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SENATE BILL 192
57
TH LEGISLATURE
-
STATE
OF
NEW
MEXICO
-
FIRST SESSION
,
2025
INTRODUCED BY
Micaelita Debbie O’Malley and Harold Pope
AN ACT
RELATING TO PROPERTY TAX; AMENDING AND ENACTING SECTIONS OF THE
PROPERTY TAX CODE; AMENDING CERTAIN PROPERTY TAX EXEMPTIONS FOR
VETERANS TO REFLECT CHANGES MADE TO THE EXEMPTIONS PURSUANT TO
CONSTITUTIONAL AMENDMENTS APPROVED BY VOTERS AT THE NOVEMBER 5,
2024 GENERAL ELECTION; PROVIDING THAT PROPERTY TAX EXEMPTIONS
FOR A DISABLED VETERAN OR DISABLED VETERAN'S SURVIVING SPOUSE
MAY BE TRANSFERRED IN THE SAME TAX YEAR BY WRITTEN REQUEST TO
THE COUNTY ASSESSOR; PROVIDING THAT A LIMITATION ON INCREASES
IN THE VALUATION OF RESIDENTIAL PROPERTY APPLIES TO CERTAIN
PHYSICAL IMPROVEMENTS; PROVIDING AN ADMINISTRATIVE PENALTY FOR
THE FAILURE TO REPORT IN A TIMELY MANNER AFFIDAVITS FOR
PROPERTY TRANSFERS; REMOVING THE REQUIREMENT THAT A FORM
DECLARING A PROPERTY AS RESIDENTIAL BE MAILED TO THE PROPERTY
OWNER; AMENDING FORM REQUIREMENTS FOR NOTICES OF VALUATION SENT
TO PROPERTY OWNERS; INCREASING THE RATE OF PAY FOR COUNTY
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VALUATION PROTESTS BOARD MEMBERS AND ADJUSTING IT FOR
INFLATION; CLARIFYING REVENUE STREAMS OF THE COUNTY PROPERTY
VALUATION FUND; PROVIDING AN ADMINISTRATIVE PENALTY; DECLARING
AN EMERGENCY.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 7-36-21.2 NMSA 1978 (being Laws 2000,
Chapter 10, Section 2, as amended) is amended to read:
"7-36-21.2. LIMITATION ON INCREASES IN VALUATION OF
RESIDENTIAL PROPERTY.--
A. Residential property shall be valued at its
current and correct value in accordance with the provisions of
the Property Tax Code; provided that for the 2001 and
subsequent tax years, the value of a property in any tax year
shall not exceed the higher of one hundred three percent of the
value in the tax year prior to the tax year in which the
property is being valued or one hundred six and one-tenth
percent of the value in the tax year two years prior to the tax
year in which the property is being valued. This limitation on
increases in value does not apply to:
(1) a residential property in the first tax
year that it is valued for property taxation purposes;
(2) any physical improvements [except for
solar energy system installations ] made to the property during
the year immediately prior to the tax year or omitted in a
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prior tax year, except for:
(a) a solar energy system installation;
or
(b) reproduction of physical
improvements destroyed by a declared state disaster or
emergency; or
(3) valuation of a residential property in any
tax year in which:
(a) a change of ownership of the
property occurred in the year immediately prior to the tax year
for which the value of the property for property taxation
purposes is being determined; or
(b) the use or zoning of the property
has changed in the year prior to the tax year.
B. If a change of ownership of residential property
occurred in the year immediately prior to the tax year for
which the value of the property for property taxation purposes
is being determined, the value of the property shall be its
current and correct value as determined pursuant to the general
valuation provisions of the Property Tax Code.
[C. To assure that the values of residential
property for property taxation purposes are at current and
correct values in all counties prior to application of the
limitation in Subsection A of this section, the department
shall determine for the 2000 tax year the sales ratio pursuant
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to Section 7-36-18 NMSA 1978 or, if a sales ratio cannot be
determined pursuant to that section, conduct a sales-ratio
analysis using both independent appraisals by the department
and sales. If the sales ratio for a county for the 2000 tax
year is less than eighty-five, as measured by the median ratio
of value for property taxation purposes to sales price or
independent appraisal by the department, the county shall not
be subject to the limitations of Subsection A of this section
and shall conduct a reassessment of residential property in the
county so that, by the 2003 tax year, the sales ratio is at
least eighty-five. After such reassessment, the limitation on
increases in valuation in this section shall apply in those
counties in the earlier of the 2004 tax year or the first tax
year following the tax year that the county has a sales ratio
of eighty-five or higher, as measured by the median ratio of
value for property taxation purposes to sales value or
independent appraisal by the department. Thereafter, the
limitation on increases in valuation of residential property
for property taxation purposes in this section shall apply to
subsequent tax years in all counties.
