HB0511

HOUSE BILL 511

50th legislature - STATE OF NEW MEXICO - first session, 2011

INTRODUCED BY

Edward C. Sandoval

AN ACT

RELATING TO TAXATION; AMENDING THE PROPERTY TAX CODE TO CHANGE THE PROCESS FOR DETERMINING THE TAXABLE VALUE OF OWNER-OCCUPIED RESIDENTIAL PROPERTY; CONVERTING THE LIMITATIONS ON ANNUAL INCREASES IN VALUATION OF RESIDENTIAL PROPERTY TO VALUATION ADJUSTMENTS FOR OWNER-OCCUPIED RESIDENTIAL PROPERTY; REQUIRING THAT THE TAXABLE VALUE OF OWNER-OCCUPIED RESIDENTIAL PROPERTY BE AT LEAST EIGHTY-FIVE PERCENT OF ITS MARKET VALUE FOR TAX YEAR 2012; PROVIDING FOR PROTESTS AND CORRECTIONS REGARDING VALUATION ADJUSTMENTS; RECONCILING CONFLICTING AMENDMENTS TO THE SAME SECTION OF LAW BY REPEALING LAWS 1983, CHAPTER 203, SECTION 1; AMENDING, REPEALING AND ENACTING SECTIONS OF THE NMSA 1978.

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

SECTION 1. Section 7-35-2 NMSA 1978 (being Laws 1973, Chapter 258, Section 2, as amended by Laws 1994, Chapter 9, Section 1 and by Laws 1994, Chapter 9, Section 2) is amended to read:

"7-35-2. DEFINITIONS.--As used in the Property Tax Code:

A. "cost" means the expenses incurred by the department in connection with collecting delinquent taxes. As applied to a particular property, "cost" may be, in the discretion of the department, either the sum of the expenses incurred specifically in connection with that property or the uniform charge applied to the class of delinquent properties of which the property is a member;

[A.] B. "department" or "division" means the taxation and revenue department, the secretary of taxation and revenue or any employee of the department exercising authority lawfully delegated to that employee by the secretary;

[B.] C. "director" means the secretary;

[C.] D. "livestock" means cattle, buffalo, horses, mules, sheep, goats, swine, ratites and other domestic animals useful to man;

[D.] E. "manufactured home" means a manufactured home as that term is defined in Section 66-1-4.11 NMSA 1978;

[E.] F. "net taxable value" means the value of property upon which the tax is imposed and is determined by deducting from taxable value the amount of any exemption authorized by the Property Tax Code;

[F.] G. "nonresidential property" means property that is not residential property;

[G.] H. "owner" means the person in whom is vested any title to property;

[H.] I. "person" means an individual or any other legal entity;

[I.] J. "property" means tangible property, real or personal;

K. "ratio value" means the value of owner-occupied residential property determined by applying the tax ratio to the property's value for property taxation purposes;

[J.] L. "residential property" means property consisting of one or more dwellings together with appurtenant structures, the land underlying both the dwellings and the appurtenant structures and a quantity of land reasonably necessary for parking and other uses that facilitate the use of the dwellings and appurtenant structures. As used in this subsection, "dwellings" includes both manufactured homes and other structures when used primarily for permanent human habitation, but the term does not include structures when used primarily for temporary or transient human habitation such as hotels, motels and similar structures;

[K.] M. "secretary" means the secretary of taxation and revenue and, except for purposes of Section 7-35-6 NMSA 1978 [and Paragraphs (1) and (2) of Subsection B of Section 7-38-90 NMSA 1978], also includes the deputy secretary or a division director or deputy division director delegated by the secretary;

[L.] N. "tax" means the property tax imposed under the Property Tax Code;

[M.] O. "taxable value" means, for owner-occupied residential property, the value of the property determined by subtracting the property's valuation adjustment from the property's ratio value and, for all other properties, means the value of property determined by applying the tax ratio to the property's value [of the property determined] for property taxation purposes;

[N.] P. "tax rate" means the rate of the tax expressed in terms of dollars per thousand dollars of net taxable value of property;

[O.] Q. "tax ratio" means the percentage established under the Property Tax Code that is applied to the [value of property determined] property's value for property taxation purposes in order to derive [taxable] the ratio value for owner-occupied residential property and the taxable value for all other property; and

[P.] R. "tax year" means the calendar year."

