NMSA 1978, § 5-9-1 Short title
5-9-1. Short title
Sections 1 through 15 [5-9-1 to 5-9-15 NMSA 1978] of this act may be cited as the "Enterprise Zone Act".
Laws 1993, ch. 33, § 1.
Enterprise Zones
NMSA 1978 ch. 5, art. 9
in effectNMSA 1978, § 5-9-2 Purpose
5-9-2. Purpose
It is the purpose of the Enterprise Zone Act to provide for the establishment of enterprise zones in a wide variety of geographic areas in order to stimulate the creation of new jobs, particularly for economically disadvantaged workers and long-term unemployed individuals, and to promote revitalization of economically distressed areas by providing or encouraging:
A. tax relief at the state and local levels;
B. zoning relief at the local level; and
C. improvement of local services and betterment of the economic status of enterprise zone residents in their own community, particularly through the increased involvement of private, local and neighborhood organizations.
Laws 1993, ch. 33, § 2.
NMSA 1978, § 5-9-3 Definitions
5-9-3. Definitions
As used in the Enterprise Zone Act:
A. "business facility" means the place of business within an enterprise zone of a business that is established within or begins operations in an enterprise zone;
B. "economically disadvantaged worker" means an employed person whose income as an unrelated individual or whose family income is less than the federally established poverty level and is below seventy percent of the lower living-standard-income level as determined and published by the United States department of labor;
C. "enterprise zone" means any geographical area that is designated as an enterprise zone in accordance with the provisions of the Enterprise Zone Act;
D. "local government" means:
(1) the governing body of any county, incorporated municipality or Indian nation, tribe or pueblo; or
(2) the entity designated as a governing body in a joint powers agreement entered into between or among the entities described in Paragraph (1) of this subsection for the purpose of creating and administering an enterprise zone;
E. "long-term unemployed worker" means a person with limited opportunity for employment or reemployment in the same or similar occupation in the same area in which an individual resides, including any older individuals who may have substantial barriers to employment by reason of age; and
F. "project" means an activity, undertaking or series of activities or undertakings designed to create new jobs, encourage business development and eliminate slums or blighted areas in enterprise zones that conform to an approved enterprise zone plan for job and business development, slum clearance and redevelopment, rehabilitation and preservation in the enterprise zone.
Laws 1993, ch. 33, § 3.
NMSA 1978, § 5-9-4 Designation of enterprise zones; revocation of designation
5-9-4. Designation of enterprise zones; revocation of designation
A. No area shall be designated an enterprise zone until the local government has promulgated an ordinance governing:
(1) the parameters relating to the size and population characteristics of an enterprise zone; and
(2) the contents of an enterprise zone plan.
B. The local government may designate an enterprise zone by duly enacted resolution on or after January 1, 1994.
C. The designation by the local government of an area as an enterprise zone shall remain in effect from the date of the designation until the earliest of:
(1) December 31 of the fifteenth calendar year following the year in which the designation was made;
(2) the termination date specified in the designating resolution; or
(3) the date upon which the local government revokes the designation pursuant to Subsection D of this section.
D. The local government may revoke the designation of an area as an enterprise zone if it determines after notice and a public hearing that the operation and administration of the enterprise zone is not in substantial compliance with the law, ordinance, resolution or the approved enterprise zone plan for that enterprise zone.
E. The secretary of economic development shall have the authority to make performance audits at any time of any designated enterprise zone to determine whether the enterprise zone is in compliance with the Enterprise Zone Act, local zone ordinances, resolutions, joint powers agreements and the enterprise zone plan. If an enterprise zone is determined to be out of compliance, the secretary may immediately revoke the designation of the area as an enterprise zone.
F. Automatic state revocation shall be made by the secretary of economic development if the annual reporting requirements required in Section 8 [5-9-8 NMSA 1978] of the Enterprise Zone Act are not made.
G. If state revocation of an enterprise zone occurs, the local government responsible for the enterprise zone loses its right to designate successor enterprise zones for forty-eight months after the date of the secretary's revocation letter to the local government, and:
(1) all tax increment financing agreements and tax credits then in force shall cease at the end of the calendar year in which revocation occurred; and
(2) all accumulated money in the enterprise zone fund of the revoked enterprise shall revert back proportionately to the units of government originally impacted by the tax increment authorization agreement.
Laws 1993, ch. 33, § 4.
