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SPONSOR: |
Heaton |
DATE TYPED: |
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HB |
659/aHTRC |
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SHORT TITLE: |
Amend Development Incentive Act |
SB |
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ANALYST: |
Gilbert |
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APPROPRIATION
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Appropriation
Contained |
Estimated
Additional Impact |
Recurring or
Non-Rec |
Fund Affected |
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FY03 |
FY04 |
FY03 |
FY04 |
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NFI |
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(Parenthesis
( ) Indicate Expenditure Decreases)
Duplicates
SB 744
Responses
Received From
Taxation
and Revenue Department (TRD)
Attorney
General’s Office
SUMMARY
Synopsis
of HTRC Amendment
House Taxation
and Revenue Committee amendment to House Bill 659 makes the following technical
corrections:
The definition
of a "new business facility" in Section 2(A)(3) was amended as
outlined below:
(b)
the facility is acquired by or leased to the taxpayer on or after July 1, 1991 2003 provided,
the facility shall be deemed to have been acquired by or leased to the taxpayer
on or after the specified date if the transfer of title to the taxpayer, the
transfer of possession pursuant to a binding contract to transfer title to the
taxpayer or the commencement of the term of the lease to the taxpayer occurs ….
Section 3(B) of
HB 659 was amended as follows:
B.
The exemption authorized by Section 3(A), exempting commercial personal
property of a new business facility located in the county or municipality from
the imposition of any property tax, shall may be for up to one hundred
percent of the value for property taxation purposes of the property exempted.
Synopsis
of Original Bill
House Bill 659 amends
NMSA 1978, § 3-64-1 through NMSA 1978, § 3-64-5 (Development Incentive Act)
relating to counties and municipalities being allowed to exempt certain
businesses with commercial personal property from property tax provisions. This bill allows: (a) any County or
Municipality to participate, (b) raises the exemption from 50% to 100% of the
value, (c) raises the exemption to 20 years (as opposed to 5), and (d) adds the
generation of electricity as an eligible business.
Significant
Issues
Proposed amendments to the Development Incentive
Act would 1) change its name to the “Community Development Incentive Act”, 2)
change the definition of “new business facility” to include facilities
purchased after December 21, 2001, 3) allow Class A counties and their municipalities
to offer incentives provided by the act, 4) include electrical generation
facilities in the list of businesses that qualify for the exemption, 5) extend
the exemption to 100 percent of personal property, and 6) extend the exemption
to a maximum time period of 20 years.
FISCAL IMPLICATIONS
According
to the Taxation and Revenue Department (TRD), HB 659 would not
impose significant impacts on state or local revenue sources. Personal property
currently accounts for a very small fraction of
RLG/njw