AN ACT
RELATING TO TAXATION; REQUIRING
DISCLOSURE OF SALES PRICE INFORMATION FOR PROPERTY CLASSIFIED AS RESIDENTIAL
PROPERTY FOR PROPERTY TAXATION PURPOSES; REQUIRING PROPERTY TRANSFER AFFIDAVIT
TO BE FILED WITH THE COUNTY ASSESSOR; REQUIRING INFORMATION TO BE KEPT
CONFIDENTIAL.
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 made to the
property during the year immediately prior to the tax year or omitted in a
prior tax year; 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. 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. As used in this section, "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) to a trustee for the beneficial use of the
spouse of the transferor or the surviving spouse of a deceased transferor;
(2) to the spouse of the transferor that takes
effect upon the death of the transferor;
(3) that creates, transfers or terminates, solely
between spouses, any co-owner's interest;
(4) to a child of the transferor, who occupies
the property as his 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) 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) for the purpose of quieting the title to real
property or resolving a disputed location of a real property boundary;
(7) to a revocable trust by the transferor with
the transferor, the transferor's spouse or a child of the transferor as
beneficiary; or
(8) from a revocable trust described in Paragraph
(7) of this subsection back to the settlor or trustor or to the beneficiaries
of the trust."
Section 2. A new Section 7-38-12.1 NMSA 1978 is enacted
to read:
"7-38-12.1. PROPERTY TRANSFERS--AFFIDAVIT TO BE FILED
WITH ASSESSOR.--
A. After January 1, 2004, a person presenting a
deed, real estate contract or memorandum of real estate contract for recording
with a county clerk shall also file with the county assessor within thirty days
of the date of filing with the county clerk an affidavit signed and completed
in accordance with the provisions of Subsection B of this section.
B. The affidavit required for submission shall
be in a form developed by the property tax division and signed by the
transferors or their authorized agents or the transferees or their authorized
agents of any interest in real property transferred by deed or real estate contract. The affidavit shall contain at least the
following information to be used only for analytical and statistical purposes
in the application of appraisal methods:
(1) the complete names of all transferors and
transferees;
(2) the current mailing addresses of all
transferors and transferees;
(3) the legal description of the real property
interest transferred as it appears in the document of transfer;
(4) the full consideration, including money or
any other thing of value, paid or exchanged for the transfer; and
(5) the value and a description of personal
property that is included in the sale price.
C. Upon receipt of the affidavit required by
Subsection A of this section, the county assessor shall place the date of
receipt on the original affidavit. The
county assessor shall retain the original affidavit as a permanent,
confidential record and as proof of compliance.
The assessor shall index the affidavits in a manner that permits
cross-referencing to other records in the assessor's office pertaining to the
specific property described in the affidavit.
The affidavit and its contents are not part of the valuation record of
the assessor.
D. The affidavit required by Subsection A of
this section shall not be required for:
(1) a deed that results from the payment in full
or forfeiture by a transferee under a recorded real estate contract or recorded
memorandum of real estate contract;
(2) a lease of or easement on real property,
regardless of the length of term;
(3) a deed, patent or contract for sale or
transfer of real property in which an agency or representative of the United
States, New Mexico or any political subdivision of the state is the named
grantor or grantee and authorized transferor or transferee;
(4) a quitclaim deed to quiet title or clear
boundary disputes;
(5) a conveyance of real property executed
pursuant to court order;
(6) a deed to an unpatented mining claim;
(7) an instrument solely to provide or release
security for a debt or obligation;
(8) an instrument that confirms or corrects a
deed previously recorded;
(9) an instrument between husband and wife or
parent and child with only nominal actual consideration therefor;
(10) an instrument arising out of a sale for
delinquent taxes or assessments;
(11) an instrument accomplishing a court-ordered
partition;
(12) an instrument arising out of a merger or
incorporation;
(13) an instrument by a subsidiary corporation to
its parent corporation for no consideration, nominal consideration or in sole
consideration of the cancellation or surrender of the subsidiary's stock;
(14) an instrument from a person to a trustee or
from a trustee to a trust beneficiary with only nominal actual consideration
therefor;
(15) an instrument to or from an intermediary for
the purpose of creating a joint tenancy estate or some other form of ownership;
or
(16) an instrument delivered to establish a gift
or a distribution from an estate of a decedent or trust.
E. The affidavit required by Subsection A of
this section shall not be construed to be a valuation record pursuant to
Section 7-38-19 NMSA 1978.
F. Prior to November 1, 2003, the department
shall print and distribute to each county assessor affidavit forms for
distribution to the public upon request."
Section 3. A new Section 7-38-12.2 NMSA 1978 is enacted
to read:
"7-38-12.2. PENALTIES.--
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 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).
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 4. APPLICABILITY.--The provisions of this act
apply to the 2004 and subsequent property tax years.
HB 299
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