Statement by Environment New Mexico Advocate, Lauren Ketcham
Although originally used to promote urban infill development, Tax Increment Development Districts (TIDDs) have been being used to subsidize sprawling greenfield development, diverting communities’ tax bases and encouraging unsustainable development that is contributing to global warming.
HB451 helps to close some of the existing TIDD loopholes by:
- Lowering the percentage of the incremental gross receipts taxes that can be distributed to a TIDD from 75% to 50%
- Requiring that distributions to TIDDs that are greater than needed for servicing the bonds and building a reserve be returned to the relevant taxing authority
- Limiting gross receipts tax distribution to a greenfield TIDD to 20%, with incentives to increase that percentage by investing in workforce housing and transit-oriented development
- Requiring greater state oversight
- Increasing reporting requirements
- Creating a taskforce to research and analyze issues related to TIDDs that must report to the legislature by June 2009
Support HB 451 (Barela): Greenfield Tax Increment Districts
---
Environment New Mexico is a state-wide environmental advocacy organization working to protect New Mexico’s air, water and open space. www.EnvironmentNewMexico.org
For more information, please contact:
Lauren Ketcham: 505-319-5930
