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.168991.1
HOUSE MEMORIAL 85
48
TH LEGISLATURE
- STATE OF NEW MEXICO -
FIRST SESSION
, 2007
INTRODUCED BY
Richard J. Berry
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
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.168991.1
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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
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
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.168991.1
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
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.
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