NMSA 1978, § 7-36-21.3 — 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].