SENATE BILL 564
49th legislature - STATE OF NEW MEXICO - first session, 2009
INTRODUCED BY
Dianna J. Duran
AN ACT
RELATING TO REAL PROPERTY; REQUIRING DISCLOSURE TO THE PURCHASER OF RESIDENTIAL REAL PROPERTY OF THE POTENTIAL FOR INCREASED PROPERTY TAXES; REQUIRING COUNTY ASSESSORS TO PROVIDE PROPERTY TAX DECLARATION DOCUMENTS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. A new section of the Property Tax Code, Section 7-38-19.1 NMSA 1978, is enacted to read:
"7-38-19.1. [NEW MATERIAL] PROPERTY TAX DECLARATION DOCUMENT.--
A. The county assessor shall provide to the owner of residential property within the county a property tax declaration document if the property owner has provided in writing:
(1) a request for a property tax declaration document for property owned by the requestor;
(2) a statement that the property is being marketed for sale; and
(3) the price at which the property is being marketed for sale.
B. A property tax declaration document provided pursuant to this section shall include the following:
(1) the date the property tax declaration document was prepared;
(2) the address, legal description and name of the current legal owner of the property with respect to which the property tax declaration document was prepared;
(3) the assessed valuation and amount of property taxes imposed on the property for the current property tax year;
(4) the price at which the property is being marketed for sale, as provided by the property owner;
(5) an estimate of the amount of future property taxes that may be imposed on the property, based on the price at which the property is being marketed for sale and the current property tax rate;
(6) a disclaimer that the estimate of future property taxes is a good faith estimate only and does not reflect possible increases in the imposed property tax rate; and
(7) a signature line for the seller and a signature line for the buyer.
C. The department shall develop a standardized format for the property tax declaration document required by this section and shall provide the format to county assessors. County assessors shall use this format when providing property tax declaration documents."
Section 2. 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 to each property owner informing [him] the property owner of the net taxable value of [his] the property owner's property that has been valued for property taxation purposes by the assessor.
B. By May 1 of each year, the department shall mail a notice to each property owner informing [him] the property owner of the net taxable value of [his] the property owner's property that has been valued for property taxation purposes by the department.
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:
(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;
(7) the amount of any exemptions allowed and a statement of the net taxable value of the property after deducting the exemptions;
(8) the allocations of net taxable values to the governmental units;
(9) 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]
(10) 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; and
(11) a statement advising the property owner:
(a) of the obligation, pursuant to the Real Estate Disclosure Act, of the seller of residential property to provide a property tax declaration document to any prospective purchaser of the property; and
(b) that a property tax declaration document may be obtained from the office of the county assessor in the county in which the property is located.
E. The county assessor may mail the valuation notice required pursuant to Subsection A of this section to taxpayers with 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."
Section 3. Section 7-38-37 NMSA 1978 (being Laws 1973, Chapter 258, Section 77, as amended) is amended to read:
"7-38-37. CONTENTS OF PROPERTY TAX BILL.--Each property tax bill shall be in a form and contain the information required by regulations of the department and shall contain at least the following:
A. all of the information required to be contained in the property tax schedule;
B. the amount of property taxes due on each installment, the due dates of the installments and the dates on which taxes become delinquent;
C. a brief statement of the option available to make prepayments of the property tax due pursuant to Sections 7-38-38.2 and 7-38-38.3 NMSA 1978;
D. a brief statement of the procedure under Section 7-38-39 NMSA 1978 for protesting values for property taxation purposes, classification, allocation of values to governmental units or a denial of a claim for an exemption;
E. a statement of the interest and penalties imposed by law for delinquency in the payment of property taxes and the remedies available against the taxpayer and the property for nonpayment of the amount due;
F. a statement advising the property owner that the property tax bill is the only notice the property owner will receive for payment of both installments of the tax if no separate notice will be sent with respect to the second installment;
G. the amount of any prepayment of the first installment made pursuant to Section 7-38-38.2 NMSA 1978; [and]
H. the total amount of any monthly payments made pursuant to Section 7-38-38.3 NMSA 1978 and a statement of the amount of the final monthly payment necessary to pay the balance of the tax due; and
I. a statement advising the property owner:
(1) of the obligation, pursuant to the Real Estate Disclosure Act, of the seller of residential property to provide a property tax declaration document to any prospective purchaser of the property; and
(2) that a property tax declaration document may be obtained from the office of the county assessor in the county in which the property is located."
Section 4. 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 5. A new section of the Real Estate Disclosure Act is enacted to read:
"[NEW MATERIAL] PROPERTY TAX DECLARATION DOCUMENT REQUIRED.--At the time residential real property is offered for sale, the seller of the property shall obtain from the county assessor of the county in which the property is located a property tax declaration document pursuant to Section 7-38-19.1 NMSA 1978, and the seller shall make the document available to any prospective purchaser of the property prior to the execution of a purchase agreement for the property."
Section 6. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2009.
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