underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
HOUSE BILL 142
57TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 2025
INTRODUCED BY
Kathleen Cates
AN ACT
RELATING TO PROPERTY TAX; REMOVING THE REQUIREMENT THAT A BOARD
OF COUNTY COMMISSIONERS CONDUCT A PUBLIC HEARING BEFORE
ADOPTING AN ORDINANCE TO MAKE AVAILABLE A TAX REBATE FOR LOW-
INCOME TAXPAYERS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 7-2-14.3 NMSA 1978 (being Laws 1994,
Chapter 111, Section 1, as amended) is amended to read:
"7-2-14.3. TAX REBATE OF PART OF PROPERTY TAX DUE FROM
LOW-INCOME TAXPAYER--LOCAL OPTION--REFUND.--
A. The tax rebate provided by this section may be
claimed for the taxable year for which the return is filed by
an individual who:
(1) has [his] the principal place of residence
in a county that has adopted an ordinance pursuant to
.229902.1 underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Subsection G of this section;
(2) is not a dependent of another individual;
(3) files a return; and
(4) incurred a property tax liability on [his ]
the principal place of residence in the taxable year.
B. The tax rebate provided by this section shall be
allowed for any individual eligible to claim the refund
pursuant to Subsection A of this section and who:
(1) was not an inmate of a public institution
for more than six months during the taxable year;
(2) was physically present in New Mexico for at
least six months during the taxable year for which the rebate
is claimed; and
(3) is eligible for the rebate as a low-income
property taxpayer in accordance with the provisions of
Subsection D of this section.
C. [A husband and wife ] Married individuals who
file separate returns for the taxable year in which they could
have filed a joint return may each claim only one-half of the
tax rebate that would have been allowed on the joint return.
D. As used in the table in this subsection,
"property tax liability" means the amount of property tax
resulting from the imposition of the county and municipal
property tax operating impositions on the net taxable value of
the taxpayer's principal place of residence calculated for the
.229902.1
- 2 - underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
year for which the rebate is claimed. The tax rebate provided
in this section is as specified in the following table:
LOW-INCOME TAXPAYER'S PROPERTY TAX REBATE TABLE
Taxpayer's Modified Gross Income Property Tax Rebate
But Not
Over Over
$ 0 $ 8,000 75% of property tax liability
8,000 10,000 70% of property tax liability
10,000 12,000 65% of property tax liability
12,000 14,000 60% of property tax liability
14,000 16,000 55% of property tax liability
16,000 18,000 50% of property tax liability
18,000 20,000 45% of property tax liability
20,000 22,000 40% of property tax liability
22,000 24,000 35% of property tax liability.
E. If a taxpayer's modified gross income is zero, the
taxpayer may claim a tax rebate in the amount shown in the
first row of the table. The tax rebate provided for in this
section shall not exceed three hundred fifty dollars ($350) per
return and, if a return is filed separately that could have
been filed jointly, the tax rebate shall not exceed one hundred
seventy-five dollars ($175). No tax rebate shall be allowed
any taxpayer whose modified gross income exceeds twenty-four
thousand dollars ($24,000).
F. The tax rebate provided for in this section may be
.229902.1
- 3 - underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
deducted from the taxpayer's New Mexico income tax liability
for the taxable year. If the tax rebate exceeds the taxpayer's
income tax liability, the excess shall be refunded to the
taxpayer.
[G. In January of every odd-numbered year in which a
county does not have in effect an ordinance adopted pursuant to
this subsection, the board of county commissioners of the
county shall conduct a public hearing on the question of
whether the property tax rebate provided in this section
benefiting low-income property taxpayers in the county should
be made available through adoption of a county ordinance.
Notice of the public hearing shall be published once at least
two weeks prior to the hearing date in at least one newspaper
of general circulation in the county and broadcast at some time
within the week before the hearing on at least one radio
station with substantial broadcasting coverage in the county.
At the public hearing, the board shall take action on the
question and if a majority of the members elected votes to
adopt an ordinance, it shall be adopted no later than thirty
days after the public hearing.
H. An ordinance adopted pursuant to Subsection G of
this section] G. A board of county commissioners may by
adoption of a county ordinance make available the property tax
rebate provided in this section benefiting low-income property
taxpayers. The ordinance shall specify the taxable years to
.229902.1
- 4 - underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
which it is applicable. The board of county commissioners
adopting an ordinance shall notify the department of the
adoption of the ordinance and furnish a copy of the ordinance
to the department no later than September 1 of the first
taxable year to which the ordinance applies.
[I.] H. No later than December 31 of the year
immediately following the first year in which the low-income
taxpayer property tax rebate provided in the Income Tax Act is
in effect for a county, and no later than December 31 of each
year thereafter in which the tax rebate is in effect, the
department shall certify to the county the amount of the loss
of income tax revenue to the state for the previous taxable
year attributable to the allowance of property tax rebates to
taxpayers of that county. The county shall promptly pay the
amount certified to the department. If a county fails to pay
the amount certified within thirty days of the date of
certification, the department may enforce collection of the
amount by action against the county and may withhold from any
revenue distribution to the county, not dedicated or pledged,
amounts up to the amount certified.
[J.] I. As used in this section, "principal place of
residence" means the dwelling owned and occupied by the
taxpayer and so much of the land surrounding it, not to exceed
five acres, as is reasonably necessary for use of the dwelling
as a home and may consist of a part of a multidwelling or a
.229902.1
- 5 - underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
multipurpose building and a part of the land upon which it is
built."
- 6 -
.229902.1