0001| SENATE BILL 897
|
0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997
|
0003| INTRODUCED BY
|
0004| MARK L. BOITANO
|
0005|
|
0006|
|
0007|
|
0008|
|
0009|
|
0010| AN ACT
|
0011| RELATING TO PROPERTY TAXATION; PROVIDING FOR PERSONS SIXTY-FIVE
|
0012| YEARS OF AGE OR OLDER TO DEFER THE DATE THAT CERTAIN PROPERTY
|
0013| TAXES ARE DUE; PROVIDING PENALTIES; AMENDING AND ENACTING
|
0014| SECTIONS OF THE NMSA 1978.
|
0015|
|
0016| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
|
0017| Section 1. Section 7-38-20 NMSA 1978 (being Laws 1973,
|
0018| Chapter 258, Section 60, as amended) is amended to read:
|
0019| "7-38-20. COUNTY ASSESSOR AND DEPARTMENT TO MAIL NOTICES
|
0020| OF VALUATION.--
|
0021| A. By April 1 of each year, the county assessor
|
0022| shall mail a notice to each property owner informing him of the
|
0023| net taxable value of his property that has been valued for
|
0024| property taxation purposes by the assessor.
|
0025| B. By May 1 of each year, the department shall mail
|
0001| a notice to each property owner informing him of the net
|
0002| taxable value of his property that has been valued for property
|
0003| taxation purposes by the department.
|
0004| C. Failure to receive the notice required by this
|
0005| section does not invalidate the value set on the property, any
|
0006| property tax based on that value or any subsequent procedure or
|
0007| proceeding instituted for the collection of the tax.
|
0008| D. The notice required by this section shall state:
|
0009| (1) the property owner's name and address;
|
0010| (2) the description or identification of the
|
0011| property valued;
|
0012| (3) the classification of the property valued;
|
0013| (4) the value set on the property for property
|
0014| taxation purposes;
|
0015| (5) the tax ratio;
|
0016| (6) the taxable value of the property;
|
0017| (7) the amount of any exemptions allowed and a
|
0018| statement of the net taxable value of the property after
|
0019| deducting the exemptions;
|
0020| (8) the allocations of net taxable values to
|
0021| the governmental units; [and]
|
0022| (9) briefly, the procedures for protesting the
|
0023| value determined for property taxation purposes,
|
0024| classification, allocation of values to governmental units or
|
0025| denial of a claim for an exemption; and
|
0001| (10) in large type and placed conspicuously on
|
0002| the form, the eligibility requirements, procedures and deadline
|
0003| for applying for a deferral of the date certain residential
|
0004| property taxes are due, and shall include the following notice:
|
0005| "NOTICE TO TAXPAYERS
|
0006| OPTION TO DEFER PAYMENT OF PROPERTY TAXES
|
0007| If you are sixty-five years of age or older and meet income
|
0008| limitations and other requirements, New Mexico law entitles you
|
0009| to DEFER PAYMENT of a portion of property taxes imposed on your
|
0010| home in excess of five percent of your household income. To
|
0011| get more information or apply for a tax deferral, see the
|
0012| information below.
|
0013| WARNING: DEFERRING TAXES WILL RESULT IN TAXES BECOMING
|
0014| DUE UPON SALE OR TRANSFER OF YOUR HOME OR UPON YOUR DEATH.".
|
0015| E. The county assessor may mail the valuation
|
0016| notice required pursuant to Subsection A of this section to
|
0017| taxpayers with the preceding tax year's property tax bills if
|
0018| the net taxable value of the property has not changed since the
|
0019| preceding taxable year. In this early mailing, the county
|
0020| assessor shall provide clear notice to the taxpayer that the
|
0021| valuation notice is for the succeeding tax year and that the
|
0022| deadlines for protest of the value or classification of the
|
0023| property apply to this mailing date."
