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An update on property tax legislation

NM Real Estate, Property Taxes Comments Off on An update on property tax legislation

From the RANM newsletter dated 3/10/2009
FROM THE NEW MEXICO LEGISLATURE
Property Tax Disclosure Bills
Another property tax disclosure bill has moved in the Senate the last ten days. SB 564 (Duran), originally introduced in the Senate at the request of RANM, would require the property owner to provide the written declaration obtained from the county assessor stating the estimated taxes after sale of the house and valuation at the new price. The bill passed the Senate yesterday and now goes to the House.
HB 261 (Sandoval), introduced in the House, requires the seller or seller’s broker to obtain the future tax declaration from the county assessor. This is the bill we have worked to amend so that brokers are protected from liability. It passed the House and now goes to the Senate. Each bill has sufficient protections for real estate brokers.

SB 181 and SB 333 Property Tax Bills
Thanks for the great response to the Call to Action last week. SB 181 (Boitano) passed the Senate Finance Committee March 3 after the Call to Action and is now on the floor of the Senate for action. The bill would protect residential property with the annual 3 percent cap even upon sale of the property.
SB 333 would lower the maximum percentage of an undeveloped property’s market value which can be taxed from 33 1/3 percent to 16 2/3 percent. It has been on the schedule of the Senate Finance Committee for five days, and may not move.

My own 2 cents…

Senate Bill 564 is a good idea except where it snags apartment buildings… (apartments are in a purgatory area, and the last thing a seller wants to do is disclose a sale that many counties don’t require be disclosed)
The remaining bills only add to the mess that was created with partial disclosure, and will eventually lead to much larger bills for all of us (they seem to forget, when you push down values, everyone’s values, the mill levy increases) – if the goal is to achieve equity in the system – this doesn’t do it.

Todd Clarke @ March 12, 2009

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