Bill > SB556

This bill authorizes the issuance of bonds for the Taos Ski Valley tax increment development district, allowing for up to $44 million in net proceeds adjusted for inflation, which will be secured by tax increments generated from the state gross receipts tax within that district. The Tax Increment for Development Act, a law that allows local governments to use future tax revenue increases from development projects to finance those projects, provides the framework for this. Before any bonds are issued or amended, the New Mexico Finance Authority must review and approve the master indenture, a key legal document outlining the terms of the bond issuance. This authorization for bond issuance will last for twenty-five years from the first bond issuance, unless the legislature changes or repeals the act. During this period, the legislature is generally prohibited from approving new capital outlay projects within the district, with exceptions for state-owned public school, higher education, cultural, public safety, or other public purpose buildings, facilities, or infrastructure, though economic development projects are still permitted. Once the developer is fully reimbursed for infrastructure costs, the district must inform the state board of finance of the estimated state gross receipts tax increment revenue needed for debt service and reserve requirements, allowing the board to determine and notify the taxation and revenue department of a reduction in the dedicated state gross receipts tax increment revenue.