D.] C. The provisions of this section do not apply
to residential property for any tax year in which the property
is subject to the valuation limitation in Section 7-36-21.3
NMSA 1978.
[E.] D. As used in this section:
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(1) "change of ownership" means a transfer to
a transferee by a transferor of all or any part of the
transferor's legal or equitable ownership interest in
residential property except for a transfer:
[(1)] (a) to a trustee for the
beneficial use of the spouse of the transferor or the surviving
spouse of a deceased transferor;
[(2)] (b) to the spouse of the
transferor that takes effect upon the death of the transferor;
[(3)] (c) that creates, transfers or
terminates, solely between spouses, any co-owner's interest;
[(4)] (d) to a child of the transferor,
who occupies the property as that person's principal residence
at the time of transfer; provided that the first subsequent tax
year in which that person does not qualify for the head of
household exemption on that property, a change of ownership
shall be deemed to have occurred;
[(5)] (e) that confirms or corrects a
previous transfer made by a document that was recorded in the
real estate records of the county in which the real property is
located;
[(6)] (f) for the purpose of quieting
the title to real property or resolving a disputed location of
a real property boundary;
[(7)] (g) to a revocable trust by the
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transferor with the transferor, the transferor's spouse or a
child of the transferor as beneficiary; or
[(8)] (h) from a revocable trust
described in [Paragraph (7) ] Subparagraph (g) of this
[subsection] paragraph back to the settlor or trustor or to the
beneficiaries of the trust;
[F. As used in this section ] (2) "declared
state disaster or emergency" means a disaster or emergency
event for which:
(a) a governor's state-of-emergency
proclamation has been issued; or
(b) a presidential declaration of a
federal major disaster or emergency has been issued;
(3) "reproduction" means a new construction
structure that is a close or an exact copy of previously
existing physical improvements that have substantially similar
total square footage, living square footage and quality of
building materials that tends to replicate the previously
existing structure; and
(4) "solar energy system installation" means
an installation that is used to provide space heat, hot water
or electricity to the property in which it is installed and is:
[(1)] (a) an installation that uses
solar panels that are not also windows;
[(2)] (b) a dark-colored water tank
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exposed to sunlight; or
[(3)] (c) a non-vented trombe wall."
SECTION 2. Section 7-37-5 NMSA 1978 (being Laws 1973,
Chapter 258, Section 38, as amended) is amended to read:
"7-37-5. VETERAN EXEMPTION.--
A. [Up to four thousand dollars ($4,000) ] An amount
as provided in Subsection B of this section of the taxable
value of property, including the community or joint property of
[husband and wife] married individuals , subject to the tax is
exempt from the imposition of the tax if the property is owned
by a veteran or the veteran's unmarried surviving spouse if the
veteran or surviving spouse is a New Mexico resident or if the
property is held in a grantor trust established under Sections
671 through 677 of the Internal Revenue Code of 1986, as those
sections may be amended or renumbered, by a veteran or the
veteran's unmarried surviving spouse if the veteran or
surviving spouse is a New Mexico resident. The exemption shall
be deducted from the taxable value of the property to determine
the net taxable value of the property.
B. The exemption allowed shall be in the following
amounts for the specified tax years:
[(1) for tax year 2004, the exemption shall be
three thousand dollars ($3,000);
(2) for tax year 2005, the exemption shall be
three thousand five hundred dollars ($3,500); and
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(3) for tax year 2006 and each subsequent tax
year, the exemption shall be four thousand dollars ($4,000) ]
(1) for tax years 2006 through 2024, four
thousand dollars ($4,000);
(2) for tax year 2025, ten thousand dollars
($10,000); and
(3) for tax year 2026 and subsequent tax
years, the amount provided in Paragraph (2) of this subsection,
adjusted for inflation pursuant to Subsection C of this
section.