|
0024| Section 2. Section 7-38-31 NMSA 1978 (being Laws 1973,
|
0025| Chapter 258, Section 71) is amended to read:
|
0001| "7-38-31. COUNTY ASSESSOR TO CERTIFY NET TAXABLE VALUES
|
0002| TO THE DEPARTMENT.--After receiving the values for property
|
0003| taxation purposes certified to him by the department, the
|
0004| county assessor shall determine the net taxable value for all
|
0005| property allocated to governmental units in the county and
|
0006| subject to valuation for property taxation purposes, whether
|
0007| valued by him or by the department. No later than June 15 of
|
0008| each year, the county assessor shall certify to the department
|
0009| the net taxable values for all property allocated to
|
0010| governmental units in the county and subject to property
|
0011| taxation. The net taxable values of property shall be
|
0012| certified according to governmental units within the county.
|
0013| The assessor's certification shall include a statement of all
|
0014| property valuations that are the subject of a pending protest,
|
0015| whether protested locally or to the department, [and] a
|
0016| statement of the uncontroverted valuation in the pending
|
0017| protests and property valuations of property for which the
|
0018| property tax due date has been deferred pursuant to Section
|
0019| 7-38-38.3 NMSA 1978."
|
0020| Section 3. Section 7-38-32 NMSA 1978 (being Laws 1973,
|
0021| Chapter 258, Section 72, as amended) is amended to read:
|
0022| "7-38-32. DEPARTMENT TO PREPARE A COMPILATION OF NET
|
0023| TAXABLE VALUES TO BE USED FOR BUDGET-MAKING AND RATE-SETTING.--
|
0024| A. No later than June 30 of each year, the
|
0025| department shall prepare a compilation of all net taxable
|
0001| values certified to it by the county assessors and shall
|
0002| include in the compilation the information regarding protested
|
0003| values required to be furnished by the assessors to the
|
0004| department and the net taxable values of property for which
|
0005| the tax due date has been deferred pursuant to Section 7-38-
|
0006| 38.3 NMSA 1978. The compilation shall be prepared in a form
|
0007| appropriate for use and shall be used for the purpose of making
|
0008| budgets. The compilation of net taxable values shall be sent
|
0009| immediately to the secretary of finance and administration.
|
0010| B. No later than August 1 of each year, the
|
0011| department shall prepare an amended compilation of net taxable
|
0012| values and send it immediately to the secretary of finance and
|
0013| administration. This amended compilation shall include final
|
0014| valuations resulting from completed protests and information on
|
0015| pending protests and deletion of net taxable values of
|
0016| property for which the tax due date has been deferred. It
|
0017| shall be used by the department of finance and administration
|
0018| in setting
|
0019| property tax rates.
|
0020| C. In the budget-making process for local units of
|
0021| government including school districts, the net taxable values
|
0022| from the immediately preceding tax year may be considered for
|
0023| the purpose of estimating available revenue from the current
|
0024| tax year when the compilation of net taxable values certified
|
0025| under Subsection A of this section is incomplete or
|
0001| indefinite due to pending protests."
|
0002| Section 4. Section 7-38-35 NMSA 1978 (being Laws 1973,
|
0003| Chapter 258, Section 75, as amended) is amended to read:
|
0004| "7-38-35. PREPARATION OF PROPERTY TAX SCHEDULE BY
|
0005| ASSESSOR.--
|
0006| A. After receipt of the rate-setting order and the
|
0007| order imposing the tax, but no later than October 1 of each tax
|
0008| year, the county assessor shall prepare a property tax schedule
|
0009| for all property subject to property taxation in the county.
|
0010| This schedule shall be in a form and contain the information
|
0011| required by regulations of the [division] department and
|
0012| shall contain at least the following information:
|
0013| (1) the description of the property taxed and,
|
0014| if the property is personal property, its location;
|
0015| (2) the property owner's name and address and
|
0016| the name and address of any person other than the owner to whom
|
0017| the tax bill is to be sent;
|
0018| (3) the classification of the property;
|
0019| (4) the value of the property determined for
|
0020| property taxation purposes;
|
0021| (5) the tax ratio;
|
0022| (6) the taxable value of the property;
|
0023| (7) the amount of any exemption allowed and a
|
0024| statement of the net taxable value of the property after
|
0025| deducting the exemption;
|
0001| (8) the allocations of net taxable value to
|
0002| the governmental units;
|
0003| (9) the tax rate in dollars per thousand of
|
0004| net taxable value for all taxes imposed on the property;
|
0005| (10) the amount of taxes due on the described
|
0006| property; [and]
|
0007| (11) the amount of any penalties and interest
|
0008| already imposed and due on the described property; and
|
0009| (12) the amount of taxes deferred, if any.
