0001| HOUSE BILL 1112
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0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997
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0003| INTRODUCED BY
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0004| RAYMOND G. SANCHEZ
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0005|
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0006|
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0007|
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0008|
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0009|
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0010| AN ACT
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0011| RELATING TO PROPERTY TAXATION; AMENDING SECTION 7-36-20 NMSA
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0012| 1978 (BEING LAWS 1973, CHAPTER 258, SECTION 21, AS AMENDED)
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0013| PERTAINING TO VALUATION OF LAND USED PRIMARILY FOR AGRICULTURAL
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0014| PURPOSES.
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0015|
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0016| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0017| Section 1. Section 7-36-20 NMSA 1978 (being Laws 1973,
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0018| Chapter 258, Section 21, as amended) is amended to read:
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0019| "7-36-20. SPECIAL METHOD OF VALUATION--LAND USED
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0020| PRIMARILY FOR AGRICULTURAL PURPOSES.--
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0021| A. The value of land used primarily for
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0022| agricultural purposes shall be determined on the basis of the
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0023| land's capacity to produce agricultural products. [The burden
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of demonstrating primary agricultural use is on the owner of
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the land, and he must produce objective] Evidence of bona
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0001| fide primary agricultural use of land for the tax year
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0002| preceding the year in which application is made for [his]
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0003| the land to be valued under this section [The fact that land
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was devoted to agricultural use in the preceding year is not of
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itself sufficient evidence to support a finding of bona fide
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primary agricultural use when there is evidence that the
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agricultural use was subordinate to another use or purpose of
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the owner, such as holding for speculative land subdivision and
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sale, commercial use of a nonagricultural character,
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recreational use or other nonagricultural purpose] creates a
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0011| presumption that the land is used primarily for agricultural
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0012| purposes during the tax year in which the application is made.
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0013| If the land was valued under this section in either or both of
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0014| the two tax years preceding the year in which application is
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0015| made and the use of the land has not changed since the most
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0016| recent valuation under this section, a presumption is created
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0017| that the land continues to be entitled to that valuation.
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0018| B. For the purpose of this section, "agricultural
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0019| use" means the use of land for the production of plants, crops,
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0020| trees, forest products, orchard crops, livestock, poultry or
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0021| fish. The term also includes the use of land that meets the
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0022| requirements for payment or other compensation pursuant to a
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0023| soil conservation program under an agreement with an agency of
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0024| the federal government.
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0025| C. The department shall adopt regulations for
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0001| determining whether or not land is used primarily for
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0002| agricultural purposes.
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0003| D. The department shall adopt regulations for
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0004| determining the value of land used primarily for agricultural
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0005| purposes. The regulations shall:
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0006| (1) specify procedures to use in determining
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0007| the capacity of land to produce agricultural products and the
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0008| derivation of value of the land based upon its production
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0009| capacity;
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0010| (2) establish carrying capacity as the
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0011| measurement of the production capacity of land used for grazing
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0012| purposes, develop a system of determining carrying capacity
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0013| through the use of an animal unit concept and establish
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0014| carrying capacities for the land in the state classified as
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0015| grazing land;
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0016| (3) provide for the consideration of
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0017| determinations of any other governmental agency concerning the
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0018| capacity of the same or similar lands to produce agricultural
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0019| products;
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0020| (4) assure that land determined under the
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0021| regulations to have the same or similar production capacity
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0022| shall be valued uniformly throughout the state; and
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0023| (5) provide for the periodic review by the
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0024| department of determined production capacities and
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0025| capitalization rates used for determining annually the value of
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0001| land used primarily for agricultural purposes.
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0002| E. All improvements, other than those specified in
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0003| Section [72-29-5 NMSA 1953] 7-36-15 NMSA 1978, on land used
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0004| primarily for agricultural purposes shall be valued separately
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0005| for property taxation purposes and the value of these
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0006| improvements shall be added to the value of the land determined
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0007| under this section.
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0008| F. The owner of the land must make application to the
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0009| county assessor in each tax year in which the valuation method
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0010| of this section is claimed to be applicable to his land.
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0011| Application shall be made under oath, shall be in a form and
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0012| contain the information required by department regulations and
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0013| must be made no later than the last day of February of the tax
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0014| year. If the owner of the land fails to make the application
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0015| required by this subsection, the county assessor shall:
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0016| (1) if the land was valued under this section in
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0017| the immediately preceding tax year and if he determines that
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0018| the land continues to be entitled to valuation under this
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0019| section, value the land under this section and impose a penalty
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0020| for failure to make the required application in an amount equal
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0021| to fifteen percent of the tax determined to be due on the land
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0022| for that tax year; or
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0023| (2) if the land was valued under this section in
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0024| the immediately preceding tax year and if he determines that
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0025| the land is no longer entitled to valuation under this section,
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0001| value the land in accordance with the applicable provisions of
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0002| the Property Tax Code and department regulations.
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0003| If land is initially valued under Paragraph (2) of this
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0004| subsection and, due to subsequent action by the county assessor
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0005| or as a result of a protest, the land is determined to be
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0006| entitled to valuation as land used primarily for agricultural
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0007| purposes, the penalty provided in Paragraph (1) of this
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0008| subsection shall be applied. The presumptions created in
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0009| Subsection A of this section shall apply to this subsection."
