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SENATE MEMORIAL 45

TH LEGISLATURE

- STATE OF NEW MEXICO -

FIRST SESSION

, 2007

INTRODUCED BY

Mark Boitano

A MEMORIAL

REQUESTING THE TAXATION AND REVENUE DEPARTMENT AND THE INTERIM

REVENUE STABILIZATION AND TAX POLICY COMMITTEE TO STUDY THE

INEQUITIES CREATED BY THE STATUTORY PROVISIONS LIMITING

INCREASES IN VALUATION OF CERTAIN RESIDENTIAL PROPERTY.

WHEREAS, Section 7-36-21.2 NMSA 1978 provides for a limit

on increases in valuation for property tax purposes of three

percent per year for property that remains in the same

ownership but allows for radical changes in valuation whenever

property is transferred; and

WHEREAS, the statutorily mandated property valuations

process has created inequities in valuation between

substantially identical properties in the same county and has

increased the inequities among property tax values in different

counties; and

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WHEREAS, this system of property valuation gives a tax

advantage to persons able to remain in their homes while

putting at a disadvantage first-time home buyers and many

elderly home buyers and creates a hardship for persons who need

to relocate to another home; and

WHEREAS, the higher tax level resulting from the higher

valuation makes it difficult to develop affordable housing

projects and creates difficulty for some homeowners in meeting

monthly mortgage payments; and

WHEREAS, county assessors do not uniformly use sales price

disclosure data in revaluing property upon transfer but employ

various individual approaches and the differing valuation

standards make it hard to determine if assessors are valuing

all properties fairly; and

WHEREAS, there is no clearly defined standard of "current

and correct" value by which to judge the compliance of the

various county assessors;

NOW, THEREFORE, BE IT RESOLVED BY THE SENATE OF THE STATE

OF NEW MEXICO that the property tax division of the taxation

and revenue department undertake a review of the assessment

process as it is actually carried out by county assessors and

the status of "current and correct" values in all counties of

the state and present a report no later than September 15, 2007

to the interim revenue stabilization and tax policy committee

on the presence or absence of inequities in property tax

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valuation in New Mexico; and

BE IT FURTHER RESOLVED that the interim revenue

stabilization and tax policy committee, using the report from

the taxation and revenue department, develop recommendations

for statutory changes to make the residential property

valuation system in New Mexico more equitable and present these

recommendations to the second session of the forty-eighth

legislature; and

BE IT FURTHER RESOLVED that copies of this memorial be

transmitted to the secretary of taxation and revenue and the

director of the legislative council service.

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