SENATE BILL 673

49th legislature - STATE OF NEW MEXICO - first session, 2009

INTRODUCED BY

Tim Eichenberg

AN ACT

RELATING TO PROPERTY TAX ASSESSMENT; CREATING A FUND FROM THE ADMINISTRATIVE CHARGE OF TAX REVENUE RECEIPTS OF STATE-ASSESSED PROPERTIES.

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

     Section 1. Section 7-38-38.1 NMSA 1978 (being Laws 1986, Chapter 20, Section 116, as amended) is amended to read:

     "7-38-38.1. RECIPIENTS OF REVENUE PRODUCED THROUGH AD VALOREM LEVIES REQUIRED TO PAY COUNTIES ADMINISTRATIVE CHARGE TO OFFSET COLLECTION COSTS--CREATING FUNDS--MAKING DISTRIBUTIONS.--

          A. As used in this section:

                (1) "revenue" means money for which a county treasurer has the legal responsibility for collection and which is owed to a revenue recipient as a result of an imposition authorized by law of a rate expressed in mills per dollar or dollars per thousands of dollars of net taxable value of property, assessed value of property or a similar term, including but not limited to money resulting from the authorization of rates and impositions under Subsection B and Paragraphs (1) and (2) of Subsection C of Section 7-37-7 NMSA 1978, special levies for special purposes and benefit assessments, but the term does not include any money resulting from the imposition of taxes imposed under the provisions of the Oil and Gas Ad Valorem Production Tax Act, the Oil and Gas Production Equipment Ad Valorem Tax Act or the Copper Production Ad Valorem Tax Act or money resulting from impositions under Paragraph (3) of Subsection C of Section 7-37-7 NMSA 1978; and

                (2) "revenue recipient" means the state and any of its political subdivisions, including charter schools, but excluding institutions of higher education located in class A counties and class B counties having more than three hundred million dollars ($300,000,000) valuation, that are authorized by law to receive revenue.

          B. Prior to the distribution to a revenue recipient of revenue received by a county treasurer, the treasurer shall deduct as an administrative charge an amount equal to one percent of the revenue received. The treasurer of a county shall calculate one percent of the revenue received from properties located in that county for which the department is responsible for valuation pursuant to Section 7-36-2 NMSA 1978 and distribute that amount of the administrative charge to the state assessed property valuation fund. All other administrative charges shall be distributed to the county property valuation fund.

          C. The "county property valuation fund" is created. All administrative charges deducted by the county treasurer shall be distributed to the county property valuation fund.

          D. Expenditures from the county property valuation fund shall be made pursuant to a property valuation program presented by the county assessor and approved by the majority of the county commissioners.

          E. The "state assessed property valuation fund" is created in the state treasury. The state assessed property valuation fund shall:

                (1) consist of the revenue distributed to it by each county equal to one percent of the revenues received by that county attributable to the properties assessed by the department pursuant to Section 7-36-2 NMSA 1978 located within that county;

                (2) be administered by the department;

                (3) retain the earnings from the fund in the fund;

                (4) retain unexpended and unencumbered balances in the fund at the end of any fiscal year; and

                (5) not revert to the general fund or another fund.

          F. Money in the state assessed property valuation fund is appropriated to the department for expenditure in any fiscal year to provide:

                (1) for educational programming and training for county assessors and employees of the property tax division of the department;

                (2) for technical assistance to county assessors; 

                (3) for the operation of the property tax division of the department;  

                (4) for specialized appraisers, expert witnesses, consultants and auditors;

                (5) for specialized services to county assessors, including mapping, information technology, auditing and educational programming; and

                (6) the revenue necessary for the property tax division of the department to be self-sustaining."

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