New Mexico Administrative Code › Title 3 - TAXATION › Chapter 6 - PROPERTY TAXES › Part 5 - CLASSIFICATION OF PROPERTY › Section 3.6.5.40 - SPECIAL METHOD OF VALUATION - CERTAIN INDUSTRIAL AND COMMERCIAL PERSONAL PROPERTY

Current through Register Vol. 35, No. 13, July 16, 2024
A.
GENERAL - CONSTRUCTION WORK IN PROGRESS:
The phrase "construction
				work in progress" as defined in Paragraph (6) of Subsection B of Section
				7-36-33
				NMSA 1978 and as valued pursuant to Subsection D of Section
				7-36-33
				NMSA 1978 does not include the value of the land upon which the construction
				work is in progress. The land is valued pursuant to Section
				7-36-15,
				7-36-20,
				7-36-23
				or
				7-36-25
				NMSA 1978 and regulations thereunder, depending upon the nature and use of
				land.
B.
GENERAL - LARGE
				OFF-THE-ROAD HIGHWAY CONSTRUCTION EQUIPMENT - CONTRACTORS' MACHINERY AND
				EQUIPMENT:
(1) The machinery and
				equipment, except "manufactured homes" and "well drilling rigs" as defined in
				Parts 1 through 7 of Chapter 3.6 NMAC, of all resident and nonresident persons
				engaged in "construction" as that term is defined in Paragraph (3) of
				Subsection C of Section
				7-36-2
				NMSA 1978, including such property of such persons whose property is subject to
				valuation by the county assessor and the division, is reported and valued in
				accordance with this subsection.
(2) Information required to be reported.
(a) The person reports each item of machinery
				and equipment owned or leased by that person by county in which the items were
				used during the preceding tax year and provide the following information with
				respect to each item:
(i) make, model and
				year of manufacture, if available;
(ii) capacity, if available;
(iii) serial number, if available;
(iv) where located by school district and
				county on January 1 of the tax year;
(v) eate purchased;
(vi) "tangible property cost" of the item as
				that term is defined in Subsection B of Section
				7-36-33
				NMSA 1978.
(b) This
				reporting requirement may be modified by division instruction to permit use of
				information found in the uniform system of accounts used for reporting by
				certain persons reporting to state or federal regulatory agencies.
(3) The tangible property cost
				reported above is multiplied by a percentage, shown in the following schedule,
				that reflects an "average related accumulated provision for depreciation per
				unit...and an average of other justifiable factors per unit". The product of
				the multiplication is the value of the machinery and equipment for property
				taxation purposes. The value determined using this procedure may be adjusted
				upon a sufficient showing to the division of a lesser value. In the case of
				persons required to report to it, the division may permit valuation on the
				basis of "book value" upon a showing that "book value" will result in
				substantially the same value arrived at by application of this procedure. The
				division may also permit or require valuation on the basis of values found in
				the uniform system of accounts used by certain persons to report to certain
				state or federal regulatory agencies.
First calendar year immediately preceding current tax
							 year of use after acquisition or purchase
1.25%
Second year of use after acquisition or
							 purchase
3.75%
Third year of use after acquisition or
							 purchase
6.25%
Fourth year of use after acquisition or
							 purchase
38.75%
Fifth year of use after acquisition or
							 purchase
1.25%
Sixth year and following years after acquisition or
							 purchase
2.50%
(4)
				Manufactured homes of all resident and nonresident persons engaged in
				construction is valued and reported pursuant to Section
				7-36-26
				NMSA 1978 and regulations thereunder.
(5) Well drilling rigs of all resident and
				nonresident persons engaged in construc-tion are valued pursuant to Section
				3.6.5.40 NMAC.