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committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports
if they are used for other purposes.
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F I S C A L I M P A C T R E P O R T
SPONSOR HGAC
ORIGINAL DATE
LAST UPDATED
2/5/08
HB 661/HGACS
SHORT TITLE Public Peace, Health, Safety & Welfare
SB
ANALYST Francis
REVENUE (dollars in thousands)
Estimated Revenue
Recurring
or Non-Rec
Fund
Affected
FY08
FY09
FY10
* See Narrative
(Parenthesis ( ) Indicate Revenue Decreases)
Relates to several property tax bills being considered by the 2008 legislature.
SOURCES OF INFORMATION
LFC Files
SUMMARY
Synopsis of HGAC Substitute
The House Government Affairs Committee substitute for House Bill 661 amends 7-36-15
NMSA 1978 to require, for property subject to affordable housing restrictions on owners
realization of increased value in a sale or otherwise restricts the owner’s future use of the
property. These include subsidy, covenant or encumbrance imposed pursuant to a state, local or
federal affordable housing program. Essentially the substitute allows county assessors to take
into account any restrictions on a property because of its status as an affordable property when
valuing the property. Housing includes congregate housing, manufactured homes, homeless or
hospice housing, and facilities used by a housing project. Currently, assessors must use valuation
methods such as comparable market sales prices which may be significantly higher than the cost
of the house to the taxpayer.
FISCAL IMPLICATIONS
The substitute for HB661 will have a minor fiscal impact on other taxpayers in counties where
the assessor adopts this methodology. Due to the way property tax is collected and the need to
maintain debt service, the lower valuations that result for taxpayers with affordable housing will
result in slightly higher rates for unaffected taxpayers.