SB 117 — VALUATION INCREASES FOR LOW-INCOME DISABLED

SENATEAN BILLACT 117RELATING 54THTO LEGISLATUREPROPERTY -TAX; STATEOFNEWMEXICO- SECOND SESSION , 2020 INTRODUCED BY Benny Shendo, Jr.

ThisCLARIFYING documentTHE incorporatesLIMITATION amendmentsON thatVALUATION haveINCREASES beenFOR adoptedLOW-INCOME duringDISABLED thePERSONS. current legislative session.

The5 documentBE isIT aENACTED toolBY toTHE showLEGISLATURE theOF amendmentsTHE inSTATE contextOF andNEW isMEXICO: not to be used for the purpose of amendments.

ENDORSEDSECTION BY1. THE REVENUE STABILIZATION AND TAX POLICY COMMITTEE AN ACT RELATING TO PROPERTY TAX;

CLARIFYINGSection THE7-36-21.3 LIMITATIONNMSA ON1978 h(being VALUATIONLaws INCREASES2000, FORChapter LOW-INCOME21, DISABLEDSection PERSONS.1, as amended) is amended to read:

g"7-36-21.3. o t hr g e i k BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

hLIMITATION rON iINCREASE sIN SECTIONVALUE 1.FOR SINGLE-FAMILY DWELLINGS OCCUPIED BY LOW-INCOME OWNERS WHO ARE SIXTY-FIVE YEARS OF AGE OR OLDER OR DISABLED--REQUIREMENTS-- PENALTIES.-- A.

SectionThe 7-36-21.3valuation NMSAfor 1978property (beingtaxation Lawspurposes 2000,of ha ,single-family t,dwelling Chapterowned 21,and Sectionoccupied 1,by asa amended)person who is amendedsixty-five years of age or older or disabled and whose modified gross income for the prior taxable year did not exceed the greater of thirty-five thousand dollars ($35,000) or the amount calculated pursuant to read:Subsection F of this section shall not be greater than the assessed valuation of the property for property taxation purposes:

e(1) ufor ga eperson bsixty-five lyears eof eage hor "7-36-21.3.older in the tax year in which the owner qualifies and files an application;

LIMITATIONor ON(2) INCREASEfor INa VALUEperson FORwho SINGLE-is ndisabled din dthe itax =year =in owhich hthe FAMILYowner DWELLINGSqualified OCCUPIEDand BYfiles LOW-INCOMEan OWNERSapplication WHOSB ARE117 SIXTY-Page l1 ]for bthe ,dlimitation iprovided aby ºthis esection. FIVE YEARS OF AGE OR OLDER OR DISABLED--REQUIREMENTS-- r i = r t e w d m a n o PENALTIES.-- d m :

bB. e d s º o t n = .215931.2SAAIC February 12, 2020 (9:39am) s k m e e a n e d r e l u [ A d A.

The valuationlimitation forprovided propertyby taxationthis purposessection ofmay abe single-familyclaimed dwelling owned and occupied by afiling personproof who is sixty-five years of ageeligibility orwith older or disabled and whose modified gross income for the priorcounty taxableassessor yearon didan notapplication exceedform thefurnished greaterby of thirty-five thousand dollars ($35,000) or the amountassessor. calculated pursuant to Subsection F of this section shall not be greater than the SCORCºassessed»SCORC valuation of the property for property taxation purposes [in the ]:

(1)The forapplication ashall personbe sixty-fivefiled yearsno oflater agethan orthirty olderdays SCORCº:»SCORCafter SCORCº(a)»SCORC in the taxdate yearof inmailing whichby the SCORCºowner'sassessor sixty-fifthof birthday occurs, if the ownernotice ownsof andvaluation. occupies that property;

orThe [(2)]application (b)form inshall thebe taxdesigned yearby following the taxdepartment yearand inshall whichprovide anfor ownerproof who is sixty-five years of age or olderdisability, firstoccupancy owns and occupiesincome theeligibility. property»SCORC SCORCºowner h qualifies and files an application»SCORC;

orAn uowner »who rapplies (2) for athe personlimitation whoof isvalue disabledspecified in thethis taxsection tand hfiles gproof eof lincome ieligibility yearfor inthe whichthree theconsecutive owneryears SCORCºfirst»SCORCimmediately SCORCºqualifiedsubsequent hto rthe itax syear and»SCORCfor fileswhich anthe application foris made need not claim the limitation providedfor bysubsequent htax ,years eif hthere tis uno gchange thisin section.eligibility.

e b l e e , gh B.