SECTION 2. Section 7-36-16 NMSA 1978 (being Laws 1973, Chapter 258, Section 18, as amended) is amended to read:

"7-36-16. RESPONSIBILITY OF COUNTY ASSESSORS TO DETERMINE AND MAINTAIN CURRENT AND CORRECT VALUES OF PROPERTY.--

A. County assessors shall determine [values of] property values for property taxation purposes in accordance with the Property Tax Code and the regulations, orders, rulings and instructions of the department. [Except as limited in Section 7-36-21.2 NMSA 1978] They shall also implement a program of updating property values so that current and correct values of property are maintained and shall have sole responsibility and authority at the county level for property valuation maintenance, subject only to the general supervisory powers of the [director] secretary.

B. The [director] department shall implement a program of regular evaluation of county assessors' valuation activities with particular emphasis on the maintenance of current and correct values.

C. Upon request of the county assessor, the [director] department may contract with a board of county commissioners for the department to assume all or part of the responsibilities, functions and authority of a county assessor to establish or operate a property valuation maintenance program in the county. The contract shall be in writing and shall include provisions for the sharing of the program costs between the county and the department. The contract must include specific descriptions of the objectives to be reached and the tasks to be performed by the contracting parties. The initial term of any contract authorized under this subsection shall not extend beyond the end of the fiscal year following the fiscal year in which it is executed, but contracts may be renewed for additional one-year periods for succeeding years.

D. The department of finance and administration shall not approve the operating budget of any county in which there is not an adequate allocation of funds to the county assessor for the purpose of fulfilling [his] the county assessor's responsibilities for property valuation maintenance under this section. If the department of finance and administration questions the adequacy of any allocation of funds for this purpose, it shall consult with the department, the board of county commissioners and the county assessor in making its determination of adequacy.

E. To aid the board of county commissioners in determining whether a county assessor is operating an efficient program of property valuation maintenance and in determining the amount to be allocated to [him] the county assessor for this function, the county assessor shall present with [his] the county assessor's annual budget request a written report setting forth improvements of property added to valuation records during the year, additions of new property to valuation records during the year, increases and decreases of valuation during the year, the relationship of sales prices of property sold to property values [of the property] for property taxation purposes and the current status of the overall property valuation maintenance program in the county. The county assessor shall send a copy of this report to the department."

SECTION 3. A new Section 7-36-34 NMSA 1978 is enacted to read:

"7-36-34. [NEW MATERIAL] VALUATION ADJUSTMENT--LIMITATION ON INCREASE IN TAXABLE VALUE--GENERAL.--

A. For the 2012 and subsequent property tax years, the valuation adjustment for an owner-occupied residential property, other than new construction and property whose valuation adjustment is determined pursuant to Section 7-36-35 NMSA 1978, shall be an amount equal to the difference between:

(1) the property's ratio value for the property tax year; and

(2) the sum of:

(a) the product of the property's prior year taxable value multiplied by one and five hundredths;

(b) one-third of the value of any physical improvements, other than solar energy system installations, made after the prior year's valuation date and not included in the prior year's value for property taxation purposes; and

B. If the sum determined in Subsection A of this section is larger than the property's ratio value, the amount of the valuation adjustment shall be zero, and for the 2013 property tax year, the valuation adjustment shall not reduce the property's taxable value to an amount less than eighty-five percent of the property's ratio value.

C. For the 2012 and subsequent property tax years, the valuation adjustment for new construction shall equal the value for property taxation purposes of the new construction multiplied by a fraction, the numerator of which is the sum of the valuation adjustments for the year of all comparable properties in the county or in a neighborhood of the county and the denominator of which is the sum of the ratio values for that year of those comparable properties. For the purposes of this subsection, "comparable properties" excludes new construction and properties subject to Section 7-36-35 NMSA 1978.

D. If a property's valuation adjustment was determined pursuant to Section 7-36-35 NMSA 1978 or Section 7-36-21.3 NMSA 1978 for the prior year but may not be determined pursuant to Section 7-36-35 NMSA 1978 for the current year, the valuation adjustment shall be determined pursuant to Subsection C of this section and, in subsequent property tax years, shall be determined pursuant to Subsections A and B of this section for so long as the property's valuation is determined pursuant to this section."

