New Mexico

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State of New Mexico Property Taxes


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State Tax Summary
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The state of New Mexico names the real property tax Property Tax. The official value standard states that the Market value is “as determined by sales of comparable property or, if that method cannot be used due to lack of comparable sales date for the property being valued, then its value shall be determined using an income method or cost method. In using any method of valuation authorized by this subsection,k the valuation authority shal apply generally accepted appraisal techniques.” New Mexico Property Tax Code; Articles 35-38 NMSAA, 1978.

The Property Tax Division has three bureaus: the Assess Property Bureau, the Appraisal Bureau and the Delinquent Property Tax Bureau. The division is responsible for supervision of the thirty-three county assessors, compliance with statutes, monitor each assessor, review value of real property for counties, schools and municipalities and collect delinquent taxes, interest and penalities. Taxes collected are used for schools, public safety programs, colleges and roads. Personal exemptions are for homeowners, renters, seniors, those with disabilities and veterans. There are also exemptions for government, religious, charitable, educations, and nonprofit property. Private railroad cars, household personal items, licensed vehicles and licensed aircraft are exempt from property taxes in New Mexico. The Denver Area Service Center (ASC) provides tax service for New Mexico.


Responsible agency

  • State of New Mexico
  • Taxation and Revenue Department
  • Property Tax Commission
  • PO Box 25126

Contents

  • Santa Fe, New Mexico 87505
  • Voice (505) 827-0870
  • FAX (505) 827-0782

Property tax calendar

  • Assessment dateJanuary 1
  • Valuation Notice Date Notices are sent by April 1. The valuations contain a description of the property, classification, established value, amount of exemptions, and net taxable value.
  • Appeal Deadline 30 days from date of mailing of notice or May 1
  • Bill Payment Date Two billings; two installments: December 10 and May 10 of the following year. Installment amounts are set by local taxing entities.

Property tax rates and dates

  • Annual assessment of real property Every year
  • Classification of property All assessed at 33.3%
  • Collections Taxes are collected every year in arrears
  • Fiscal year July 1 through June 30. The collection year is the fiscal year for the first half and the second half is collected in arrears
  • Level of government responsible for assessment County
  • Reassessment cycle Every 2 years
  • Tax Calculation Rate

Tax Rate x (Market value x 33.3%) = Taxes Due

Residential Exemptions

Exemption claims must be filed to receive exemption for specially treated property.

  • Circuit Breaker

The Circuit Breaker program is also known as the Homestead Property Tax Relief program. Property taxes collected for school districts are reduced to six mills for homestead and 24 mills for commercial, and qualified homeowners must apply with an affidavit to the local tax collector and applicant must occupy the property as a principal residence. Homeowners and renters may qualify if they are 1.) Age 65 or older and the surviving spouse of a senior citizen; if household income less than $3000 then entire property tax is refundable; 2.) Quadriplegic and paraplegic persons; 3.) totally and permanently disabled person under the age of 65 years of age; 4.) veterans, active military, blind persons and surviving spouses of veterans; or 5.) all other renters and homeowners. Renters may base their property tax deduction as 17% of the rent for one year and deduct from their state income tax if they do not qualify for one of the catagories listed above. Homeowners may received a credit on their New Mexico state income taxes for property taxes equal to 60% of the tax amount that exceeds 3.5% of their household income. Households are not eligible for a property tax credit if their income is totally from Aid to Families with Dependent Children, State Familiy Assistance or State Disability Assistance.

  • Veterans

An application may be approved for an honorably discharged disabled veteran in a principal residence that requires adapted housing because of disability.

Commercial Exemptions

  • Agriculture Personal property exemption

Property used for agiculture operations and farm implements; farm food products in storage; beet sugar held by processors; qualified agriculture property may be exempt from school tax; nursery stock; and evergreen trees, shrubs, bushes and vines growing on agricultural land may be exempt.

  • Conservation property

A taxpayer must file a declaration with the local county assessor to claim an exemption for a seawall, jetty, groin or dike for the control or prevention of flooding or erosion caused by waters in the Great Lakes or connecting tributaries.

