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State Board of Finance adopts rule to allow dedication of portion of state GRT increment for redevelopment areas
Summary
The State Board of Finance voted Feb. 17 to adopt Rule 2.61.2 NMAC, which sets criteria and procedures for dedicating portions of the state gross receipts tax increment to metropolitan redevelopment areas, includes waiver language for smaller communities, and establishes a twice-yearly application window.
The New Mexico State Board of Finance on Feb. 17 adopted Rule 2.61.2 NMAC, giving the board formal authority and procedures to consider dedicating a portion of the state gross receipts tax (GRT) increment to metropolitan redevelopment areas (MRAs).
Director Ashley Leach told the board the rule is intended to balance local flexibility with the board’s fiduciary duty to protect state finances and ensure measurable public benefit. Leach said staff and outside experts, including the Rodey law firm and economists from state agencies, worked on the draft and that revisions were made after public comment and a Rulemaking Subcommittee review.
Leach described several changes made in response to comments: stronger waiver language to allow applicants to request relief from certain application requirements, allowance for qualified professionals (not only independent consultants) to prepare required analyses, and adoption of two application deadlines per year rather than just one to reduce timing barriers for local governments.
Bond counsel Luis Carrasco said the Concise Explanatory Statement documents which proposed changes were accepted and which were rejected ‘‘to preserve the board’s ability to determine whether an MRA request will meaningfully reduce blight or slum and protect the state’s interest.’’ Leach and Carrasco also explained the rule will permit dedication requests for either an entire MRA or for specific project(s) within an MRA, and that existing analyses may be accepted if sufficiently recent and justified.
Treasurer Laura Montoya asked that the board consider whether statutory terminology on ‘‘slum and blight’’ should be updated by the Legislature. Carrasco recommended that any motion to adopt reference the Concise Explanatory Statement; Member Joseph Lujan moved to adopt the rule subject to that enunciation, Member Paul Cassidy seconded, and the board voted to approve the rule.
The rule will be filed with the State Records and Archives Center and becomes effective on the date of publication in the New Mexico Register. The board’s adoption allows local governments to seek state GRT increment dedication under the new framework but preserves board discretion and required analyses for significant requests.
