44TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 1999
RELATING TO TAXATION; ENACTING A METHOD FOR DETERMINING THE VALUE OF RESIDENTIAL PROPERTY FOR PROPERTY TAXATION PURPOSES; PRESCRIBING PENALTIES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. A new Section 7-36-21.2 NMSA 1978 is enacted to read:
"7-36-21.2. [NEW MATERIAL] SPECIAL METHOD OF VALUATION FOR RESIDENTIAL PROPERTY.--
A. As used in this section:
(1) "change of ownership" means a transfer to a transferee by a transferor of all or any part of the transferor's legal or equitable ownership interest in residential property except for a transfer:
(a) to a trustee for the beneficial use of the spouse of the transferor or the surviving spouse of a deceased transferor;
(b) to the spouse of the transferor that takes effect upon the death of the transferor;
(c) that creates, transfers or terminates, solely between spouses, any co-owner's interest;
(d) to a child of the transferor;
(e) that confirms or corrects a previous transfer made by a document that was recorded in the real estate records of the county in which the real property is located;
(f) for the purpose of quieting the title to real property or resolving a disputed location of a real property boundary;
(g) to a revocable trust by the transferor with the transferor, the transferor's spouse or a child of the transferor as beneficiary; or
(h) from a revocable trust described in Subparagraph (g) of this paragraph back to the settlor or trustor or to the beneficiaries of the trust; and
(2) "percent change P" means a percent equal to the annual percentage change in the repeat sales house price index for New Mexico published annually by the office of federal housing enterprise oversight. If the annual figure for the index is not available when the calculation is made, the most recently available four quarters indices shall be averaged and compared to the average of the same four quarters for the preceding year.
B. The value of residential property for property taxation purposes is:
(1) if no change of ownership of the property occurred in the year immediately prior to the year for which the value of the property for property taxation purposes is being determined, the value determined for property taxation purposes in the immediately prior year:
(a) plus or minus an increment of value determined by multiplying the immediately prior year's value for property taxation purposes by percent change P for the year for which valuation is being determined;
(b) plus the value of any physical improvements made to the property during the immediately preceding tax year; and
(c) minus the decrease in value of the property from the immediately preceding tax year determined pursuant to Section 7-38-13 NMSA 1978;
(2) if a change of ownership of the property occurred in the year immediately prior to the year for which the value of the property for property taxation purposes is being determined, the full consideration received by the transferor as disclosed pursuant to Section 7-38-12.1 NMSA 1978, plus the value of any physical improvements made to the property during the immediately preceding tax year less any decrease in value occurring during that year; or
(3) the value determined pursuant to Paragraph (1) or (2) of this subsection, adjusted pursuant to Section 7-36-21.3 NMSA 1978, if that provision is applicable.
C. The county assessor shall enter on the valuation records the valuations determined in accordance with Paragraphs (1) and (2) of Subsection B of this section."
Section 2. A new Section 7-36-21.3 NMSA 1978 is enacted to read:
"7-36-21.3. [NEW MATERIAL] ADJUSTMENT OF VALUATION OF RESIDENTIAL PROPERTY UNDER CERTAIN CIRCUMSTANCES.--
A. If a county assessor determines that the total valuation of residential property for property taxation purposes in the county exceeds the valuation that would have resulted in the absence of the application of Section 7-36-21.2 NMSA 1978, he shall apply to the secretary for an order authorizing the assessor to reassees all residential property in the county or to apply a percentage adjustment of valuation to all residential property in the county. This percentage shall be calculated to reduce the valuation of residential property to the value that would have resulted in the absence of the application of Section 7-36-21.2 NMSA 1978.
B. If a county assessor determines that special and unusual circumstances have occurred that have caused residential property values for property taxation purposes in the county to increase or decrease to an average level markedly above or below the average level in the immediately preceding tax year, he shall apply to the secretary for an order authorizing the assessor to reassess all residential property in the county or to apply a percentage adjustment of valuation to all residential property in the county. This percentage shall be calculated to reduce or increase the valuation of residential property in the county to the value that would have resulted in the absence of the application of the special and unusual circumstances."
