FORTY-THIRD LEGISLATURE
                        SECOND SESSION, 1998
  
  
                                                February 12, 1998
  
  
  Mr. Speaker:
  
       Your CONSUMER AND PUBLIC AFFAIRS COMMITTEE, to whom
  has been referred
  
                        HOUSE BILL 478
  
  has had it under consideration and reports same with
  recommendation that it DO PASS, amended as follows:
  
       1.  On page 2, line 11, after "New Mexico" insert "by
  reason of use".
  
       2.  On page 3, strike lines 17 through 25, strike page
  four and insert in lieu thereof:
  
            "C.  When fractional interests are created in
  property:
  
                 (1)  fractional interests that are nonexempt
  property shall be reported to the appropriate valuation
  authority by the fractional interest owners for valuation for
  property tax purposes if the owner is a nonexempt entity; and
  
                 (2) except for fractional interests owned by
  the United States, an Indian nation, tribe or pueblo, the
  state of New Mexico or a political subdivision of the state,
  fractional interests that are owned by a nonexempt entity but
  are claimed to be exempt property shall be reported by the
  owner to the appropriate valuation authority for a
  determination of exemption status and valuation if determined
  to be nonexempt property.
  
            D.  Fractional interests that are nonexempt property
  shall be valued by the applicable method of valuation pursuant
  to the Property Tax Code, and if fractional interests that are
  exempt property have been created, the value of the remaining
  nonexempt fractional interests shall be determined in the
  property tax year following the creation of the interests as
  the value of the property in the property tax year immediately
  prior to the year in which creation of the fractional
  interests occurred, increased or decreased by the value
  directly attributable to the creation of the fractional
  interests that are exempt property.  For subsequent property
  tax years, the nonexempt fractional interests shall be valued
  pursuant to the applicable methods of valuation.".,
  
  and thence referred to the TAXATION AND REVENUE
  COMMITTEE.
  
                                Respectfully submitted,
  
  
  
                                <u>                                 
                                </u>                             Gary K. King, Chairman
  
  
                                     Adopted <u>                      </u>   Not Adopted <u>                        </u>
            (Chief Clerk)                      (Chief Clerk)
  
                       Date <u>               </u>
  
  The roll call vote was <u> 6 </u> For <u> 0 </u> Against
  Yes:      6
            Excused:  Crook, Dana, Heaton, Johnson
            Absent:   None
  
  
  .123239.1
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