44th legislature - STATE OF NEW MEXICO - second session, 2000
WHEREAS, municipalities and counties throughout New Mexico often find themselves competing with each other for gross receipts and property taxes generated from new development; and
WHEREAS, fiscal disparities may exist between communities that fuel this competition for the revenue stream from gross receipts and property taxes; and
WHEREAS, such competition undermines the community's ability to effectively plan and manage growth in a fiscally sound manner; and
WHEREAS, the current property tax structure may unintentionally encourage sprawl development and discourage reinvestment within existing communities; and
WHEREAS, municipalities and counties need a clearer accounting from the state of the gross receipts each contributes to the state and a clearer understanding of the existing local-state revenue-sharing formula; and
WHEREAS, the public, municipalities, counties, school districts and others need to understand the basic funding mechanisms and their impact on growth, development and a community's land use decisions;
NOW, THEREFORE, BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO that the local government division of the department of finance and administration, in cooperation with the department of taxation and revenue, be requested to study the existing taxation structure, including property taxes on vacant and improved land and gross receipts taxes, and how that taxation structure affects local land use development and inter-jurisdictional relations; and
BE IT FURTHER RESOLVED that the local government division of the department of finance and administration report its findings to the revenue stabilization and tax policy committee on or before December 1, 2000; and
BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the secretaries of finance and administration and taxation and revenue and to members of the revenue stabilization and tax policy committee.