NMSA 1978, § 7-2-14.3 — 7-2-14.3

Tax rebate of part of property tax due from low-income
taxpayer; local option; refund.

# A.

The tax rebate provided by this section may be claimed for the taxable year for
which the return is filed by an individual who:
(1) has his principal place of residence in a county that has adopted an
ordinance pursuant to Subsection G of this section;
(2) is not a dependent of another individual;
(3) files a return; and
(4) incurred a property tax liability on his principal place of residence in the
taxable year.

# B.

The tax rebate provided by this section shall be allowed for any individual eligible
to claim the refund pursuant to Subsection A of this section and who:
(1) was not an inmate of a public institution for more than six months during
the taxable year;
(2) was physically present in New Mexico for at least six months during the
taxable year for which the rebate is claimed; and
(3) is eligible for the rebate as a low-income property taxpayer in accordance
with the provisions of Subsection D of this section.

# C.

A husband and wife who file separate returns for the taxable year in which they
could have filed a joint return may each claim only one-half of the tax rebate that would
have been allowed on the joint return.

# D.

As used in the table in this subsection, "property tax liability" means the amount
of property tax resulting from the imposition of the county and municipal property tax
operating impositions on the net taxable value of the taxpayer's principal place of
residence calculated for the year for which the rebate is claimed. The tax rebate
provided in this section is as specified in the following table:
LOW-INCOME TAXPAYER'S PROPERTY TAX REBATE TABLE
Taxpayer's Modified Gross
Income
Property Tax Rebate
Over But Not
Over
$0 $8,000 75% of property tax
liability
8,000 10,000 70% of property tax
liability
10,000 12,000 65% of property tax
liability
12,000 14,000 60% of property tax
liability
14,000 16,000 55% of property tax
liability
16,000 18,000 50% of property tax
liability
18,000 20,000 45% of property tax
liability
20,000 22,000 40% of property tax
liability
22,000 24,000 35% of property tax
liability.

# E.

If a taxpayer's modified gross income is zero, the taxpayer may claim a tax
rebate in the amount shown in the first row of the table. The tax rebate provided for in
this section shall not exceed three hundred fifty dollars ($350) per return and, if a return
is filed separately that could have been filed jointly, the tax rebate shall not exceed one
hundred seventy-five dollars ($175). No tax rebate shall be allowed any taxpayer whose
modified gross income exceeds twenty-four thousand dollars ($24,000).

# F.

The tax rebate provided for in this section may be deducted from the taxpayer's
New Mexico income tax liability for the taxable year. If the tax rebate exceeds the
taxpayer's income tax liability, the excess shall be refunded to the taxpayer.

# G.

In January of every odd-numbered year in which a county does not have in effect
an ordinance adopted pursuant to this subsection, the board of county commissioners
of the county shall conduct a public hearing on the question of whether the property tax
rebate provided in this section benefiting low-income property taxpayers in the county
should be made available through adoption of a county ordinance. Notice of the public
hearing shall be published once at least two weeks prior to the hearing date in at least
one newspaper of general circulation in the county and broadcast at some time within
the week before the hearing on at least one radio station with substantial broadcasting
coverage in the county. At the public hearing, the board shall take action on the
question and if a majority of the members elected votes to adopt an ordinance, it shall
be adopted no later than thirty days after the public hearing.

# H.

An ordinance adopted pursuant to Subsection G of this section shall specify the
taxable years to which it is applicable. The board of county commissioners adopting an
ordinance shall notify the department of the adoption of the ordinance and furnish a
copy of the ordinance to the department no later than September 1 of the first taxable
year to which the ordinance applies.

# I.

No later than December 31 of the year immediately following the first year in
which the low-income taxpayer property tax rebate provided in the Income Tax Act is in
effect for a county, and no later than December 31 of each year thereafter in which the
tax rebate is in effect, the department shall certify to the county the amount of the loss
of income tax revenue to the state for the previous taxable year attributable to the
allowance of property tax rebates to taxpayers of that county. The county shall promptly
pay the amount certified to the department. If a county fails to pay the amount certified
within thirty days of the date of certification, the department may enforce collection of
the amount by action against the county and may withhold from any revenue distribution
to the county, not dedicated or pledged, amounts up to the amount certified.

# J.

As used in this section, "principal place of residence" means the dwelling owned
and occupied by the taxpayer and so much of the land surrounding it, not to exceed five
acres, as is reasonably necessary for use of the dwelling as a home and may consist of
a part of a multidwelling or a multipurpose building and a part of the land upon which it
is built.