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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
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Bond Act or the Statewide Economic Development Finance Act
are 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
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governmental instrumentality to be known as the "New Mexico
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
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the state from the council, no use of the terms "state
agency" 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."
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Section 4. APPLICABILITY.--The provisions of this act
are applicable to property tax years beginning on or after
January 1, 2006.