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0010| Section 2. APPLICABILITY.--The provisions of this act
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0011| apply to the 1998 and subsequent property tax years.
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0012| State of New Mexico
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0013| House of Representatives
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0014|
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0015| FORTY-THIRD LEGISLATURE
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0016| FIRST SESSION, 1997
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0017|
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0018|
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0019| February 28, 1997
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0020|
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0021|
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0022| Mr. Speaker:
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0023|
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0024| Your TAXATION AND REVENUE COMMITTEE, to whom has
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0025| been referred
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0001|
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0002| HOUSE BILL 1112
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0003|
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0004| has had it under consideration and reports same with
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0005| recommendation that it DO PASS, amended as follows:
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0006|
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0007| 1. On page 2, line 1, strike "in" and insert in lieu
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0008| thereof "for".
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0009|
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0010| 2. On page 2, line 2, strike "application" and insert in
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0011| lieu thereof "determination".
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0012|
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0013| 3. On page 2, line 2, after "made" insert "of eligibility".
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0014|
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0015| 4. On page 2, line 12, strike "application" and insert in
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0016| lieu thereof "determination".
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0017|
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0018| 5. On page 2, line 13, strike "either or both" and insert
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0019| in lieu thereof "one or more".
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0020|
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0021| 6. On page 2, line 13, strike "two" and insert in lieu
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0022| thereof "three".
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0023|
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0024| 7. On page 2, line 14, strike "application" and insert in
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0025| lieu thereof "the determination".
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0001|
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0002| 8. On page 4, line 8, strike "each" and insert in lieu
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0003| thereof "a".
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0004|
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0005| 9. On page 4, line 9, after "is" insert "first".
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0006|
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0007| 10. On page 4, line 9, strike "his" and insert in lieu
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0008| thereof "the".
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0009|
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0010| 11. On page 4, line 9, before the period insert "or in a
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0011| tax year immediately subsequent to a tax year in which the land
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0012| was not valued under this section".
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0013|
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0014|
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0015| 12. On page 4, line 13, after the period strike the
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0016| remainder of the line and strike all of lines 14 through 25 and
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0017| on page 5, strike all of lines 1 through 8, and insert in lieu
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0018| thereof:
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0019|
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0020| "Once land is valued under this section, application need not be
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0021| made in subsequent tax years as long as there is no change in the
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0022| use of the land.
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0023|
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0024| G. The owner of land valued under this section shall
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0025| report to the county assessor whenever the use of the land
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0001| changes so that it is no longer being used primarily for
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0002| agricultural purposes. This report shall be made on a form
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0003| prescribed by department regulations and shall be made by the
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0004| last day of February of the tax year immediately following the
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0005| year in which the change in the use of the land occurs.
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0006|
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0007| H. Any person who is required to make a report under
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0008| the provisions of Subsection G of this section and who fails to
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0009| do so is personally liable for a civil penalty in an amount equal
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0010| to the greater of twenty-five dollars ($25.00) or twenty-five
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0011| percent of the difference between the property taxes ultimately
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0012| determined to be due and the property taxes originally paid for
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0013| the tax year or years for which the person failed to make the
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0014| required report."".
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0015|
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0016|
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0017|
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0018|
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0019|
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0020| Respectfully submitted,
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0021|
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0022|
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0023|
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0024|
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0025|
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0001|
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0002| Jerry W. Sandel, Chairman
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0003|
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0004|
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0005| Adopted Not Adopted
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0006| (Chief Clerk)
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0007| (Chief Clerk)
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0008|
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0009| Date
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0010|
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0011| The roll call vote was 10 For 0 Against
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0012| Yes: 10
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0013| Excused: Gonzales, Lovejoy, Ryan
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0014| Absent: None
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0015|
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0016|
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0017| .117937.1
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0018| G:\BILLTEXT\BILLW_97\H1112
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0019|
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0020| FORTY-THIRD LEGISLATURE
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0021| FIRST SESSION, 1997
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0022|
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0023|
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0024| March 15, 1997
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0025|
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0001| Mr. President:
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0002|
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0003| Your WAYS AND MEANS COMMITTEE, to whom has been
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0004| referred
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0005|
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0006| HOUSE BILL 1112, as amended
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0007|
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0008| has had it under consideration and reports same with
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0009| recommendation that it DO PASS.
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0010|
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0011| Respectfully submitted,
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0012|
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0013|
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0014|
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0015|
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0016| __________________________________
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0017| Carlos R. Cisneros, Chairman
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0018|
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0019|
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0020|
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0021| Adopted_______________________ Not
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0022| Adopted_______________________
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0023| (Chief Clerk) (Chief Clerk)
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0024|
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0025|
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0001|
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0002| Date ________________________
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0003|
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0004|
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0005| The roll call vote was 6 For 0 Against
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0006| Yes: 6
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0007| No: 0
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0008| Excused: Duran, Jennings, Wilson
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0009| Absent: None
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0010|
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0011|
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0012| H1112WM1
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