kralspaces
02-14-2010, 09:50 AM
SB046: http://www.nmlegis.gov/lcs/_session.aspx?chamber=S&legtype=B&legno=%20%2046&year=10
This bill appears to address the tax lightning issue. The original intent of HB366 (2001) introduced by Rep. Ben Lujan was to cap property assessments at 3% to prevent run away property taxes on local residents from the migration of Californians in the Santa Fe and Taos areas. However, the cap did not apply to new sales of homes and created the tax lightning. When older NM folks decided to down size their homes after the kids all left, they were basically hit with the same major property tax increase as all the folks who migrated to New Mexico since 2001.
The only thing missing from this bill is the reassessment of all property sold since 2001 back to the 2001 levels and assessed forward at the 3% cap.
However, if the bill is not passed than the following could happen and I think that would be the best solution. Let the markets regulate the value and get the government out of the picture. Here's the TRD and DFA final comment for this bill:
Consequences of legislative inaction on the residential property value issue are unclear but potentially significant. At a minimum the state faces significant uncertainty entering the 2010 property tax year with numerous protests and refund claims already being filed on the grounds that the present law 3 percent value limitation is unconstitutional. Possible outcomes include a finding by higher courts that the entire section 7-36-21.2 is unconstitutional. Such an outcome would appear to require that assessors bring all properties to current and correct, increasing values for more than half of the property owners in the state.
Senator Jennings voted for the bill and Senator Adair voted against it. I am actually against the bill as it is written because it will still leave a large number of property owners in New Mexico who purchased between 2001 and 2010 paying a larger property tax burden than those who have not purchased in the last 9 years. I would actually like to see the courts rule the bill as unconstitutional and reassess all properties in New Mexico based on markets, which I am currently paying. By the way, I still consider my property taxes low compared to our neighboring states.
This bill appears to address the tax lightning issue. The original intent of HB366 (2001) introduced by Rep. Ben Lujan was to cap property assessments at 3% to prevent run away property taxes on local residents from the migration of Californians in the Santa Fe and Taos areas. However, the cap did not apply to new sales of homes and created the tax lightning. When older NM folks decided to down size their homes after the kids all left, they were basically hit with the same major property tax increase as all the folks who migrated to New Mexico since 2001.
The only thing missing from this bill is the reassessment of all property sold since 2001 back to the 2001 levels and assessed forward at the 3% cap.
However, if the bill is not passed than the following could happen and I think that would be the best solution. Let the markets regulate the value and get the government out of the picture. Here's the TRD and DFA final comment for this bill:
Consequences of legislative inaction on the residential property value issue are unclear but potentially significant. At a minimum the state faces significant uncertainty entering the 2010 property tax year with numerous protests and refund claims already being filed on the grounds that the present law 3 percent value limitation is unconstitutional. Possible outcomes include a finding by higher courts that the entire section 7-36-21.2 is unconstitutional. Such an outcome would appear to require that assessors bring all properties to current and correct, increasing values for more than half of the property owners in the state.
Senator Jennings voted for the bill and Senator Adair voted against it. I am actually against the bill as it is written because it will still leave a large number of property owners in New Mexico who purchased between 2001 and 2010 paying a larger property tax burden than those who have not purchased in the last 9 years. I would actually like to see the courts rule the bill as unconstitutional and reassess all properties in New Mexico based on markets, which I am currently paying. By the way, I still consider my property taxes low compared to our neighboring states.