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F I S C A L I M P A C T R E P O R T
SPONSOR Payne
ORIGINAL DATE
LAST UPDATED
2/3/08
HB
SHORT TITLE Property Tax Limitations, CA
SJR 14
ANALYST Francis
REVENUE (dollars in thousands)
Estimated Revenue
Recurring
or Non-Rec
Fund
Affected
FY08
FY09
FY10
(Parenthesis ( ) Indicate Revenue Decreases)
Relates to several bills – See below for table of property tax bills considered in 2008 session
SOURCES OF INFORMATION
LFC Files
SUMMARY
Synopsis of Bill
Senate Joint Resolution proposes a constitutional amendment to limit the total property tax to
one percent of the “current and correct" value of the property. If passed, the amendment will go
to the voters at the next general election.
FISCAL IMPLICATIONS
The only taxpayers that would be affected are those that live in a district with a tax rate higher
than 30 mills ($30 per $1,000 of taxable value). Most of the property that would benefit is non-
residential. Only Albuquerque, Grady, Sunland Park, Santa Rosa, Gallup, Grenville, and Los
Lunas have residential rates higher than 30 mills. The constitutional amendment could cause the
localities with higher rates on nonresidential to raise the rates on residential to maintain the
amount of funds needed for debt service and operations.
There could be additional impacts on local communities if their general obligation bonds are
placed in jeopardy but a requirement to lower rates.
pg_0002
Senate Joint Resolution 14 – Page
2
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
Other property tax related bills being considered in 2008 session:
Bill Number
Title
Description
H229
END YIELD CONTROL ON SCHOOL MILL
LEVY
Allow school districts to levy posted tax rate
H264
RESIDENTIAL PRO PERTY TRANSFER
AFFIDAVITS
Allow affidavits about property value to be used for
count
y
p
rotests
H276/SB398
SUNCAL TAX INCREMENT PROJECT
BONDS
10 percent diversion of Bernalillo County property
taxes to tax increment distric
t
H295/SB355/SB116 RAISE PROPERTY TAX LIMITATION
INCOME LIMIT
Raise the income threshold for taxpayers over age 65
H324
CHARITABLE CARE PROPERTY TAX
VALUATION
Exempt certain nursing homes from valuation
H388
REQUIRE DISCLOSURE OF REAL
PROPERTY TAXES
Disclosure of estimated property tax to home buyers
H617
PROPERTY TAX ON COMMUNICATIONS
SYSTEM LAND
Expand the definition of communication system land
in exem
p
tion
HJR1
NATIONAL GUARD VETERAN PROPERTY
TAXES
,
CA
Include national guard veterans in military veteran
exem
p
tion
HJR4
SENIOR CITIZEN PROP ERTY TAX
EXEMPTION
,
CA
Phase out property tax for seniors
HJR6
VETERANS' ORGANIZATION PROPERTY
TAXES
,
CA
Exempt certain property from valuation
HJR10
STATEWIDE MILLAGE RATE FOR
SCHOOL FUNDS
,
CA
Add additional 5 mills for education on statewide
p
ro
p
ert
y
tax
S449
LOW-INCOME PROPERTY TAX REBATE
ELIGIBILITY
Expand income threshold for local governmetn low
income
p
ro
p
ert
y
tax rebate
S450
PROPERTY TAX VALUATION &
REASSESSMENT
Revalue property that transferred in 2005/2006 to
2004 levels
S483
PROPERTY TAX ADMINISTRATIVE FEE
THRESHOLD
Raise minimum amount of tax admin fee plus tax to
$15
S516
PROPERTY TAX DELINQUENCY NOTICES
& TIMING
Extends the time limit property tax can be delinquent
b
efore sold.
SJR11
HEAD OF FAMILY PROPERTY TAX
EXEMPTION
,
CA
Increases head of family exemption to $20,000 from
$2
,
000.
SJR14
PROPERTY TAX LIMITATIONS, CA
Imposes maximum total tax levy of no more than 1
p
ercent of current and correct tax value.
TECHNICAL ISSUES
There might be a conflict between the maximum 3 percent raise in taxable valuation and the re-
quirement to determine the “current and correct" valuation.
NF/nt