SENATE BILL 135

49th legislature - STATE OF NEW MEXICO - second session, 2010

INTRODUCED BY

Tim Eichenberg

AN ACT

RELATING TO TAXATION; CLARIFYING THAT SOLAR INSTALLATIONS ON RESIDENTIAL PROPERTY ARE TANGIBLE PERSONAL PROPERTY AND SHALL NOT BE INCLUDED AS PART OF THE VALUE OF THE RESIDENTIAL PROPERTY.

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

     Section 1. Section 7-36-8 NMSA 1978 (being Laws 1973, Chapter 373, Section 1, as amended) is amended to read:

     "7-36-8. TANGIBLE PERSONAL PROPERTY EXEMPT FROM PROPERTY TAX--EXCEPTIONS.--

          A. Except as provided in Subsection B of this section, tangible personal property owned by a person is exempt from property taxation.

          B. The following tangible personal property owned by a person is subject to valuation and taxation under the Property Tax Code:

                (1) livestock;

                (2) manufactured homes;

                (3) aircraft not registered under the Aircraft Registration Act;

                (4) private railroad cars, the earnings of which are not taxed under the provisions of the Railroad Car Company Tax Act;

                (5) tangible personal property subject to valuation under Sections 7-36-22 through 7-36-25 and 7-36-27 through 7-36-32 NMSA 1978;

                (6) vehicles not registered under the provisions of the Motor Vehicle Code and for which the owner has claimed a deduction for depreciation for federal income tax purposes during any federal income taxable year occurring in whole or in part during the twelve months immediately preceding the first day of the property tax year; and

                (7) other tangible personal property not specified in Paragraphs (1) through (6) of this subsection:

                     (a) that is used, produced, manufactured, held for sale, leased or maintained by a person for purposes of the person's profession, business or occupation; and

                     (b) for which the owner has claimed a deduction for depreciation for federal income tax purposes during any federal income taxable year occurring in whole or in part during the twelve months immediately preceding the first day of the property tax year.

          C. Solar photovoltaic or solar thermal installations located on residential property that provide electricity or water or space heating or cooling for the residential property on which the installation is located is tangible personal property subject to the provisions of Subsection A of this section. Solar photovoltaic or solar thermal installations on residential property shall not be subject to valuation as part of the taxable value of the real property on which the installation is located."

     Section 2. APPLICABILITY.--The provisions of this act apply to tax years beginning on or after January 1, 2010.

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