SENATE BILL 144
49th legislature - STATE OF NEW MEXICO - second session, 2010
INTRODUCED BY
Nancy Rodriguez
FOR THE MORTGAGE FINANCE AUTHORITY ACT OVERSIGHT COMMITTEE
AN ACT
RELATING TO TAXATION; AMENDING THE AFFORDABLE HOUSING TAX CREDIT ACT; ALLOWING AFFORDABLE HOUSING TAX CREDITS IN COUNTIES WITH POPULATIONS OF ONE HUNDRED THOUSAND OR MORE; EXPANDING ELIGIBILITY FOR INVESTMENT VOUCHERS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. Section 7-9I-1 NMSA 1978 (being Laws 2005, Chapter 104, Section 17) is amended to read:
"7-9I-1. SHORT TITLE.--[Sections 17 through 22 of this act] Chapter 7, Article 9I NMSA 1978 may be cited as the "Affordable Housing Tax Credit Act"."
Section 2. Section 7-9I-2 NMSA 1978 (being Laws 2005, Chapter 104, Section 18) is amended to read:
"7-9I-2. DEFINITIONS.--As used in the Affordable Housing Tax Credit Act:
A. "affordable housing project" means land acquisition, construction, building acquisition, remodeling, improvement, rehabilitation, conversion or weatherization for residential housing that is approved by the authority and that includes [only] single-family housing or multifamily housing [located in a county with a population of less than one hundred thousand according to the most recent federal decennial census];
B. "authority" means the New Mexico mortgage finance authority;
C. "department" means the taxation and revenue department;
D. "modified combined tax liability" means the total liability for the reporting period for the gross receipts tax imposed by Section 7-9-4 NMSA 1978 together with any tax collected at the same time and in the same manner as the gross receipts tax, such as the compensating tax, the withholding tax, the interstate telecommunications gross receipts tax, the surcharges imposed by Section 63-9D-5 NMSA 1978 and the surcharge imposed by Section 63-9F-11 NMSA 1978, minus the amount of any credit other than the affordable housing tax credit applied against any or all of these taxes or surcharges; but "modified combined tax liability" excludes all amounts collected with respect to local option gross receipts taxes and governmental gross receipts taxes; and
E. "person" means an individual, county, municipality, tribal government, housing authority, corporation, limited liability company, partnership, joint venture, syndicate, association or nonprofit organization."
Section 3. Section 7-9I-3 NMSA 1978 (being Laws 2005, Chapter 104, Section 19) is amended to read:
"7-9I-3. INVESTMENT VOUCHERS--ISSUANCE--TRANSFER.--
A. The authority may issue an investment voucher to a person who has made an investment of land, buildings, materials, cash or services for an affordable housing project approved by the authority or for a trust fund administered by the authority. The value of the voucher shall equal fifty percent of the amount of cash invested or the fair market value of the land, [building or service] buildings, materials or services invested by that person. The authority may approve an investment voucher for any affordable housing project in accordance with Subsection B of this section and in accordance with rules adopted by the authority. An investment voucher that is approved for an affordable housing project shall equal fifty percent of the amount of cash invested or the fair market value of land, buildings, materials or services invested in that affordable housing project by a person upon issuance of that investment voucher.
B. During the calendar year:
(1) beginning on January 1, 2006, the authority may issue or approve investment vouchers in an amount that shall not exceed two hundred thousand dollars ($200,000) in aggregate value;
(2) beginning on January 1, 2007, the authority may issue or approve investment vouchers in an amount that shall not exceed five hundred thousand dollars ($500,000) in aggregate value; and
(3) beginning on January 1, 2008 and during each subsequent calendar year, the authority may issue or approve investment vouchers for each calendar year in an amount that shall not exceed an aggregate value of a base rate of one dollar eighty-five cents ($1.85) adjusted annually to account for inflation, multiplied by the state population during the calendar year as determined by the United States census bureau.
C. Any limitation on the issuance or approval of investment vouchers for a calendar year pursuant to Subsection B of this section shall not apply to an investment voucher issued by the authority during that calendar year that was approved by the authority during a previous calendar year.
D. At the beginning of each calendar year that begins on or after January 1, 2009, the department shall make an adjustment for inflation pursuant to Paragraph (3) of Subsection B of this section by multiplying the base rate by a fraction, the numerator of which is the consumer price index for the previous calendar year and the denominator of which is the same index for the 2007 calendar year prior to the calendar year for which a maximum aggregate value is determined for the issuance of investment vouchers pursuant to Paragraph (3) of Subsection B of this section.
E. An investment voucher issued by the authority shall be numbered for identification and may be sold, exchanged or otherwise transferred once in whole or in part to one or more persons. The parties to such a transaction shall notify the department and the authority of the sale, exchange or transfer within ten days of the sale, exchange or transfer.
F. The authority shall adopt rules for the approval, issuance and administration of investment vouchers pursuant to this section."
Section 4. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2010.
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