2021 New Mexico Statutes
Chapter 7 - Taxation
Article 36 - Valuation of Property
Section 7-36-3 - Industrial revenue bond, pollution control bond, economic development bond and regional air center special economic district bond project property; health-related equipment; tax status.

A. Property interests of a lessee in project property held under a lease from a county or a municipality under authority of an industrial revenue bond or pollution control revenue bond act, the Statewide Economic Development Finance Act [Chapter 6, Article 25 NMSA 1978] or the Regional Air Center Special Economic District Act [5-20-1 to 5-20-10 NMSA 1978] are exempt from property taxation for as long as there is an outstanding bonded indebtedness under the terms of the revenue bonds issued for the acquisition of the project property, but in no event for a period of more than thirty years from the date of execution of the first lease of the project to the lessee by the county or municipality.

B. Property interests of a person, other than a public utility, arising out of the purchase of a project authorized by the Industrial Revenue Bond Act [Chapter 3, Article 32 NMSA 1978], the County Industrial Revenue Bond Act [Chapter 4, Article 59 NMSA 1978], the Pollution Control Revenue Bond Act [3-59-1 to 3-59-14 NMSA 1978], the Statewide Economic Development Finance Act or the Regional Air Center Special Economic District Act are exempt from property taxation for as long as the project purchaser remains liable to the project seller for any part of the purchase price, but not to exceed thirty years from the date of execution of the sale agreement.

C. Property interests of a participating health facility in health-related equipment purchased, acquired, leased, financed or refinanced with the proceeds of bonds issued under the Hospital Equipment Loan Act [Chapter 58, Article 23 NMSA 1978] are exempt from property taxation for as long as the participating health facility remains liable for any amount under any lease, loan or other agreement securing the bonds, but not to exceed thirty years from the date the bonds were issued for the health-related equipment.

D. The exemptions from property taxation under this section are not cumulative; provided, however, that the exemptions may be applied consecutively if subsequent exemptions relate to the financing of a new project or new health-related equipment.

History: 1953 Comp., § 72-29-2.1, enacted by Laws 1975, ch. 218, § 1; 1977, ch. 137, § 1; 2003, ch. 349, § 20; 2006, ch. 90, § 1; 2006, ch. 92, § 1; 2019, ch. 13, § 11.

The 2019 amendment, effective June 14, 2019, provided that property within a district held under a lease from a county or municipality is exempt from property tax as long as there is outstanding bond indebtedness in the same way industrial revenue bonds are exempt from property tax; in the section heading, added "and regional air center special economic district bond"; and in Subsections A and B, added "or the Regional Air Center Special Economic District Act".

The 2006 amendment, effective May 17, 2006, added a new Subsection C, to provide a property tax exemption for property interests in health-related equipment; and in Subsection D (formerly Subsection C), provided that the exemption may be applied consecutively if subsequent exemption relate to the financing of a new project or new health-related equipment.

Duplicate laws. — Laws 2006, ch. 90, § 1 and Laws 2006, ch. 92, § 1 enacted identical amendments to this section. The section was set out as amended by Laws 2006, ch. 92, §1. See 12-1-8 NMSA 1978.

Applicability. — Laws 2006, ch. 92, § 4 made the provisions of Laws 2006, ch. 92, § 1 applicable to property tax years beginning on or after January 1, 2006.

The 2003 amendment, effective June 20, 2003, inserted "or the Statewide Economic Development Finance Act" in Subsections A and B.

Am. Jur. 2d, A.L.R. and C.J.S. references. — Pollution control: validity and construction of statute or ordinance allowing tax exemption for property used in pollution control, 65 A.L.R.3d 434.