SECTION 4. A new Section 7-36-35 NMSA 1978 is enacted to read:

"7-36-35. [NEW MATERIAL] VALUATION ADJUSTMENT--LIMITATION ON INCREASE IN NET TAXABLE VALUATION--SINGLE-FAMILY DWELLINGS OCCUPIED BY LOW-INCOME OWNERS SIXTY-FIVE YEARS OF AGE OR OLDER OR DISABLED.--

A. For the 2012 and subsequent property tax years, the valuation adjustment for a single-family dwelling owned and occupied by an eligible person shall be determined pursuant to this section. For any property tax year in which the single-family dwelling is not owned or occupied by an eligible person, the valuation adjustment shall be determined pursuant to Section 7-36-34 NMSA 1978.

B. The valuation adjustment for a single-family dwelling shall be determined pursuant to this section when an eligible person who owns and occupies the property files with the county assessor an application for determination pursuant to this section on a form designed or approved by the department. The form shall provide for proof of occupancy, income and age or disability for the tax year for which application is made.

C. The valuation adjustment determined pursuant to this section shall be:

(1) for a single-family dwelling owned and occupied by a person sixty-five years of age or older whose modified gross income for the prior tax year does not exceed twenty-four thousand dollars ($24,000) or, for property tax years after 2012, the adjusted amount calculated pursuant to Subsection E of this section, the valuation adjustment for the property equals the difference between the ratio value of the dwelling in the current year and the:

(a) taxable value of the dwelling in the 2001 property tax year if the person was at least sixty-five years of age in 2001 and owned and occupied the dwelling in 2001;

(b) taxable value of the dwelling in the tax year in which the person's sixty-fifth birthday occurs and the person owned and occupied the dwelling in that tax year, if that year is after 2001 but prior to 2012;

(c) ratio value of the dwelling in the tax year in which the person's sixty-fifth birthday occurs and the person owned and occupied the dwelling in that tax year if that year is after 2011;

(d) taxable value of the dwelling in the tax year following the tax year in which the person who is sixty-five years of age or older first owns and occupies the property, if that year is after 2001 but prior to 2012; or

(e) ratio value of the dwelling in the tax year following the tax year in which the person who is sixty-five years of age or older first owns and occupies the property, if that year is after 2011;

(2) for a single-family dwelling owned and occupied by a person sixty-five years of age or older whose modified gross income for the prior tax year does not exceed thirty-four thousand dollars ($34,000) or, for property tax years after 2012, the adjusted amount calculated pursuant to Subsection E of this section, the valuation adjustment for the dwelling equals the difference between the ratio value of the dwelling for the current year and the:

(a) taxable value of the dwelling in the 2009 property tax year if the person was at least sixty-five years of age in 2009 and owned and occupied the dwelling in 2009;

(c) ratio value of the dwelling in the tax year in which the person's sixty-fifth birthday occurs, if that year is after 2011 and the person owned and occupied the dwelling in that tax year;

(e) ratio value of the dwelling in the tax year following the tax year in which the person who is sixty-five years of age or older first owns and occupies the property, if that year is after 2011; and

(3) for a single-family dwelling owned and occupied by a person who is disabled and whose modified gross income for the prior tax year does not exceed twenty-four thousand dollars ($24,000) or, for property tax years after 2012, the adjusted amount calculated pursuant to Subsection E of this section, the valuation adjustment for the property equals the difference between the ratio value of the dwelling for the current year and the:

(a) taxable value of the dwelling in the 2003 property tax year if the person was at least sixty-five years of age in 2003 and owned and occupied the dwelling in 2003;

(c) ratio value of the dwelling in the tax year in which the person's sixty-fifth birthday occurs and the person owned and occupied the dwelling in that tax year, if that year is after 2011;

(e) ratio value of the dwelling in the tax year following the tax year in which the person who is sixty-five years of age or older first owns and occupies the property, if that year is after 2011.