C. For tax year 2026 and subsequent tax years, the
amount of exemption shall be adjusted to account for inflation.
The department shall make the adjustment by multiplying ten
thousand dollars ($10,000) by a fraction, the numerator of
which is the consumer price index ending during the prior tax
year and the denominator of which is the consumer price index
ending in tax year 2026. The result of the multiplication
shall be rounded down to the nearest one hundred dollars
($100), except that if the result would be an amount less than
the corresponding amount for the preceding tax year, then no
adjustment shall be made.
D. The department shall publish annually the amount
determined by the calculation made pursuant to Subsection C of
this section and provide the calculated amount to each county
assessor no later than December 1 of the prior tax year .
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[B.] E. The veteran exemption shall be applied only
if claimed and allowed in accordance with Section 7-38-17 NMSA
1978 and regulations of the department. [For taxpayers who
became eligible for a veteran exemption due to the approval of
the amendment to Article 8, Section 5 of the constitution of
New Mexico in November 2004, a county assessor shall, at the
time of determining the net taxable value of the taxpayer's
property for the 2005 property tax year, in addition to
complying with the provisions of Section 7-38-17 NMSA 1978,
determine the net taxable value of the taxpayer's property that
would result from the application of the veteran exemption for
the 2004 property tax year had the deadline for applying for
the veteran exemption in 2004 occurred after the amendment was
certified. The veteran exemption for 2004 shall not be
credited against the 2005 property value of a taxpayer until
the taxpayer has paid in full the taxpayer's property tax
liability for the 2004 property tax year.
C.] F. As used in this section, "veteran" means an
individual who:
(1) has been honorably discharged from
membership in the armed forces of the United States; and
(2) except as provided in Subsection G of this
section, served in the armed forces of the United States on
active duty continuously for ninety days.
[D. For the purposes of Subsection C of this
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section] G. A person who would otherwise be entitled to status
as a veteran except for failure to have served in the armed
forces continuously for ninety days is considered to have met
that qualification if the person served for less than ninety
days and the reason for not having served for ninety days was a
discharge brought about by service-connected disablement.
[E.] H. For the purposes of Subsection [C ] F of
this section, a person has been "honorably discharged" unless
the person received either a dishonorable discharge or a
discharge for misconduct.
[F.] I. For the purposes of this section, a person
whose civilian service has been recognized as service in the
armed forces of the United States under federal law and who has
been issued a discharge certificate by a branch of the armed
forces of the United States shall be considered to have served
in the armed forces of the United States."
SECTION 3. Section 7-37-5.1 NMSA 1978 (being Laws 2000,
Chapter 92, Section 1 and Laws 2000, Chapter 94, Section 1, as
amended) is amended to read:
"7-37-5.1. DISABLED VETERAN EXEMPTION.--
A. As used in this section:
(1) "disabled veteran" means an individual
who:
(a) has been honorably discharged from
membership in the armed forces of the United States or has
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received a discharge certificate from a branch of the armed
forces of the United States for civilian service recognized
pursuant to federal law as service in the armed forces of the
United States; and
(b) has been determined pursuant to
federal law to have a [one hundred percent ] permanent [and
total] service-connected disability; and
(2) "honorably discharged" means discharged
from the armed forces pursuant to a discharge other than a
dishonorable or bad conduct discharge.
B. The property of a disabled veteran, including
joint or community property of the veteran and the veteran's
spouse, is exempt from property taxation [if it ] in an amount
that shall be based on the percentage of the veteran's
disability as determined by federal law; provided that the
property is occupied by the disabled veteran as the veteran's
principal place of residence. Property held in a grantor trust
established under Sections 671 through 677 of the Internal
Revenue Code of 1986, as those sections may be amended or
renumbered, by a disabled veteran or the veteran's surviving
spouse is also exempt from property taxation if the property
otherwise meets the requirements for exemption in this
subsection or Subsection C of this section.
C. The property of the surviving spouse of a
disabled veteran is exempt from property taxation if:
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(1) the surviving spouse and the disabled
veteran were married at the time of the disabled veteran's
death; and
(2) the surviving spouse continues to occupy
the property continuously after the disabled veteran's death as
the spouse's principal place of residence.
