0001|                           HOUSE BILL 1279
    |
0002|     43rd legislature - STATE OF NEW MEXICO - first session, 1997
    |
0003|                            INTRODUCED BY
    |
0004|                           JERRY W. SANDEL
    |
0005|     
    |
0006|                                   
    |
0007|     
    |
0008|                                   
    |
0009|     
    |
0010|                                AN ACT
    |
0011|     RELATING TO TAXATION; REQUIRING CERTAIN MANUFACTURED HOMES TO
    |
0012|     BE VALUED AS REAL PROPERTY FOR PROPERTY TAXATION PURPOSES;
    |
0013|     AMENDING AND ENACTING SECTIONS OF THE NMSA 1978.
    |
0014|     
    |
0015|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
    |
0016|          Section 1.  Section 7-36-26 NMSA 1978 (being Laws 1973,
    |
0017|     Chapter 258, Section 27, as amended) is amended to read:
    |
0018|          "7-36-26.  SPECIAL METHOD OF VALUATION--MANUFACTURED
    |
0019|     HOMES.--
    |
0020|               A.  The owner of a manufactured home subject to
    |
0021|     valuation for property taxation purposes shall report the
    |
0022|     manufactured home annually for valuation to the county assessor
    |
0023|     of the county in which the manufactured home is located on
    |
0024|     January 1.  The report shall be in a form and contain the
    |
0025|     information required by department regulation and shall be made
    |
0001|     no later than the last day of February of the tax year in which
    |
0002|     the property is subject to valuation.
    |
0003|               B.  The valuation method used for determining the
    |
0004|     value of manufactured homes for property taxation purposes
    |
0005|     shall be a cost method applying generally accepted appraisal
    |
0006|     techniques and shall generally provide for:
    |
0007|                    (1)  the determination of initial cost of a
    |
0008|     manufactured home based upon classifications of manufactured
    |
0009|     homes and sales prices for the various classifications;
    |
0010|                    (2)  deductions from initial cost for allowable
    |
0011|     depreciation, which allowances for depreciation shall be
    |
0012|     developed by the <s>[division]</s> <u>department</u>; and
    |
0013|                    (3)  deduction from initial cost of other
    |
0014|     justifiable factors, including but not limited to functional
    |
0015|     and economic obsolescence.
    |
0016|               C.  Whether or not the presence of a manufactured
    |
0017|     home is declared and reported by the owner to a county assessor
    |
0018|     as required by this section, the county assessor shall
    |
0019|     determine the value for property taxation purposes of each
    |
0020|     manufactured home located in the county and subject to
    |
0021|     valuation.  County assessors shall use the information required
    |
0022|     to be furnished them under Sections 66-6-10 and 66-7-413 NMSA
    |
0023|     1978 to assure that accurate records of locations of
    |
0024|     manufactured homes are maintained.
    |
0025|               D.  Any person who intentionally refuses to make a
    |
0001|     report required of him under this section or who knowingly
    |
0002|     makes a false statement in a report required under this section
    |
0003|     is guilty of a misdemeanor and shall be punished by the
    |
0004|     imposition of a fine of not more than one thousand dollars
    |
0005|     ($1,000).
    |
0006|               E.  Any person who fails to make a report required
    |
0007|     of him under this section is liable for a civil penalty in an
    |
0008|     amount equal to five percent of the property taxes ultimately
    |
0009|     determined to be due on the property for the tax year or years
    |
0010|     for which he failed to make the required report.
    |
0011|               F.  Any person who intentionally refuses to make a
    |
0012|     report required of him under this section with the intent to
    |
0013|     evade any tax or who fails to make a report required of him
    |
0014|     under this section with the intent to evade any tax is liable
    |
0015|     for a civil penalty in an amount equal to twenty-five percent
    |
0016|     of the property taxes ultimately determined to be due on the
    |
0017|     property for the tax year or years for which he refused or
    |
0018|     failed to make the required report.
    |
0019|               G.  The civil penalties authorized under Subsections
    |
0020|     E and F of this section shall be imposed and collected at the
    |
0021|     time and in the manner that the tax is imposed and collected. 
