SENATE BILL 186

55th legislature - STATE OF NEW MEXICO - second session, 2022

INTRODUCED BY

Pat Woods

AN ACT

RELATING TO PUBLIC FUNDS; REQUIRING THE STATE TO MAKE PAYMENTS IN LIEU OF TAXES TO POLITICAL SUBDIVISIONS WHEN ACQUIRING REAL PROPERTY; MAKING AN APPROPRIATION.

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

     SECTION 1. [NEW MATERIAL] PAYMENTS IN LIEU OF TAXES FOR STATE-ACQUIRED REAL PROPERTY--ADJUSTMENTS IN PAYMENTS.--

          A. Whenever the state acquires fee simple ownership of real property by purchase or eminent domain, the state shall annually make payments in lieu of taxes to any political subdivision of the state that would impose a tax on the acquired real property but for the state's acquisition of that property. The payments in lieu of taxes shall commence with the calendar year following state acquisition and shall continue so long as the state retains ownership.

          B. The property tax division of the taxation and revenue department shall promulgate rules to specify how payments in lieu of taxes shall be paid pursuant to Subsection A of this section and shall be adjusted from year to year, taking into consideration factors that include changes in property values and tax rates.

     SECTION 2. [NEW MATERIAL] PAYMENTS IN LIEU OF TAXES FUND CREATED--AUTHORIZED PAYMENTS IN LIEU OF TAXES.--The "payments in lieu of taxes fund" is created as a nonreverting fund within the state treasury. The fund consists of appropriations, gifts, grants, donations, income from investment of the fund and any other money distributed or otherwise allocated to the fund. The taxation and revenue department shall administer the fund, and money in the fund is appropriated to the taxation and revenue department to make payments to political subdivisions of the state in lieu of taxes for state-acquired real property. Disbursements from the fund shall be made by warrant of the secretary of finance and administration pursuant to vouchers signed by the secretary of taxation and revenue or the secretary's authorized representative.

     SECTION 3. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2022.

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