Constitution of New Mexico (2025 publisher edition) — ARTICLE IX

Publisher edition notice: This collection preserves the complete Secretary of State's 2025 compilation, identifying amendments through 2024, including the publisher's source notes and annotations. Later amendments have not been independently verified.

ARTICLE IX

ARTICLE IX State, County and Municipal Indebtedness Sec. 1. Debts of territory and its counties assumed. 2. Payment of county debts by another county. 3. State refunding bonds for assumed debts.

-- 108 of 216 --

105© 2025 State of New Mexico. New Mexico Compilation Commission. All rights reserved. Article IX – State, County and Municipal Indebtedness Sec. 4. Sale of lands for certain bond payments. 5. Remission of county debts to state prohib- ited. 6. Militia warrants. 7. State indebtedness; purposes. 8. State indebtedness; restrictions. 9. Use of borrowed funds. 10. County indebtedness; restrictions. 11. School district indebtedness; restrictions. 12. Municipal indebtedness; restrictions. 13. County and municipal debt limit; excep- tions. 14. Aid to private enterprise; veterans' schol- arship programs; student loans; job op- portunities; affordable housing. 15. State and local refunding 16. State highway bonds. Section 1. [Debts of territory and its counties assumed.] The state hereby assumes the debts and liabilities of the territory of New Mexico, and the debts of the counties thereof, which were valid and subsisting on June twenti- eth, nineteen hundred and ten, and pledges its faith and credit for the payment thereof. The legislature shall, at its first session, pro- vide for the payment or refunding thereof by the issue and sale of bonds, or otherwise.

-- 109 of 216 --

106© 2025 State of New Mexico. New Mexico Compilation Commission. All rights reserved. Article IX – State, County and Municipal Indebtedness Sec. 2. [Payment of county debts by another county.] No county shall be required to pay any portion of the debt of any other county so assumed by the state, and the bonds of Grant and Santa Fe counties which were validated, approved and confirmed by act of congress of January sixteenth, eighteen hundred and ninety-seven, shall be paid as hereinafter provided. Sec. 3. [State refunding bonds for assumed debts.] The bonds authorized by law to provide for the payment of such indebtedness shall be issued in three series, as follows: Series A. To provide for the payment of such debts and liabilities of the territory of New Mexico. Series B. To provide for the payment of such debts of said counties. Series C. To provide for the payment of the bonds and accrued interest thereon of Grant and Santa Fe counties which were validated, approved and confirmed by act of congress, January sixteenth, eighteen hun- dred and ninety-seven.

-- 110 of 216 --

107© 2025 State of New Mexico. New Mexico Compilation Commission. All rights reserved. Article IX – State, County and Municipal Indebtedness Sec. 4. [Sale of lands for certain bond payments.] The proper officers of the state shall, as soon as practicable, select and locate the one million acres of land granted to the state by congress for the payment of the said bonds of Grant and Santa Fe counties, and sell the same or sufficient thereof to pay the interest and principal of the bonds of Series C issued as provided in Section Three hereof. The proceeds of rentals and sales of said land shall be kept in a separate fund and applied to the payment of the interest and principal of the bonds of Series C. Whenever there is not sufficient money in said fund to meet the interest and sinking fund requirements therefor, the deficiency shall be paid out of any funds of the state not otherwise appro- priated, and shall be repaid to the state or to the several counties which may have fur- nished any portion thereof under a general levy, out of the proceeds subsequently re- ceived of rentals and sales of said lands. Any money received by the state from rentals and sales of said lands in excess of the amounts required for the purposes above-mentioned shall be paid into the cur-

-- 111 of 216 --

108© 2025 State of New Mexico. New Mexico Compilation Commission. All rights reserved. Article IX – State, County and Municipal Indebtedness rent and permanent school funds of the state respectively. Sec. 5. [Remission of county debts to state prohibited.] The legislature shall never enact any law releasing any county, or any of the taxable property therein, from its obligation to pay to the state any moneys expended by the state by reason of its assumption or pay- ment of the debt of such county. Sec. 6. [Militia warrants.] No law shall ever be passed by the legisla- ture validating or legalizing, directly or indi- rectly, the militia warrants alleged to be out- standing against the territory of New Mexico, or any portion thereof; and no such warrant shall be prima facie or conclusive evidence of the validity of the debt purporting to be ev- idenced thereby or by any other militia war- rant. This provision shall not be construed as authorizing any suit against the state. Sec. 7. [State indebtedness; purposes.] The state may borrow money not exceed- ing the sum of two hundred thousand dol-