  • Enterprise zones

New and existing businesses may qualify for a city granted property tax exemption if they locate in economically distressed areas approved as an Enterprise Zone before 1994 and is exempt through the year 2004; or may qualify for exemption for 6 to 15 years. Qualified businesses may be subject to a specific tax. A local district may exempt all new personal property for an eligible business in a distressed area.

  • Pollution control property

A taxpayer must file a declaration to exempt property used exclusively for water or air pollution control.

  • Rehabilitation district

Local governments may grant abatements and establish obsolete property rehabilitation districts for up to 12 years for rehabilitated commercial property and commercial housing property located in rehabilitation districts. To qualify for tax abatements the commercial property must be used to manufacture and process good or materials, conduct high-technology activity, and create or synthesize biodiesel fuel.

Tax Collector and Officials

New Mexico has tax assessors elected for four year terms; a minimum high school education is required; and no certification is required. Township treasurers and all treasurers are elected to four-year terms. The county treasurer is the ex-officio collector in all counties. County Assessors maintain and set property valuations. The County Auditor certifies property valuations. The County Treasurer are elected to two year terms; the County Treasurer collects current and delinquent property tax.

Forms

Specific deduction claim forms are available from

Forms due dates

Applications for deductions against real property must be filed with an affidavit to the local tax collector in New Mexico by May 1 and must be filled again if the property changes owners. All deductions for real property require that the ownership must be recorded as of March 1 of the assessment year for taxes payable the following year.

State assessor's manual

  • New Mexico Real Property Manual
  • New Mexico Manufactured Home Manual
  • New Mexico Personal Property Manual
  • New Mexico Land Manual
  • State of New Mexico
  • Taxation and Revenue Department
  • Property Tax Commission
  • PO Box 25126
  • Santa Fe, New Mexico 87505
  • Price $25.00 each

How property tax determined

Residential property is assessed at 33.3% of market value and the assessor determines the fair market value. The assessor may use one of three methods.

  • Cost Approach

At current labor and material prices, estimate how much it would take to replace the property with one similar to it. Use this method when there are no sales of comparable properties.

  • Income Approach

For an apartment or office building, estimate how much income the property can produce.

  • Market Approach

Use other comparable properties that have sold recently, determine the most probable sales price of the subject property.

Appeal Procedure

  • First

Try to resolve the problem in an informal meeting with the field tax appraiser in the local county, after receiving an assessment notice.

  • Second

Next, if not satisfied with the informal meeting, file a formal written appeal with the Local Valuation Protest Board.

  • Third

If not satisfied, appeal in writing to the New Mexico Court of Appeals.

  • Fourth

If not satisfied, request a hearing before the State Supreme Court.

Additional tax classifications

  • Agricultural property tax

Land is Class I and assessed at 33.3% of assessed value. Livestock is Class V and assessed at 33.3% of assessed value.

  • Commercial property tax None available.
  • Mobile homes

Mobile homes are Class IV and assessed at 33.3% of assessed value.

  • Personal property tax Personal property is Class III and taxed at 33.3% of assessed value.

Additional tax bills and charges

  • Construction Work in Progress

Property that is construction work in progress is valued at 50% of amounts spent in prior calendar year.

  • Corrected bill

When an error is found on the original tax statement or when property owners protest before the Board of Review, resulting in tax increases or decreases, a correct bill is issued when the corrections are made. Corrected bills are due in 30 days. Also supplemental bills for tax roll omissions are due in 30 days.

  • Duplicate bill

Counties in New Mexico do not charge for a duplicate bill.

  • Delinquent taxes

Delinquent balances are applied to subsequent bills. A taxpayer may apply to have late charges, interest and property taxes canceled due to undue hardship or property damaged by a casualty loss event . No notices are sent for delinquent taxes in New Mexico.

  • Penalty and Interest charges

A 1% penalty on each installment missed is charged on the 11th day of month, with a maximum penalty of 5%. Interest is 1% each month on the amount due assessed on the 11th. Payments are applied to the most delinqent installment, then to current taxes due.

Current Legislation and Pending Issues

References





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