HOUSE JOINT MEMORIAL 24

53rd legislature - STATE OF NEW MEXICO - second session, 2018

INTRODUCED BY

Kelly K. Fajardo and Alonzo Baldonado

 

 

 

 

 

A JOINT MEMORIAL

REQUESTING THE PROPERTY TAX DIVISION OF THE TAXATION AND REVENUE DEPARTMENT TO STUDY AND MAKE RECOMMENDATIONS TO UPDATE PROVISIONS OF THE PROPERTY TAX CODE RELATED TO THE TAXATION OF ABANDONED PROPERTIES.

 

     WHEREAS, the property tax division of the taxation and revenue department receives a list of properties more than two years delinquent from each county by July 15 of each year; and

     WHEREAS, the department has the responsibility and exclusive authority to take all action necessary to collect delinquent taxes shown on the delinquency list; and

     WHEREAS, tax delinquencies comprising the nine largest failed New Mexico subdivisions constitute eighty-five thousand unpaid tax accounts, many aged over ten years; and

     WHEREAS, Section 7-38-81 NMSA 1978 limits actions on collection of property taxes by presuming delinquent property taxes are paid by act of the legislature after ten years; and

     WHEREAS, the vast majority of these delinquencies constitute a permanent tax gap, with a new tenth year of delinquent obligation falling off the tax rolls every year; and

     WHEREAS, existing statutes, property categorization and assessment conventions have proved insufficient to rehabilitate these delinquencies; and

     WHEREAS, these properties are provable examples of real property exhibiting extreme economic and functional obsolescence; and

     WHEREAS, it is vitally important to the future well-being of property tax beneficiaries and stakeholders, including taxpayers and state and local governments, that property tax delinquencies be resolved;

     NOW, THEREFORE, BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO that the property tax division of the taxation and revenue department be requested to study and make recommendations to update provisions of the Property Tax Code related to the taxation of abandoned properties with an eye toward a collaborative effort to rehabilitate property abandonment and the tax consequences thereof; and

     BE IT FURTHER RESOLVED that the property tax division request assistance from interested stakeholders, including state and local governments, tribal, pueblo and land grant governments, the New Mexico association of counties, the New Mexico municipal league, the economic development department, universities and agricultural and livestock organizations, to collect data and foster dialogue with respect to this issue; and

     BE IT FURTHER RESOLVED that the property tax division request legal assistance from the New Mexico attorney general; and

      BE IT FURTHER RESOLVED that the property tax division report its findings and recommendations on or before August 1, 2018 to the appropriate legislative interim committees concerned with economic and rural development, land grants and Indian affairs; and

     BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the secretary of taxation and revenue, the New Mexico association of counties and the treasurers' affiliate of the New Mexico association of counties.

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