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SPONSOR: |
Larranaga |
DATE TYPED: |
|
HJR |
19 |
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SHORT TITLE: |
Property Tax Exemption for Veterans |
SB |
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ANALYST: |
Neel |
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REVENUE
|
Estimated Revenue |
Subsequent Years Impact |
Recurring or
Non-Rec |
Fund Affected |
|
|
FY03 |
FY04 |
|
|
|
|
|
|
See
Fiscal Narrative |
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|
|
|
|
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|
|
(Parenthesis ( ) Indicate Revenue Decreases)
Relates to:
HB-71, Expand Disabled Veteran Exemption
HB-85, Expand Disabled Vet Exemption
SB 119, Increase Veteran’s Tax
Exemption
SB 188, Implement Increased Veteran Tax Exemption
SUMMARY
Synopsis
of Bill
House Joint Resolution
19 proposes a constitutional amendment at the next general election to provide
a property tax exemption totaling 20 percent of the taxable value of property
owned by military retirees.
Significant
Issues
Senate Joint Resolution
1, enacted in the 2001 legislative session, allowed voters to consider an amendment
to the New Mexico Constitution increasing the current $2,000 veteran exemption
to $2,500 in tax year 2003, $3,000 in 2004, $3,500 in 2005 and $4,000 in 2006,
where it would remain. Voters approved it.
FISCAL IMPLICATIONS
TRD notes the following fiscal impact assumptions:
·
20,000 military
retirees in
·
70 percent of
the
·
Percent for
veterans is assumed the same, therefore 14,000 military retirees would be able
to claim the proposed exemption;
·
Net taxable
value of residential property in New Mexico currently totals approximately
$17.1 billion; (Approximately 70 percent of this figure, or $12 billion
consists of owner-occupied residential property)
·
There are
currently approximately 475 thousand owner-occupied housing units in
·
Net taxable value of owner-occupied housing units is
approximately $12 billion/475,000 or $25,263 and the average taxable value is
approximately $27,000 ---$25,263 plus the $2,000 head of family
exemption.[1]
·
The proposed exemption would provide an
average reduction in taxable value of about 20 percent of $27, 000, or $5,400.
·
This figure, multiplied by the statewide
average 26 mill residential property tax rate, suggests a tax reduction of
roughly $140 annually per retiree, or $140 x 14,000 = $1.96 million for all
retirees.
·
The $1.96 million figure is roughly .24
percent of the statewide total $825 million in annual New Mexico property tax
obligations.
As is the case with many other property tax exemptions, the proposed exemption would generally impose no significant revenue losses, but shift the property tax burden to individuals not receiving the deduction via rate increases. Since the total reduction in net taxable value is approximately .24 percent of the statewide total, rates would increase an average of .24 percent if voters approved the amendment. Local impacts would vary with tax rates, the fraction of property owners claiming the exemption, and other economic variables. Since statistics on the location of military retirees are not readily available, no attempt was made in this report to illustrate impacts by county and municipality.
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Illustration |
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|
|
|
-------------Occupied Housing
Units----------------- |
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|
|
Total |
|
|
Owner- |
Renter- |
||
|
|
Housing |
|
|
Occupied |
Occupied |
||
|
County |
Units |
|
Total |
Number |
% |
Number |
% |
|
Bernalillo |
239,074 |
|
220,936 |
140,634 |
63.7 |
80,302 |
36.3 |
|
Catron |
2,548 |
|
1,584 |
1,276 |
80.6 |
308 |
19.4 |
|
Chaves |
25,647 |
|
22,561 |
16,000 |
70.9 |
6,561 |
29.1 |
|
|
10,328 |
|
8,327 |
6,414 |
77.0 |
1,913 |
23.0 |
|
Colfax |
8,959 |
|
5,821 |
4,224 |
72.6 |
1,597 |
27.4 |
|
Curry |
19,212 |
|
16,766 |
9,958 |
59.4 |
6,808 |
40.6 |
|
De Baca |
1,307 |
|
922 |
719 |
78.0 |
203 |
22.0 |
|
Dona Ana |
65,210 |
|
59,556 |
40,208 |
67.5 |
19,348 |
32.5 |
|
Eddy |
22,249 |
|
19,379 |
14,391 |
74.3 |
4,988 |
25.7 |
|
Grant |
14,066 |
|
12,146 |
9,041 |
74.4 |
3,105 |
25.6 |
|
Guadalupe |
2,160 |
|
1,655 |
1,222 |
73.8 |
433 |
26.2 |
|
Harding |
545 |
|
371 |
279 |
75.2 |
92 |
24.8 |
|
|
2,848 |
|
2,152 |
1,462 |
67.9 |
690 |
32.1 |
|
Lea |
23,405 |
|
19,699 |
14,301 |
72.6 |
5,398 |
27.4 |
|
|
15,298 |
|
8,202 |
6,336 |
77.2 |
1,866 |
22.8 |
|
|
7,937 |
|
7,497 |
5,894 |
78.6 |
1,603 |
21.4 |
|
Luna |
11,291 |
|
9,397 |
7,043 |
74.9 |
2,354 |
25.1 |
|
McKinley |
26,718 |
|
21,476 |
15,544 |
72.4 |
5,932 |
27.6 |
|
Mora |
2,973 |
|
2,017 |
1,663 |
82.4 |
354 |
17.6 |
|
Otero |
29,272 |
|
22,984 |
15,372 |
66.9 |
7,612 |
33.1 |
|
Quay |
5,664 |
|
4,201 |
2,968 |
70.6 |
1,233 |
29.4 |
|
|
18,016 |
|
15,044 |
12,281 |
81.6 |
2,763 |
18.4 |
|
|
7,746 |
|
6,639 |
4,163 |
62.7 |
2,476 |
37.3 |
|
Sandoval |
34,866 |
|
31,411 |
26,257 |
83.6 |
5,154 |
16.4 |
|
|
43,221 |
|
37,711 |
28,419 |
75.4 |
9,292 |
24.6 |
|
San Miguel |
14,254 |
|
11,134 |
8,142 |
73.1 |
2,992 |
26.9 |
|
|
57,701 |
|
52,482 |
35,985 |
68.6 |
16,497 |
31.4 |
|
Sierra |
8,727 |
|
6,113 |
4,578 |
74.9 |
1,535 |
25.1 |
|
Socorro |
7,808 |
|
6,675 |
4,746 |
71.1 |
1,929 |
28.9 |
|
|
17,404 |
|
12,675 |
9,570 |
75.5 |
3,105 |
24.5 |
|
|
7,257 |
|
6,024 |
5,055 |
83.9 |
969 |
16.1 |
|
|
2,225 |
|
1,733 |
1,265 |
73.0 |
468 |
27.0 |
|
|
24,643 |
|
22,681 |
19,035 |
83.9 |
3,646 |
16.1 |
|
Total |
750,579 |
|
677,971 |
474,445 |
70.0 |
203,526 |
30.0 |
|
Information source:
Bureau of Business and Economic Research, University of |
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SN/njw
[1]
Multiplying this figure by three suggests a statewide average assessed
value of approximately $81,000.