    |
0022|     In order to assist in the imposition and collection of the
    |
0023|     penalties, the assessor having responsibility for determining
    |
0024|     the value of the property shall make an entry in the valuation
    |
0025|     records indicating the liability for any penalties due under
    |
0001|     this section.
    |
0002|               <u>H.  The provisions of this section shall not apply
</u>    |
<u></u>0003| <u>    to permanently situated manufactured homes as defined in
</u>    |
<u></u>0004| <u>    Section 7-36-26.1 NMSA 1978.</u>"
    |
0005|          Section 2.  A new section of the Property Tax Code,
    |
0006|     Section 7-36-26.1 NMSA 1978, is enacted to read:
    |
0007|          "7-36-26.1.  [<u>NEW MATERIAL</u>]  PERMANENTLY SITUATED
    |
0008|     MANUFACTURED HOMES.--
    |
0009|               A.  A manufactured home that is permanently situated
    |
0010|     on a lot shall be valued as real property.  For purposes of
    |
0011|     this section, a manufactured home is permanently situated on a
    |
0012|     lot if:
    |
0013|                    (1)  the wheels, axles and trailer hitches have
    |
0014|     been removed; 
    |
0015|                    (2)  it is permanently affixed to a foundation;
    |
0016|     and
    |
0017|                    (3)  the foundation has footings below frost
    |
0018|     level.
    |
0019|               B.  If the owner of a permanently situated
    |
0020|     manufactured home has delivered to the county assessor, no
    |
0021|     later than the last day of February, a signed affidavit that
    |
0022|     the manufactured home meets the requirements of Subsection A of
    |
0023|     this section for a permanently situated manufactured home and
    |
0024|     that the owner has surrendered the registration and certificate
    |
0025|     of title for the manufactured home to the motor vehicle
    |
0001|     division of the taxation and revenue department, the assessor
    |
0002|     shall value the manufactured home as real property for that tax
    |
0003|     year and subsequent tax years."
    |
0004|          Section 3.  Section 7-38-8 NMSA 1978 (being Laws 1973,
    |
0005|     Chapter 258, Section 48, as amended) is amended to read:
    |
0006|          "7-38-8.  REPORTING OF PROPERTY FOR VALUATION--PENALTIES
    |
0007|     FOR FAILURE TO REPORT.--
    |
0008|               A.  All property subject to valuation for property
    |
0009|     taxation purposes by the department shall be reported annually
    |
0010|     to the department.  The report required by this subsection
    |
0011|     shall be made by the owner of the property or such other person
    |
0012|     as may be authorized by regulations of the department.  The
    |
0013|     report shall be in a form and contain the information required
    |
0014|     by regulations of the department. It shall be made not later
    |
0015|     than the last day of February in the tax year in which the
    |
0016|     property is subject to valuation.  In the case of the failure
    |
0017|     or refusal to file the report required under this subsection,
    |
0018|     the department shall determine the value of the property
    |
0019|     subject to valuation from the best information available.
    |
0020|               B.  Except as provided in Subsection D of this
    |
0021|     section, all property subject to valuation for property
    |
0022|     taxation purposes by the county assessor shall be reported as
    |
0023|     follows:
    |
0024|                    (1)  property valued in the 1974 tax year by
    |
0025|     the county assessor need not be reported for any subsequent tax
    |
0001|     year unless required to be reported under Paragraph (3) of this
    |
0002|     subsection;
    |
0003|                    (2)  property not valued in the 1974 tax year
    |
0004|     by the county assessor but that becomes subject to valuation by
    |
0005|     the county assessor in any subsequent tax year shall be
    |
0006|     reported to the county assessor not later than the last day of
    |
0007|     February of the tax year in which it becomes subject to
    |
0008|     valuation, but such property need not be reported for any year
    |
0009|     subsequent to the year in which initially reported unless
    |
0010|     required to be reported under Paragraph (3) of this subsection;
    |
0011|                    (3)  property once valued by a county assessor
    |
0012|     in a tax year, but which is not valued for a year subsequent to
    |
0013|     the year of initial valuation because it is not subject to
    |
0014|     valuation for that subsequent year by the county assessor,
    |
0015|     shall be reported to the county assessor not later than the
    |
0016|     last day of February in a tax year in which it again becomes
    |
0017|     subject to valuation by the county assessor; and
    |
0018|                    (4)  reports required under Paragraphs (2) and
    |
0019|     (3) of this subsection shall be in a form and contain the
    |
0020|     information required by regulations of the department.
