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AN ACT

RELATING TO THE PUBLIC PEACE, HEALTH, SAFETY AND WELFARE;

PROVIDING THAT, FOR PROPERTY TAXATION PURPOSES, CERTAIN

AFFORDABLE HOUSING SUBSIDIES, COVENANTS OR ENCUMBRANCES SHALL

BE TAKEN INTO ACCOUNT WHEN DETERMINING THE MARKET VALUE OF

RESIDENTIAL HOUSING; DECLARING AN EMERGENCY.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. Section 7-36-15 NMSA 1978 (being Laws 1975,

Chapter 165, Section 2, as amended) is amended to read:

"7-36-15. METHODS OF VALUATION FOR PROPERTY TAXATION

PURPOSES--GENERAL PROVISIONS.--

A. Property subject to valuation for property

taxation purposes under this article of the Property Tax Code

shall be valued by the methods required by this article of the

Property Tax Code whether the determination of value is made

by the department or the county assessor. The same or similar

methods of valuation shall be used for valuation of the same

or similar kinds of property for property taxation purposes.

B. Unless a method or methods of valuation are

authorized in Sections 7-36-20 through 7-36-33 NMSA 1978, the

value of property for property taxation purposes shall be its

market value as determined by application of the sales of

comparable property, income or cost methods of valuation or

any combination of these methods. In using any of the methods

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of valuation authorized by this subsection, the valuation

authority:

(1) shall apply generally accepted appraisal

techniques; and

(2) in determining the market value of

residential housing, shall consider any decrease in the value

that would be realized by the owner in a sale of the property

because of the effects of any affordable housing subsidy,

covenant or encumbrance imposed pursuant to a federal, state

or local affordable housing program that restricts the future

use of the property or the resale price of the property or

would otherwise prohibit the owner from fully benefitting from

any enhanced value of the property. As used in this

paragraph:

(a) "subsidy, covenant or encumbrance

imposed pursuant to a federal, state or local affordable

housing program" includes those imposed by a nonprofit entity

approved by a governmental entity as a qualifying grantee

pursuant to the Affordable Housing Act; and

(b) "residential housing" means any

building, structure or portion thereof that is primarily

occupied, or designed or intended primarily for occupancy, as

a residence by one or more households and any real property

that is offered for sale or lease for the construction or

location thereon of such a building, structure or portion

thereof. "Residential housing" includes congregate housing,

manufactured homes, housing intended to provide or providing

transitional or temporary housing for homeless persons and

common health care, kitchen, dining, recreational and other

facilities primarily for use by residents of a residential

housing project.

C. Dams, reservoirs, tanks, canals, irrigation

wells, installed irrigation pumps, stock-watering wells and

pumps, similar structures and equipment used for irrigation or

stock-watering purposes, water rights and private roads shall

not be valued separately from the land they serve. The

foregoing improvements and rights shall be considered as

appurtenances to the land they serve, and their value shall be

included in the determination of value of the land.

D. The department shall adopt regulations to

implement the methods of valuation authorized in this article

of the Property Tax Code."

Section 2. APPLICABILITY.--The provisions of this act

apply to the 2008 and subsequent property tax years.

Section 3. EMERGENCY.--It is necessary for the public

peace, health and safety that this act take effect

immediately.

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