The bill proposes significant amendments to New Mexico's taxation laws, focusing on tax rate adjustments, the repeal of certain tax-related acts and credits, and the introduction of new exemptions and fees. It aims to reduce several tax rates, including the gross receipts tax and compensating tax, while increasing the bingo and raffle tax rate. The bill also repeals the authorization for using state gross receipts tax increments for metropolitan redevelopment projects and eliminates various tax credits, including those for job creation and investment. Notably, it introduces a gross receipts tax exemption for donations to nonprofit organizations and establishes additional registration fees for electric and plug-in hybrid vehicles. The bill seeks to streamline tax regulations and enhance the financial landscape for municipalities and taxpayers.

In addition to tax rate changes, the bill amends the Tax Increment for Development Act, updating definitions and provisions related to tax increment financing. It introduces new requirements for local governments regarding the notification of metropolitan redevelopment plans and allows for the issuance of tax increment bonds secured by gross receipts tax increments. The bill also clarifies the legal standing of these bonds and outlines conditions for public support of economic development projects. Furthermore, it establishes new procedures for the recovery of amounts owed by municipalities to the state and modifies the distribution of gross receipts tax revenues to various funds. Overall, the bill aims to enhance financial security for local development projects, improve tax administration, and support targeted industries through specific deductions and exemptions.

Statutes affected:
introduced version: 3-31-1, 3-31-1.1, 3-60A-23, 3-60A-23.1, 3-65-8, 3-66-8, 5-10-17, 5-15-20, 5-15-27, 6-22-2, 6-23-8, 7-1-2, 7-1-6.15, 7-1-6.42, 7-1-6.53, 7-1-6.62, 7-1-6.69, 7-1-6.70, 7-1-8.8, 7-1-13.1, 7-1-26, 7-1-29, 7-1-68, 7-2-7, 7-2-34, 7-2A-5, 7-9-4, 7-9-4.3, 7-9-7, 7-9-13.2, 7-9-18, 7-9-26, 7-9-41.5, 7-9-46, 7-9-46.1, 7-9-58, 7-9-59, 7-9-62, 7-9-77, 7-9-78.1, 7-9-90, 7-9-110.1, 7-9-120, 7-14A-3, 7-16A-21, 7-27-5.26, 7-27-5.27, 7-1-6.13, 52-6-23, 59A-5-11, 59A-5-23, 59A-6-3, 59A-6-6, 59A-6-8, 59A-15-4, 59A-20-33, 59A-22-50, 59A-23C-10, 59A-23F-6.1, 59A-23F-11, 59A-34-33, 59A-39-5, 59A-47-3, 59A-47-8, 59A-54-3, 59A-54-7.1, 60-2F-21, 66-3-7, 66-3-118, 66-3-401, 66-3-1006, 66-6-23, 66-6-25, 66-12-5.2, 66-12-6.1, 3-60A-49, 6-21-5.1, 7-2E-1.1, 7-9G-1