PAYMENTS IN LIEU OF TAXES FOR PROPERTY

SB 348 requires New Mexico to make annual payments to local governments (like counties) when the state acquires real property that was previously subject to local property taxes. The payments, calculated based on the prior year's property tax liability for that property, are deposited into a new "Payments in Lieu of Taxes Fund" managed by the Taxation and Revenue Department. The Department of Transportation is exempt from this requirement for highway projects, and payments depend on annual state appropriations, taking effect July 1, 2025.