NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature. The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.
Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Suite 101 of the State Capitol Building North.
| SPONSOR: | Jennings | DATE TYPED: | 03/02/01 | HB | |||
| SHORT TITLE: | Phase In Property Tax Exemption for Vets, CA | SB | SJR 1 | ||||
| ANALYST: | Williams | ||||||
| Subsequent
Years Impact |
Recurring
or Non-Rec |
Fund
Affected | ||
| FY00 | FY01 | |||
| No Fiscal Impact | ||||
(Parenthesis ( ) Indicate Revenue Decreases)
SOURCES OF INFORMATION
Taxation and Revenue Department (TRD)
SUMMARY
Synopsis of Bill
The bill proposes a change to the New Mexico Constitution at the next general election. If approved, the legislature would then pass legislation to increase the current veterans property tax exemption of $2,000. The exemption would be raised to $2,500 in tax year 2003, $3,000 in 2004, $3,500 in 2005 and $4,000 in tax year 2006 and beyond. This measure would appear on the ballot at the next general election.
FISCAL IMPLICATIONS
TRD estimates there would be no fiscal impact to the state or local governments. The amount of total residential net taxable value which is removed from the base due to the current $2,000 exemption is $162.0 million. The tax reduction would target approximately 81,000 veterans. TRD estimates the tax impact per veteran at about $50. The approximately $8,000.0 in total tax relief in tax year 2006 would be picked up by an increase in rates on other taxpayers of approximately 1%.
AW/ar