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

SPONSOR Stapleton

ORIGINAL DATE

LAST UPDATED

3/5/2007

3/8/07 HJM 76/aHPAC

SHORT TITLE Low-Income Person Property Tax Exemptions

SB

ANALYST McOlash

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

SUMMARY

Synopsis of HPAC Amendments

Amendments adopted by the House Public Affairs Committee clarify the intent of the memorial

and request property tax relief for citizens over sixty-seven and fraternal, nonprofit

organizations.

Synopsis of Bill

House Joint Memorial 76 requests the Legislative Council Services to direct the appropriate

committee to study the potential for exempting low-income New Mexicans and nonprofit

organizations from property taxation.

FISCAL IMPLICATIONS

NFI

SIGNIFICANT ISSUES

House Joint Memorial 76 recognizes that low-income property owners on fixed incomes are

subject to hardships from increasing valuations of their properties and the inequities that exist

between substantially identical properties within and across counties. HJM 76 also recognizes

House Joint Memorial 76/aSPAC – Page

2

that nonprofit organizations are subject to property taxes, even as their main purpose is to

provide services and resources for their communities.

OTHER SUBSTANTIVE ISSUES

A "nonprofit corporation" means a corporation no part of the income or profit of which is

distributable to its members, directors or officers

[Chapter 53,

Article 8

NMSA 1978].

Corporations may be organized under the Nonprofit Corporation Act for any lawful purpose or

purposes, including, without being limited to, any one or more of the following purposes:

charitable; benevolent; eleemosynary; educational; civic; patriotic; political; religious; social;

fraternal; literary; cultural; athletic; scientific; agricultural; horticultural; animal husbandry; and

professional, commercial, industrial or trade association.

The granting of property tax relief for nonprofit organizations could include relief for at least all

of the above without evaluation of the level of services or resources for their communities.

BM/mt