New Mexico Administrative Code › Title 3 - TAXATION › Chapter 6 - PROPERTY TAXES › Part 4 - VALUATION › Section 3.6.4.7 - DEFINITIONS

Current through Register Vol. 35, No. 13, July 16, 2024
A. As used in Parts
				1 through 7 of Chapter 3.6 NMAC the following terms, which are not defined in
				Section
				7-35-2
				NMSA 1978, are defined as follows unless limited by another section of Parts 1
				through 7 of Chapter 3.6 NMAC:
(1) "Airline."
				An airline is any business engaged in the transportation by aircraft of persons
				or property on a regularly scheduled basis.
(2) "Capitalization rate." A capitalization
				rate is either a market rate of return which shows the rate of return demanded
				by those who invest in a particular business or an interest rate on borrowed
				money or a combination of both rates. Acceptable methods of computing a
				capitalization rate are the market comparison method and the band of investment
				method. Either method may be used to determine a capitalization rate. The
				department will approve variations of these methods provided the variations are
				not inconsistent with generally accepted appraisal principles or
				techniques.
(3) "Correlation."
				Correlation is the final step in the appraisal process by which the evidences
				of value derived are analyzed and a final value determined based on the
				evidences of value as they relate to the subject property and to each other
				and, considering the amount and reliability of the data collected as to each
				evidence of value, the nature of the approach used to determine the evidence of
				value and the relevancy of the approach used to determine the evidence of value
				to the subject of the appraisal.
(4) "Microwave." A microwave is an
				electromagnetic wave between 100 centimeters and one centimeter in
				length.
(5) "Manufactured home." A
				"manufactured home" is defined in the Motor Vehicle Code at Section
				66-1-4.11
				NMSA 1978 and that definition is applicable to the phrase "manufactured home"
				as used in the Property Tax Code and Property Tax Code regulations.
(a) In determining the length of a
				manufactured home, the tow bar is included in the length dimension. If the tow
				bar has been removed, three (3) feet must be added to the length of the
				manufactured home to obtain the correct length.
(b) A manufactured home is personal property
				unless it is to be valued as real property in accordance with Subsection D of
				Section 3.6.5.33 NMAC, in which case it is real property for property taxation
				purposes.
(6) "Public
				utility." A public utility means a public utility as defined in Section
				62-3-3
				NMSA 1978.
(7) "Railroad." A
				railroad is an enterprise created and operated to transport on a fixed track
				passengers and freight or passengers or freight for rates or tolls without
				discrimination among those who demand transportation.
(8) "Trending." The term "trending" means the
				adjustment of the original cost of property to reflect the present cost of the
				same or similar property and is accomplished by the application of a factor
				which reflects the economic inflation or deflation occurring during a given
				period.