Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports if they are used for other purposes.

 

Current FIRs (in HTML & Adobe PDF formats) are available on the NM Legislative Website (legis.state.nm.us).  Adobe PDF versions include all attachments, whereas HTML versions may not.  Previously issued FIRs and attachments may also be obtained from the LFC in Suite 101 of the State Capitol Building North.

 

 

F I S C A L    I M P A C T    R E P O R T

 

 

 

SPONSOR

Griego

DATE TYPED

2/15/04

HB

 

 

SHORT TITLE

 Raise NM Homestead Exemption Cap

SB

SM 22

 

 

ANALYST

Wilson

 

 

                                                            APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY04

FY05

FY04

FY05

 

 

 

NFI

 

 

 

SUMMARY

 

Synopsis of Bill

 

Senate Memorial 22 requests the Taxation and Revenue Department (TRD) and the Economic Development Department (EDD) to study and consider raising or eliminating the $30 thousand cap per individual in the New Mexico Homestead Exemption Law in order to promote the protection of New Mexico families from economic devastation.

 

TRD and EDD must make recommendations regarding this situation and report their findings to the legislative leadership.

    

Significant Issues

 

Filings for bankruptcy within New Mexico have risen to unprecedented levels for three straight years, increasing from 8,669 in 2001 to 9,782 in 2003.

 

The national economy has shown some signs of revival but has been slow to create adequate employment opportunities for many New Mexico families.

 

Many retirees who live in New Mexico have suffered stock-market losses over the past three years, causing them to file for bankruptcy, and it is desirable and beneficial for retirees who live in New Mexico to have some protection from economic downturns.

 

 The most valuable asset for most citizens is their home.

 

Current state law allows only $30 thousand worth of protection per individual per home and only $60 thousand worth of protection per couple per home, and the median price of a home in New Mexico, according to the 2000 federal decennial census, is $108 thousand.

 

Other states, including Arizona, Florida and Nevada, have homestead exemptions offering greater degrees of protection than those found in New Mexico.

 

DW/yr:dm