April 9, 1999

The Honorable Raymond G. Sanchez and

Members of the House of Representatives

Executive-Legislative Building

Santa Fe, New Mexico 87503

Honorable Speaker and Members of the House:

I have this day VETOED and am returning HOUSE TAXATION AND REVENUE COMMITTEE SUBSTITUTE FOR HOUSE BILL 858, as amended,

enacted by the Forty-Fourth Legislature, First Session, 1999.

This bill would reform the manner in which properties are assessed for property tax purposes. It was passed in response to the Constitutional Amendment passed at the 1998 general election in which voters asked for fair and equitable treatment in the accessing of property values. Unfortunately, this legislation establishes one property value index for the entire state. Because of the diverse nature of our state, some areas experience faster increases in property values than others. Accordingly one state wide index, while limiting the property values in some areas may actually increase property values in other areas because the indexed value is higher than the true rate of growth. This could have the effect of raising taxes on those properties.

Sincerely,

Gary E. Johnson

Governor