D. An owner who is entitled to determination of a valuation adjustment pursuant to more than one paragraph under Subsection C of this section may designate the paragraph pursuant to which the valuation adjustment shall be determined. E. For the 2013 and subsequent property tax years, the maximum amounts of modified gross income specified in Subsections C and D of this section shall be adjusted to account for inflation. The department shall make the adjustment by multiplying the maximum amount for the prior property tax year by a fraction, the numerator of which is the consumer price index for the prior year and the denominator of which is the consumer price index for the year immediately preceding the prior year. The result of the multiplication shall be rounded to the nearest one hundred dollars ($100), except that if the result would be an amount less than the corresponding amount for the prior year, then no adjustment shall be made.

F. As used in this section:

(1) "consumer price index" for a year means the consumer price index for all urban consumers published by the United States department of labor for the month ending September 30 in the year. 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;

(2) "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;

(3) "eligible person" means a person:

(a) who is sixty-five years of age or older or sixty-five years of age or older and disabled in the property tax year; and

(b) whose modified gross income for the prior taxable year did not exceed the greater of thirty-four thousand dollars ($34,000) or the amount calculated pursuant to Subsection E of this section; and

(4) "modified gross income" means "modified gross income" as that term is defined in the Income Tax Act."

SECTION 5. Section 7-38-20 NMSA 1978 (being Laws 1973, Chapter 258, Section 60, as amended) is amended to read:

"7-38-20. COUNTY ASSESSOR AND DEPARTMENT TO MAIL NOTICES OF VALUATION.--

A. By April 1 of each year, the county assessor shall mail a notice to each property owner informing [him] the property owner of the net taxable value of [his] the property owner's property that has been valued for property taxation purposes by the assessor.

B. By May 1 of each year, the department shall mail a notice to each property owner informing [him] the property owner of the net taxable value of [his] the property owner's property that has been valued for property taxation purposes by the department.

C. Failure to receive the notice required by this section does not invalidate the value set on the property, any property tax based on that value or any subsequent procedure or proceeding instituted for the collection of the tax.

D. The notice required by this section shall state:

(1) the property owner's name and address;

(2) the description or identification of the property valued;

(3) the classification of the property valued;

(4) the value set on the property for property taxation purposes;

(5) the tax ratio;

(6) the valuation adjustment, if any, for the property;

[(6)] (7) the taxable value of the property;

[(7)] (8) the amount of any exemptions allowed and a statement of the net taxable value of the property after deducting the exemptions;

[(8)] (9) the allocations of net taxable values to the governmental units;

[(9)] (10) briefly, the eligibility requirements and application procedures and deadline for claiming eligibility for a limitation on increases in the valuation for property taxation purposes of a single-family dwelling owned and occupied by a person sixty-five years of age or older; and

[(10)] (11) briefly, the procedures for protesting the value determined for property taxation purposes, valuation adjustment, classification, allocation of values to governmental units or denial of a claim for an exemption or for the limitation on increases in valuation for property taxation purposes.

E. The county assessor may mail the valuation notice required pursuant to Subsection A of this section to taxpayers with the preceding tax year's property tax bills if the net taxable value of the property has not changed since the preceding taxable year. In this early mailing, the county assessor shall provide clear notice to the taxpayer that the valuation notice is for the succeeding tax year and that the deadlines for protest of the value or classification of the property apply to this mailing date."

SECTION 6. Section 7-38-21 NMSA 1978 (being Laws 1973, Chapter 258, Section 61, as amended) is amended to read:

"7-38-21. PROTESTS--ELECTION OF REMEDIES.--

A. A property owner may protest the value or classification determined for [his] the property owner's property for property taxation purposes, the allocation of value of [his] the property to a particular governmental unit or a denial of a claim for an exemption or, [for a limitation on increase in value] with respect to residential property only, the amount of valuation adjustment either by:

(1) filing a petition of protest with the [director] secretary or the county assessor as provided in the Property Tax Code; or

(2) filing a claim for refund after paying [his] the taxes due on the property as provided in the Property Tax Code.

B. The initiation of a protest under Paragraph (1) of Subsection A of this section is an election to pursue that remedy and is an unconditional and irrevocable waiver of the right to pursue the remedy provided under Paragraph (2) of Subsection A of this section.

C. A protest of the value for property taxation purposes of an owner-occupied residential property shall be deemed to be also a protest of the valuation adjustment for that property.

