HOUSE BILL 261
49th legislature - STATE OF NEW MEXICO - first session, 2009
INTRODUCED BY
Edward C. Sandoval
AN ACT
RELATING TO REAL PROPERTY; REQUIRING DISCLOSURE OF ESTIMATED FUTURE PROPERTY TAXES TO A BUYER OF RESIDENTIAL REAL PROPERTY.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. Section 47-13-1 NMSA 1978 (being Laws 1991, Chapter 74, Section 1) is amended to read:
"47-13-1. SHORT TITLE.--[Sections 1 through 3 of this act] Chapter 47, Article 13 NMSA 1978 may be cited as the "Real Estate Disclosure Act"."
Section 2. A new section of the Real Estate Disclosure Act, Section 47-13-1.1 NMSA 1978, is enacted to read:
"47-13-1.1. [NEW MATERIAL] DEFINITION.--As used in the Real Estate Disclosure Act, "estimated amount of property tax due" means the product of one-third of the offer price, sales price or specified value, as appropriate, of the residential real property being sold or otherwise transferred in the transaction multiplied by the current property tax rates applicable to the property if those tax rates have been imposed in accordance with Section 7-38-34 NMSA 1978 for the current year for the county in which the property is located or, in all other cases, by the tax rates for the prior year."
Section 3. A new section of the Real Estate Disclosure Act, Section 47-13-4 NMSA 1978, is enacted to read:
"47-13-4. [NEW MATERIAL] FINDING--DISCLOSURE OF INFORMATION REQUIRED IN CERTAIN REAL ESTATE TRANSACTIONS.--
A. The legislature finds that property tax due on a residential property for the current year can be a misleading guide to property tax due in the years following the sale of that property and that a prospective buyer needs information regarding the property tax obligation in the year following the property's sale to judge properly the affordability of a contemplated purchase.
B. At the time an offer for a residential property is being prepared, each real estate broker or agent acting on behalf of the prospective buyer shall present to the prospective buyer, or ensure that the buyer is presented with, the information specified in Subsection F of this section based on the offer price.
C. At the time a title binder is offered to a prospective insured with respect to residential property, the title company shall present to the prospective insured, or ensure that the prospective insured is presented with, the information specified in Subsection F of this section based on the sales price for the property.
D. At the time a prospective buyer of residential property applies for a loan from any lending institution in this state to buy the property, the lending institution shall present to the prospective buyer, or ensure that the prospective buyer is presented with, the information specified in Subsection F of this section based on the sales price for the property.
E. Each county assessor or county treasurer shall promptly reply to inquiries as to the estimated property tax liability with respect to a residential property in the county at a value specified by the requestor by furnishing the information specified in Subsection F of this section. A county may satisfy this obligation through an internet site or other automated format. A document associated with the request or answer is not a public record or a valuation record. County assessors shall not use information provided with a request, including the specified value, to assess the valuation of the property. Neither the county nor any jurisdiction levying a tax against residential property in the county is bound in any way by the estimate given.
F. When required by Subsections B through D of this section or when requested pursuant to Subsection E of this section, the following information shall be provided:
(1) the actual amount of property tax due for the residential property for the current calendar year if the tax rates for the current year have been imposed in accordance with Section 7-38-34 NMSA 1978 for the county in which the property is located or, in all other cases, the amount of property tax due with respect to the property for the prior year; and
(2) the estimated amount of property tax due for the property for the year following the year in which the transaction takes place with a disclaimer substantially similar to the following:
"The estimated amount of property tax due is calculated using the stated price and estimates of the applicable tax rates. The county assessor is required by law to value the property at its "current and correct" value, which may differ from the stated price. Further, the estimated tax rates may be higher or lower than those that will actually be imposed. Accordingly, the actual tax due may be higher or lower than the estimated amount of property tax."".
Section 3. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2009.
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