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AN ACT

RELATING TO TAXATION; AMENDING THE PROPERTY TAX CODE TO RAISE

THE INCOME LIMIT FOR ELIGIBILITY FOR THE LIMITATION ON

INCREASE IN VALUE FOR DWELLINGS OCCUPIED BY A PERSON

SIXTY-FIVE YEARS OF AGE OR OLDER.

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

Section 1. Section 7-36-21.3 NMSA 1978 (being Laws

2000, Chapter 21, Section 1, as amended) is amended to read:

"7-36-21.3. LIMITATION ON INCREASE IN VALUE FOR

SINGLE-FAMILY DWELLINGS OCCUPIED BY LOW-INCOME OWNERS

SIXTY-FIVE YEARS OF AGE OR OLDER OR DISABLED.--

A. For the 2001 and subsequent tax years, the

valuation for property taxation purposes of a single-family

dwelling owned and occupied by a person who is sixty-five

years of age or older and whose modified gross income, as

defined in the Income Tax Act, for the prior taxable year did

not exceed the greater of eighteen thousand dollars ($18,000)

or the amount calculated pursuant to Subsection G of this

section shall not be greater than the valuation of the

property for property taxation purposes in the:

(1) 2001 tax year;

(2) year in which the owner's sixty-fifth

birthday occurs, if that is after 2001; or

(3) tax year following the tax year in which

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an owner who turns sixty-five or is sixty-five years of age

or older first owns and occupies the property, if that is

after 2001.

B. For the 2009 and subsequent tax years, the

valuation for property taxation purposes of a single-family

dwelling owned and occupied by a person who is sixty-five

years of age or older and whose modified gross income, as

defined in the Income Tax Act, for the prior taxable year did

not exceed two hundred thirty-five percent of the federal

poverty guidelines shall not be greater than the valuation of

the property for property taxation purposes in:

(1) the 2009 tax year, if the person owns

and occupies the property in the 2009 tax year;

(2) the tax year in which the owner's

sixty-fifth birthday occurs, if that is after 2009; or

(3) the tax year following the tax year in

which an owner who is sixty-five years of age or older first

owns and occupies the property, if that is after 2009.

C. For the 2003 and subsequent tax years, the

valuation for property taxation purposes of a single-family

dwelling owned and occupied by a person who is disabled and

whose modified gross income, as defined in the Income Tax

Act, for the prior taxable year did not exceed the greater of

eighteen thousand dollars ($18,000) or the amount calculated

pursuant to Subsection G of this section shall not be greater

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than the valuation of the property for property taxation

purposes in the:

(1) 2003 tax year;

(2) year in which the owner is determined to

be disabled, if that is after 2003; or

(3) tax year following the tax year in which

an owner who is disabled or who is determined in that year to

be disabled first owns and occupies the property, if that is

after 2003.

D. For the 2009 and subsequent tax years, the

valuation for property taxation purposes of a single-family

dwelling owned and occupied by a person who is disabled and

whose modified gross income, as defined in the Income Tax

Act, for the prior taxable year did not exceed two hundred

thirty-five percent of the federal poverty guidelines shall

not be greater than the valuation of the property for

property taxation purposes in:

(1) the 2009 tax year, if the person owns

and occupies the property in the 2009 tax year;

(2) the tax year in which the owner is

determined to be disabled, if that is after 2009; or

(3) the tax year following the tax year in

which an owner who is disabled first owns and occupies the

property, if that is after 2009.

E. An owner who is entitled to a limitation in

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valuation pursuant to more than one subsection of this

section may designate the subsection pursuant to which the

limitation shall be applied.

F. The limitation of value specified in

Subsections A, B, C and D of this section shall be applied in

a tax year in which the owner claiming entitlement files with

the county assessor an application for the limitation on a

form furnished to the owner by the assessor. The application

form shall be designed by the department and shall provide

for proof of age or disability, occupancy and income

eligibility for the tax year for which application is made.

G. For the 2002 tax year and each subsequent tax

year, the maximum amount of modified gross income in

Subsections A and C of this section shall be adjusted to

account for inflation. The department shall make the

adjustment by multiplying the maximum amount for tax year

2000 by a fraction, the numerator of which is the consumer

price index ending during the prior tax year and the

denominator of which is the consumer price index ending in

tax year 2000. The result of the multiplication shall be

rounded down to the nearest one hundred dollars ($100) except

that if the result would be an amount less than the

corresponding amount for the preceding tax year, then no

adjustment shall be made. For purposes of this subsection,

"consumer price index" means the consumer price index for all

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urban consumers published by the United States department of

labor for the month ending September 30. The department

shall publish annually the amount determined by the

calculation and distribute it to each county assessor no

later than December 1 of each tax year.

H. The limitation of value specified in

Subsections A, B, C and D of this section does not apply to:

(1) a change in valuation resulting from any

physical improvements made to the property during the year

immediately prior to the tax year or a change in the

permitted use or zoning of the property during the year

immediately prior to the tax year; or

(2) a residential property in the first tax

year that is valued for property taxation purposes.

I. As used in this section:

(1) "disabled" means a person who has been

determined to be blind or permanently disabled with medical

improvement not expected pursuant to 42 USCA 421 for purposes

of the federal Social Security Act or is determined to have a

permanent total disability pursuant to the Workers'

Compensation Act; and

(2) "federal poverty guidelines" means the

level of income defining poverty by family size published

annually in the federal register by the United States

department of health and human services."