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may be
experiencing
difficulty in paying
their property taxes,
there may be help.
Most cities in the
United States have
Property Tax
Poverty Exemption
Policy and
Guidelines. You may
be eligible to waive
your annual property
tax for one year
read more
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| New Mexico Property Tax Home Page |
| State Ranking |
| 2nd |
“Current and correct values of property” defined: Assessors shall
re-appraise properties either once per year (one-year reappraisal cycle),
or once every two years (two-year reappraisal cycle). Assessor’s may only
change the current reappraisal cycle in their respective county after
written approval is granted by the director. The phrase “current and
correct values of property” means:
LIMITATION ON INCREASES IN VALUATION OF RESIDENTIAL
PROPERTY.
Residential property shall be valued at its current and correct value in
accordance with the provisions of the Property Tax Code [7-35-1 NMSA
1978]; provided that for the 2001 and subsequent tax years, the value of
a property in any tax year shall not exceed the higher of one hundred
three percent of the value in the tax year prior to the tax year in which the
property is being valued or one hundred six and one-tenth percent of the
value in the tax year two years prior to the tax year in which the property
is being valued. This limitation on increases in value does not apply to:
(1)a residential property in the first tax year that it is valued for property
taxation purposes;
(2) any physical improvements made to the property during the year
immediately prior to the tax year or omitted in a prior tax year; or
(3) valuation of a residential property in any tax year in which: (a) a
change of ownership of the property occurred in the year immediately
prior to the tax year for which the value of the property for property
taxation purposes is being determined; or (b) the use or zoning of the
property has changed in the year prior to the tax year. B. If a change of
ownership of residential property occurred in the year immediately prior to
the tax year for which the value of the property for property taxation
purposes is being determined, the value of the property shall be its
current and correct value as determined, pursuant to the general
valuation provisions of the Property Tax Code. To assure that the values
of residential property for property taxation purposes are at current and
correct values in all counties prior to application of the limitation in
Subsection A of this section, the department shall determine for the 2000
tax year the sales ratio pursuant to Section 7-36-18 NMSA 1978 or, if a
sales ratio cannot be determined pursuant to that section, conduct a
sales-ratio analysis using both independent appraisals by the department
and sales. If the sales ratio for a county for the 2000 tax year is less than
eighty-five, as measured by the median ratio of value for property taxation
purposes to sales price or independent appraisal by the department, the
county shall not be subject to the limitations of Subsection A of this
section and shall conduct a reassessment of residential property in the
county so that by the 2003 tax year, the sales ratio is at least eighty-five.
After such reassessment, the limitation on increases in valuation in this
section shall apply in those counties in the earlier of the 2004 tax year or
the first tax year following the tax year that the county has a sales ratio of
eighty-five or higher, as measured by the median ratio of value for
property taxation purposes to sales value or independent appraisal by the
department. Thereafter, the limitation on increases in valuation of
residential property for property taxation purposes in this section shall
apply to subsequent tax years in all counties. D. The provisions of this
section do not apply to residential property for any tax year in which the
property is subject to the valuation limitation in Section 7-36-21.3 NMSA
1978. E. As used in this section, “change of ownership” means a transfer
to a transferee by a transferor of all or any part of the transferor’s legal or
equitable ownership interest in residential property except for a transfer:
(1) to a trustee for the beneficial use of the spouse of the transferor or
the surviving spouse of a deceased transferor; (2) to the spouse of the
transferor that takes effect upon the death of the transferor; (3) that
creates, transfers or terminates, solely between spouses, any co-owner’s
interest: (4) to a child of the transferor, who occupies the property as his
principle residence at the time of transfer; provided that the first
subsequent tax year in which that person does not qualify for the head of
household exemption on that property, a change of ownership shall be
deemed to have occurred; (5) that confirms or corrects a previous
transfer made by a document that was recorded in the real estate records
of the county in which the real property is located; (6) for the purpose of
quieting the title to real property or resolving a disputed location of a real
property boundary; (7) to a revocable trust by the transferor with the
transferor, the transferor’s spouse or a child of the transferor as
beneficiary; or (8) from a revocable trust described in Paragraph (7) of
this subsection back to the settlor or trustor or to the beneficiaries of the
trust. Read Entire Manual
re-appraise properties either once per year (one-year reappraisal cycle),
or once every two years (two-year reappraisal cycle). Assessor’s may only
change the current reappraisal cycle in their respective county after
written approval is granted by the director. The phrase “current and
correct values of property” means:
- For residential property purchased in the year prior to the current
tax year the phrase means its market value during the year of
purchase; - For residential property not purchased in the year prior to the
current tax year, when utilizing a one year reappraisal cycle, the
phrase means its’ market value of the year prior to the current tax
year, and - For residential property not purchased in the year prior to the
current tax year, and non-residential locally assessed property,
when utilizing a two year reappraisal cycle, the phrase means its
market value in the tax year 2001 and, for each of the following odd-
numbered tax year, its market value during the preceding odd-
numbered tax year. [TRD: 3/23/83; 11/5/85; 5/10/93; 12/29/94;
8/31/96; 4/30/01; 6/13/03]
LIMITATION ON INCREASES IN VALUATION OF RESIDENTIAL
PROPERTY.
