SENATE BILL 567
46th legislature - STATE OF NEW MEXICO - second session, 2004
INTRODUCED BY
Manny M. Aragon
AN ACT
RELATING TO PROPERTY TAX; INCREASING THE TAX RATE AUTHORIZED FOR CERTAIN COUNTIES; DECREASING THE TAX RATE AUTHORIZED FOR CERTAIN MUNICIPALITIES; DECLARING AN EMERGENCY.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. Section 7-37-7 NMSA 1978 (being Laws 1973, Chapter 258, Section 40, as amended) is amended to read:
"7-37-7. TAX RATES AUTHORIZED--LIMITATIONS.--
A. The tax rates specified in Subsection B of this section are the maximum rates that may be set by the department of finance and administration for the use of the stated governmental units for the purposes stated in that subsection. The tax rates set for residential property for county, school district or municipal general purposes or for the purposes authorized in Paragraph (2) of Subsection C of this section shall be the same as the tax rates set for nonresidential property for those governmental units for those purposes unless different rates are required because of limitations imposed by Section 7-37-7.1 NMSA 1978. The department of finance and administration may set a rate at less than the maximum in any tax year. In addition to the rates authorized in Subsection B of this section, the department of finance and administration shall also determine and set the necessary rates authorized in Subsection C of this section. The tax rates authorized in Paragraphs (1) and (3) of Subsection C of this section shall be set at the same rate for both residential and nonresidential property. Rates shall be set after the governmental units' budget-making and approval process is completed and shall be set in accordance with Section 7-38-33 NMSA 1978. Orders imposing the rates set for all units of government shall be made by the boards of county commissioners after rates are set and certified to the boards by the department of finance and administration. The department of finance and administration shall also certify the rates set for nonresidential property in governmental units to the department for use in collecting taxes imposed under the Oil and Gas Ad Valorem Production Tax Act, the Oil and Gas Production Equipment Ad Valorem Tax Act and the Copper Production Ad Valorem Tax Act.
B. The following tax rates for the indicated purposes are authorized:
(1) for the use of each county for general purposes for the 1987 and subsequent property tax years, a rate of eleven dollars eighty-five cents ($11.85) for each one thousand dollars ($1,000) of net taxable value of both residential and nonresidential property allocated to the county;
(2) for the use of each school district for general operating purposes, a rate of fifty cents ($.50) for each one thousand dollars ($1,000) of net taxable value of both residential and nonresidential property allocated to the school district; [and]
(3) except as provided in Paragraph (4) of this subsection, for the use of each municipality for general purposes for the 1987 and subsequent property tax years, a rate of seven dollars sixty-five cents ($7.65) for each one thousand dollars ($1,000) of net taxable value of both residential and nonresidential property allocated to the municipality;
(4) for the use of a municipality with a population greater than four hundred thousand in the most recent federal decennial census in a class A county for general purposes for the 2004 and subsequent property tax years, a rate of three dollars sixty-five cents ($3.65) for each one thousand dollars ($1,000) of net taxable value of both residential and nonresidential property allocated to the municipality; and
(5) for the use of each class A county with a population greater than five hundred thousand in the most recent federal decennial census for infrastructure improvements for the 2004 and subsequent property tax years, an additional rate of four dollars ($4.00) for each one thousand dollars ($1,000) of net taxable value of both residential and nonresidential property allocated to the county. The additional rate shall be imposed by ordinance of the board of county commissioners.
C. In addition to the rates authorized in Subsection B of this section, there are also authorized:
(1) those rates or impositions authorized under provisions of law outside of the Property Tax Code that are for the use of the governmental units indicated in those provisions and are for the stated purpose of paying principal and interest on a public general obligation debt incurred under those provisions of law;
(2) those rates or impositions authorized under provisions of law outside of the Property Tax Code that are for the use of the governmental units indicated in those provisions, are for the stated purposes authorized by those provisions and have been approved by the voters of the governmental unit in the manner required by law; and
(3) those rates or impositions necessary for the use of a governmental unit to pay a tort or workers' compensation judgment for which a county, municipality or school district is liable, subject to the limitations in Subsection B of Section 41-4-25 NMSA 1978, but no rate or imposition shall be authorized to pay any judgment other than one arising from a tort or workers' compensation claim.
D. The rates and impositions authorized under Subsection C of this section shall be on the net taxable value of both residential and nonresidential property allocated to the unit of government specified in the provisions of the other laws."
Section 2. APPLICABILITY.--The provisions of Section 1 of this act are applicable to the 2004 and subsequent property tax years.
Section 3. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.
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