-- 112 of 216 --

109© 2025 State of New Mexico. New Mexico Compilation Commission. All rights reserved. Article IX – State, County and Municipal Indebtedness lars [($200,000)] in the aggregate to meet casual deficits or failure in revenue, or for necessary expenses. The state may also contract debts to suppress insurrection and to provide for the public defense. Sec. 8. [State indebtedness; restrictions.] A. No debt other than those specified in the preceding section shall be contracted by or on behalf of this state, unless authorized by law for some specified work or object; which law shall provide for an annual tax levy sufficient to pay the interest and to pro- vide a sinking fund to pay the principal of such debt within fifty years from the time of the contracting thereof. No such law shall take effect until it shall have been submit- ted to the qualified electors of the state and have received a majority of all the votes cast thereon at a general election; such law shall be published in full in at least one news- paper in each county of the state, if one be published therein, once each week, for four successive weeks next preceding such elec- tion. No debt shall be so created if the total indebtedness of the state, exclusive of the debts of the territory, and the several coun- ties thereof, assumed by the state, would

-- 113 of 216 --

110© 2025 State of New Mexico. New Mexico Compilation Commission. All rights reserved. Article IX – State, County and Municipal Indebtedness thereby be made to exceed one percent of the assessed valuation of all the property subject to taxation in the state as shown by the preceding general assessment. B. For the purposes of this section and Article 4, Section 29 of the constitution of New Mexico, a financing agreement en- tered into by the state for the leasing of a building or other real property with an op- tion to purchase for a price that is reduced according to the payments made by the state pursuant to the financing agreement is not a debt if: (1) there is no legal obligation for the state to continue the lease from year to year or to purchase the real property; and (2) the agreement provides that the lease shall be terminated if sufficient ap- propriations are not available to meet the current lease payments. (As amended No- vember 3, 1964 and November 7, 2006.) Sec. 9. [Use of borrowed funds.] Any money borrowed by the state, or any county, district or municipality thereof, shall be applied to the purpose for which it was obtained, or to repay such loan, and to no other purpose whatever.

-- 114 of 216 --

111© 2025 State of New Mexico. New Mexico Compilation Commission. All rights reserved. Article IX – State, County and Municipal Indebtedness Sec. 10. [County indebtedness; restrictions.] No county shall borrow money except for the following purposes: A. erecting, remodeling and making additions to necessary public buildings; B. constructing or repairing public roads and bridges and purchasing capital equipment for such projects; C. constructing or acquiring a system for supplying water, including the acqui- sition of water and water rights, necessary real estate or rights-of-way and easements; D. constructing or acquiring a sewer system, including the necessary real estate or rights- of- way and easements; E. constructing an airport or sanitary landfill, including the necessary real estate; F. acquiring necessary real estate for open space, open space trails and related areas and facilities; or G. the purchase of books and other li- brary resources for libraries in the county. In such cases, indebtedness shall be in- curred only after the proposition to create such debt has been submitted to the registered voters of the county and approved by a ma- jority of those voting thereon. No bonds is-

-- 115 of 216 --

112© 2025 State of New Mexico. New Mexico Compilation Commission. All rights reserved. Article IX – State, County and Municipal Indebtedness sued for such purpose shall run for more than fifty years. Provided, however, that no money derived from general obligation bonds issued and sold hereunder shall be used for main- taining existing buildings and, if so, such bonds shall be invalid. (As amended Novem- ber 3, 1964, November 2, 1982, November 8, 1988 and November 5, 1996.) Sec. 11. [School district indebtedness; restrictions.] A. Except as provided in Subsection C of this section, no school district shall bor- row money except for the purpose of erect- ing, remodeling, making additions to and furnishing school buildings or purchasing or improving school grounds or any com- bination of these purposes, and in such cases only when the proposition to create the debt has been submitted to a vote of such qualified electors of the district as are owners of real estate within the school district and a majority of those voting on the question has voted in favor of creating such debt. B. No school district shall ever become indebted in an amount exceeding six per- cent on the assessed valuation of the taxable

-- 116 of 216 --

113© 2025 State of New Mexico. New Mexico Compilation Commission. All rights reserved. Article IX – State, County and Municipal Indebtedness property within the school district as shown by the preceding general assessment. C. A school district may create a debt by entering into a lease-purchase arrangement to acquire education technology equipment without submitting the proposition to a vote of the qualified electors of the district, but any debt created is subject to the limita- tion of Subsection B of this section. D. For the purposes of this section, a financing agreement entered into by a school district or a charter school for the leasing of a building or other real property with an option to purchase for a price that is reduced according to the payments made by the school district or charter school pur- suant to the financing agreement is not a debt if: (1) there is no legal obligation for the school district or charter school to continue the lease from year to year or to purchase the real property; and (2) the agreement provides that the lease shall be terminated if sufficient money is not available to meet the current lease payments. (As amended September 19, 1933, September 28, 1965, November 5, 1996 and November 7, 2006.)