|
0010| B. The property tax schedule is a public record and
|
0011| a part of the valuation records."
|
0012| Section 5. Section 7-38-37 NMSA 1978 (being Laws 1973,
|
0013| Chapter 258, Section 77, as amended) is amended to read:
|
0014| "7-38-37. CONTENTS OF PROPERTY TAX BILL.--Each property
|
0015| tax bill shall be in a form and contain the information
|
0016| required by regulations of the department and shall contain at
|
0017| least the following:
|
0018| A. all of the information required to be contained
|
0019| in the property tax schedule;
|
0020| B. the amount of property taxes due on each
|
0021| installment, the due dates of the installments and the dates on
|
0022| which taxes become delinquent;
|
0023| C. a brief statement of the option available to
|
0024| make prepayments of the property tax due pursuant to Section
|
0025| 7-38-38.2 NMSA 1978;
|
0001| D. a brief statement of the procedure under Section
|
0002| 7-38-39 NMSA 1978 for protesting values for property taxation
|
0003| purposes, classification, allocation of values to governmental
|
0004| units or a denial of a claim for an exemption;
|
0005| E. a statement of the interest and penalties
|
0006| imposed by law for delinquency in the payment of property taxes
|
0007| and the remedies available against the taxpayer and the
|
0008| property for nonpayment of the amount due;
|
0009| F. a statement advising the property owner that the
|
0010| property tax bill is the only notice he will receive for
|
0011| payment of both installments of the tax if no separate notice
|
0012| will be sent with respect to the second installment; [and]
|
0013| G. the amount of any prepayment of the first
|
0014| installment made pursuant to Section 7-38-38.2 NMSA 1978; and
|
0015| H. the actual amount of property taxes deferred
|
0016| pursuant to Section 7-38-38.3 NMSA 1978 for the current tax
|
0017| year and the accrued amount of all property taxes deferred from
|
0018| all tax years."
|
0019| Section 6. A new section of the Property Tax Code,
|
0020| Section 7-38-38.3 NMSA 1978, is enacted to read:
|
0021| "7-38-38.3. [NEW MATERIAL] DEFERRAL OF PROPERTY
|
0022| TAX DUE DATE--ELIGIBILITY.--
|
0023| A. Each property tax year a claimant is entitled to
|
0024| apply for and the county treasurer may grant a deferral of the
|
0025| date on which some portion of the property taxes are due on the
|
0001| residential property that is the claimant's primary residence.
|
0002| A claimant may defer some or all of that portion of the
|
0003| property tax due on the claimant's primary residence in excess
|
0004| of five percent of the claimant's modified gross income for the
|
0005| taxable year immediately prior to the property tax year for
|
0006| which the deferral is being claimed.
|
0007| B. When two or more individuals are qualified as
|
0008| claimants for one primary residence, they shall determine who
|
0009| the claimant shall be. The department shall prescribe the
|
0010| manner in which a claimant, who for any reason is
|
0011| incapacitated, may appoint the claimant's spouse or an
|
0012| authorized agent or have any such person appointed for the
|
0013| claimant, for the purpose of claiming a deferral of the date
|
0014| property taxes are due pursuant to this section.
