA 1978
(being Laws 1992, Chapter 50, Section 1 and Laws 1992, Chapter
67, Section 1; Laws 1992, Chapter 50, Section 2 and Laws 1992,
Chapter 67, Section 2; Laws 1992, Chapter 50, Section 3 and
Laws 1992, Chapter 67, Section 3; Laws 1992, Chapter 50,
Section 4 and Laws 1992, Chapter 67, Section 4; Laws 1992,
Chapter 50, Section 5 and Laws 1992, Chapter 67, Section 5;
Laws 1992, Chapter 50, Section 6 and Laws 1992, Chapter 67,
Section 6; Laws 1992, Chapter 50, Section 7 and Laws 1992,
Chapter 67, Section 7; Laws 1992, Chapter 50, Section 8 and
Laws 1992, Chapter 67, Section 8; Laws 1992, Chapter 50,
Section 9 and Laws 1992, Chapter 67, Section 9; Laws 1992,
Chapter 50, Section 10 and Laws 1992, Chapter 67, Section 10;
and Laws 1992, Chapter 50, Section 11 and Laws 1992, Chapter
67, Section 11, as amended) are repealed.
SECTION 97. REPEAL--LABORATORY PARTNERSHIP WITH SMALL
BUSINESS TAX CREDIT ACT.--Sections 7-9E-1 through 7-9E-11 NMSA
1978 (being Laws 2000 (2nd S.S.), Chapter 20, Sections 1
through 9 and Laws 2007, Chapter 172, Sections 19 and 20, as
amended) are repealed.
SECTION 98. REPEAL--TECHNOLOGY JOBS AND RESEARCH AND
DEVELOPMENT TAX CREDIT ACT.--Sections 7-9F-1 through 7-9F-13
NMSA 1978 (being Laws 2000 (2nd S.S.), Chapter 22, Sections 1
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through 6, 8 and 9, Laws 2015 (1st S.S.), Chapter 2, Section
17, Laws 2000 (2nd S.S.), Chapter 22, Sections 10 through 12
and Laws 2015 (1st S.S.), Chapter 2, Section 18, as amended)
are repealed.
SECTION 99. REPEAL--HIGH-WAGE JOBS TAX CREDIT.--Section
7-9G-1 NMSA 1978 (being Laws 2004, Chapter 15, Section 1, as
amended) is repealed.
SECTION 100. REPEAL--AFFORDABLE HOUSING TAX CREDIT ACT.--
Sections 7-9I-1 through 7-9I-6 NMSA 1978 (being Laws 2005,
Chapter 104, Sections 17 through 22, as amended) are repealed.
SECTION 101. REPEAL--ALTERNATIVE ENERGY PRODUCT
MANUFACTURERS TAX CREDIT ACT.--Sections 7-9J-1 through 7-9J-8
NMSA 1978 (being Laws 2007, Chapter 204, Sections 11 through
18, as amended) are repealed.
SECTION 102. REPEAL--RAILROAD CAR COMPANY TAX ACT.--
Sections 7-11-1 through 7-11-6 NMSA 1978 (being Laws 1982,
Chapter 18, Sections 17 through 22, as amended) are repealed.
SECTION 103. REPEAL--MOTOR VEHICLE EXCISE TAX ACT.--
Sections 7-14-1 through 7-14-11 NMSA 1978 (being Laws 1988,
Chapter 73, Sections 11 through 17, Laws 1991, Chapter 197,
Section 4, Laws 1988, Chapter 73, Sections 18 and 19, Laws
1993, Chapter 347, Sections 4 and 5 and Laws 1988, Chapter 73,
Sections 20 and 21, as amended) are repealed.
SECTION 104. REPEAL--ALTERNATIVE FUEL TAX ACT.--Sections
7-16B-1 through 7-16B-10 NMSA 1978 (being Laws 1995, Chapter
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16, Sections 1 through 10, as amended) are repealed.
SECTION 105. REPEAL--PROVISIONS OF THE SUPPLEMENTAL
MUNICIPAL GROSS RECEIPTS TAX ACT AND MUNICIPAL LOCAL OPTION
GROSS RECEIPTS AND COMPENSATING TAXES ACT.--Sections 7-19-14
and 7-19D-5 NMSA 1978 (being Laws 1979, Chapter 397, Section 5
and Laws 1993, Chapter 346, Section 5, as amended) are
repealed.
SECTION 106. REPEAL--COUNTY AND MUNICIPAL GASOLINE TAX
ACT.--Sections 7-24A-1 through 7-24A-21 NMSA 1978 (being Laws
1978, Chapter 182, Section 1, Laws 1991, Chapter 156, Section
2, Laws 1978, Chapter 182, Sections 3 through 6, Laws 1986,
Chapter 74, Section 1, Laws 1978, Chapter 182, Section 7, Laws
1990, Chapter 88, Section 8 and Laws 1978, Chapter 182,
Sections 8, 10 through 12 and 14 through 21, as amended) are
repealed.
SECTION 107. REPEAL--INSURANCE PREMIUM TAX ACT.--Sections
7-40-1 through 7-40-10 NMSA 1978 (being Laws 2018, Chapter 57,
Sections 1 through 7 and 10, as amended) are repealed.
SECTION 108. REPEAL--SESSION LAWS NOT YET IN EFFECT.--
Laws 2023, Chapter 122, Section 2 is repealed.
SECTION 109. APPLICABILITY.--The provisions of Sections
27 through 29 of this act apply to taxable years beginning on
or after January 1, 2026.
SECTION 110. EFFECTIVE DATE.--
A. The effective date of the provisions of Sections
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3 through 5 of this act is July 1, 2025.
B. The effective date of the provisions of Sections
1, 2 and 6 through 108 of this act is January 1, 2026.
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