Bill > HB441

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, to be raised. These bonds will be secured by tax increments, which are portions of taxes collected within the district that are specifically designated to pay off the bonds and their interest. The Tax Increment for Development Act is the framework under which this is happening, and a key part of this is a gross receipts tax increment, meaning a portion of the state's gross receipts tax collected in the district will be used. Before any bonds are issued, the New Mexico Finance Authority must review and approve the master indenture, which is the primary legal document outlining the terms of the bond issuance, and any future amendments to it. This authorization for bond issuance will last for twenty-five years from the date the first series of bonds are issued, unless the legislature repeals or changes this act. During the time these bonds are outstanding, the legislature is prohibited from approving most new capital outlay projects within the district, with exceptions for public school, higher education, cultural, public safety, and other public purpose buildings, facilities, or infrastructure owned by the state or its subdivisions. However, this restriction does not prevent the legislature from authorizing expenditures for economic development projects. Once the developer of the Taos Ski Valley project has been fully reimbursed for eligible infrastructure costs, the district must inform the state board of finance of the estimated amount of state gross receipts tax increment revenue needed to cover the bond payments and reserves. The board will then review this estimate, determine the reduced amount of tax revenue necessary, and notify the taxation and revenue department of the corresponding reduction in the percentage of dedicated state gross receipts tax increment revenue.