New Mexico § 5-9-11 - Tax increment procedures

§ 5-9-11. Tax increment procedures

A. Upon approval of an enterprise zone project, the local government administering

an enterprise zone shall notify the county assessor and the taxation and revenue department

of the approval and of the identification of the parcels of property within the project

subject to taxation under the Property Tax Code. B. Upon receipt of notification pursuant to Subsection A of this section, the county

assessor and the taxation and revenue department shall identify the parcels of project

property within the enterprise zone within their respective valuation jurisdictions

and at the time tax rates are certified under the Property Tax Code shall certify

to the county treasurer the net taxable value of the property as of January 1 of the

year in which the notification was made. This certified value is the “base value” for the distribution of property tax revenues

authorized by the Property Tax Code under the tax increment method. If property within the enterprise zone becomes tax exempt because of acquisition

by any local government, the county assessor and the taxation and revenue department

shall note that fact on their respective records and so notify the county treasurer,

but the county assessor, the taxation and revenue department and the county treasurer

shall preserve the record of the base value for the purpose of distribution of property

tax revenues when the parcel again becomes taxable. C. If a property within the enterprise zone that became tax exempt because of acquisition

by a local government again becomes taxable, the local government administering the

enterprise zone shall notify the county assessor and the taxation and revenue department

of the property which, because of improvements to the property, are to be revalued

for property tax purposes. A new taxable value of this property shall then be determined by the county assessor

or by the taxation and revenue department if the property is within the valuation

jurisdiction of that department. D. The amount by which the general property tax revenue received from the tax on property

within an enterprise zone exceeds that which would have been received by application

of the same rates to the base value before inclusion in the enterprise zone shall

be credited to the local government administering the enterprise zone and deposited

in the enterprise zone fund of that local government. This transfer shall take place only after the county treasurer has been notified

to apply the tax increment method to a specific property included in an enterprise

zone. Unless the entire enterprise zone is specifically included by the local government

for purposes of tax increment financing, the payment by the county treasurer to the

local government shall be limited to those properties specifically included. The remaining revenue shall be distributed to participating units of government

as authorized by the Property Tax Code. E. The procedures and methods specified in this section shall be followed annually

for a maximum period of five years following the date of notification of inclusion

of property as coming under the provisions of this section.