2023 New Mexico Statutes › Chapter 7 - Taxation › Article 36 - Valuation of Property › Section 7-36-21.3 - Limitation on increase in value for single-family dwellings occupied by low-income owners who are sixty-five years of age or older or disabled; requirements; penalties.

A. The valuation for property taxation purposes of a single-family dwelling owned and occupied by a person who is sixty-five years of age or older or disabled and whose modified gross income for the prior taxable year did not exceed the greater of thirty-five thousand dollars ($35,000) or the amount calculated pursuant to Subsection F of this section shall not be greater than the assessed valuation of the property for property taxation purposes:
(1) for a person sixty-five years of age or older in the tax year in which the owner qualifies and files an application; or
(2) for a person who is disabled in the tax year in which the owner qualified and files an application for the limitation provided by this section.
B. The limitation provided by this section may be claimed by filing proof of eligibility with the county assessor on an application form furnished by the assessor. The application shall be filed no later than thirty days after the date of mailing by the assessor of the notice of valuation. The application form shall be designed by the department and shall provide for proof of age or disability, occupancy and income eligibility. An owner who applies for the limitation of value specified in this section and files proof of income eligibility for the three consecutive years immediately subsequent to the tax year for which the application is made need not claim the limitation for subsequent tax years if there is no change in eligibility. The county assessor shall apply the limitation automatically in subsequent tax years until a change in eligibility occurs.
C. An owner who has claimed and been allowed the limitation of value specified in this section for the three consecutive tax years immediately prior to the 2020 tax year is not required to claim the limitation for subsequent tax years if there is no change in eligibility, unless the county assessor requests updated information on the owner's modified gross income. The county assessor shall apply the limitation automatically in subsequent tax years until a change in eligibility occurs.
D. A person who has had a limitation applied to a tax year and subsequently becomes ineligible for the limitation because of a change in the person's status or income or a change in the ownership of the property against which the limitation was applied shall notify the county assessor of the loss of eligibility for the limitation by the last day of February of the tax year immediately following the year in which loss of eligibility occurs.
E. A person who knowingly violates the provisions of this section by intentionally claiming and receiving the benefit of a limitation to which the person is not entitled or who fails to comply with the provisions of Subsection D of this section shall be liable for all taxes due, interest and a civil penalty of one thousand dollars ($1,000).
F. For the 2020 tax year and each subsequent tax year, the maximum amount of modified gross income in Subsection A of this section shall be adjusted to account for inflation. The department shall make the adjustment by multiplying thirty-five thousand dollars ($35,000) by a fraction, the numerator of which is the consumer price index ending during the prior tax year and the denominator of which is the consumer price index ending in tax year 2019. The result of the multiplication shall be rounded down to the nearest one hundred dollars ($100), except that if the result would be an amount less than the corresponding amount for the preceding tax year, then no adjustment shall be made.
G. The department shall publish annually the amount determined by the calculation made pursuant to Subsection F of this section and provide the calculated amount to each county assessor no later than December 1 of each tax year.
H. The limitation of value specified in Subsection A of this section does not apply to:
(1) a change in valuation resulting from any physical improvements made to the property during the year immediately prior to the tax year or a change in the permitted use or zoning of the property during the year immediately prior to the tax year; or
(2) a residential property in the first tax year that is valued for property taxation purposes.
I. As used in this section:
(1) "consumer price index" means the consumer price index for all urban consumers published by the United States department of labor for the month ending September 30;
(2) "disabled" means a person who has been determined to be blind or permanently disabled with medical improvement not expected pursuant to 42 USCA 421 for purposes of the federal Social Security Act or is determined to have a permanent total disability pursuant to the Workers' Compensation Act [Chapter 52, Article 1 NMSA 1978]; and
(3) "modified gross income" means "modified gross income" as used in the Income Tax Act [Chapter 7, Article 2 NMSA 1978].
