NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Suite 101 of the State Capitol Building North.

(Parenthesis ( ) Indicate Revenue Decreases)

Duplicates/Conflicts with/Companion to/Relates to

SOURCES OF INFORMATION

Taxation and Revenue Department (TRD)

SUMMARY

Synopsis of HAFC Amendment

The House Appropriation and Finance Committee amendment appears to be a technical correction.

Synopsis of Bill

If a person is 65 or older with a modified gross income of up to $18,000 and owns and occupies his/her own home, then an individual in that household would qualify for a freeze in property tax values under the provisions of this bill. Effective property tax year 2001.

FISCAL IMPLICATIONS

According to TRD, no significant fiscal impact on the state; however, the bill would limit bonding capacity growth. Impacts on counties, municipalities and school districts are expected to be small overall, but vary significantly. The attached TRD fiscal analysis shows the distribution of over 65 people by county. About 11% of New Mexico's population, or 200,000 people, would meet the age criteria; however, usually two elderly adults live in a single dwelling and only one would qualify for the freeze. Approximately one-half of the over 65 population would meet the income criteria for eligibility. Thus, an estimated 40,000 households would qualify for the freeze. Because values of the homes would be frozen, rates would adjust upward to generate the appropriate level of revenues.

ADMINISTRATIVE IMPLICATIONS

Administrative costs are noted for TRD, potentially DFA and county governments.

AW/njw:gm