SENATE JOINT MEMORIAL 2

55th legislature - STATE OF NEW MEXICO - first session, 2021

INTRODUCED BY

Shannon D. Pinto

 

 

 

 

 

A JOINT MEMORIAL

REQUESTING THE UNITED STATES GOVERNMENT TO BASE PAYMENTS IN LIEU OF TAXES ON A FULL PROPERTY TAX EQUIVALENCY BASIS.

 

     WHEREAS, payments in lieu of taxes are federal payments to local governments that help offset losses in property taxes due to the existence of nontaxable federal lands within their boundaries; and

     WHEREAS, according to the United States department of the interior, New Mexico has twenty-two million three hundred sixty-nine thousand five hundred thirty-one acres of land eligible for payments in lieu of taxes; and

     WHEREAS, New Mexico received forty-one million four hundred thousand dollars ($41,400,000) of payments in lieu of taxes from the federal government in fiscal year 2020; and

     WHEREAS, technology now exists to more accurately determine the property tax equivalency value of all federal lands in the state; and

     WHEREAS, according to the congressional research service, when the federal government changed its public lands policy in 1976 from one of disposal to one of retention, congress agreed to make payments in lieu of taxes "to make up for the presence of nontaxable land" on a "tax equivalency" basis; and

     WHEREAS, tax equivalency means the amount that would have been received by these jurisdictions if the federal lands were privately owned; and

     WHEREAS, the federal commitment to pay the property tax equivalency for payments in lieu of taxes is vital for New Mexico's children and communities and is particularly important during periods of fluctuating economic conditions; and

     WHEREAS, New Mexico appreciates every dollar of payments in lieu of taxes received, yet the payments in lieu of taxes that New Mexico receives are not the fair property tax equivalency value, resulting in exponentially compounding depressive impacts on funding for education and essential government services, including first responder services, the construction of roads, schools and other infrastructure and search and rescue services; and

     WHEREAS, the current fluctuating economic conditions have intensified this structural burden borne by New Mexico residents and communities to fund education and all other government services;

     NOW, THEREFORE, BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO that it call upon the United States congress and the president of the United States to base payments in lieu of taxes on a full property tax equivalency basis, as committed at the inception of the payment in lieu of taxes program; and

     BE IT FURTHER RESOLVED that the legislature of the state of New Mexico call upon the United States congress and the president of the United States to coordinate expeditiously and in good faith with New Mexico and other willing states to adopt such laws, regulations and policies as are necessary to ensure that all future payments in lieu of taxes are permanently made on a full property tax equivalency basis; and

     BE IT FURTHER RESOLVED that the legislature of the state of New Mexico call upon all people of good will and local, state and national leaders to come together to secure the full and fair property tax equivalency of payments in lieu of taxes for children and communities throughout New Mexico and the nation; and

     BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the president of the United States, the vice president of the United States, the majority leader and minority leader of the United States senate, the speaker and minority leader of the United States house of representatives, the New Mexico congressional delegation and the governor of New Mexico.

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