Residential property shall be valued at its current and correct value in
accordance with the provisions of the Property Tax Code [7-35-1 NMSA
1978]; provided that for the 2001 and subsequent tax years, the value of
a property in any tax year shall not exceed the higher of one hundred
three percent of the value in the tax year prior to the tax year in which the
property is being valued or one hundred six and one-tenth percent of the
value in the tax year two years prior to the tax year in which the property
is being valued. This limitation on increases in value does not apply to:
(1)a residential property in the first tax year that it is valued for property
taxation purposes;
(2) any physical improvements made to the property during the year
immediately prior to the tax year or omitted in a prior tax year; or
(3) valuation of a residential property in any tax year in which: (a) a
change of ownership of the property occurred in the year immediately
prior to the tax year for which the value of the property for property
taxation purposes is being determined; or (b) the use or zoning of the
property has changed in the year prior to the tax year. B. If a change of
ownership of residential property occurred in the year immediately prior to
the tax year for which the value of the property for property taxation
purposes is being determined, the value of the property shall be its
current and correct value as determined, pursuant to the general
valuation provisions of the Property Tax Code. To assure that the values
of residential property for property taxation purposes are at current and
correct values in all counties prior to application of the limitation in
Subsection A of this section, the department shall determine for the 2000
tax year the sales ratio pursuant to Section 7-36-18 NMSA 1978 or, if a
sales ratio cannot be determined pursuant to that section, conduct a
sales-ratio analysis using both independent appraisals by the department
and sales. If the sales ratio for a county for the 2000 tax year is less than
eighty-five, as measured by the median ratio of value for property taxation
purposes to sales price or independent appraisal by the department, the
county shall not be subject to the limitations of Subsection A of this
section and shall conduct a reassessment of residential property in the
county so that by the 2003 tax year, the sales ratio is at least eighty-five.
After such reassessment, the limitation on increases in valuation in this
section shall apply in those counties in the earlier of the 2004 tax year or
the first tax year following the tax year that the county has a sales ratio of
eighty-five or higher, as measured by the median ratio of value for
property taxation purposes to sales value or independent appraisal by the
department. Thereafter, the limitation on increases in valuation of
residential property for property taxation purposes in this section shall
apply to subsequent tax years in all counties. D. The provisions of this
section do not apply to residential property for any tax year in which the
property is subject to the valuation limitation in Section 7-36-21.3 NMSA
1978. E. As used in this section, “change of ownership” means a transfer
to a transferee by a transferor of all or any part of the transferor’s legal or
equitable ownership interest in residential property except for a transfer:
(1) to a trustee for the beneficial use of the spouse of the transferor or
the surviving spouse of a deceased transferor; (2) to the spouse of the
transferor that takes effect upon the death of the transferor; (3) that
creates, transfers or terminates, solely between spouses, any co-owner’s
interest: (4) to a child of the transferor, who occupies the property as his
principle residence at the time of transfer; provided that the first
subsequent tax year in which that person does not qualify for the head of
household exemption on that property, a change of ownership shall be
deemed to have occurred; (5) that confirms or corrects a previous
transfer made by a document that was recorded in the real estate records
of the county in which the real property is located; (6) for the purpose of
quieting the title to real property or resolving a disputed location of a real
property boundary; (7) to a revocable trust by the transferor with the
transferor, the transferor’s spouse or a child of the transferor as
beneficiary; or (8) from a revocable trust described in Paragraph (7) of
this subsection back to the settlor or trustor or to the beneficiaries of the
trust. Read Entire Manual
New Mexico pays amongst the lowest property tax in the U.S.