|
0015| C. Property taxes deferred pursuant to this section
|
0016| shall be due on November 10 of the year in which the first of
|
0017| any of the following events occurs, unless the event occurs
|
0018| after October 1, and in that case the deferred property taxes
|
0019| shall be due on April 10 of the following year:
|
0020| (1) the claimant ceases to occupy the
|
0021| residential property as his primary residence or sells or
|
0022| otherwise disposes of that primary residence;
|
0023| (2) the claimant dies; provided that if the
|
0024| surviving spouse or a joint tenant with rights of survivorship
|
0025| owning and occupying the primary residence and eligible to
|
0001| defer property taxes due pursuant to this section continues to
|
0002| own and occupy the residential property as that person's
|
0003| primary residence and chooses to claim a deferral of the date
|
0004| the deferred property taxes are due, then the deferred amounts
|
0005| shall not be due until that claimant dies or ceases to occupy
|
0006| the primary residence; or
|
0007| (3) the county treasurer determines that
|
0008| deferral was erroneously allowed because eligibility
|
0009| requirements were not met.
|
0010| D. As used in this section:
|
0011| (1) "claimant" means an individual who is
|
0012| sixty-five years of age or older on the last day of the
|
0013| applicable tax year, who is an owner and occupant of
|
0014| residential property that is his primary residence on the last
|
0015| day of the applicable tax year and whose modified gross income
|
0016| does not exceed one hundred twenty-five percent of the poverty
|
0017| level for the claimant's household size;
|
0018| (2) "modified gross income" means modified
|
0019| gross income as defined in the Income Tax Act; and
|
0020| (3) "poverty level" means the official federal
|
0021| poverty guidelines published annually by the federal department
|
0022| of health and human services."
|
0023| Section 7. A new section of the Property Tax Code,
|
0024| Section 7-38-38.4 NMSA 1978, is enacted to read:
|
0025| "7-38-38.4. [NEW MATERIAL] PROPERTY TAX DEFERRAL--
|
0001| APPLICATION--CERTIFICATION--COLLECTION OF TAXES.--
|
0002| A. To make application for a property tax deferral
|
0003| authorized pursuant to Section 7-38-38.3 NMSA 1978, a claimant
|
0004| shall file an application for deferral on or before June 1 of
|
0005| the tax year in which the property taxes are imposed.
|
0006| Application shall be made at the office of the county
|
0007| treasurer. The department shall provide for uniform application
|
0008| forms and procedures.
|
0009| B. If deferral is granted by the county treasurer,
|
0010| the county treasurer shall issue to the claimant a certificate
|
0011| of deferral and shall provide a listing of such certificates of
|
0012| deferral in force for the property tax year by July 1 to each
|
0013| governmental unit that has imposed a property tax on the
|
0014| primary residences of such claimants.
|
0015| C. The certificate of deferral shall state the
|
0016| amount of tax estimated to be deferred and shall provide clear
|
0017| notice that the exact amount of tax deferred will be stated on
|
0018| the property tax bill mailed to the claimant after October 1 of
|
0019| the tax year.
|
0020| D. If the claimant's property taxes are paid by a
|
0021| lender from an escrow account or other similar account, the
|
0022| county treasurer shall mail a copy of the certificate of
|
0023| deferral to the lender.
|
0024| E. All or part of the taxes deferred pursuant to
|
0025| Section 7-38-38.3 NMSA 1978 may be paid at any time prior to
|
0001| the due date to the county treasurer by the claimant or any
|
0002| person on behalf of the claimant.
|
0003| F. When any taxes deferred pursuant to Section
|
0004| 7-38-38.3 NMSA 1978 are collected, the county treasurer shall
|
0005| maintain a record of the payment, a description of the property
|
0006| and the amount of taxes collected for the property. The county
|
0007| treasurer shall apportion and distribute the receipts from the
|
0008| property taxes collected to the applicable governmental units
|
0009| as provided by law and in accordance with the provisions of the
|
0010| Property Tax Code."
|
0011| Section 8. A new section of the Property Tax Code,
|
0012| Section 7-38-38.5 NMSA 1978, is enacted to read:
|
0013| "7-38-38.5. [NEW MATERIAL] PROPERTY TAX DEFERRAL--
|
0014| EFFECT OF DEFERRAL ON OBLIGATION OF BORROWER TO LENDER--
|
0015| EXCEPTIONS--REFUND.--
|
0016| A. The deferral of property taxes pursuant to
|
0017| Section 7-38-38.3 NMSA 1978 shall not affect the obligation of
|
0018| a borrower to continue to make payments to a lender for deposit
|
0019| in an escrow account or other similar account that is
|
0020| established for payment of property taxes prior to January 1,
|
0021| 1998.
