HOUSE BILL 174

52nd legislature - STATE OF NEW MEXICO - second session, 2016

INTRODUCED BY

Brian Egolf

AN ACT

RELATING TO TAXATION; ENABLING COUNTIES AND MUNICIPALITIES TO ALLOW FOR THE SUSPENSION OF PROPERTY TAX VALUATION INCREASES FOR PROPERTIES ON WHICH COMMERCIAL ENTERPRISES ARE DEVELOPED.

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

     SECTION 1. [NEW MATERIAL] COMMERCIAL ENTERPRISE DEVELOPMENT PROJECTS--SUSPENSION ON PROPERTY VALUATION FOR PROPERTY TAX PURPOSES--COUNTY OR MUNICIPALITY ORDINANCE--APPLICATION--DETERMINATION--NOTICE--APPEAL.--

          A. The governing body of a county or municipality may enact an ordinance that allows, for approved applicants, ten-year suspensions on increases in valuation for property tax purposes of the property on which commercial enterprises are developed, starting in the year the commercial enterprise development project begins. The governing body shall identify in the ordinance:

                (1) the criteria required for a suspension on increases in valuation of property, which include:

                     (a) that the enterprise will create jobs and promote industry, trade or other economic activity; and

                     (b) any other criteria that the governing body deems appropriate; and

                (2) the entity within the county or municipality to which a taxpayer denied the suspension may appeal.

          B. A taxpayer may apply to the county or municipality that has enacted an ordinance in accordance with Subsection A of this section, on a form and in the manner prescribed by the county or municipality, for a suspension on increases in valuation of the taxpayer's property if the taxpayer:

                (1) owns property in the county or municipality; and

                (2) plans to develop a commercial enterprise on that property.

          C. A county or municipality that has enacted an ordinance in accordance with this section and that receives an application for a suspension on increases in property valuation shall:

                (1) review the application; and

                (2) consider whether the commercial enterprise proposed for development meets the criteria outlined in the ordinance.

          D. If a taxpayer that applies to a county or municipality for a suspension on increases in valuation of the taxpayer's property:

                (1) demonstrates to the county's or municipality's satisfaction that the commercial enterprise, as it is proposed to be developed, meets the criteria outlined in the ordinance, the county or municipality shall send to the taxpayer and to the assessor of the county in which the property is located a notice that:

                     (a) identifies the property and the commercial enterprise development project;

                     (b) states that the project meets the criteria for the limitation on increases in valuation provided by this section; and

                     (c) identifies the year the project will begin and the tax years to which the limitation applies; or

                (2) does not demonstrate to the county's or municipality's satisfaction that the commercial enterprise development, as it is proposed to be developed, meets the criteria outlined in the ordinance, the county or municipality shall notify the taxpayer of that determination.

          E. A taxpayer that applies for and is denied a suspension on increases in valuation of the taxpayer's property in accordance with this section may appeal the denial to the entity named in the county or municipal ordinance.

          F. A county assessor who receives a notice in accordance with Subsection D of this section shall, for ten tax years beginning in the year the commercial enterprise development project begins, assess the property at the value considered its current and correct value in the tax year before the project begins.

          G. For the purpose of this section, "commercial enterprise" includes a multi-unit residential property and excludes a single-family residential property.

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