SENATE BILL 248

51st legislature - STATE OF NEW MEXICO - second session, 2014

INTRODUCED BY

Carlos R. Cisneros and Roberto "Bobby" J. Gonzales

AN ACT

RELATING TO PROPERTY TAXATION; PROVIDING FOR A CAP ON THE VALUATION OF CERTAIN LAND PREVIOUSLY VALUED AS LAND USED PRIMARILY FOR AGRICULTURAL PURPOSES; DECLARING AN EMERGENCY.

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

     SECTION 1. A new Section 7-36-20.1 NMSA 1978 is enacted to read:

     "7-36-20.1. [NEW MATERIAL] LIMITATION ON INCREASES IN VALUATION--CERTAIN LAND PREVIOUSLY USED PRIMARILY FOR AGRICULTURAL PURPOSES.--

          A. If land was valued pursuant to Section 7-36-20 NMSA 1978 for at least nine of the ten tax years immediately preceding a tax year, but for that tax year is not subject to the method of valuation provided pursuant to that section, the value of the land shall not exceed the higher of one hundred three percent of its value two tax years before the tax year in which it is being valued or one hundred six and one-tenth percent of its value three tax years before the tax year in which it is being valued. The provisions of this subsection apply only if, during the ten consecutive tax years immediately preceding a tax year in which the land is being valued:

                (1) the ownership of the land does not change; or

                (2) the chain of title to the land reflects ownership transfers only between spouses, parents, children or siblings.

          B. If land was valued pursuant to Subsection A of this section in the previous tax year, the value of the land for a tax year shall not exceed the higher of one hundred three percent of its value for the previous tax year or one hundred six and one-tenth percent of its value two tax years before the tax year in which it is being valued. The provisions of this subsection apply until the value of the land reaches its current and correct value. The provisions of this subsection apply only if, during the tax year before the tax year in which the land is being valued:

                (1) the ownership of the land does not change; or

                (2) the chain of title to the land reflects ownership transfers only between spouses, parents, children or siblings.

          C. The provisions of this section do not apply to residential property, commercial property or land subject to a method of valuation provided in Sections 7-36-22 through 7-36-25 NMSA 1978.

          D. All improvements, other than those specified in Section 7-36-15 NMSA 1978, on land valued pursuant to this section shall be valued separately for property taxation purposes and the value of the improvements shall be added to the value of land determined pursuant to this section."

     SECTION 2. APPLICABILITY.--The provisions of this act apply to the 2014 and subsequent property tax years.

     SECTION 3. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.

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