[C.] D. A property owner may also protest the application to [his] the property owner's property of any administrative fee adopted pursuant to Section 7-38-36.1 NMSA 1978 by filing a claim for refund after paying [his] the taxes due on the property as provided in the Property Tax Code."

SECTION 7. Section 7-38-22 NMSA 1978 (being Laws 1973, Chapter 258, Section 62, as amended) is amended to read:

"7-38-22. PROTESTING VALUES, VALUATION ADJUSTMENT, CLASSIFICATION, ALLOCATION OF VALUES AND DENIAL OF EXEMPTION DETERMINED BY THE [DIVISION] DEPARTMENT.--

A. A property owner may protest the value or classification determined by the [division] department for [his] the property owner's property for property taxation purposes or the [division's] department's allocation of value of [his] the property owner's property to a particular governmental unit or the denial of a claim for an exemption or, with respect to residential property only, the determination of the amount of the valuation adjustment for the property by filing a petition with the [director] department. Filing a petition in accordance with this section entitles a property owner to a hearing on [his] the protest.

B. Petitions shall:

(1) be filed with the [division] department no later than thirty days after the mailing by the [division] department of the notice of valuation;

(2) state the property owner's name and address and the description of the property;

(3) state why the property owner believes the value, classification, [the] valuation adjustments, allocation of value or denial of an exemption is incorrect and what [he] the property owner believes the correct value, classification, valuation adjustment, allocation of value or exemption to be;

(4) state the value, classification, valuation adjustment, allocation of value or exemption that is not in controversy; and

(5) contain such other information as the [division] department may by regulation require.

C. The [division] department shall notify the property owner by certified mail of the date, time and place that [he] the property owner may appear before the [director] secretary to support [his] the petition. The notice shall be mailed at least fifteen days prior to the hearing date.

D. The [director] department may provide for an informal conference on the protest before the hearing."

SECTION 8. Section 7-38-24 NMSA 1978 (being Laws 1973, Chapter 258, Section 64, as amended) is amended to read:

"7-38-24. PROTESTING VALUES, VALUATION ADJUSTMENT, CLASSIFICATION, ALLOCATION OF VALUES AND DENIAL OF EXEMPTION [OR LIMITATION ON INCREASE IN VALUE] DETERMINED BY THE COUNTY ASSESSOR.--

A. A property owner may protest the value or classification determined by the county assessor for [his] the owner's property for property taxation purposes or the assessor's allocation of value of [his] the owner's property to a particular governmental unit or denial of a claim for an exemption or, [for a limitation on increase in value] with respect to residential property only, determination of the amount of the valuation adjustment by filing a petition with the assessor; provided that, for owner-occupied residential property, a protest of the property's value for property taxation purposes shall be deemed to be also a protest of the valuation adjustment for that property. Filing a petition in accordance with this section entitles the property owner to a hearing on [his] the protest.

B. Petitions shall:

(1) be filed with the county assessor on or before:

(a) the later of April 1 of the property tax year to which the notice applies or thirty days after the mailing by the assessor of the notice of valuation if the notice was mailed with the preceding year's tax bill in accordance with Section 7-38-20 NMSA 1978;

(b) thirty days after the mailing of a property tax bill on omitted property pursuant to

Section 7-38-76 NMSA 1978; or

(2) state the property owner's name and address and the description of the property;

(3) state why the property owner believes the value, valuation adjustment, classification, allocation of value or denial of a claim of an exemption [or of a limitation on increase in value] is incorrect and what [he] the property owner believes the correct value, valuation adjustment, classification, allocation of value or exemption to be; and

(4) state the value, valuation adjustment, classification, allocation of value or exemption that is not in controversy.

C. Upon receipt of the petition, the county assessor shall schedule a hearing before the county valuation protests board and notify the property owner by certified mail of the date, time and place that [he] the property owner may appear to support [his] the petition. The notice shall be mailed at least fifteen days prior to the hearing date.

