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A MEMORIAL

REQUESTING THE TAXATION AND REVENUE DEPARTMENT AND THE INTERIM

REVENUE STABILIZATION AND TAX POLICY COMMITTEE TO STUDY THE

INEQUITIES CREATED BY THE STATUTORY PROVISIONS LIMITING

INCREASES IN VALUATION OF CERTAIN RESIDENTIAL PROPERTY.

WHEREAS, Section 7-36-21.2 NMSA 1978 provides for a

limit on increases in valuation for property tax purposes of

three percent per year for property that remains in the same

ownership but allows for radical changes in valuation whenever

property is transferred; and

WHEREAS, the statutorily mandated property valuations

process has created inequities in valuation between

substantially identical properties in the same county and has

increased the inequities among property tax values in

different counties; and

WHEREAS, this system of property valuation gives a tax

advantage to persons able to remain in their homes while

putting at a disadvantage first-time home buyers and many

elderly home buyers and creates a hardship for persons who

need to relocate to another home; and

WHEREAS, the higher tax level resulting from the higher

valuation makes it difficult to develop affordable housing

projects and creates difficulty for some homeowners in meeting

monthly mortgage payments; and

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WHEREAS, county assessors do not uniformly use sales

price disclosure data in revaluing property upon transfer but

employ various individual approaches and the differing

valuation standards make it hard to determine if assessors are

valuing all properties fairly; and

WHEREAS, there is no clearly defined standard of

"current and correct" value by which to judge the compliance

of the various county assessors;

NOW, THEREFORE, BE IT RESOLVED BY THE HOUSE OF

REPRESENTATIVES OF THE STATE OF NEW MEXICO that the property

tax division of the taxation and revenue department undertake

a review of the assessment process as it is actually carried

out by county assessors and the status of "current and

correct" values in all counties of the state and present a

report no later than September 15, 2007 to the interim revenue

stabilization and tax policy committee on the presence or

absence of inequities in property tax valuation in New Mexico;

and

BE IT FURTHER RESOLVED that the interim revenue

stabilization and tax policy committee, using the report from

the taxation and revenue department, develop recommendations

for statutory changes to make the residential property

valuation system in New Mexico more equitable and present

these recommendations to the second session of the forty-

eighth legislature; and

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BE IT FURTHER RESOLVED that copies of this memorial be

transmitted to the secretary of taxation and revenue and the

director of the legislative council service.