D. Upon the transfer of the principal place of
residence of a disabled veteran or of a surviving spouse of a
disabled veteran entitled to and granted a disabled veteran
exemption, the disabled veteran or the surviving spouse may
choose to:
(1) maintain the exemption for that residence
for the remainder of the year, even if the residence is
transferred during the year; or
(2) remove the exemption for that residence
for the current tax year and apply it to the disabled veteran's
or the disabled veteran's surviving spouse's new principal
place of residence, regardless of whether the exemption was
applied for and claimed within thirty days of the mailing of
the county assessor's notice of valuation made pursuant to the
provisions of Section 7-38-20 NMSA 1978. To transfer the
exemption, the disabled veteran or the disabled veteran's
surviving spouse shall, no later than thirty days following the
change of ownership, make a written transfer request to the
county assessor to remove the exemption from the prior
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principal place of residence and apply it to the new principal
place of residence.
E. The exemption provided by this section may be
referred to as the "disabled veteran exemption".
F. The disabled veteran exemption shall be applied
only if claimed and allowed in accordance with Section 7-38-17
NMSA 1978 and the rules of the department.
G. The veterans' services department shall assist
the department and the county assessors in determining which
veterans qualify for the disabled veteran exemption."
SECTION 4. Section 7-38-12.2 NMSA 1978 (being Laws 2003,
Chapter 118, Section 3) is amended to read:
"7-38-12.2. PENALTIES--CRIMINAL--ADMINISTRATIVE .--
A. A person who intentionally refuses to make a
required report within the time period specified under the
provisions of Section 7-38-12.1 NMSA 1978 or who knowingly
makes a false statement on an affidavit required under the
provisions of Section 7-38-12.1 NMSA 1978:
(1) is guilty of a misdemeanor and upon
conviction shall be punished by the imposition of a fine of not
more than one thousand dollars ($1,000); and
(2) may be assessed an administrative penalty
by the county assessor not to exceed one thousand dollars
($1,000). Each county assessor shall publish electronically
the amount that shall be assessed according to the valuation of
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the property. This penalty shall be imposed and collected at
the same time and in the same manner that the tax and interest
are imposed and collected. The county assessor shall report
these violations to the county treasurer with the delivery of
the tax roll, and the county treasurer shall be responsible for
making entries on the appropriate records indicating amounts
due and the dates of payment .
B. The secretary, any employee or any former
employee of the department or any other person subject to the
provisions of Section 7-38-12.1 NMSA 1978 who willfully
releases information in violation of that section, except as
provided in Section 7-38-4 NMSA 1978 or as part of a protest
proceeding as defined in Section 7-38-24 NMSA 1978, is guilty
of a misdemeanor and shall be fined not more than one thousand
dollars ($1,000)."
SECTION 5. Section 7-38-17 NMSA 1978 (being Laws 1973,
Chapter 258, Section 57, as amended) is amended to read:
"7-38-17. CLAIMING EXEMPTIONS--REQUIREMENTS--PENALTIES.--
A. Subject to the requirements of Subsection E of
this section, head-of-family exemptions, veteran exemptions,
disabled veteran exemptions or veterans' organization
exemptions claimed and allowed in a tax year need not be
claimed for subsequent tax years if there is no change in
eligibility for the exemption nor any change in ownership of
the property against which the exemption was claimed. Head-of-
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family, veteran and veterans' organization exemptions allowable
under this subsection shall be applied automatically by county
assessors in the subsequent tax years.
B. Other exemptions of real property specified
under Section 7-36-7 NMSA 1978 for nongovernmental entities
shall be claimed in order to be allowed. Once such exemptions
are claimed and allowed for a tax year, they need not be
claimed for subsequent tax years if there is no change in
eligibility. Exemptions allowable under this subsection shall
be applied automatically by county assessors in subsequent tax
years.
C. [Except as set forth in Subsection H of this
section] An exemption required to be claimed under this section
shall be applied for no later than thirty days after the
mailing of the county assessor's notices of valuation pursuant
to Section 7-38-20 NMSA 1978 in order for it to be allowed for
that tax year.
D. A person who has had an exemption applied to a
tax year and subsequently becomes ineligible for the exemption
because of a change in the person's status or a change in the
ownership of the property against which the exemption was
applied shall notify the county assessor of the loss of
eligibility for the exemption by the last day of February of
the tax year immediately following the year in which loss of
eligibility occurs.