    |
0021|               C.  Not later than the last day of February of each
    |
0022|     tax year, every owner of real property who made, or caused to
    |
0023|     be made, in the preceding calendar year improvements costing
    |
0024|     more than ten thousand dollars ($10,000) to that real property
    |
0025|     shall report to the county assessor the property improved, the
    |
0001|     improvements made, the cost of the improvements and such other
    |
0002|     information as the department may require.
    |
0003|               D.  Manufactured homes, <u>except permanently situated
</u>    |
<u></u>0004| <u>    manufactured homes as defined in Section 7-36-26.1 NMSA 1978</u>,
    |
0005|     livestock and land used for agricultural purposes shall be
    |
0006|     reported for valuation for property taxation purposes to the
    |
0007|     county assessor at the times and in the manner prescribed under
    |
0008|     Sections 7-36-26, 7-36-21 and 7-36-20 NMSA 1978 and regulations
    |
0009|     promulgated by the department.
    |
0010|               E.  Property subject to valuation by the county
    |
0011|     assessor for property taxation purposes and improvements to
    |
0012|     such property that are required to be reported under Subsection
    |
0013|     C of this section shall be reported to the county assessor of
    |
0014|     the county in which the property is required to be valued under
    |
0015|     Section 7-36-14 NMSA 1978. Reports shall be made either by the
    |
0016|     owner of the property, the owner's authorized agent or any
    |
0017|     person having control or management of the property and shall
    |
0018|     be in a form and contain the information required by
    |
0019|     regulations of the department.
    |
0020|               F.  Reports required by this section shall be made
    |
0021|     by the declarant under oath, and the director, employees of the
    |
0022|     department, the assessor and his employees are empowered to
    |
0023|     administer oaths for this purpose.
    |
0024|               G.  Any person who intentionally refuses to make a
    |
0025|     report required of him under the provisions of Subsection A, B
    |
0001|     or C of this section or who knowingly makes a false statement
    |
0002|     in a report required under the provisions of Subsection A, B or
    |
0003|     C of this section is guilty of a misdemeanor and upon
    |
0004|     conviction shall be punished by the imposition of a fine of not
    |
0005|     more than one thousand dollars ($1,000).
    |
0006|               H.  Any person who fails to make a report required
    |
0007|     of him under the provisions of Subsection A or B of this
    |
0008|     section is liable for a civil penalty in an amount equal to
    |
0009|     five percent of the property taxes ultimately determined to be
    |
0010|     due on the property for the tax year or years for which he
    |
0011|     failed to make the required report.
    |
0012|               I.  Any person who intentionally refuses to make a
    |
0013|     report required of him under the provisions of Subsection A or
    |
0014|     B of this section with the intent to evade any tax or who fails
    |
0015|     to make a report required of him under the provisions of
    |
0016|     Subsection A or B of this section with the intent to evade any
    |
0017|     tax is liable for a civil penalty in an amount equal to twenty-
    |
0018|     five percent of the property taxes ultimately determined to be
    |
0019|     due on the property for the tax year or years for which he
    |
0020|     refused or failed to make the required report.
    |
0021|               J.  Any person who is required to make a report
    |
0022|     under the provisions of Subsection C of this section and who
    |
0023|     fails to do so is personally liable for a civil penalty in an
    |
0024|     amount equal to the greater of twenty-five dollars ($25.00) or
    |
0025|     twenty-five percent of the difference between the property
    |
0001|     taxes ultimately determined to be due and the property taxes
    |
0002|     originally paid for the tax year or years for which the person
    |
0003|     failed to make the required report.  This penalty shall not be
    |
0004|     considered a delinquent property tax, and the provisions of the
    |
0005|     Property Tax Code for the enforcement and collection of
    |
0006|     delinquent property taxes through the sale of the property do
    |
0007|     not apply.  However, the county treasurer may use all other
    |
0008|     methods provided by law to collect the property tax or penalty
    |
0009|     due. Notwithstanding any other provision of the Property Tax
    |
0010|     Code, amounts collected pursuant to the penalty provided by
    |
0011|     this subsection shall be distributed among jurisdictions
    |
0012|     imposing tax on the property in the same proportion as the
    |
0013|     amount of tax, ultimately determined to be due for the
    |
0014|     jurisdiction bears to the total due for all such jurisdictions.