NMSA 1978, § 5-9-5 Eligibility requirements
5-9-5. Eligibility requirements
A. An area may be designated an enterprise zone if the area meets the requirements of this section.
B. The local government may designate as an enterprise zone an area within a municipality:
(1) that has a population not exceeding twenty-five percent of the population of the municipality and a land area not exceeding twenty-five percent of the land area of the municipality;
(2) that, when combined with the population and land area of any existing enterprise zones within that municipality, produces a combined population less than twenty-five percent of the population of the municipality and a combined land area less than twenty-five percent of the land area of the municipality; and
(3) in which there is widespread poverty, unemployment and general distress in the area, as evidenced by substantial deterioration, abandonment or demolition of commercial or residential structures and as evidenced by one or more of the following criteria:
(a) the average rate of unemployment in the area under consideration as an enterprise zone for the most recent eighteen-month period for which data is available exceeds the average rate of unemployment for the state for that period by at least one percentage point; or
(b) at least sixty percent of the households living in the area under consideration as an enterprise zone have income below eighty percent of the median income of households of the municipality as determined pursuant to Section 119 of the federal Housing and Community Development Act of 1974, as that section may be amended or renumbered.
C. The local government may designate as an enterprise zone an area within a county:
(1) that has a population not exceeding twenty-five percent of the population within the unincorporated portion of the county and a land area not exceeding twenty-five percent of the unincorporated land area of the county;
(2) that, when combined with the population and land area of any existing enterprise zones within that county, produces a combined population less than twenty-five percent of the population within the unincorporated portion of the county and a combined land area less than twenty-five percent of the unincorporated land area of the county; and
(3) in which there is widespread poverty, unemployment and general distress in the area under consideration as an enterprise zone, as evidenced by substantial deterioration, abandonment or demolition of commercial or residential structures and one or more of the following criteria:
(a) the average rate of unemployment in the area under consideration as an enterprise zone for the most recent eighteen-month period for which data is available exceeds the average rate of unemployment for the state for that period by at least one percentage point; or
(b) at least sixty percent of the households living in the area under consideration as an enterprise zone have incomes below eighty percent of the median income of households of the county as determined pursuant to Section 119 of the federal Housing and Community Development Act of 1974, as that section may be amended or renumbered.
D. The local government may designate as an enterprise zone an area within an Indian nation, tribe or pueblo:
(1) that has a population not exceeding twenty-five percent of the population of the Indian nation, tribe or pueblo and a land area not exceeding twenty-five percent of the land area of the Indian nation, tribe or pueblo;
(2) that, when combined with the population and land area of any existing enterprise zones within that Indian nation, tribe or pueblo, produces a combined population less than twenty-five percent of the population of the Indian nation, tribe or pueblo and a combined land area less than twenty-five percent of the land area of the Indian nation, tribe or pueblo; and
(3) in which there is widespread poverty, unemployment and general distress in the area under consideration as an enterprise zone, as evidenced by substantial deterioration, abandonment or demolition of commercial or residential structures and as evidenced by one or more of the following criteria:
(a) the average rate of unemployment in the area under consideration as an enterprise zone for the most recent eighteen-month period for which data is available exceeds the average rate of unemployment for the state for that period by at least one percentage point; or
(b) at least sixty percent of the households living in the area under consideration as an enterprise zone have incomes below eighty percent of the median income of households of the Indian nation, tribe or pueblo as determined pursuant to Section 119 of the federal Housing and Community Development Act of 1974, as that section may be amended or renumbered.
E. Copies of all ordinances, resolutions, joint powers agreements and enterprise zone plans of a local government made under the Enterprise Zone Act shall be mailed within ten days after their adoption to the secretary of economic development, the secretary of finance and administration and the secretary of taxation and revenue.
F. An enterprise zone plan shall have been developed and approved by the local government after public hearing and prior to the designation of an area as an enterprise zone.
G. The business assistance and incentives provided under the provisions of the Enterprise Zone Act are prohibited to intrastate business relocations. This limitation does not apply to the expansion of an in-state business entity through the establishment of a new branch, affiliate or subsidiary if:
(1) the establishment of the new branch, affiliate or subsidiary will not result in an increase in unemployment in the area of original location or any other area in New Mexico where the existing business entity conducts business operations; and
(2) there will not be a closing down of operations of the existing business entity in the area of its original in-state location or in any other in-state areas where the existing business entity conducts business operations.
Laws 1993, ch. 33, § 5.
