New Mexico 2025 Regular Session

New Mexico Senate Bill SB186 Compare Versions

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

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28	28	SENATE BILL 186
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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41	41	-
42	42	FIRST SESSION
43	43	,
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45	45	2025
46	46	INTRODUCED BY
47	47	Peter Wirth
48	48	AN ACT
49	49	RELATING TO PROPERTY TAX; CREATING A SPECIAL METHOD OF
50	50	VALUATION FOR CERTAIN MULTIFAMILY HOUSING.
51	51	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
52	52	SECTION 1. Section 7-36-15 NMSA 1978 (being Laws 1975,
53	53	Chapter 165, Section 2, as amended) is amended to read:
54	54	"7-36-15. METHODS OF VALUATION FOR PROPERTY TAXATION
55	55	PURPOSES--GENERAL PROVISIONS.--
56	56	A. Property subject to valuation for property
57	57	taxation purposes under this article of the Property Tax Code
58	58	shall be valued by the methods required by this article of the
59	59	Property Tax Code whether the determination of value is made by
60	60	the department or the county assessor. The same or similar
61	61	methods of valuation shall be used for valuation of the same or
62	62	similar kinds of property for property taxation purposes.
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90	90	B. Unless a method or methods of valuation are
91	91	authorized in Sections 7-36-20 through [7-36-33 ] 7-36-34 NMSA
92	92	1978, the value of property for property taxation purposes
93	93	shall be its market value as determined by application of the
94	94	sales of comparable property, income or cost methods of
95	95	valuation or any combination of these methods. In using any of
96	96	the methods of valuation authorized by this subsection, the
97	97	valuation authority:
98	98	(1) shall apply generally accepted appraisal
99	99	techniques; and
100	100	(2) in determining the market value of
101	101	residential housing, shall consider any decrease in the value
102	102	that would be realized by the owner in a sale of the property
103	103	because of the effects of any affordable housing subsidy,
104	104	covenant or encumbrance imposed pursuant to a federal, state or
105	105	local affordable housing program that restricts the future use
106	106	of the property or the resale price of the property or would
107	107	otherwise prohibit the owner from fully [benefitting ]
108	108	benefiting from any enhanced value of the property. As used in
109	109	this paragraph:
110	110	(a) "subsidy, covenant or encumbrance
111	111	imposed pursuant to a federal, state or local affordable
112	112	housing program" includes those imposed by a nonprofit entity
113	113	approved by a governmental entity as a qualifying grantee
114	114	pursuant to the Affordable Housing Act; and
115	115	.230025.3
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143	143	(b) "residential housing" means any
144	144	building, structure or portion thereof that is primarily
145	145	occupied, or designed or intended primarily for occupancy, as a
146	146	residence by one or more households and any real property that
147	147	is offered for sale or lease for the construction or location
148	148	thereon of such a building, structure or portion thereof.
149	149	"Residential housing" includes congregate housing, manufactured
150	150	homes, housing intended to provide or providing transitional or
151	151	temporary housing for homeless persons and common health care,
152	152	kitchen, dining, recreational and other facilities primarily
153	153	for use by residents of a residential housing project.
154	154	C. Dams, reservoirs, tanks, canals, irrigation
155	155	wells, installed irrigation pumps, stock-watering wells and
156	156	pumps, similar structures and equipment used for irrigation or
157	157	stock-watering purposes, water rights and private roads shall
158	158	not be valued separately from the land they serve. The
159	159	foregoing improvements and rights shall be considered as
160	160	appurtenances to the land they serve, and their value shall be
161	161	included in the determination of value of the land.
162	162	D. The department shall adopt regulations to
163	163	implement the methods of valuation authorized in this article
164	164	of the Property Tax Code."
165	165	SECTION 2. A new section of the Property Tax Code,
166	166	Section 7-36-34 NMSA 1978, is enacted to read:
167	167	"7-36-34. [NEW MATERIAL ] SPECIAL METHOD OF VALUATION--
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196	196	CERTAIN RESIDENTIAL MULTIFAMILY HOUSING.--
197	197	A. Multifamily housing shall be valued at its
198	198	current and correct value in accordance with the provisions of
199	199	the Property Tax Code, except as provided in Subsection B of
200	200	this section; provided that:
201	201	(1) any increase in value over the prior year
202	202	shall be limited as provided in Section 7-36-21.2 1978;
203	203	(2) the per-unit value of a multifamily
204	204	housing complex in a tax year shall not exceed an amount equal
205	205	to the total property value divided by the number of units in
206	206	the multifamily housing, multiplied by forty percent; and
207	207	(3) no value shall be attributed to amenities
208	208	or ancillary improvements to the property other than
209	209	multifamily housing units.
210	210	B. Subject to the provisions of Paragraphs (1) and
211	211	(2) of Subsection A of this section, the current and correct
212	212	value of multifamily housing constructed in the year
213	213	immediately prior to a tax year shall be the lower of the:
214	214	(1) current and correct value; or
215	215	(2) the actual costs of construction of the
216	216	multifamily housing and the actual costs of the land on which
217	217	the multifamily housing is located. The property owner of the
218	218	multifamily housing shall submit evidence of actual costs to
219	219	the county assessor of the county in which the multifamily
220	220	housing is located in a form and manner as required by the
221	221	.230025.3
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249	249	county assessor.
250	250	C. As used in this section, "multifamily housing"
251	251	means residential property with five or more units that are
252	252	regularly rented or leased, or available to rent or lease, to
253	253	tenants pursuant to a written lease for a term of thirty days
254	254	or longer."
255	255	SECTION 3. APPLICABILITY.--The provisions of this act
256	256	apply to the 2026 and subsequent property tax years.
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258	258	.230025.3