0001|                         HOUSE BILL 113
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0002|     42ND LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION,
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0003|     1996
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0004|                         INTRODUCED BY
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0005|                           BEN LUJAN
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0006|     
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0007|                                
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0008|     
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0009|     FOR THE REVENUE STABILIZATION AND TAX POLICY COMMITTEE
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0010|     
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0011|                             AN ACT
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0012|     RELATING TO PROPERTY TAXATION; IMPOSING A LIMITATION ON THE
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0013|     INCREASE IN VALUATION OF RESIDENTIAL PROPERTY FOR PROPERTY
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0014|     TAXATION PURPOSES UNDER CERTAIN CIRCUMSTANCES; PROVIDING A
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0015|     METHOD FOR ADJUSTING CERTAIN PROPERTY TAX RATES.
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0016|     
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0017|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0018|       Section 1.  A new section of the Property Tax Code, Section
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0019|     7-36-21.2 NMSA 1978, is enacted to read:
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0020|       "7-36-21.2.  [<u>NEW MATERIAL</u>]  LIMITATION ON VALUATION
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0021|     INCREASES FOR RESIDENTIAL PROPERTY.--
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0022|            A.  As used in this section:
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0023|                 (1)  "change of ownership" means a transfer to a
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0024|     transferee by a transferor of all or any part of the
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0025|     transferor's legal or equitable ownership interest in
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0001|     residential property except for a transfer:
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0002|                      (a)  to a trustee for the beneficial use
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0003|     of the spouse of the transferor or the surviving spouse of a
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0004|     deceased transferor;
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0005|                      (b)  to the spouse of the transferor that
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0006|     takes effect upon the death of the transferor;
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0007|                      (c)  that creates, transfers or
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0008|     terminates, solely between spouses, any co-owner's interest;
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0009|                      (d)  to a child of the transferor;
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0010|                      (e)  that confirms or corrects a previous
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0011|     transfer made by a document that was recorded in the real estate
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0012|     records of the county in which the real property is located;
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0013|                      (f)  for the purpose of quieting the title
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0014|     to real property or resolving a disputed location of a real
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0015|     property boundary;
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0016|                      (g)  to a revocable trust by the
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0017|     transferor with the transferor, the transferor's spouse or a
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0018|     child of the transferor as beneficiary; or
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0019|                      (h)  from a revocable trust back to the
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0020|     settlor or trustor or to the beneficiaries of the trust; and
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0021|                 (2)  "percent change I" means a percent not to
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0022|     exceed five percent that is derived by dividing the annual
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0023|     implicit price deflator index for state and local government
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0024|     purchases of goods and services, as published in the United
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0025|     States department of commerce monthly publication entitled
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0001|     "Survey of Current Business" or any successor publication, for
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0002|     the calendar year next preceding the prior calendar year into
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0003|     the difference between the prior year's comparable annual index
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0004|     and that next preceding year's annual index.
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0005|            B.  The limitation on valuation increases for
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0006|     residential property in this section applies to any county in
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0007|     which there is in effect for the tax year an ordinance enacted
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0008|     by the board of county commissioners directing that the
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0009|     limitation of this section be applied to residential property in
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0010|     the county.
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0011|            C.  The limitation on increases in valuation
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0012|     established for residential property pursuant to this section
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0013|     shall not apply to a specific residential property for:
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0014|                 (1)  the tax year immediately following the year
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0015|     in which a change of ownership of that property occurs; or
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0016|                 (2)  either of the first two tax years in which
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0017|     the limitation of this section is applied to that property if
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0018|     the value of the property is increased in that year by the
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0019|     county assessor to achieve compliance with the requirements of
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0020|     Section 7-36-16 NMSA 1978.
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0021|            D.  Except as provided in Subsection F of this
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0022|     section, the value of residential property for property taxation
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0023|     purposes is the lesser of:
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0024|                 (1)  the value of the property for property
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0025|     taxation purposes as determined pursuant to the general
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0001|     valuation provisions applicable to residential property in the
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0002|     Property Tax Code; or
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0003|                 (2)  the value determined by adding to the value
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0004|     of the property for property taxation purposes used in the
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0005|     immediately preceding tax year:
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0006|                      (a)  an amount equal to the value of the
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0007|     property for property taxation purposes in the immediately
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0008|     preceding tax year multiplied by percent change I, if that
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0009|     change is an increase; and
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0010|                      (b)  the value of any physical
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0011|     improvements made to the property during the immediately
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0012|     preceding tax year.
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0013|            E.  The county assessor shall enter on the valuation
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0014|     records the valuations determined in accordance with Paragraphs
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0015|     (1) and (2) of Subsection D of this section.
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0016|            F.  The valuation of residential property for the
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0017|     purpose of servicing bonded indebtedness of the state or of any
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0018|     local body whose taxing jurisdiction includes property in two or
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0019|     more counties, if at least one of the counties has in effect for
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0020|     the tax year an ordinance authorized by Subsection B of this
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0021|     section, shall be the valuation determined in accordance with
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0022|     Paragraph (1) of Subsection D of this section."