NMSA 1978, § 5-9-6 Enterprise zone plan; incentives and initiatives
5-9-6. Enterprise zone plan; incentives and initiatives
A. The enterprise zone plan shall include:
(1) a map of the enterprise zone;
(2) a narrative describing how the enterprise zone will eliminate economic distress in the enterprise zone;
(3) a description of local incentives and initiatives to be implemented in the enterprise zone;
(4) the concurrences of any other local government or nongovernmental entity involved in providing local incentives and initiatives;
(5) the termination date for the enterprise zone;
(6) a listing of properties within the enterprise zone to which the tax increment procedures authorized by the Enterprise Zone Act are to be applied;
(7) a boundary description of the enterprise zone;
(8) a list of street addresses contained in the enterprise zone; and
(9) any other information the local government requires by ordinance to be included in the plan.
B. The local incentives and initiatives to be implemented may use local funds and, to the extent permitted by law, funds from federal or state programs and may include:
(1) a reduction of taxes or fees applying within the enterprise zone when the reduction is permitted by law;
(2) programs to increase the level of efficiency of local services provided within the enterprise zone;
(3) preferences to be granted to businesses operating within the enterprise zone;
(4) mechanisms to increase the equity ownership of residents and employees of businesses operating within the enterprise zone; and
(5) methods to involve private entities, organizations, neighborhood associations and community groups in the enterprise zone.
C. At any time after an enterprise zone is designated, the local government may change the enterprise zone plan after public hearing on the proposed changes.
Laws 1993, ch. 33, § 6.
NMSA 1978, § 5-9-7 Administration
5-9-7. Administration
The local government that created the enterprise zone shall organize, coordinate and direct the administration of the enterprise zone in accordance with law, applicable ordinances, resolutions, any joint powers agreements and the enterprise zone plan. It may enter into a contract with an appropriate organization to provide the management of the activities of the zone. The local government is solely responsible for meeting the reporting requirements listed in Section 8 [5-9-8 NMSA 1978] of the Enterprise Zone Act.
Laws 1993, ch. 33, § 7.
NMSA 1978, § 5-9-8 Evaluation and reporting requirements
5-9-8. Evaluation and reporting requirements
The local government that designated an enterprise zone shall make an annual progress report to the secretary of economic development due on the second Friday of January in the next calendar year including the following:
A. the number of new jobs created within the enterprise zone;
B. the percentage of jobs filled by economically disadvantaged workers and the percentage of long-term unemployed workers within the enterprise zone;
C. the local and private entity commitments and degree of compliance;
D. compliance with the enterprise zone plan;
E. the impact of the creation of the enterprise zone on the level of distress in the zone; and
F. new dollar investments in the enterprise zone for new or expanded business opportunities.
Laws 1993, ch. 33, § 8.
NMSA 1978, § 5-9-9 State agency cooperation; business incentives
5-9-9. State agency cooperation; business incentives
A. State agencies shall cooperate with, assist, and where possible, give preference in selection to a business located within an enterprise zone for any statutorily authorized state-administered grant and loan programs including, but not limited to, investments and loans through the severance tax permanent fund at market rates, in-plant training program instruction and job training through the federal Job Training Partnership Act, matching funds through community development block grants and such other incentives that are or become available through the economic development department or through any other sources at the state level.
B. The economic development department shall conduct workshops throughout the state for the purpose of explaining the provisions of the Enterprise Zone Act to local governments.
Laws 1993, ch. 33, § 9.
NMSA 1978, § 5-9-10 Tax increment method of financing
5-9-10. Tax increment method of financing
A. Effective for property tax years beginning on or after January 1, 1994, the local government administering an enterprise zone may elect by resolution to use the tax increment procedures set forth in Section 11 [5-9-11 NMSA 1978] of the Enterprise Zone Act for financing enterprise zone projects. Such procedures may be used in addition to or in conjunction with other methods provided by law for financing such projects.
B. The tax increment method of financing enterprise zone projects is the dedication for further use in enterprise zone projects of that increase in property tax revenue directly resulting from the increased net taxable value of a parcel of project property attributable to its rehabilitation, redevelopment or other improvement because of its inclusion within an enterprise zone project.
Laws 1993, ch. 33, § 10.
NMSA 1978, § 5-9-11 Tax increment procedures
5-9-11. Tax increment procedures
A. Upon approval of an enterprise zone project, the local government administering an enterprise zone shall notify the county assessor and the taxation and revenue department of the approval and of the identification of the parcels of property within the project subject to taxation under the Property Tax Code [Chapter 7, Articles 35 to 38 NMSA 1978].
