us-nm/stat
NMSA 1978, § 7-37-7.1 — Additional limitations on property tax rates
A.
Except as provided in Subsections D and E of this section, in setting the general
property tax rates for residential and nonresidential property authorized in Subsection B
of Section 7-37-7 NMSA 1978, the other rates and impositions authorized in Paragraphs
(2) and (3) of Subsection C of Section 7-37-7 NMSA 1978, except the portion of the rate
authorized in Paragraph (1) of Subsection A of Section 4-48B-12 NMSA 1978 used to
meet the requirements of Section 27-10-4 NMSA 1978, and benefit assessments
authorized by law to be levied upon net taxable value of property, assessed value or a
similar term, neither the department of finance and administration nor any other entity
authorized to set or impose a rate or assessment shall set a rate or impose a tax or
assessment that will produce revenue from either residential or nonresidential property
in a particular governmental unit in excess of the sum of a dollar amount derived by
multiplying the appropriate growth control factor by the revenue due from the imposition
on residential or nonresidential property, as appropriate, for the prior property tax year
in the governmental unit of the rate, imposition or assessment for the specified purpose
plus, for the calculation for the rate authorized for county operating purposes by
Subsection B of Section 7-37-7 NMSA 1978 with respect to residential property, any
applicable tax rebate adjustment. The calculation described in this subsection shall be
separately made for residential and nonresidential property. Except as provided in
Subsections D and E of this section, no tax rate or benefit assessment that will produce
revenue from either class of property in a particular governmental unit in excess of the
dollar amount allowed by the calculation shall be set or imposed. The rates imposed
pursuant to Sections 7-32-4 and 7-34-4 NMSA 1978 shall be the rates for nonresidential
property that would have been imposed but for the limitations in this section. As used in
this section, "growth control factor" is a percentage equal to the sum of "percent change
I" plus V where:
(1) V = (base year value + net new
value),
base year value
expressed as a percentage, but if the percentage calculated is less than one hundred
percent, then V shall be set and used as one hundred percent;
(2) "base year value" means the value for property taxation purposes of all
residential or nonresidential property, as appropriate, subject to valuation under the
Property Tax Code in the governmental unit for the specified purpose in the prior
property tax year;
(3) "net new value" means the additional value of residential or nonresidential
property, as appropriate, for property taxation purposes placed on the property tax
schedule in the current year resulting from the elements in Subparagraphs (a) through
(d) of this paragraph reduced by the value of residential or nonresidential property, as
appropriate, removed from the property tax schedule in the current year and, if
applicable, the reductions described in Subparagraph (e) of this paragraph:
(a) residential or nonresidential property, as appropriate, valued in the current
year that was not valued at all in the prior year;
(b) improvements to existing residential or nonresidential property, as
appropriate;
(c) additions to residential or nonresidential property, as appropriate, or
values that were omitted from previous years' property tax schedules even if part or all
of the property was included on the schedule, but no additions of values attributable to
valuation maintenance programs or reappraisal programs shall be included;
(d) additions to nonresidential property due to increases in annual net
production values of mineral property valued in accordance with Section 7-36-23 or 7-
36-25 NMSA 1978 or due to increases in market value of mineral property valued in
accordance with Section 7-36-24 NMSA 1978; and
(e) reductions to nonresidential property due to decreases in annual net
production values of mineral property valued in accordance with Section 7-36-23 or 7-
36-25 NMSA 1978 or due to decreases in market value of mineral property valued in
accordance with Section 7-36-24 NMSA 1978; and
(4) "percent change I" means a percent not in excess of five percent that is
derived by dividing the annual implicit price deflator index for state and local
government purchases of goods and services, as published in the United States
department of commerce monthly publication entitled "survey of current business" or
any successor publication, for the calendar year next preceding the prior calendar year
into the difference between the prior year's comparable annual index and that next
preceding year's annual index if that difference is an increase, and if the difference is a
decrease, the "percent change I" is zero. In the event that the annual implicit price
deflator index for state and local government purchases of goods and services is no
longer prepared or published by the United States department of commerce, the
department shall adopt by regulation the use of any comparable index prepared by any
agency of the United States.
B.
If, as a result of the application of the limitation imposed under Subsection A of
this section, a property tax rate for residential or nonresidential property, as appropriate,
authorized in Subsection B of Section 7-37-7 NMSA 1978 is reduced below the
maximum rate authorized in that subsection, no governmental unit or entity authorized
to impose a tax rate under Paragraph (2) of Subsection C of Section 7-37-7 NMSA 1978
shall impose any portion of the rate representing the difference between a maximum
rate authorized under Subsection B of Section 7-37-7 NMSA 1978 and the reduced rate
resulting from the application of the limitation imposed under Subsection A of this
section.
C.
If the net new values necessary to make the computation required under
Subsection A of this section are not available for any governmental unit at the time the
calculation must be made, the department of finance and administration shall use a zero
amount for net new values when making the computation for the governmental unit.
D.
Any part of the maximum tax rate authorized for each governmental unit for
residential and nonresidential property by Subsection B of Section 7-37-7 NMSA 1978
that is not imposed for a governmental unit for any property tax year for reasons other
than the limitation required under Subsection A of this section may be authorized by the
department of finance and administration to be imposed for that governmental unit for
residential and nonresidential property for the following tax year subject to the restriction
of Subsection D of Section 7-38-33 NMSA 1978.
E.
If the base year value necessary to make the computation required under
Subsection A of this section is not available for any governmental unit at the time the
calculation must be made, the department of finance and administration shall set a rate
for residential and nonresidential property that will produce in that governmental unit a
dollar amount that is not in excess of the property tax revenue due for all property for
the prior property tax year for the specified purpose of that rate in that governmental
unit.
F.
For the purposes of this section:
(1) "nonresidential property" does not include any property upon which taxes
are imposed pursuant to the Oil and Gas Ad Valorem Production Tax Act [Chapter 7,
Article 32 NMSA 1978], the Oil and Gas Production Equipment Ad Valorem Tax Act
[Chapter 7, Article 34 NMSA 1978] or the Copper Production Ad Valorem Tax Act
[Chapter 7, Article 39 NMSA 1978]; and
(2) "tax rebate adjustment" means, for those counties that have an ordinance
in effect providing the property tax rebate pursuant to the Income Tax Act [Chapter 7,
Article 2 NMSA 1978] for the property tax year and that have not imposed for the
property tax year either a property tax, the revenue from which is pledged for payment
of the income tax revenue reduction resulting from the provision of the property tax
rebate, or a property transfer tax, the estimated amount of the property tax rebate to be
allowed with respect to the property tax year, and for any other governmental unit or
purpose, zero; provided that any estimate of property tax rebate to be allowed is subject
to review for appropriateness and approval by the department of finance and
administration.
Source: official text