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0023|       Section 2.  A new section of the Property Tax Code is
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0024|     enacted to read:
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0025|       "[<u>NEW MATERIAL</u>]  ADJUSTMENT IN DETERMINING TAX RATES FOR
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0001|     GENERAL OBLIGATION INDEBTEDNESS.--
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0002|            A.  The adjustment described in this section shall be
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0003|     applied in determining the tax rate necessary to service bonded
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0004|     indebtedness of the state or of any local body whose taxing
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0005|     jurisdiction includes property in two or more counties, if at
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0006|     least one of the counties has in effect for the tax year an
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0007|     ordinance authorized by Section 7-36-21.2 NMSA 1978.
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0008|            B.  The department of finance and administration
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0009|     shall determine the rate necessary to service the general
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0010|     obligation bonded indebtedness for the jurisdiction by
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0011|     disregarding the rate limitation provided for in Section
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0012|     7-36-21.2 NMSA 1978 and by using the valuations for property
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0013|     taxation purposes as determined pursuant to the general
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0014|     valuation provisions applicable to residential property in the
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0015|     Property Tax Code."
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0016|       Section 3.  APPLICABILITY.--The provisions of this act
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0017|     apply to the 1998 and subsequent property tax years.
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0018|                             -  -
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0019|                              State of New Mexico
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0020|                    House of Representatives
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0021|   
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0022|                    FORTY-SECOND LEGISLATURE
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0023|                      SECOND SESSION, 1996
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0024|   
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0025|   
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0001|                                              January 31, 1996
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0002|   
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0003|   
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0004|   Mr. Speaker:
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0005|   
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0006|       Your TAXATION AND REVENUE COMMITTEE, to whom has
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0007|   been referred
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0008|   
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0009|                        HOUSE BILL 113
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0010|                                
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0011|                                 has had it under consideration and reports same with
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0012|   recommendation that it DO PASS.
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0013|   
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0014|                                Respectfully submitted,
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0015|   
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0016|   
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0017|   
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0018|                                <u>                                 
</u>    |
<u></u>0019| <u>  </u>                            Jerry W. Sandel, Chairman
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0020|   
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0021|   
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0022|   Adopted <u>                    </u>    Not Adopted <u>                     
</u>    |
<u></u>0023| <u>  </u>
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0024|            (Chief Clerk)                       (Chief Clerk)
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0025|   
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0001|                      Date <u>            </u>
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0002|   
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0003|   The roll call vote was<u> 10 </u> For<u> 3</u> Against
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0004|   Yes:          10
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0005|   No:      Crook, Hawkins, Parsons
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0006|   Excused: None
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0007|   Absent:  None
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0008|   
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0009|   
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0010|                                                              
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0011|     H0113TR1
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0012|   
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0013|                    FORTY-SECOND LEGISLATURE
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0014|                      SECOND SESSION, 1996
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0015|   
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0016|   
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0017|                                             February 12, 1996
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0018|   
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0019|   Mr. President:
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0020|   
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0021|     Your WAYS AND MEANS COMMITTEE, to whom has been
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0022|   referred
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0023|   
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0024|                         HOUSE BILL 113
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0025|   
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0001|   has had it under consideration and reports same with
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0002|   recommendation that it DO PASS, and thence referred to the
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0003|   FINANCE COMMITTEE.
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0004|   
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0005|                              Respectfully submitted,
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0006|   
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0007|   
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0008|   
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0009|                              __________________________________
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0010|                              TITO D. CHAVEZ, Chairman 
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0011|   
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0012|   
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0013|   
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0014|   Adopted_______________________ Not Adopted_______________________
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0015|             (Chief Clerk)                          (Chief Clerk)
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0016|   
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0017|   
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0018|                     Date ________________________
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0019|   
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0020|   
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0021|   The roll call vote was <u> 6 </u> For <u> 1 </u> Against
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0022|   Yes:  6
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0023|   No:        Rawson
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0024|   Excused:   Jennings
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0025|   Absent:    None
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0001|   
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0002|   
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0003|   H0113WM1
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0004|   
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0005|     
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0006|   
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0007|                    FORTY-SECOND LEGISLATURE
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0008|                      SECOND SESSION, 1996
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0009|   
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0010|   
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0011|                                             February 13, 1996
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0012|   
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0013|   Mr. President:
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0014|   
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0015|     Your FINANCE COMMITTEE, to whom has been referred
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0016|   
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0017|                         HOUSE BILL 113
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0018|   
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0019|   has had it under consideration and reports same with
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0020|   recommendation that it DO PASS.
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0021|   
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0022|                              Respectfully submitted,
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0023|   
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0024|   
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0025|   
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0001|                              __________________________________
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0002|                              Ben D. Altamirano, Chairman 
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0003|   
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0004|   
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0005|   
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0006|   Adopted_______________________ Not Adopted_______________________
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0007|             (Chief Clerk)                          (Chief Clerk)
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0008|   
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0009|   
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0010|   
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0011|                     Date ________________________
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0012|   
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0013|   
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0014|   The roll call vote was <u> 7 </u> For <u> 0 </u> Against
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0015|   Yes:  7
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0016|   No:        0
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0017|   Excused:   Aragon, Donisthorpe, Ingle, Jennings T., Macias, Nava
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0018|   Absent:    None
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0019|   
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0020|   
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0021|   H0113FC1
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0022|   
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