New Mexico Statutes Chapter 7. Taxation § 7-27-52. Authorization for severance tax bonds;  priority for projects funded by the capital development program fund

A. After the annual estimate of severance tax bonding capacity pursuant to Subsection B of Section 7-27-10.1 NMSA 1978, the board of finance division of the department of finance and administration shall allocate an amount equal to the difference between the estimated average annual principal and interest to be repaid from the amount estimated pursuant to Paragraph (1) of Subsection B of Section 7-27-10.1 NMSA 1978 for the term of an issuance less the estimated average annual principal and interest to be repaid from the amount estimated pursuant to Paragraph (2) of Subsection B of Section 7-27-10.1 NMSA 1978;  provided that the difference is greater than zero.  The division shall not issue debt with a term greater than one year for the allocated amount.

B. The legislature authorizes the state board of finance to issue severance tax bonds in the amount allocated pursuant to Subsection A of this section for projects funded by the capital development program fund.  The state board of finance may issue and sell the bonds in the same manner as other severance tax bonds in an amount not to exceed the authorized amount provided for in this subsection.  If necessary, the state board of finance shall take the appropriate steps to comply with the federal Internal Revenue Code of 1986, as amended.  Proceeds from the sale of the bonds are appropriated to the capital development and reserve fund.

C. Money from the severance tax bonds provided for in this section shall not be used to pay indirect project costs.