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SENATE BILL 186
57
TH LEGISLATURE
-
STATE
OF
NEW
MEXICO
-
FIRST SESSION
,
2025
INTRODUCED BY
Peter Wirth
AN ACT
RELATING TO PROPERTY TAX; CREATING A SPECIAL METHOD OF
VALUATION FOR CERTAIN MULTIFAMILY HOUSING.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 7-36-15 NMSA 1978 (being Laws 1975,
Chapter 165, Section 2, as amended) is amended to read:
"7-36-15. METHODS OF VALUATION FOR PROPERTY TAXATION
PURPOSES--GENERAL PROVISIONS.--
A. Property subject to valuation for property
taxation purposes under this article of the Property Tax Code
shall be valued by the methods required by this article of the
Property Tax Code whether the determination of value is made by
the department or the county assessor. The same or similar
methods of valuation shall be used for valuation of the same or
similar kinds of property for property taxation purposes.
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B. Unless a method or methods of valuation are
authorized in Sections 7-36-20 through [7-36-33 ] 7-36-34 NMSA
1978, the value of property for property taxation purposes
shall be its market value as determined by application of the
sales of comparable property, income or cost methods of
valuation or any combination of these methods. In using any of
the methods of valuation authorized by this subsection, the
valuation authority:
(1) shall apply generally accepted appraisal
techniques; and
(2) in determining the market value of
residential housing, shall consider any decrease in the value
that would be realized by the owner in a sale of the property
because of the effects of any affordable housing subsidy,
covenant or encumbrance imposed pursuant to a federal, state or
local affordable housing program that restricts the future use
of the property or the resale price of the property or would
otherwise prohibit the owner from fully [benefitting ]
benefiting from any enhanced value of the property. As used in
this paragraph:
(a) "subsidy, covenant or encumbrance
imposed pursuant to a federal, state or local affordable
housing program" includes those imposed by a nonprofit entity
approved by a governmental entity as a qualifying grantee
pursuant to the Affordable Housing Act; and
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(b) "residential housing" means any
building, structure or portion thereof that is primarily
occupied, or designed or intended primarily for occupancy, as a
residence by one or more households and any real property that
is offered for sale or lease for the construction or location
thereon of such a building, structure or portion thereof.
"Residential housing" includes congregate housing, manufactured
homes, housing intended to provide or providing transitional or
temporary housing for homeless persons and common health care,
kitchen, dining, recreational and other facilities primarily
for use by residents of a residential housing project.
C. Dams, reservoirs, tanks, canals, irrigation
wells, installed irrigation pumps, stock-watering wells and
pumps, similar structures and equipment used for irrigation or
stock-watering purposes, water rights and private roads shall
not be valued separately from the land they serve. The
foregoing improvements and rights shall be considered as
appurtenances to the land they serve, and their value shall be
included in the determination of value of the land.
D. The department shall adopt regulations to
implement the methods of valuation authorized in this article
of the Property Tax Code."
SECTION 2. A new section of the Property Tax Code,
Section 7-36-34 NMSA 1978, is enacted to read:
"7-36-34. [NEW MATERIAL ] SPECIAL METHOD OF VALUATION--
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CERTAIN RESIDENTIAL MULTIFAMILY HOUSING.--
A. Multifamily housing shall be valued at its
current and correct value in accordance with the provisions of
the Property Tax Code, except as provided in Subsection B of
this section; provided that:
(1) any increase in value over the prior year
shall be limited as provided in Section 7-36-21.2 1978;
(2) the per-unit value of a multifamily
housing complex in a tax year shall not exceed an amount equal
to the total property value divided by the number of units in
the multifamily housing, multiplied by forty percent; and
(3) no value shall be attributed to amenities
or ancillary improvements to the property other than
multifamily housing units.
B. Subject to the provisions of Paragraphs (1) and
(2) of Subsection A of this section, the current and correct
value of multifamily housing constructed in the year
immediately prior to a tax year shall be the lower of the:
(1) current and correct value; or
(2) the actual costs of construction of the
multifamily housing and the actual costs of the land on which
the multifamily housing is located. The property owner of the
multifamily housing shall submit evidence of actual costs to
the county assessor of the county in which the multifamily
housing is located in a form and manner as required by the
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county assessor.
C. As used in this section, "multifamily housing"
means residential property with five or more units that are
regularly rented or leased, or available to rent or lease, to
tenants pursuant to a written lease for a term of thirty days
or longer."
SECTION 3. APPLICABILITY.--The provisions of this act
apply to the 2026 and subsequent property tax years.
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