Incentives Directory

Health Related Property Tax Exemptions for Projects Financed by an IRB, Pollution Control Bond, or an Economic Development Bond

AGENCY: Taxation and Revenue Department
DESCRIPTION:
•  Property interests of a lessee in project property held under a lease from a county or municipality under authority of an Industrial Revenue Bond (IRB), Pollution Control Revenue Bond Act, or the Statewide Economic Development Finance Act are exempt from property taxation for up to 30 years, as long as there is an outstanding bonded indebtedness under the terms of the revenue bonds issued for the acquisition of the project property.
•  Property interests of a person, other than a public utility, from the purchase of a project authorized by the Industrial Revenue Bond Act, the County Industrial Revenue Bond Act, the Pollution Control Revenue Bond Act or the Statewide Economic Development Finance Act are exempt from property taxation for up to 30 years, as long as there is an outstanding bonded indebtedness under the terms of the revenue bonds issued for the acquisition of the project property.
•  Property interests of a participating health facility acquired, leased, financed, or refinanced with the proceeds of bonds issued under the Hospital Equipment Loan Act are exempt from taxation for up to 30 years, as long as the facility remains liable for any amount under any lease, loan, or other agreement securing the bonds.
•  All health related equipment purchased, acquired, leased, financed, or refinanced with the proceeds of bonds issued under the Hospital Equipment Loan Act is exempt from property taxation for as long as the participating health facility remains liable for up to 30 years, as long as there is an outstanding bonded indebtedness under the terms of the revenue bonds issued for the acquisition of the project property. ELIGIBILITY:
• Lessees, persons, health facilities, and equipment financed by an IRB, the Pollution Control Revenue Bond Act, the Statewide Economic Development Finance Act, or the Hospital Equipment Loan Act are eligible for property tax exemptions.
STRUCTURE: The exemptions from property taxation are not cumulative, but the exemptions may be applied consecutively if subsequent exemptions relate to the financing of a new project or new health- related equipment.
QUALIFICATIONS/CRITERIA:
•  There is a 30 year limit on this exemption, and the party financed must continue to hold the debt financed in the above described manners.
•  See HB 811 2006.
•  Visit the Taxation and Revenue Department homepage at http://www.state.nm.us/tax/home.htm or find paperwork and applications at http://www.state.nm.us/tax/BizPge.htm.
•  Call the office of the Secretary at (505) 827-0951.

Category: State Incentives, Tax Incentives

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