B. Upon receipt of notification pursuant to Subsection A of this section, the county assessor and the taxation and revenue department shall identify the parcels of project property within the enterprise zone within their respective valuation jurisdictions and at the time tax rates are certified under the Property Tax Code shall certify to the county treasurer the net taxable value of the property as of January 1 of the year in which the notification was made. This certified value is the "base value" for the distribution of property tax revenues authorized by the Property Tax Code under the tax increment method. If property within the enterprise zone becomes tax exempt because of acquisition by any local government, the county assessor and the taxation and revenue department shall note that fact on their respective records and so notify the county treasurer, but the county assessor, the taxation and revenue department and the county treasurer shall preserve the record of the base value for the purpose of distribution of property tax revenues when the parcel again becomes taxable.
C. If a property within the enterprise zone that became tax exempt because of acquisition by a local government again becomes taxable, the local government administering the enterprise zone shall notify the county assessor and the taxation and revenue department of the property which, because of improvements to the property, are to be revalued for property tax purposes. A new taxable value of this property shall then be determined by the county assessor or by the taxation and revenue department if the property is within the valuation jurisdiction of that department.
D. The amount by which the general property tax revenue received from the tax on property within an enterprise zone exceeds that which would have been received by application of the same rates to the base value before inclusion in the enterprise zone shall be credited to the local government administering the enterprise zone and deposited in the enterprise zone fund of that local government. This transfer shall take place only after the county treasurer has been notified to apply the tax increment method to a specific property included in an enterprise zone. Unless the entire enterprise zone is specifically included by the local government for purposes of tax increment financing, the payment by the county treasurer to the local government shall be limited to those properties specifically included. The remaining revenue shall be distributed to participating units of government as authorized by the Property Tax Code.
E. The procedures and methods specified in this section shall be followed annually for a maximum period of five years following the date of notification of inclusion of property as coming under the provisions of this section.
Laws 1993, ch. 33, § 11.
NMSA 1978, § 5-9-12 Enterprise zone fund; creation; use
5-9-12. Enterprise zone fund; creation; use
A. Every local government administering an enterprise zone shall create an "enterprise zone fund" for purposes of the Enterprise Zone Act.
B. Enterprise zone fund proceeds shall be used by a local government administering an enterprise zone to acquire property within the enterprise zone, prepare property for redevelopment, provide necessary infrastructure improvements, pay all necessary related expenses to redevelop and finance enterprise zone projects and fund the administration of the enterprise zone in an amount not to exceed ten percent of the funds available annually. None of the proceeds shall be used for the construction of buildings or other improvements that are not owned by a local government participating in an enterprise zone.
Laws 1993, ch. 33, § 12.
NMSA 1978, § 5-9-13 Tax increment method approval
5-9-13. Tax increment method approval
The tax increment method shall be used only upon prior approval by a majority of the units of government participating in property tax revenue derived from property within an enterprise zone project. The local government administering the enterprise zone shall request in writing such approval for a period of no more than five years for property included in the tax increment funding. The governing body of each other participating unit shall approve or disapprove by ordinance or resolution the use of the method for their respective units. All participating units shall notify the local government seeking approval within thirty days of receipt of the request. Upon approval by a majority of the participating units of the tax increment method of financing, it shall be deemed approved for the period requested.
Laws 1993, ch. 33, § 13.
NMSA 1978, § 5-9-14 Tax increment method; base value for distribution
5-9-14. Tax increment method; base value for distribution
If the tax increment method of financing enterprise zone projects is used, the base value shall be the value used in calculating the limit of general obligation indebtedness imposed by the constitution of New Mexico and the statutes of New Mexico.
Laws 1993, ch. 33, § 14.
NMSA 1978, § 5-9-15 Regulations
5-9-15. Regulations
The secretary of finance and administration and the secretary of taxation and revenue are authorized to promulgate such rules and regulations necessary for the proper administration of Sections 10 through 14 [5-9-10 to 5-9-14 NMSA 1978] of the Enterprise Zone Act.
Laws 1993, ch. 33, § 15.
Source: New Mexico Compilation Commission (nmonesource.com)URL: https://nmonesource.com/nmos/nmsa-unanno/en/item/18447/index.doFetched: 10/20/2026