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E. Exemptions may be claimed by filing proof of
eligibility for the exemption with the county assessor. The
proof shall be in a form prescribed by regulation of the
department. Procedures for determining eligibility of
claimants for any exemption shall be prescribed by regulation
of the department, and these regulations shall include
provisions for requiring the veterans' services department to
issue certificates of eligibility for veteran and veterans'
organization exemptions in a form and with the information
required by the department. The regulations shall also include
verification procedures to assure that veteran exemptions in
excess of the amount authorized under Section 7-37-5 NMSA 1978
are not allowed as a result of multiple claiming in more than
one county or claiming against more than one property in a
single tax year.
F. The department shall consult and cooperate with
the veterans' services department in the development, adoption
and promulgation of regulations under Subsection E of this
section. The veterans' services department shall comply with
the promulgated regulations. The veterans' services department
shall collect a fee of five dollars ($5.00) for the issuance of
a duplicate certificate of eligibility to a veteran or to a
veterans' organization.
G. A person who violates the provisions of this
section by intentionally claiming and receiving the benefit of
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an exemption to which the person is not entitled or who fails
to comply with the provisions of Subsection D of this section
is guilty of a misdemeanor and shall be punished by a fine of
not more than one thousand dollars ($1,000). A county assessor
or the assessor's employee who knowingly permits a claimant for
an exemption to receive the benefit of an exemption to which
the claimant is not entitled is guilty of a misdemeanor and
shall be punished by a fine of not more than one thousand
dollars ($1,000) and shall also be automatically removed from
office or dismissed from employment upon conviction under this
subsection.
[H. When a disabled veteran or the disabled
veteran's unmarried surviving spouse provides proof of
eligibility pursuant to Subsection E of this section, the
disabled veteran or the disabled veteran's unmarried surviving
spouse shall be allowed the exemption for the current tax year;
provided that the exemption shall not be allowed for property
tax due for previous tax years. ]"
SECTION 6. Section 7-38-17.1 NMSA 1978 (being Laws 1981,
Chapter 37, Section 68) is amended to read:
"7-38-17.1. PRESUMPTION OF NONRESIDENTIAL
CLASSIFICATION--DECLARATION OF RESIDENTIAL CLASSIFICATION.--
A. Property subject to valuation for property
taxation purposes for the 1982 and succeeding tax years is
presumed to be nonresidential and will be so recorded by the
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appropriate valuation authority unless the property owner
declares the property to be residential. This declaration will
be made on a form prescribed by the [division ] department,
signed by the owner or [his ] the owner's agent and mailed to
the valuation authority not later than the last day of February
of the property tax year to which it applies. [The form for
the declaration shall be mailed by the valuation authority to
property owners no later than January 31 of each property tax
year and shall include the property owner's name and address
and the description or identification of the property. It may
be included as part of a preliminary notice of valuation form
or any other similar form mailed to property owners during the
appropriate time period. ] The valuation authority will take
reasonable steps to verify any such declaration. [Once the
declaration is accepted ] The valuation authority [will ] shall
determine the tax classification of the property and make
appropriate entries on the valuation records. Declarations,
once accepted by the valuation authority, need not be made in
subsequent tax years if there is no change in the use of the
property.
B. No later than the last day of February of each
tax year, every owner of property subject to valuation for
property taxation purposes shall report to the appropriate
valuation authority as set out in Section 7-36-2 NMSA 1978
whenever the use of the property changes from residential to
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nonresidential or from nonresidential to residential. This
report will be made on a form prescribed by the [division ]
department and will be signed by the owner of the property or
[his] the owner's agent.
C. Any person who violates Subsection A of this
section by declaring a property [which ] that is nonresidential
to be residential or who violates Subsection B of this section
by failing to report a change of use from residential to
nonresidential shall be liable, for each tax year to which
declaration or failure to report applies, for:
(1) any additional taxes because of a
difference in tax rates imposed against residential and
nonresidential property;
(2) interest, calculated as provided under
Section 7-38-49 NMSA 1978, on any additional taxes determined
to be due under Paragraph (1) of this subsection; and
(3) a civil penalty of five percent of any
additional taxes determined to be due under Paragraph (1) of
this subsection.
