The following is the New Mexico legislative fiscal impact report for SB-157, a measure introduced by State Sen. Lee Cotter (R-Las Cruces) to restrict use taxes collected in Sierra and Dona Ana counties to paying off Spaceport America bonds. Revenues in excess of what is needed to pay off the bonds are being used to fund spaceport operations.
The analysis indicates that excess revenues could be used to pay off the two bonds one year earlier than their 2029 maturation date. However, the restriction would put a gap in the spaceport’s operating budget that would have to be paid by state taxpayers. Spaceport officials are already seeking $2.26 million from the state government for the upcoming 2017 fiscal year to fund operations.
The revenue gaps at the $225 million spaceport have been caused by delays by anchor tenant Virgin Galactic, which plans to fly tourists to space from the facility. New Mexico officials are hoping flights begin in Fiscal Year 2018, which will begin on July 1, 2017. Virgin Galactic has not given an estimate for when service will begin.
New Mexico State Sen. Lee Cotter (R-Las Cruces) has renewed efforts to bring tax relief to residents of Dona Ana and Sierra counties relating to their support of Spaceport America.
In 2007, residents of the two counties agreed to increase their taxes to help fund the construction of the facility, which is located outside of Truth or Consequences. The taxes remain in place to pay off bonds sold to fund Spaceport America’s construction.
New Mexico State Senator Lee S. Cotter (R-Las Cruces) has introduced legislation to repeal the New Mexico Spaceport Authority’s (NMSA) power to issue bonds and limit its ability to used tax revenues to support Spaceport America.
Senate Bill 75 aims to remove the ability of NMSA to “issue revenue bonds and borrow money”.