|
0022| B. Any payments made by the borrower to an escrow
|
0023| account or other similar type of account with regard to taxes
|
0024| for the tax year prior to the time of submission of the
|
0025| certificate of deferral to the lender, if not previously used
|
0001| in payment or partial payment of such taxes, shall be refunded
|
0002| to the borrower within thirty days after receipt of notice of
|
0003| the tax due date deferral."
|
0004| Section 9. A new section of the Property Tax Code,
|
0005| Section 7-38-38.6 NMSA 1978, is enacted to read:
|
0006| "7-38-38.6. [NEW MATERIAL] PROPERTY TAX DEFERRAL--
|
0007| NOTICE--PENALTIES.--
|
0008| A. The claimant or, if the claimant is
|
0009| incapacitated, the claimant's agent appointed pursuant to
|
0010| Subsection B of Section 7-38-38.3 NMSA 1978 shall notify the
|
0011| county treasurer within thirty days of the date of a change in
|
0012| the claimant's primary place of residence or the sale of the
|
0013| claimant's primary place of residence.
|
0014| B. Upon the death of a claimant, the personal
|
0015| representative of the claimant shall notify the county
|
0016| treasurer of the death no later than thirty days after the
|
0017| claimant's death.
|
0018| C. Any person who intentionally refuses to provide
|
0019| notice as required under Subsection A or B of this section is
|
0020| guilty of a misdemeanor and shall be punished by the imposition
|
0021| of a fine of not more than one thousand dollars ($1,000).
|
0022| D. Any person who intentionally refuses to provide
|
0023| notice as required under Subsection A or B of this section with
|
0024| the intent to defraud is liable for a civil penalty in an
|
0025| amount equal to twenty-five percent of the deferred property
|
0001| taxes due or two thousand dollars ($2,000), whichever is
|
0002| greater.
|
0003| E. The civil penalties authorized under this
|
0004| section shall be imposed and collected at the time and in the
|
0005| manner the deferred property taxes are collected."
|
0006| Section 10. A new section of the Property Tax Code,
|
0007| Section 7-38-38.7 NMSA 1978, is enacted to read:
|
0008| "7-38-38.7. [NEW MATERIAL] PROPERTY TAX DEFERRAL--
|
0009| PROTEST--REMEDY.--
|
0010| A. After receiving his property tax bill and making
|
0011| payment prior to the delinquency date of all property taxes due
|
0012| and not deferred in accordance with the bill, a claimant may
|
0013| protest to the county treasurer the stated amount of property
|
0014| tax deferred for that tax year or the stated total amount of
|
0015| accrued property taxes deferred.
|
0016| B. Upon the due date of deferred property taxes and
|
0017| payment prior to the delinquency date of the amount of deferred
|
0018| property taxes due as stated on the property tax bill, a
|
0019| claimant or the claimant's agent or personal representative may
|
0020| protest the amount of deferred property taxes due.
|
0021| C. Upon filing of a protest pursuant to Subsection
|
0022| A or B of this section, the county treasurer shall review the
|
0023| protest and take appropriate action to determine if there is
|
0024| any error in the amount of taxes deferred or the amount of
|
0025| deferred taxes due and to correct that error. If the person
|
0001| protesting is not satisfied with the county treasurer's action,
|
0002| he may bring an action in district court on the grounds that
|
0003| there was an error in the computation of deferred taxes or an
|
0004| error in the property tax schedule relating to the payment or
|
0005| nonpayment of deferred taxes. The action shall be brought in
|
0006| the district court for the county in which the property is
|
0007| located."
|
0008| Section 11. APPLICABILITY.--The provisions of this act
|
0009| apply to the 1998 and subsequent property tax years.
|
0010|
|