NOTE: As provided in LFC policy, this report is
intended only for use by the standing finance committees of the
legislature. The Legislative Finance Committee does not assume
responsibility for the accuracy of the information in this report when used for
other purposes.
The most recent FIR
version (in HTML & Adobe PDF formats) is available on the Legislative
Website. The Adobe PDF version includes
all attachments, whereas the HTML version does not. Previously issued FIRs and attachments may be
obtained from the LFC in
|
SPONSOR: |
Ingle |
DATE TYPED: |
|
HB |
|
||
|
SHORT TITLE: |
Amend Development Incentive Act |
SB |
744/aSFC/aHTRC |
||||
|
|
ANALYST: |
Gilbert |
|||||
APPROPRIATION
|
Appropriation
Contained |
Estimated
Additional Impact |
Recurring or
Non-Rec |
Fund Affected |
||
|
FY03 |
FY04 |
FY03 |
FY04 |
|
|
|
|
|
|
NFI |
|
|
(Parenthesis
( ) Indicate Expenditure Decreases)
Duplicates
HB 659
Responses
Received From
Taxation
and Revenue Department (TRD)
Attorney
General’s Office
SUMMARY
Synopsis
of HTRC Amendment
House Taxation and Revenue Committee amendment
to Senate Bill 744 makes non-substantive technical corrections to page 3 and
page 11.
Synopsis
of SFC Amendment
Senate Finance
Committee amendment to Senate Bill 744 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
SB 744 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
Senate Bill 744 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), SB 744 would not
impose significant impacts on state or local revenue sources. Personal property
currently accounts for a very small fraction of
RLG/njw