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F I S C A L I M P A C T R E P O R T
SPONSOR HHGAC
ORIGINAL DATE
LAST UPDATED
2/4/08
2/4/08 HB 388/HHGACS
SHORT TITLE Require Disclosure of Real Property Taxes
SB
ANALYST Cox
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY08
FY09
NFI
(Parenthesis ( ) Indicate Expenditure Decreases)
SOURCES OF INFORMATION
LFC Files
SUMMARY
Synopsis of Bill
House Committee Substitute Bill 388 proposes the amending of NMSA 1978, Section 58-21A-1,
known as the Home Loan Protection Act. This House Committee Substitute Bill shall apply to
disclosure of property taxes as follows:
A. At least three days prior to the closing of any home loan and again at the time of
closing, the title insurer who issued the title insurance policy on the real estate subject to the
closing, or a title insurance agent acting on the title insurer's behalf, shall disclose to the
borrower that:
(1) under New Mexico law, the rate of the annual increase in the assessed value of the
real estate subject to the home loan has, in the past, most likely been limited to three percent;
(2) the limit on the annual increase in the assessed value will not apply during the first
tax year following the change of ownership; and
(3) therefore, the assessed value of the real estate and the resulting property tax to be
paid by the borrower may be substantially higher than previous property taxes paid on the real
estate.
B. The superintendent of insurance shall promulgate such rules as are necessary to
implement the provisions of Subsection A of this section, including rules ensuring that:
(1) the disclosure is in clear, conspicuous writing that the borrower is likely to notice;
and
(2) the standards for the disclosure will be applied statewide in a uniform manner.