SENATE BILL 192
57th 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 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 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 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:
(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 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 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
(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.
[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 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 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:
(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 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 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-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.
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 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 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 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 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 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;
(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:
(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] 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 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 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 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.
- 27 -