D. The county assessor may provide for an informal conference on the protest before the hearing."

SECTION 9. Section 7-38-35 NMSA 1978 (being Laws 1973, Chapter 258, Section 75, as amended) is amended to read:

"7-38-35. PREPARATION OF PROPERTY TAX SCHEDULE BY ASSESSOR.--

A. After receipt of the rate-setting order and the order imposing the tax, but no later than October 1 of each tax year, the county assessor shall prepare a property tax schedule for all property subject to property taxation in the county. This schedule shall be in a form that shall be made available electronically and contain the information required by regulations of the department and shall contain at least the following information:

(1) the description of the property taxed and, if the property is personal property, its location;

(2) the property owner's name and address and the name and address of any person other than the owner to whom the tax bill is to be sent;

(3) the classification of the property;

(4) the value of the property determined for property taxation purposes;

(5) the tax ratio;

(6) the valuation adjustment, if any, for the property;

[(6)] (7) the taxable value of the property;

[(7)] (8) the amount of any exemption allowed and a statement of the net taxable value of the property after deducting the exemption;

[(8)] (9) the allocations of net taxable value to the governmental units;

[(9)] (10) the tax rate in dollars per thousand of net taxable value for all taxes imposed on the property;

[(l0)] (11) the amount of taxes due on the described property; and

[(11)] (12) the amount of any penalties and interest already imposed and due on the described property.

B. The property tax schedule is a public record and a part of the valuation records."

SECTION 10. Section 7-38-39 NMSA 1978 (being Laws 1973, Chapter 258, Section 79, as amended by Laws 1983, Chapter 203, Section 1 and also by Laws 1983, Chapter 215, Section 2) is amended to read:

"7-38-39. PROTESTING VALUES--CLAIM FOR REFUND.--After receiving [his] the property tax bill for the property and after making payment prior to the delinquency date of all property taxes due in accordance with the bill, a property owner may protest the value or classification determined for [his] the owner's property for property taxation purposes, the allocation of value of [his] the owner's property to a particular governmental unit, the application to [his] the owner's property of an administrative fee adopted pursuant to Section 7-38-36.1 NMSA 1978 or a denial of a claim for an exemption or, with respect to residential property only, the amount of the valuation adjustment for the property by filing a claim for refund in the district court."

SECTION 11. Section 7-38-41 NMSA 1978 (being Laws 1973, Chapter 258, Section 81, as amended) is amended to read:

"7-38-41. PROTESTED PROPERTY TAXES--SUSPENSE FUND--REFUNDS--INTEREST.--

A. Each county treasurer shall establish a fund to be known as the "property tax suspense fund". The portion of any property taxes paid to the county treasurer that is not admitted to be due and is the subject of a claim for refund shall be deposited in this fund.

B. The fund shall be invested in interest-earning securities, accounts or deposits that are legal investments for county funds under the law and regulations of the department of finance and administration. The county treasurer shall keep records of interest earned by the investment of the fund.

C. If a property owner's property taxes are reduced [as a result of a decrease in value of the property taxed, a change in the classification, a change in the allocation of the value of the property to a particular governmental unit or granting of a claim for an exemption ordered] by the final order of a court [after] pursuant to a claim for refund, the portion of the property taxes in controversy found to be in excess of the amount legally due and paid shall be refunded by the county treasurer to the property owner. The refund shall be made within fifteen days after the county treasurer receives a copy of the final order relating to the protest. The amount of property taxes in controversy found to be legally due and paid shall be distributed to the appropriate governmental units in accordance with the distribution regulations of the department of finance and administration. All payments authorized under this section shall be made from the property tax suspense fund.

D. In addition to the payments authorized under Subsection C of this section, the county treasurer shall pay to the property owner and the governmental units their pro rata share of interest earned by the protested taxes computed by applying the earned interest rate of the fund to the principal amounts of refund and distribution for the period of time from the date of payment into the fund until a date not more than thirty days prior to the date the actual refund payment and distribution payment are made. Payments are considered made on the date a refund payment is mailed or delivered to the property owner and on the date a transfer occurs on the county treasurer's books showing a distribution payment.

E. The department of finance and administration may authorize the transfer of any surplus interest accruing in the property tax suspense fund to the county general fund at the close of the fiscal year."

