New Mexico 2025 Regular Session

New Mexico Senate Bill SB112 Compare Versions

Only one version of the bill is available at this time.

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28	28	SENATE BILL 112
29	29	57
30	30	TH LEGISLATURE
31	31	-
32	32
33	33	STATE
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35	35	OF
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37	37	NEW
38	38
39	39	MEXICO
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42	42	FIRST SESSION
43	43	,
44	44
45	45	2025
46	46	INTRODUCED BY
47	47	Peter Wirth
48	48	AN ACT
49	49	RELATING TO TAXATION; PROVIDING THAT STUDENT HOUSING FACILITIES
50	50	LOCATED ON LAND OWNED BY AN EXEMPT HIGHER EDUCATION INSTITUTION
51	51	BUT LEASED BY A NONEXEMPT ENTITY TO THE HIGHER EDUCATION
52	52	INSTITUTION ARE EXEMPT FROM PROPERTY TAX.
53	53	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
54	54	SECTION 1. Section 7-36-4 NMSA 1978 (being Laws 1976,
55	55	Chapter 61, Section 1, as amended) is amended to read:
56	56	"7-36-4. FRACTIONAL PROPERTY INTERESTS--DEFINITIONS--
57	57	TAXATION AND VALUATION OF FRACTIONAL INTERESTS.--
58	58	A. As used in this section:
59	59	(1) "fractional interest" means a tangible
60	60	interest in real property, except for mineral property as
61	61	defined in Section 7-36-22 NMSA 1978, that is less than the
62	62	total of the interests existing in the property, but
63	63	.229198.2 underscored material = new
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90	90	"fractional interest" does not include those property interests
91	91	described in Sections 7-36-3, 7-36-3.1 and 7-36-3.2 NMSA 1978
92	92	nor does it include the lessee's interest under a lease when
93	93	the term of the lease is more than seventy-five years;
94	94	(2) "exempt entity" means any person whose
95	95	real property is exempt from taxation under the constitution of
96	96	New Mexico or the Enabling Act (36 Stat. 557, as amended) by
97	97	reason of ownership;
98	98	(3) "exempt property" means property that is
99	99	exempt from property taxation pursuant to Article 8, Section 3
100	100	of the constitution of New Mexico by reason of use;
101	101	(4) "improvements" includes surface and
102	102	subsurface structures, fixtures, transmission lines, pipelines
103	103	and other works, but "improvements" does not include:
104	104	(a) that property either included or
105	105	specifically excluded under the terms "property used in
106	106	connection with mineral property" under Section 7-36-23 NMSA
107	107	1978, "property used in connection with potash mineral
108	108	property" under Section 7-36-24 NMSA 1978 and "property used in
109	109	connection with uranium mineral property" under Section 7-36-25
110	110	NMSA 1978;
111	111	(b) a dwelling occupied by a low-income
112	112	resident in a housing project authorized under the provisions
113	113	of the Municipal Housing Law; and
114	114	(c) those property interests described
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143	143	in Sections 7-36-3, 7-36-3.1 and 7-36-3.2 NMSA 1978;
144	144	(5) "nonexempt entity" means any person that
145	145	is not an exempt entity; and
146	146	(6) "nonexempt property" means property that
147	147	is not exempt property.
148	148	B. Fractional interests of nonexempt entities in
149	149	real property of exempt entities are exempt from property
150	150	taxation under the Property Tax Code, but this exemption shall
151	151	not apply to the following property:
152	152	(1) improvements of land of an exempt entity
153	153	if the improvements are owned or leased by a nonexempt entity;
154	154	these improvements are subject to valuation for property
155	155	taxation purposes and to property taxation to be paid by the
156	156	nonexempt entity; provided that improvements, including a
157	157	leasehold interest in the improvements, are exempt if the
158	158	improvements are:
159	159	(a) residential housing facilities for
160	160	the use of students or medical residents of an exempt
161	161	institution of higher learning enumerated in Article 12,
162	162	Section 11 of the constitution of New Mexico;
163	163	(b) located on land owned by the
164	164	institution; and
165	165	(c) leased by the institution to a
166	166	nonexempt entity to operate or assist the institution in
167	167	operating the residential housing facilities; and
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196	196	(2) property interests of nonexempt entities
197	197	held under equitable title in the property of exempt entities.
198	198	C. When fractional interests are created in
199	199	property:
200	200	(1) fractional interests that are nonexempt
201	201	property shall be reported to the appropriate valuation
202	202	authority by the fractional interest owners for valuation for
203	203	property tax purposes if the owner is a nonexempt entity; and
204	204	(2) except for fractional interests owned by
205	205	the United States, an Indian nation, tribe or pueblo, the state
206	206	of New Mexico or a political subdivision of the state,
207	207	fractional interests that are owned by a nonexempt entity but
208	208	are claimed to be exempt property shall be reported by the
209	209	owner to the appropriate valuation authority for a
210	210	determination of exemption status and valuation if determined
211	211	to be nonexempt property.
212	212	D. Fractional interests that are nonexempt property
213	213	shall be valued by the applicable method of valuation pursuant
214	214	to the Property Tax Code, and if fractional interests that are
215	215	exempt property have been created, the value of the remaining
216	216	nonexempt fractional interests shall be determined in the
217	217	property tax year following the creation of the interests as
218	218	the value of the property in the property tax year immediately
219	219	prior to the year in which creation of the fractional interests
220	220	occurred, increased or decreased by the value directly
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249	249	attributable to the creation of the fractional interests that
250	250	are exempt property. For subsequent property tax years, the
251	251	nonexempt fractional interests shall be valued pursuant to the
252	252	applicable methods of valuation."
253	253	SECTION 2. APPLICABILITY.--The provisions of this act
254	254	apply to the 2026 and subsequent property tax years.
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256	256	.229198.2