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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
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meeting monthly mortgage payments; and
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 SENATE 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.