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F I S C A L I M P A C T R E P O R T

SPONSOR:	Garcia		DATE TYPED:	01/23/01		HB	HJR 2
SHORT TITLE:		Limit Property Valuation of Disabled, CA				SB
					ANALYST:		Williams

APPROPRIATION

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY01

FY02

FY01

FY02

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates/Relates to Appropriation in The General Appropriation Act

REVENUE

Estimated Revenue		Subsequent Years Impact	Recurring or Non-Rec	Fund Affected
FY01	FY02	Subsequent Years Impact	Recurring or Non-Rec	Fund Affected
		See Narrative

(Parenthesis ( ) Indicate Revenue Decreases)

Duplicates/Conflicts with/Companion to/Relates to

SOURCES OF INFORMATION

LFC Files

Taxation and Revenue Department

Governor's Committee on Concerns of the Handicapped

SUMMARY

Synopsis of Bill

The legislation proposes an amendment to the state constitution to authorize a limitation on annual valuation increases for residential property for disabled individuals. The constitutional amendment would be subject to voter approval at the next general election or special election called to consider the amendment. Effective date of the legislation would be June 15, 2001.

Significant Issues

If the amendment is approved by the voters, the legislature would be allowed to pass enabling legislation.

FISCAL IMPLICATIONS

The constitutional amendment would impose no impact on state or local revenue sources. Typically, the effect of this type of property tax policy is to shift the burden to other property tax payers because property rates could adjust as necessary.

ADMINISTRATIVE IMPLICATIONS

TRD does not anticipate any significant administrative fiscal impact from the constitutional amendment, but notes potential administrative costs corresponding to the complexity of subsequent enabling legislation.

OTHER SUBSTANTIVE ISSUES

The proposal does not consider income levels of exemption beneficiaries.

At this time, the size of the beneficiary population is not precisely known, but generally the following was provided by Governor's Committee on Concerns of the Handicapped:

•20% of New Mexico's population has a disability.
•70% of New Mexico's disabled population is unemployed.
•There are federal and state efforts to assist the disabled in qualifying for home ownership.

Further, when the results are released, the long form of Census 2000 posed a question that may be able to provide additional information on this issue.

POSSIBLE QUESTIONS

1. Would the enabling legislation be targeted to owner-occupied dwellings? If the intent is to assist all disabled persons, how can renters be aided?

AW/njw