-- 117 of 216 --

114© 2025 State of New Mexico. New Mexico Compilation Commission. All rights reserved. Article IX – State, County and Municipal Indebtedness Sec. 12. [Municipal indebtedness; restrictions.] No city, town or village shall contract any debt except by an ordinance, which shall be irrepealable until the indebtedness therein provided for shall have been fully paid or discharged, and which shall specify the pur- poses to which the funds to be raised shall be applied, and which shall provide for the levy of a tax, not exceeding twelve mills on the dollar upon all taxable property within such city, town or village, sufficient to pay the interest on, and to extinguish the princi- pal of, such debt within fifty years. The pro- ceeds of such tax shall be applied only to the payment of such interest and principal. No such debt shall be created unless the ques- tion of incurring the same shall, at a regular election for councilmen, aldermen or other officers of such city, town or village, or at any special election called for such purpose, have been submitted to a vote of such quali- fied electors thereof as have paid a property tax therein during the preceding year, and a majority of those voting on the question by ballot deposited in a separate ballot box when voting in a regular election, shall have voted in favor of creating such debt. A pro-

-- 118 of 216 --

115© 2025 State of New Mexico. New Mexico Compilation Commission. All rights reserved. Article IX – State, County and Municipal Indebtedness posal which does not receive the required number of votes for adoption at any special election called for that purpose, shall not be resubmitted in any special election within a period of one year. For the purpose, only, of voting on the creation of the debt, any per- son owning property within the corporate limits of the city, town or village who has paid a property tax therein during the pre- ceding year and who is otherwise qualified to vote in the county where such city, town or village is situated shall be a qualified elector. (As amended November 3, 1964.) Sec. 13. [County and municipal debt limit; exceptions.] No county, city, town or village shall ever become indebted to an amount in the aggregate, including existing indebtedness, exceeding four per centum on the value of the taxable property within such county, city, town or village, as shown by the last preceding assessment for state or county taxes; and all bonds or obligations issued in excess of such amount shall be void; pro- vided, that any city, town or village may contract debts in excess of such limitation for the construction or purchase of a system

-- 119 of 216 --

116© 2025 State of New Mexico. New Mexico Compilation Commission. All rights reserved. Article IX – State, County and Municipal Indebtedness for supplying water, or of a sewer system, for such city, town or village. Sec. 14. [Aid to private enterprise; veterans' scholarship programs; student loans; job opportunities; affordable housing.] Neither the state nor any county, school district or municipality, except as other- wise provided in this constitution, shall di- rectly or indirectly lend or pledge its credit or make any donation to or in aid of any person, association or public or private cor- poration or in aid of any private enterprise for the construction of any railroad except as provided in Subsections A through H of this section. A. Nothing in this section prohibits the state or any county or municipality from making provision for the care and mainte- nance of sick and indigent persons. B. Nothing in this section prohib- its the state from establishing a veterans' scholarship program for Vietnam conflict veterans who are post-secondary students at educational institutions under the exclu- sive control of the state by exempting such veterans from the payment of tuition. For

-- 120 of 216 --

117© 2025 State of New Mexico. New Mexico Compilation Commission. All rights reserved. Article IX – State, County and Municipal Indebtedness the purposes of this subsection, a "Vietnam conflict veteran" is any person who has been honorably discharged from the armed forces of the United States, who was a resi- dent of New Mexico at the original time of entry into the armed forces from New Mex- ico or who has lived in New Mexico for ten years or more and who has been awarded a Vietnam campaign medal for service in the armed forces of this country in Vietnam during the period from August 5, 1964 to the official termination date of the Vietnam conflict as designated by executive order of the president of the United States. C. The state may establish by law a pro- gram of loans to students of the healing arts, as defined by law, for residents of the state who, in return for the payment of ed- ucational expenses, contract with the state to practice their profession for a period of years after graduation within areas of the state designated by law. D. Nothing in this section prohibits the state or a county or municipality from creating new job opportunities by providing land, buildings or infrastructure for facili- ties to support new or expanding businesses if this assistance is granted pursuant to general implementing legislation that is ap-

-- 121 of 216 --

118© 2025 State of New Mexico. New Mexico Compilation Commission. All rights reserved. Article IX – State, County and Municipal Indebtedness proved by a majority vote of those elected to each house of the legislature. The imple- menting legislation shall include adequate safeguards to protect public money or other resources used for the purposes authorized in this subsection. The implementing legis- lation shall further provide that: (1) each specific county or municipal project providing assistance pursuant to this subsection need not be approved by the leg- islature but shall be approved by the county or municipality pursuant to procedures pro- vided in the implementing legislation; and (2) each specific state project providing assistance pursuant to this subsection shall be approved by law. E. Nothing in this section prohibits the state, or the instrumentality of the state designated by the legislature as the state's housing authority, or a county or a munic- ipality from: (1) donating or otherwise providing or paying a portion of the costs of land for the construction on it of affordable housing; (2) donating or otherwise providing or paying a portion of the costs of construction or renovation of affordable housing or the costs of conversion or renovation of build- ings into affordable housing; or