The limitation provided by this section may be n d d i = = o h claimed by filing proof of eligibility with the county assessor l ] b ,d i a º r e r = on an application form furnished by the assessor.

SCORCº The t e w d m a n o application shall be filed no later than thirty days after the d m :

b r e t º o t n = .215931.2SAAIC February 12, 2020 (9:39am) s k m e - 2 - e a n e d r e l u [ A d date of mailing by the assessor of the notice of valuation.»SCORC The application form shall be designed by the department and shall provide for proof of age or disability, occupancy and income eligibility.

An owner who applies for the limitation of value specified in this section and files proof of income eligibility for the three consecutive years immediately SCORCº prior»SCORC SCORCºsubsequent»SCORC to the tax year for which the application is made need not claim the limitation for subsequent tax years if there is no change in eligibility.

An owner who has claimed and been allowed the limitation of value specified in this section for the three consecutive tax years immediately prior to the 2020 tax year is not required to claim the limitation for subsequent tax years h if there is no change in eligibility, unless the county u » r assessor requests updated information on the owner's modified t h g e l i gross income.

The county assessor shall apply the limitation h r i s automatically in subsequent tax years until a change in h , e h eligibility occurs.

tSB u117 gPage e2 b l e e , gh D.

A person who has had a limitation applied to a n d d i = = o h tax year and subsequently becomes ineligible for the limitation l ] b ,d i a º r because of a change in the person's status or income or a echange rin =the townership eof wthe dproperty magainst awhich nthe olimitation changewas inapplied shall notify the ownershipcounty assessor of the propertyloss againstof whicheligibility for the dlimitation mby :the last day of February of the tax year immediately following the year in which loss of eligibility occurs.

b r e t º o t n = .215931.2SAAIC February 12, 2020 (9:39am) s k m e - 3 - e a n e d r e l u [ A d limitation was applied shall notify the county assessor of the loss of eligibility for the limitation by the last day of February of the tax year immediately following the year in which loss of eligibility occurs.

The department shall make the adjustment by multiplying thirty-thirty-five five thousand dollars ($35,000) by a fraction, the numerator of which is the consumer price index ending during the prior tax h year and the denominator of which is the consumer price index g o t hr ending in tax year 2019.

The result of the multiplication g e i k shall be rounded down to the nearest one hundred dollars h r i s ($100), except that if the result would be an amount less than h , t, e u g the corresponding amount for the SB 117 Page 3 preceding tax year, then no e b l e e h adjustment shall be made.

n d d i = = o h G.

The department shall publish annually the amount l ] b ,d i a º e r i = r determined by the calculation made pursuant to Subsection F of t e w d m a n o this section and provide the calculated amount to each county dassessor mno :later than December 1 of each tax year.

b e d s º o t n = .215931.2SAAIC February 12, 2020 (9:39am) s k m e - 4 - e a n e d r e l u [ A d assessor no later than December 1 of each tax year.

(2) "disabled" means a person who has been h determined to be blind or permanently disabled with medical u » r improvement not expected pursuant to 42 USCA 421 for purposes t h g e l i of the federal Social Security Act or is determined to have a h r i s permanent total disability pursuant to the Workers' hSB ,117 ePage h4 Compensation Act;

and t u g e b l e e , gh (3) "modified gross income" means "modified n d d i = = o h gross income" as used in the Income Tax Act." lSB ]117 bPage ,d5 i a º r - 5 -7 e9 r25 = t e w d m a n o d m :

b r e t º o t n = .215931.2SAAIC February 12, 2020 (9:39am) s k m e e a n e d r e l u [ A d