Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance
committees of the Legislature. LFC does not assume responsibility for the accuracy of these reports if they
are used for other purposes.
F I S C A L I M P A C T R E P O R T
SPONSOR Cates
LAST UPDATED
ORIGINAL DATE 01/30/25
SHORT TITLE County Commission Tax Rebate Hearings
BILL
NUMBER House Bill 142
ANALYST Faubion
ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT*
(dollars in thousands)
Agency/Program
FY25 FY26 FY27
3 Year
Total Cost
Recurring or
Nonrecurring
Fund
Affected
Counties
No fiscal
impact
No fiscal
impact
No fiscal
impact
Recurring
County
General Funds
Parentheses ( ) indicate expenditure decreases.
*Amounts reflect most recent analysis of this legislation.
Sources of Information
LFC Files, 2024 Tax Expenditure Report (TRD)
Agency Analysis was Solicited but Not Received From
NM Association of Counties Taxation and Revenue Department (TRD) Because of the short timeframe between the introduction of this bill and its first hearing, LFC has yet to receive analysis from state, education, or judicial agencies. This analysis could be updated
if that analysis is received.
SUMMARY
Synopsis of House Bill 142
House Bill 142 (HB142) removes the requirement that county commissions hold a public hearing
every other year on whether or not to provide a state-specified property tax rebate benefiting
low-income property taxpayers if the county does not already provide the rebate.
This bill does not contain an effective date and, as a result, would go into effect 90 days after the
Legislature adjourns, or June 20, 2025, if enacted.
FISCAL IMPLICATIONS
This bill does not have fiscal implications for the state or for local governments.
House Bill 142 – Page 2
SIGNIFICANT ISSUES
HB142 removes the requirement for counties to hold a public hearing for county commissions to
consider adopting the local option of the low-income property tax rebate as outlined in state
statute. Currently, all counties that have not adopted an ordinance providing this rebate must hold
a public hearing and consider adopting such an ordinance every other year.
The low-income property tax rebate is a partial offset for property taxes paid by low-income
residents through the state personal income tax. It may be claimed by individuals with a
principal place of residence in a county that has enacted an ordinance authorizing the rebate and
with a modified gross income of less than $24 thousand. This rebate is calculated as a percentage
of the taxpayer's property tax liability and based on the taxpayer's modified gross income. The
rebate cannot exceed $350, or $175 if married filing separately. The state is reimbursed annually
by the authorizing county for any low-income property tax rebates granted.
The low-income property tax rebate has only been adopted by three counties at this time – Santa
Fe, Los Alamos and Doña Ana. Santa Fe County passed an ordinance in April 2009 to instate the
rebate starting in tax year 2009 and subsequent tax years until repealed. Los Alamos County
passed an ordinance in January 2021 to instate the rebate for tax years 2021, 2022, 2023, and
2024. Doña Ana County passed an ordinance in January 2023 to instate the rebate for tax years
2023 and 2024. The impact of new residents claiming the rebate in Doña Ana appears in tax year
2023 and fiscal year 2024, resulting in a 78 percent increase in expenditure of this rebate.
The total number of claims and cost of the rebate is as follows, as reported in the Taxation and
Revenue Department’s 2024 Tax Expenditure Report:
JF/rl/SL2