SECTION 12. Section 7-38-77 NMSA 1978 (being Laws 1973, Chapter 258, Section 117, as amended) is amended to read:

"7-38-77. [AUTHORITY TO MAKE] CHANGES IN PROPERTY TAX SCHEDULE AFTER ITS DELIVERY TO THE COUNTY TREASURER.--After delivery of the property tax schedule to the county treasurer, the amounts shown on the schedule as taxes due and other information on the schedule shall not be changed except that the county treasurer:

A. [by the county treasurer to] may correct obvious clerical errors in:

(1) the name or address of the property owner or other persons shown on the schedule;

(2) the description of the property subject to property taxation; or

(3) the mathematical computation of taxes;

B. [by the county treasurer to] may cancel multiple valuations for property taxation purposes of the same property in a single tax year, but only if:

(1) a taxpayer presents tax receipts showing the payment of taxes by [him] the taxpayer for any year in which multiple valuations for property taxation purposes are claimed to have been made;

(2) a taxpayer presents evidence of [his] the taxpayer's ownership of the property, satisfactory to the treasurer, as of January 1 of the year in which multiple valuations for property taxation purposes are claimed to have been made; and

(3) there is no dispute concerning ownership of the property called to the attention of the treasurer, and [he] the treasurer has no actual knowledge of any dispute concerning ownership of the property;

C. [by the county treasurer, to] may correct the tax schedule so that it no longer contains personal property that is deemed to be unlocatable, unidentifiable or uncollectible, after thorough research with verification by the county assessor or appraiser, with notification to the department and the county clerk;

D. [as a result of a protest, including a claim for refund, in accordance with the Property Tax Code, of values, classification, allocations of values determined for property taxation purposes or a denial of a claim for an exemption] shall make the changes directed by a final order issued with respect to a protest, including a claim for refund, pursuant to Section 7-38-23, 7-38-27 or 7-38-40 NMSA 1978;

E. [by] shall make the changes directed by order of the department or the order of a court as a result of any proceeding by the department to collect delinquent property taxes under the Property Tax Code;

F. shall make the changes directed by a court order entered in an action commenced by a property owner [under] pursuant to Section 7-38-78 NMSA 1978;

G. [by] shall make the changes directed by order of the department as authorized [under] pursuant to Section 7-38-79 NMSA 1978;

H. [by] shall make the changes directed by order of the department of finance and administration [as authorized under] pursuant to Section 7-38-77.1 NMSA 1978; or

I. may make other changes as specifically otherwise authorized in the Property Tax Code."

SECTION 13. Section 7-38-78 NMSA 1978 (being Laws 1973, Chapter 258, Section 118, as amended) is amended to read:

"7-38-78. ACTION BY PROPERTY OWNER IN DISTRICT COURT TO CHANGE PROPERTY TAX SCHEDULE.--

A. After the delivery of the property tax schedule to the county treasurer for a particular tax year, a property owner may bring an action in the district court requesting a change in the property tax schedule in connection with any property listed on the schedule for property taxation in which the owner claims an interest. The action shall be brought in the district court for the county for which the property tax schedule in question was prepared.

B. Actions brought under this section [may] shall not directly challenge the value, valuation adjustment, classification, allocations of value determined for property taxation purposes or denial of any exemption claimed and [must] shall be founded on one or more of the following grounds:

(1) errors in the name or address of the property owner or other person shown on the schedule;

(2) errors in the description of the property for property taxation purposes;

(3) errors in the computation of taxes;

(4) errors in the property tax schedule relating to the payment or nonpayment of taxes;

(5) multiple valuations for property taxation purposes for a single tax year of the same property on the property tax schedule; or

(6) errors in the rate of tax set for any governmental unit in which the owner's property is located.

C. Actions brought under this section shall name the county treasurer as defendant and, if the action is brought under Paragraph (6) of Subsection B of this section, shall also name the secretary of finance and administration as a defendant."

SECTION 14. REPEAL.--

A. Section 7-35-2.1 NMSA 1978 (being Laws 1995, Chapter 12, Section 5) is repealed.

B. Sections 7-36-21.2 and 7-36-21.3 NMSA 1978 (being Laws 2000, Chapter 10, Section 2 and Laws 2000, Chapter 21, Section 1, as amended) are repealed.

C. Section 7-38-20.1 NMSA 1978 (being Laws 2005, Chapter 230, Section 3) is repealed.

D. Laws 1983, Chapter 203, Section 1 is repealed.

SECTION 15. APPLICABILITY.--The provisions of this act are applicable to the 2012 and subsequent property tax years.

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