D. Any person who violates Subsection A of this
section by declaring a property [which ] that is nonresidential
to be residential with the intent to evade any tax or who
violates Subsection B of this section by refusing or failing to
report a change of use from residential to nonresidential with
the intent to evade any tax is guilty of a misdemeanor and
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shall be punished by the imposition of a fine of not more than
one thousand dollars ($1,000). Any director, employee of the
[division] department, county assessor or employee of any
assessor who knowingly records a property [which ] that is
nonresidential to be residential is guilty of a misdemeanor and
shall be punished by a fine of not more than one thousand
dollars ($1,000) and shall be automatically removed from office
or dismissed from employment upon conviction under this
subsection.
E. The civil penalties authorized in Subsection C
of this section shall be imposed and collected at the same time
and in the same manner that the tax and interest are imposed
and collected. The county treasurer is responsible for making
entries on the appropriate records indicating amounts due and
the date of payment."
SECTION 7. Section 7-38-20 NMSA 1978 (being Laws 1973,
Chapter 258, Section 60, as amended) is amended to read:
"7-38-20. COUNTY ASSESSOR AND DEPARTMENT TO MAIL NOTICES
OF VALUATION.--
A. By April 1 of each year, the county assessor
shall mail a notice in a form prescribed by the county assessor
to each property owner informing the property owner of the net
taxable value of the property owner's property that has been
valued for property taxation purposes by the assessor and other
related information as required by Subsection D of this
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section.
B. By May 1 of each year, the department shall mail
a notice in a form prescribed by the department to each
property owner informing the property owner of the net taxable
value of the property owner's property that has been valued for
property taxation purposes by the department and other related
information as required by Subsection D of this section.
C. Failure to receive the notice required by this
section does not invalidate the value set on the property, any
property tax based on that value or any subsequent procedure or
proceeding instituted for the collection of the tax.
D. The notice required by this section shall state,
at a minimum:
(1) the property owner's name and address;
(2) the description or identification of the
property valued;
(3) the classification of the property valued;
(4) the value set on the property for property
taxation purposes;
(5) the tax ratio;
(6) the taxable value of the property for the
previous and current tax years;
(7) the tax rate from the previous tax year;
(8) the amount of tax from the previous tax
year;
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(9) with respect to residential property,
instructions for calculating an estimated tax for the current
tax year, which shall be prominently displayed on the front of
the notice, and a disclaimer for such instructions similar to
the following:
"The calculation of property tax may be higher or lower
than the property tax that will actually be imposed.";
(10) the amount of any exemptions allowed and
a statement of the net taxable value of the property after
deducting the exemptions;
(11) the allocations of net taxable values to
the governmental units;
(12) briefly, the eligibility requirements and
application procedures and deadline for claiming eligibility
for a limitation on increases in the valuation for property
taxation purposes of a single-family dwelling owned and
occupied by a person sixty-five years of age or older; and
(13) briefly, the procedures for protesting
the value determined for property taxation purposes,
classification, allocation of values to governmental units or
denial of a claim for an exemption or for the limitation on
increases in valuation for property taxation purposes.
E. The county assessor may mail the valuation
notice required pursuant to Subsection A of this section to
taxpayers with:
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(1) the preceding tax year's property tax
bills if the net taxable value of the property has not changed
since the preceding taxable year. In this early mailing, the
county assessor shall provide clear notice to the taxpayer that
the valuation notice is for the succeeding tax year and that
the deadlines for protest of the value or classification of the
property apply to this mailing date; and
(2) a form that may be completed by the
taxpayer and returned to the county assessor to update the
taxpayer's mailing address or the classification of the
taxpayer's property or to claim an exemption or a limitation on
increases in valuation for property taxation purposes pursuant
to the Property Tax Code ."
SECTION 8. Section 7-38-25 NMSA 1978 (being Laws 1973,
Chapter 258, Section 65, as amended) is amended to read:
"7-38-25. COUNTY VALUATION PROTESTS BOARDS--CREATION--
DUTIES--FUNDING.--
A. There is created in each county a "county
valuation protests board". Each board shall consist of three
voting members. Three alternates shall also be appointed to
serve as voting members in the absence of a voting member.