-- 122 of 216 --

119© 2025 State of New Mexico. New Mexico Compilation Commission. All rights reserved. Article IX – State, County and Municipal Indebtedness (3) providing or paying the costs of fi- nancing or infrastructure necessary to sup- port affordable housing projects. F. The provisions of Subsection E of this section are not self-executing. Before the described assistance may be provided, en- abling legislation shall be enacted by a ma- jority vote of the members elected to each house of the legislature. This enabling leg- islation shall: (1) define "affordable housing"; (2) establish eligibility criteria for the recipients of land, buildings and infrastruc- ture; (3) contain provisions to ensure the suc- cessful completion of affordable housing projects supported by assistance authorized pursuant to Subsection E of this section; (4) require a county or municipality pro- viding assistance pursuant to Subsection E of this section to give prior formal approval by ordinance for a specific affordable hous- ing assistance grant and include in the ordi- nance the conditions of the grant; (5) require prior approval by law of an affordable housing assistance grant by the state; and (6) require the governing body of the in- strumentality of the state, designated by the

-- 123 of 216 --

120© 2025 State of New Mexico. New Mexico Compilation Commission. All rights reserved. Article IX – State, County and Municipal Indebtedness legislature as the state's housing authority, to give prior approval, by resolution, for af- fordable housing grants that are to be given by the instrumentality. G. Nothing in this section prohibits the state from establishing a veterans' schol- arship program, for military war veterans who are post-secondary students at educa- tional institutions under the exclusive con- trol of the state and who have exhausted all educational benefits offered by the United States department of defense or the United States department of veterans affairs, by exempting such veterans from the payment of tuition. For the purposes of this subsec- tion, a "military war veteran" is any person who has been honorably discharged from the armed forces of the United States, who was a resident of New Mexico at the orig- inal time of entry into the armed forces or who has lived in New Mexico for ten years or more and who has been awarded a southwest Asia service medal, global war on terror service medal, Iraq campaign medal, Afghanistan campaign medal or any other medal issued for service in the armed forces of this country in support of any United States military campaign or

-- 124 of 216 --

121© 2025 State of New Mexico. New Mexico Compilation Commission. All rights reserved. Article IX – State, County and Municipal Indebtedness armed conflict as defined by congress or by presidential executive order or any other campaign medal issued for service after August 1, 1990 in the armed forces of the United States during periods of armed con- flict as defined by congress or by executive order. H. Nothing in this section prohibits the state from expending state funds or resources for the purpose of providing essential ser- vices primarily for residential purposes if the assistance is granted pursuant to general implementing legislation approved by a ma- jority vote of those elected to each house of the legislature. The implementing legislation shall provide for accessibility to essential services primarily for residential purposes and include safeguards to protect public money and other public resources used for the purposes authorized in this subsection. As used in this subsection, "essential ser- vices" means infrastructure that allows inter- net, energy, water, wastewater or other simi- lar services as provided by law. (As amended November 1, 1971, November 5, 1974, No- vember 8, 1994, November 5, 2002, Novem- ber 7, 2006, November 2, 2010 and Novem- ber 8, 2022.)

-- 125 of 216 --

122© 2025 State of New Mexico. New Mexico Compilation Commission. All rights reserved. Article IX – State, County and Municipal Indebtedness Sec. 15. [State and local refunding bonds.] Nothing in this article shall be construed to prohibit the issue of bonds for the pur- pose of paying or refunding any valid state, county, district or municipal bonds and it shall not be necessary to submit the ques- tion of the issue of such bonds to a vote as herein provided. Sec. 16. [State highway bonds.] Laws enacted by the fifth legislature au- thorizing the issue and sale of state high- way bonds for the purpose of providing funds for the construction and improvement of state highways and to enable the state to meet and secure allotments of federal funds to aid in construction and improvement of roads, and laws so enacted authorizing the issue and sale of state highway debentures to anticipate the collection of revenues from motor vehicle licenses and other revenues provided by law for the state road fund, shall take effect without submitting them to the electors of the state, and notwith- standing that the total indebtedness of the state may thereby temporarily exceed one

-- 126 of 216 --

123© 2025 State of New Mexico. New Mexico Compilation Commission. All rights reserved. Article X – County and Municipal Corporations per centum of the assessed valuation of all the property subject to taxation in the state. Provided, that the total amount of such state highway bonds payable from proceeds of taxes levied on property outstanding at any one time shall not exceed two million dol- lars [($2,000,000)]. The legislature shall not enact any law which will decrease the amount of the annual revenues pledged for the payment of state highway debentures or which will divert any of such revenues to any other purpose so long as any of the said debentures issued to anticipate the collec- tion thereof remain unpaid. (As added Sep- tember 20, 1921.)