Bill > SB348

This bill establishes a new mechanism for payments in lieu of taxes (PILOT) when the state of New Mexico acquires real property. Under this legislation, when a state agency purchases or obtains real property through eminent domain, it must annually provide payments to the local political subdivision that previously collected property taxes on that land. State agencies must first determine the prior year's property tax liability by consulting with the county clerk and then remit that amount to a newly created "payments in lieu of taxes fund" within the state treasury. These payments will continue as long as the state owns the property, beginning in the calendar year following state acquisition. The bill specifies that these payments are contingent upon sufficient legislative appropriations, and if adequate funding is not provided, the requirements are suspended for that year. The property tax division of the taxation and revenue department will develop rules for calculating and adjusting these payments, considering factors like changes in property values and tax rates. The bill explicitly excludes properties purchased for public roadways or highways from these requirements, and establishes that the new PILOT fund can receive appropriations, gifts, grants, and investment income. The provisions of this bill will take effect on July 1, 2025.

Budget and Finance

https://www.nmlegis.gov/Legislation/Legislation?chamber=S&legtype=B&legno=348&year=25