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AN ACT

RELATING TO TAXATION; PROVIDING A PROPERTY TAX EXEMPTION FOR

VETERANS' ORGANIZATIONS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. A new section of Chapter 7, Article 37 NMSA

1978 is enacted to read:

"VETERANS' ORGANIZATION EXEMPTION.--The property of a

veterans' organization chartered by the United States congress

and that is used by a local, state or federal governmental

entity for events or by nonprofit community organizations or

other veterans' organizations is exempt from property

taxation. The exemption provided by this section may be

referred to as the "veterans' organization exemption". The

veterans' organization exemption shall be applied only if

claimed and allowed pursuant to Section 7-38-17 NMSA 1978 and

the rules of the department. The veterans' services

department shall assist the taxation and revenue department

and the county assessors in determining which veterans'

organizations qualify for the veterans' organization

exemption."

Section 2. Section 7-38-17 NMSA 1978 (being Laws 1973,

Chapter 258, Section 57, as amended) is amended to read:

"7-38-17. CLAIMING EXEMPTIONS--REQUIREMENTS--

PENALTIES.--

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A. Subject to the requirements of Subsection E of

this section, head-of-family exemptions, veteran exemptions,

disabled veteran exemptions or veterans' organization

exemptions claimed and allowed in a tax year need not be

claimed for subsequent tax years if there is no change in

eligibility for the exemption nor any change in ownership of

the property against which the exemption was claimed. Head-

of-family, veteran and veterans' organization exemptions

allowable under this subsection shall be applied automatically

by county assessors in the subsequent tax years.

B. Other exemptions of real property specified

under Section 7-36-7 NMSA 1978 for nongovernmental entities

shall be claimed in order to be allowed. Once such exemptions

are claimed and allowed for a tax year, they need not be

claimed for subsequent tax years if there is no change in

eligibility. Exemptions allowable under this subsection shall

be applied automatically by county assessors in subsequent tax

years.

C. Except as set forth in Subsection H of this

section, an exemption required to be claimed under this

section shall be applied for no later than thirty days after

the mailing of the county assessor's notices of valuation

pursuant to Section 7-38-20 NMSA 1978 in order for it to be

allowed for that tax year.

D. A person who has had an exemption applied to a

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tax year and subsequently becomes ineligible for the exemption

because of a change in the person's status or a change in the

ownership of the property against which the exemption was

applied shall notify the county assessor of the loss of

eligibility for the exemption by the last day of February of

the tax year immediately following the year in which loss of

eligibility occurs.

E. Exemptions may be claimed by filing proof of

eligibility for the exemption with the county assessor. The

proof shall be in a form prescribed by regulation of the

department. Procedures for determining eligibility of

claimants for any exemption shall be prescribed by regulation

of the department, and these regulations shall include

provisions for requiring the veterans' services department to

issue certificates of eligibility for veteran exemptions and

veterans' organization exemptions in a form and with the

information required by the department. The regulations shall

also include verification procedures to assure that veteran

exemptions in excess of the amount authorized under Section

7-37-5 NMSA 1978 are not allowed as a result of multiple

claiming in more than one county or claiming against more than

one property in a single tax year.

F. The department shall consult and cooperate with

the veterans' services department in the development, adoption

and promulgation of regulations under Subsection E of this

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section. The veterans' services department shall comply with

the promulgated regulations. The veterans' services

department shall collect a fee of five dollars ($5.00) for the

issuance of a duplicate certificate of eligibility to a

veteran or to a veterans' organization.

G. A person who violates the provisions of this

section by intentionally claiming and receiving the benefit of

an exemption to which the person is not entitled or who fails

to comply with the provisions of Subsection D of this section

is guilty of a misdemeanor and shall be punished by a fine of

not more than one thousand dollars ($1,000). A county

assessor or the assessor's employee who knowingly permits a

claimant for an exemption to receive the benefit of an

exemption to which the claimant is not entitled is guilty of a

misdemeanor and shall be punished by a fine of not more than

one thousand dollars ($1,000) and shall also be automatically

removed from office or dismissed from employment upon

conviction under this subsection.

H. A veteran or the veteran's unmarried surviving

spouse who became eligible to receive a property tax exemption

due to the expansion of the class of eligible veterans

resulting from approval by the electorate in November 2004 of

an amendment to Article 8, Section 5 of the constitution of

New Mexico shall apply at the time the veteran or the

veteran's unmarried surviving spouse applies for the 2005

veteran exemption, to the county assessor of the county in

which the property of the veteran or the veteran's unmarried

surviving spouse is located to have the veteran exemptions for

the 2004 and 2005 property tax years applied to the 2005

taxable value of the property. The same form of documentation

required for a veteran's property exemption for property tax

year 2005 is required to be presented to the county assessor

for property tax year 2004."

Section 3. CONTINGENT EFFECTIVE DATE.--The provisions

of this act shall become effective upon certification by the

secretary of state that the constitution of New Mexico has

been amended as proposed by a joint resolution of the first

session of the forty-eighth legislature entitled, "A JOINT

RESOLUTION PROPOSING AN AMENDMENT TO ARTICLE 8 OF THE

CONSTITUTION OF NEW MEXICO TO PROVIDE A PROPERTY TAX EXEMPTION

FOR PROPERTY OF A VETERANS' ORGANIZATION CHARTERED BY THE

UNITED STATES CONGRESS AND USED BY A LOCAL, STATE OR FEDERAL

GOVERNMENTAL ENTITY FOR EVENTS OR BY NONPROFIT COMMUNITY

ORGANIZATIONS OR OTHER VETERANS' ORGANIZATIONS".

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