This bill establishes a requirement for the state of New Mexico to make annual payments in lieu of taxes to political subdivisions when it acquires real property through purchase or eminent domain. These payments will begin in the calendar year following the acquisition and will continue as long as the state retains ownership of the property. The bill mandates that state agencies inquire about the annual property tax liability prior to acquisition and remit an amount equal to that liability to the state treasurer for deposit into a newly created "payments in lieu of taxes fund." Additionally, the bill specifies that these payments are contingent upon sufficient appropriations from the legislature and exempts properties acquired for public roadways or highways by the Department of Transportation.

The "payments in lieu of taxes fund" is established as a nonreverting fund within the state treasury, consisting of various sources of income, including appropriations and donations. The taxation and revenue department will administer this fund, which is specifically allocated for making payments to political subdivisions in accordance with the provisions of the bill. Disbursements from the fund will be managed by the secretary of finance and administration, following the necessary protocols for vouchers. The effective date for the implementation of this act is set for July 1, 2025.