    |
0015|               K.  The civil penalties authorized under Subsections
    |
0016|     H and I of this section shall be imposed and collected at the
    |
0017|     time and in the manner that the tax is imposed and collected. 
    |
0018|     In order to assist in the imposition and collection of the
    |
0019|     penalties, the persons having responsibility for determining
    |
0020|     the value of the property shall make an entry in the valuation
    |
0021|     records indicating the liability for any penalties due under
    |
0022|     this section.
    |
0023|               L.  For the purposes of this section:
    |
0024|                    (1)  "improvements" means the construction of
    |
0025|     any new structure permanently affixed to the land or the
    |
0001|     repair, rehabilitation or alteration of an existing structure
    |
0002|     permanently affixed to the land that, for property used for any
    |
0003|     commercial purpose, is required or allowed to be capitalized
    |
0004|     under the Internal Revenue Code and, for other properties, any
    |
0005|     similar construction, repair, rehabilitation or alteration; and
    |
0006|                    (2)  "owner of real property" includes every
    |
0007|     owner of improvements who does not own the land upon which the
    |
0008|     improvements are made."
    |
0009|                                                         State of New Mexico
    |
0010|                      House of Representatives
    |
0011|   
    |
0012|                      FORTY-THIRD LEGISLATURE
    |
0013|                        FIRST SESSION, 1997
    |
0014|   
    |
0015|   
    |
0016|                                                   March 3, 1997
    |
0017|   
    |
0018|   
    |
0019|   Mr. Speaker:
    |
0020|   
    |
0021|        Your TAXATION AND REVENUE COMMITTEE, to whom has
    |
0022|   been referred
    |
0023|   
    |
0024|                       HOUSE BILL 1279
    |
0025|   
    |
0001|   has had it under consideration and reports same with
    |
0002|   recommendation that it DO PASS, amended as follows:
    |
0003|   
    |
0004|        1.  On page 4, line 8, strike "A manufactured home that is
    |
0005|   permanently situated on a lot" and insert in lieu thereof "A
    |
0006|   permanently situated manufactured home".
    |
0007|   
    |
0008|        2.  On page 4, line 10, strike "manufactured home" and
    |
0009|   insert in lieu thereof ""permanently situated manufactured home"
    |
0010|   means a manufactured home that".
    |
0011|   
    |
0012|        3.  On page 4, line 11, strike "if" and insert in lieu
    |
0013|   thereof "and which meets the following criteria".
    |
0014|   
    |
0015|        4.  On page 4, line 17, before the period insert "for the
    |
0016|   locality in which it is permanently situated as required by
    |
0017|   municipal and county regulations or ordinances".
    |
0018|   
    |
0019|        5.  On page 4, line 23, strike "registration and".
    |
0020|   
    |
0021|        6.  On page 4, line 24, after "title" insert "or
    |
0022|   manufacturer's statement of origin".,
    |
0023|   
    |
0024|   and thence referred to the APPROPRIATIONS AND FINANCE 
    |
0025|   COMMITTEE.
    |
0001|   
    |
0002|                                 Respectfully submitted,
    |
0003|   
    |
0004|   
    |
0005|   
    |
0006|                                 <u>                                
</u>    |
<u></u>0007| <u>  
</u>    |
<u></u>0008| <u>                                </u>                             Jerry W. Sandel, Chairman
    |
0009|   
    |
0010|   
    |
0011|   Adopted <u>                    </u>     Not Adopted <u>                    
</u>    |
<u></u>0012| <u>   </u>
    |
0013|             (Chief Clerk)                       (Chief Clerk)
    |
0014|   
    |
0015|                        Date <u>            </u>
    |
0016|   
    |
0017|   The roll call vote was<u> 11 </u> For<u> 0 </u> Against
    |
0018|   Yes:      11
    |
0019|             Excused:  Lujan, Porter
    |
0020|             Absent:   None
    |
0021|   
    |
0022|   
    |
0023|   .118062.1
    |
0024|   G:\BILLTEXT\BILLW_97\H1279
    |