History:
Laws 2000, ch. 21, § 1; 2001, ch. 321, § 2; 2003, ch. 78, § 1; 2008, ch. 26, § 1; 2013, ch. 161, § 1; 2019, ch. 140, § 1; 2020, ch. 73, § 1.
ANNOTATIONS
The 2020 amendment,
effective May 20, 2020, clarified the limitation on valuation increases for low-income disabled persons; in Subsection A, in the introductory clause, after "greater than the", added "assessed", in Paragraph A(1), added "for a person sixty-five years of age or older in the", and after "in which the", deleted "owner's sixty-fifth birthday occurs, if the owner owns and occupies that property" and added "owner qualifies and files an application", and completely rewrote Paragraph A(2); and in Subsection B, added "The application shall be filed no later than thirty days after the date of mailing by the assessor of the notice of valuation.".
The 2019 amendment,
effective June 14, 2019, increased the income limit for eligibility for a limitation on property tax valuation of a dwelling occupied by a person who is sixty-five years of age or older or disabled; deleted former Subsections A through D, added a new Subsection A and redesignated former Subsections E through I as Subsections B through F, respectively; in Subsection B, added "The limitation provided by this section", and after "an application form", deleted "for the limitation"; in Subsection C, after "prior to the", deleted "2014" and added "2020", after "tax year is not", added "required to", and after "change in eligibility", added "unless the county assessor requests updated information on the owner's modified gross income"; in Subsection E, after "civil penalty of", deleted "no more than three times the amount of additional taxes due" and added "one thousand dollars ($1,000)"; in Subsection F, after "For the", deleted "2002" and added "2020", after "modified gross income in", deleted "Subsections A, B and C" and added "Subsection A", after "by multiplying", deleted "the maximum amount for tax year 2000" and added "thirty-five thousand dollars ($35,000)", after "ending in tax year", deleted "2000" and added "2019", and deleted "for purpose of this subsection, 'consumer price index' means the consumer price index for all urban consumers published by the United States department of labor for the month ending September 30"; redesignated former Subsections J and K as Subsections H and I, respectively; in Subsection G, after "calculation", added "made pursuant to Subsection F of this section", and after "and", deleted "distribute it" and added "provide the calculated amount"; in Subsection H, in the introductory clause, after "specified in", deleted "Subsections A, B and C" and added "Subsection A"; and in Subsection I, added Paragraphs I(1) and I(3) and new paragraph designation "(2)".
Applicability.
— Laws 2019, ch. 140, § 2 provided that the provisions of Laws 2019, ch. 140, § 1 apply to the 2020 and subsequent property tax years.
The 2013 amendment,
effective June 14, 2013, provided for an automatic application of the limitation on increase in value for single-family dwellings occupied by low-income owners sixty-five years of age or disabled; provides for penalties; in the title, added "requirements; penalties"; deleted former Subsection E, which provided for the application for the limitation of value; and added Subsections E through H.
The 2008 amendment,
effective May 14, 2008, added Subsections B and D.
The 2003 amendment,
effective June 20, 2003, in the section heading, substituted "low-income owners" for "owner" near the middle and added "or disabled" at the end; added present Subsection B and redesignated subsequent subsections accordingly; in present Subsection C, substituted "Subsections A and B" for "Subsection A" near the beginning and inserted "or disability" following "proof of age" near the end; substituted "Subsections A and B" for "Subsection A" near the beginning of Subsection D and near the middle of Subsection E; and added present Subsection F.
The 2001 amendment,
effective April 5, 2001; in Subsection A, substituted "did not exceed the greater of eighteen thousand dollars ($18,000) or the amount calculated pursuant to Subsection C of this section" for "did not exceed eighteen thousand dollars ($18,000)" added Paragraph A(3); deleted "at the time notices of valuation are sent out by the assessor pursuant to Section 7-38-20 NMSA 1978" at the end of the first sentence in Subsection B and added Subsections C and D.