HB 811

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AN ACT

RELATING TO TAXATION; PROVIDING FOR A PROPERTY TAX EXEMPTION

FOR CERTAIN HEALTH-RELATED EQUIPMENT.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. Section 7-36-3 NMSA 1978 (being Laws 1975,

Chapter 218, Section 1, as amended) is amended to read:

"7-36-3. INDUSTRIAL REVENUE BOND, POLLUTION CONTROL

BOND AND ECONOMIC DEVELOPMENT BOND PROJECT PROPERTY--HEALTH-

RELATED EQUIPMENT--TAX STATUS.--

A. Property interests of a lessee in project

property held under a lease from a county or a municipality

under authority of an industrial revenue bond or pollution

control revenue bond act or the Statewide Economic Development

Finance Act are exempt from property taxation for as long as

there is an outstanding bonded indebtedness under the terms of

the revenue bonds issued for the acquisition of the project

property, but in no event for a period of more than thirty

years from the date of execution of the first lease of the

project to the lessee by the county or municipality.

B. Property interests of a person, other than a

public utility, arising out of the purchase of a project

authorized by the Industrial Revenue Bond Act, the County

Industrial Revenue Bond Act, the Pollution Control Revenue

Bond Act or the Statewide Economic Development Finance Act are

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exempt from property taxation for as long as the project

purchaser remains liable to the project seller for any part of

the purchase price, but not to exceed thirty years from the

date of execution of the sale agreement.

C. Property interests of a participating health

facility in health-related equipment purchased, acquired,

leased, financed or refinanced with the proceeds of bonds

issued under the Hospital Equipment Loan Act are exempt from

property taxation for as long as the participating health

facility remains liable for any amount under any lease, loan

or other agreement securing the bonds, but not to exceed

thirty years from the date the bonds were issued for the

health-related equipment.

D. The exemptions from property taxation under

this section are not cumulative; provided, however, that the

exemptions may be applied consecutively if subsequent

exemptions relate to the financing of a new project or new

health-related equipment."

Section 2. Section 58-23-5 NMSA 1978 (being Laws 1983,

Chapter 290, Section 5, as amended) is amended to read:

"58-23-5. COUNCIL--CREATED--MEMBERS--QUALIFICATIONS--

BOARD.--

A. There is created a public body politic and

corporate, separate and apart from the state, constituting a

governmental instrumentality to be known as the "New Mexico

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hospital equipment loan council" for the performance of

essential public functions.

B. The council shall be governed by a board of

directors consisting of five members. The governor, with the

advice and consent of the senate, shall appoint the members of

the board.

C. Each member of the board shall be a resident of

the state, and in addition:

(1) two members shall be officers or

directors of financial institutions located in New Mexico;

(2) two members shall be officers or

directors of a health facility located in New Mexico. Such

members shall have been employed for a total of five years as

officers or directors of any health facility;

(3) one member shall be appointed from and

represent the public and shall not be directly or indirectly

affiliated with any health facility; and

(4) no more than three members shall be of

the same political party.

D. The council shall be separate and apart from

the state and shall not be subject to the supervision or

control of any board, bureau, department or agency of the

state except as specifically provided in the Hospital

Equipment Loan Act. In order to effectuate the separation of

the state from the council, no use of the terms "state agency"

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or "instrumentality" in any other law of the state shall be

deemed to refer to the council unless the council is

specifically referred to therein, except that the council is a

state agency and instrumentality for the purposes of Article

8, Section 3 of the constitution of New Mexico."

Section 3. Section 58-23-29 NMSA 1978 (being Laws 1983,

Chapter 290, Section 29, as amended) is amended to read:

"58-23-29. EXEMPTION FROM TAXATION--ASSETS TO STATE

UPON DISSOLUTION.--

A. All property acquired or held by the council

under the Hospital Equipment Loan Act, income therefrom and

bonds issued under the Hospital Equipment Loan Act, plus the

interest payable and income derived from the bonds, shall be

exempt from taxation by the state or any subdivision thereof.

Upon dissolution of the council, its assets, after payment of

its indebtedness, shall inure to the benefit of the state.

B. All health-related equipment purchased,

acquired, leased, financed or refinanced with the proceeds of

bonds issued under the Hospital Equipment Loan Act is exempt

from property taxation for as long as the participating health

facility remains liable for any amount under any lease, loan

or other agreement securing the bonds, but not to exceed

thirty years from the date the bonds were issued for the

health-related equipment."

Section 4. APPLICABILITY.--The provisions of this act

are applicable to property tax years beginning on or after

January 1, 2006. HB 811

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