Section 3. A new Section 7-38-12.1 NMSA 1978 is enacted to read:
"7-38-12.1. [NEW MATERIAL] PROPERTY TRANSFERS--AFFIDAVIT TO BE FILED WITH COUNTY CLERK--CONFIDENTIALITY--PENALTIES.--
A. After January 1, 2000, a county clerk and his employees shall neither accept for recording nor record any deed, real estate contract or memorandum of real estate contract transferring or evidencing the transfer of any interest in real property unless the person presenting the deed, real estate contract or memorandum of real estate contract for recording presents at the same time an affidavit signed and completed in accordance with the provisions of Subsection B of this section.
B. The affidavit required for submission at the time of recording a deed, real estate contract or memorandum of real estate contract shall be in a form approved by the department and signed by the transferors and transferees of any interest in real property transferred by deed or real estate contract. The affidavit shall contain at least the following information:
(1) the complete names of all transferors and transferees;
(2) the current mailing addresses of the transferors and transferees;
(3) the legal description of the real property interest transferred as it appears in the document of transfer; and
(4) the full consideration, including money or any other thing of value, paid or exchanged for the transfer.
C. Upon receipt of the affidavit required by Subsection A of this section, the county clerk shall place the date of receipt on the original affidavit. The county clerk shall retain the original affidavit as a permanent record and send a copy to the county assessor. The assessor shall index the affidavit copies in a manner that permits cross-referencing to other records in the assessor's office pertaining to the specific property described in the affidavit. The affidavit and its contents are confidential and shall not be disclosed except:
(1) to an employee in the clerk's office or the assessor's office or an employee of the department, if the employee has a demonstrated need for the information in carrying out his official duties;
(2) to real estate appraisers certified, licensed or registered in New Mexico who have a demonstrated need for the information in carrying out their duties in accordance with approved standards as defined by the real estate appraisers board;
(3) under an order of a court of competent jurisdiction;
(4) in connection with a protest pursuant to Section 7-38-21 NMSA 1978; or
(5) for statistical purposes if used in a way that the information disclosed is not identifiable or identified as applicable to any property owner or person in possession of the property.
D. The affidavit required by Subsection A of this section shall not be required for:
(1) a deed that results from the payment in full or forfeiture by a transferee under a recorded real estate contract or recorded memorandum of real estate contract;
(2) a lease of or easement on real property, regardless of the length of term;
(3) a deed, patent or contract for sale or transfer of real property in which an agency or representative of the United States, New Mexico or any political subdivision of the state is the named grantor or grantee and authorized transferor or transferee;
(4) a quitclaim deed to quiet title or clear boundary disputes;
(5) a conveyance of real property executed pursuant to court order;
(6) a deed to an unpatented mining claim;
(7) an instrument solely to provide or release security for a debt or obligation;
(8) an instrument that confirms or corrects a deed previously recorded;
(9) an instrument between husband, wife or parent and child with only nominal actual consideration therefor;
(10) an instrument arising out of a sale for delinquent taxes or assessments;
(11) an instrument accomplishing a partition;
(12) an instrument arising out of a merger or incorporation;
(13) an instrument by a subsidiary corporation to its parent corporation for no consideration, nominal consideration or in sole consideration of the cancellation or surrender of the subsidiary's stock;
(14) an instrument from a person to a trustee or from a trustee to a trust beneficiary with only nominal actual consideration therefor;
(15) an instrument to or from an intermediary for the purpose of creating a joint tenancy estate or some other form of ownership; or
(16) an instrument delivered to establish a gift or a distribution from an estate of a decedent or trust.
E. Prior to November 1, 1999, the department shall print and distribute to each county clerk affidavit forms for distribution to the public upon request.
F. A person who discloses an affidavit or its contents in violation of the provisions of Subsection C of this section is guilty of a misdemeanor and upon conviction shall be sentenced in accordance with the provisions of Section 31-19-1 NMSA 1978."
Section 4. APPLICABILITY.--The provisions of this act apply to the 2000 and subsequent property tax years.