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| SPONSOR: | HTRC | DATE TYPED: | 3-14-99 | HB | 858/HTRCS/aHTRC | ||
| SHORT TITLE: | Residential Property Valuation | SB | |||||
| ANALYST: | Taylor | ||||||
| Subsequent
Years Impact |
Recurring
or Non-Rec |
Fund
Affected | ||
| FY99 | FY2000 | |||
| n.a. | n.a. | NFI | Recurring | State G.O. Bond |
| n.a. | n.a. | Minimal | Recurring | Local Jurisdictions |
(Parenthesis ( ) Indicate Revenue Decreases)
Duplicates/Conflicts with/Companion to/Relates to HB-682, HB-707
SOURCES OF INFORMATION
Taxation and Revenue Department (TRD)
SUMMARY
Synopsis of HTRC Amendment
The HTRC amendment simply corrects a spelling error. It has no other effect on the bill.
Synopsis of Bill
The House Taxation and Revenue Committee substitute for HB-858 would change the way residential property is valued for purposes of property taxation. Annual changes in the valuation of property that does not change ownership would be based upon the annual percentage change in the "repeat sales house index" for New Mexico published annually by the office of federal housing enterprise oversight. Property that does change ownership would be valued on the basis of "the full consideration received" as disclosed to the county assessor plus changes in value due to physical improvements and less any decrease in value that occurred during the year.
The new valuation method is limited to counties that are maintaining current and correct values of property. A county is maintaining current and correct valuations if the ratio of values of property determined for taxation purposes to the values of the same properties as established by sales prices is at least 85 hundredths. That is, if the values used for property taxes are at least 85 percent of the sales price values. Counties that do not meet this standard are not eligible for the new method of valuation until they do.
The bill provides that a property owner may protest the valuation on the basis that the determined valuation exceeds the fair market value.
The changes in the bill would be applied by county assessors to property tax year 2001.
FISCAL IMPLICATIONS
Taxation and Revenue reported that there was no fiscal impact to the state under the original version of this bill. They have reported in discussion that there is nothing in the bill that would change that. Pushing the date by which it becomes applicable has the benefit of providing time to make fixes to the legislation should it be determined at a later date that they are needed.
The change in date also delays the impact on local governments. TRD reported that these would likely be minimal when they do occur.
ADMINISTRATIVE IMPLICATIONS
TRD reported that the administrative impacts of the bill are minimal.
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