1. GenTax Tax Increment Financing Project Closeout
Certification Presentation
04/22/09
Project Certification Committee

2. Project Overview
GenTax Tax Increment Financing project was initiated to complete statutory requirements defined in, Chapter 5 Article 15 NMSA 1978, enacted during the 2006 Legislative
Created new form of revenue distribution within the Gross Receipts Tax (“GRT”); as financing mechanism for development projects around the state
The mechanism, called “Tax Increment Financing” (“TIF”), is based on agreements by local governments and also possibly the State to allow distribution of a portion of the GRT revenue arising within the boundaries of a designated Tax Increment Development District (“TIDD”) directly to the managers of the designated TIDD. 2

3. Functionality
GenTax Tax Increment Financing project enables this new form of revenue distribution for development projects around the state through:
1) the ability to record in GenTax whether or not a tax account falls into a particular tax development district. This is handled by Location Codes within the districts that are created.
2) the ability to distribute tax collections for an account in a tax development district in such a way that the base tax is distributed first as per normal processes and any additional tax collected is distributed to the new Development District
3) the creation of reports and a data mart to support reporting to the Legislature, the Financial Distribution Bureau, and the Tax Research Division.

4. Accomplishments Completed within budget
Moved to production – 02/20/2009 4

5. DoIT System Impact
Use existing hardware and software residing at DoIT Data Center
Production implementation of GenTax Tax Increment Financing project will not impact DoIT – handled by TRD in same fashion as all other GenTax® project moves
No additional system impact on network

6. Security Strategy Utilizes current GenTax® security structure Groups
Functions
Roles
Incorporated into current TRD backup schedule
Full backups done bi-weekly
Differential backups done on other nights
All GenTax® systems housed at DoIT data center

7. Conclusion
GenTax Tax Increment Financing provides the added functionality for a new form of revenue distribution to development projects around the state
Implementation of TIF met the requirements set forth by Chapter 5 Article 15 NMSA 1976 passed during the 2006 Legislative session
Tax Increment Financing maximizes the State of New Mexico’s investment in the GenTax® application