New Mexico § 5-10-4 - Economic development projects; restrictions on public expenditures or pledges of credit

§ 5-10-4. Economic development projects; restrictions on public expenditures or pledges of credit

A. No local or regional government shall provide public support for economic development

projects as permitted pursuant to Article 9, Section 14 of the constitution of New Mexico except as provided in the Local Economic Development Act or as otherwise permitted

by law. B. The total amount of public money expended and the value of credit pledged in the

fiscal year in which that money is expended by a local government for economic development

projects pursuant to Article 9, Section 14 of the constitution of New Mexico and the Local Economic Development Act shall not exceed ten percent of the annual

general fund expenditures of the local government in that fiscal year. The limits of this subsection shall not apply to: (1) the value of any land or building contributed to any project pursuant to a project

participation agreement; (2) revenue generated through the imposition of an increment of the municipal gross

receipts tax at a rate not to exceed one-fourth percent and dedicated to furthering

or implementing economic development plans and projects as defined in the Local Economic

Development Act or projects as defined in the Statewide Economic Development Finance

Act; provided that no more than the greater of fifty thousand dollars ($50,000) or

ten percent of the revenue collected shall be used for promotion and administration

of or professional services contracts related to the implementation of any such economic

development plan adopted by the governing body; (3) revenue generated through the imposition of an increment of the county gross receipts

tax at a rate not to exceed one-eighth percent and dedicated to furthering or implementing

economic development plans and projects as defined in the Local Economic Development

Act or projects as defined in the Statewide Economic Development Finance Act; provided

that no more than the greater of fifty thousand dollars ($50,000) or ten percent of

the revenue collected shall be used for promotion and administration of or professional

services contracts related to the implementation of any such economic development

plan adopted by the governing body; (4) the proceeds of a revenue bond issue to which municipal infrastructure gross receipts

tax revenue is pledged; (5) the proceeds of a revenue bond issue to which the revenue from an increment of

the county gross receipts tax, imposed at a rate not to exceed one-eighth percent

and dedicated by the ordinance imposing the increment to provide public support for

projects, is pledged; or (6) funds donated by private entities to be used for defraying the cost of a project. C. A regional or local government that generates revenue for economic development

projects to which the limits of Subsection B of this section do not apply shall create

an economic development fund into which such revenues shall be deposited. The economic development fund and income from the economic development fund shall

be deposited as provided by law. Money in the economic development fund may be expended only as provided in the Local

Economic Development Act or the Statewide Economic Development Finance Act. D. In order to expend money from an economic development fund for arts and cultural

district purposes, cultural facilities or retail businesses, the governing body of

a municipality or county that has imposed a municipal or county local option infrastructure

gross receipts tax for furthering or implementing economic development plans and providing

public support for projects as defined in the Local Economic Development Act or projects

as defined in the Statewide Economic Development Finance Act by referendum of the

majority of the voters voting on the question approving the ordinance imposing the

municipal or county infrastructure gross receipts tax before July 1, 2013 shall be

required to adopt a resolution. The resolution shall call for an election to approve arts and cultural districts

as a qualifying purpose and cultural facilities or retail businesses as a qualifying

entity before any revenue generated by the municipal or county local option gross

receipts tax for furthering or implementing economic development plans and providing

public support for projects as defined in the Local Economic Development Act or projects

as defined in the Statewide Economic Development Finance Act can be expended from

the economic development fund for arts and cultural district purposes, cultural facilities

or retail businesses. E. The governing body shall adopt a resolution calling for an election within seventy-five

days of the date the ordinance is adopted on the question of approving arts and cultural

districts as a qualifying purpose and cultural facilities or retail businesses as

a qualifying entity eligible to utilize revenue generated by the Municipal Local Option

Gross Receipts and Compensating Taxes Act or the County Local Option Gross Receipts

and Compensating Taxes Act for furthering or implementing economic development plans

and providing public support for projects as defined in the Local Economic Development

Act or projects as defined in the Statewide Economic Development Finance Act. F. The question shall be submitted to the voters of the municipality or county as

a separate question at a regular local or county election or at a special election

called for that purpose by the governing body. A special local election shall be called, conducted and canvassed as provided in

the Local Election Act. A special county election shall be called, conducted and canvassed in substantially

the same manner as provided by law for general elections. G. If a majority of the voters voting on the question approves the ordinance adding

arts and cultural districts and cultural facilities or retail businesses as an approved

use of the local option municipal or county economic development infrastructure gross

receipts tax fund, the ordinance shall become effective on July 1 or January 1, whichever

date occurs first after the expiration of three months from the date of the adopted

ordinance. The ordinance shall include the effective date.