Voting members and alternates shall be appointed as follows:
(1) one member and one alternate shall be [a ]
qualified [elector] electors of the county and shall be
appointed by the board of county commissioners for [a term ]
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terms of two years;
(2) one member and one alternate shall be [a ]
qualified [elector] electors of the county, shall have
demonstrated experience in the field of valuation of property
and shall be appointed by the board of county commissioners for
[a term] terms of two years; and
(3) one member and one alternate shall be [a ]
property appraisal [officer ] officers employed by the
department, assigned by the [director ] secretary, and the
member shall be the [chairman ] chair of the board.
B. Members of the board and alternates appointed
under Paragraph (1) or (2) of Subsection A of this section
shall not hold any elective public office during the [term ]
terms of their appointment, nor shall any such member or
alternate be employed by the state, a political subdivision or
a school district during the term of [his ] the member's or
alternate's appointment.
C. Vacancies occurring on the board shall be filled
by the authority making the original appointment and shall be
for the unexpired term of the vacated membership.
D. The county valuation protests board shall hear
and decide protests of determinations made by county assessors
and protested under Section 7-38-24 NMSA 1978.
E. Members of the board and alternates when serving
as voting members appointed under Paragraphs (1) and (2) of
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Subsection A of this section shall be paid as independent
contractors at the rate of [eighty dollars ($80.00) ] four
hundred dollars ($400) a day for each day of actual service in
2025 and for each subsequent year, that rate adjusted for
inflation by multiplying four hundred dollars ($400) by a
fraction, the numerator of which is the consumer price index
ending during the prior tax year and the denominator of which
is the consumer price index ending in tax year 2025; the result
of the multiplication shall be rounded down to the nearest one
dollar ($1.00), except that if the result would be an amount
less than the corresponding amount for the preceding taxable
year, then no adjustment shall be made . The payment of board
members and alternates and all other actual and direct expenses
incurred in connection with protest hearings shall be paid by
the department."
SECTION 9. Section 7-38-38.1 NMSA 1978 (being Laws 1986,
Chapter 20, Section 116, as amended) is amended to read:
"7-38-38.1. RECIPIENTS OF REVENUE PRODUCED THROUGH AD
VALOREM LEVIES REQUIRED TO PAY COUNTIES ADMINISTRATIVE CHARGE
TO OFFSET COLLECTION COSTS.--
A. As used in this section:
(1) "revenue" means money for which a county
treasurer has the legal responsibility for collection and which
is owed to a revenue recipient as a result of an imposition
authorized by law of a rate expressed in mills per dollar or
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dollars per thousands of dollars of net taxable value of
property, assessed value of property or a similar term,
including but not limited to money resulting from the
authorization of rates and impositions under Subsection B and
Paragraphs (1) and (2) of Subsection C of Section 7-37-7 NMSA
1978, special levies for special purposes and benefit
assessments, but the term does not include any money resulting
from the imposition of taxes imposed under the provisions of
the Oil and Gas Ad Valorem Production Tax Act, the Oil and Gas
Production Equipment Ad Valorem Tax Act or the Copper
Production Ad Valorem Tax Act or money resulting from
impositions under Paragraph (3) of Subsection C of Section
7-37-7 NMSA 1978; and
(2) "revenue recipient" means the state and
any of its political subdivisions, including charter schools,
but excluding institutions of higher education located in class
A counties and class B counties having more than three hundred
million dollars ($300,000,000) valuation, that are authorized
by law to receive revenue.
B. Prior to the distribution to a revenue recipient
of revenue received by a county treasurer, the treasurer shall
deduct as an administrative charge an amount equal to one
percent of the revenue received.
C. The "county property valuation fund" is created
[All] as a nonreverting fund and shall consist of
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appropriations, transfers, gifts, income from investment of the
fund, administrative charges deducted by the county treasurer
[shall be distributed to the county property valuation fund ]
and all proceeds from the disposition or sale of any asset
purchased in whole or in part with money from the fund .
D. Expenditures from the county property valuation
fund shall be made pursuant to a property valuation program
presented by the county assessor and approved by the majority
of the county commissioners."
SECTION 10. APPLICABILITY.--
A. The provisions of Sections 1 and 2 of this act
apply to property tax years beginning on or after January 1,
2025.
B. The provisions of Section 3 of this act apply to
property tax years beginning on or after January 1, 2026.
SECTION 11. EMERGENCY.--It is necessary for the public
peace, health and safety that this act take effect immediately.
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