Under New Mexico Property Tax Law, NMSA 1978 Chapter 7, there are two categories of individual property taxation exemptions and several categories of institutional and governmental exemptions. Individual exemptions are available for property owners and qualifying veterans. Institutional exemptions may be available for qualifying organizations.
HOW CAN I FIND OUT IF MY ORGANIZATION WARRANTS AN EXEMPTION?
If you feel your organization meets the requirements established in 1) Article VIII Section 3 of the NM state constitution, 2) all relevant statutes and regulations, and 3) the New Mexico Supreme Court decision Grace Inc. vs. Bernalillo County, which requires that the primary use of land and/or improvements be for charitable, religious, or educational proposes, then the organization may apply for an exemption with the Assessor’s Office. Exemptions cannot be applied to properties unless completed applications are received and approved by the Assessor. The burden of proof is on the property owner to document eligibility. Please refer to the Claim for Exemption of Property by Non-Governmental Entities form for additional details regarding substantiating eligibility.
WHEN MAY EXEMPTIONS BE CLAIMED?
Exemptions for the current tax year must be claimed within 30 days of the date of the current year’s Notice of Value. The deadline is typically May 1st. Qualifying applications for exemption submitted after the deadline will be applied to the next tax year.
IS THERE A HOMESTEAD EXEMPTION IN NEW MEXICO?
No, the New Mexico Legislature has established a Head of Family Exemption.
HEAD OF FAMILY EXEMPTION
Homeowners may be eligible for the Head of Family exemption per 7-37-4 NMSA. Up to two thousand dollars ($2,000) of the taxable value of residential property subject to the tax is exempt from the imposition of the tax if the property is owned by the head of a family who is a New Mexico resident or if the property is held in a grantor trust established under Sections 671 through 677 of the Internal Revenue Code, as those sections may be amended or renumbered, by a head of a family who is a New Mexico resident. Those eligible for this exemption need only apply for it only once in order to receive it in subsequent years. Only one Head of Family exemption per household is permitted, and it must be applied to the primary residence of the property owner.
WHO IS ELIGIBLE FOR THE FAMILY EXEMPTION?
Statute 7-34-7 NMSA reads: As used in this section, Head of Family means an individual New Mexico Resident who is either:
2. A Widow or Widower
3. A Head of Household, furnishing more than one half the cost of support of any related person
4. A single person
5. A member of a condominium association or like entity who pays property tax through the association.
New Mexico residents who are Veterans may be eligible for one of two (or both) Veterans’ Exemptions per 7-37-5 and 7-37-5.1 NMSA. Applications must be submitted to the NM Department of Veterans’ Services, which determines eligibility and provides the property owner with a Certificate of Eligibility. Once received, the property owner must submit the original certificate (copies are not acceptable) to the Assessor to claim the exemption. Once the exemption is claimed, it is retained for subsequent years without having to reapply.
Up to four thousand dollars ($4,000) of the taxable value of property, including the community or joint property of husband and wife, subject to the tax is exempt from the imposition of the tax if the property is owned by a veteran or the veteran’s unmarried surviving spouse if the veteran or surviving spouse is a New Mexico resident or if the property is held in a grantor trust established under Sections 671 through 677 of the Internal Revenue Code of 1986, as those sections may be amended or renumbered, by a veteran or the veteran’s unmarried surviving spouse if the veteran or surviving spouse is a New Mexico resident. The exemption shall be deducted from the taxable value of the property to determine the net taxable value of the property. This exemption may be applied to any real property and/or manufactured home owned by the qualifying veteran.
DISABLED VETERAN EXEMPTIONS
The property of a disabled veteran, including joint or community property of the veteran and the veteran’s spouse, is exempt from property taxation if it is occupied by the disabled veteran as the veteran’s principal place of residence. Property held in a grantor trust established under Sections 671 through 677 of the Internal Revenue Code of 1986, as those sections may be amended or renumbered, by a disabled veteran or the veteran’s surviving spouse is also exempt from property taxation if the property otherwise meets additional requirements for exemption. The exemption is also limited to a maximum parcel size of five acres; any additional acreage will remain taxable.
LOW INCOME VALUE FREEZE
THIS VALUATION FREEZE:
- Is a freeze on the valuation of the property. It is not a freeze on the taxes.
- Is for the current property tax year and based on prior tax year income tax returns.
- Requires one to submit an application by thirty (30) days after the date of the Notice of Value (typically May 1st) of the current tax year. If approved, the freeze becomes active for the current tax year. The application must be completed and approved for three (3) consecutive years before becoming permanent.
WHAT ARE THE QUALIFICATIONS FOR THE VALUE FREEZE?
- The applicant must be 65 years or older OR disabled (proof of disability status is required).
- The applicant must be a New Mexico resident.
- The subject property must be the applicant’s primary residence and an owner occupied, single-family dwelling.
- As of Tax Year 2020, the prior year combined Modified Gross Income of the applicant and other household members must be less than $35,000. This limit is adjusted annually to account for inflation.
WHAT DOCUMENTATION IS REQUIRED FOR THE APPLICATION?
- Age: Copy of Photo ID showing date of birth
- Occupancy: Property must be owned by and be the primary residence of the applicant
- Identification of Property: Provide a physical address, legal description and account number
- Verification of Income of applicant, spouse, and other residents
- Prior Year NM State PIT-1
- Prior Year NM State PIT-RC FORM (NM Rebate and Credit Schedule)
- Prior Year Form 1040 US Income Tax Return
- Other documents as appropriate (e.g., IRS 1099, Social Security Benefits Statement, Supplemental Security Income Letter, Veteran’s benefit letter)
- If applicant is disabled and less than 65 years old:
- Provide documentation from the Social Security Office or Worker’s Compensation Administration confirming disabled status. Disabled means a person who has been determined to be blind or permanently disabled with medical improvement not expected pursuant to 42 USCA 421 for purposes of the federal Social Security Act or is determined to have a permanent total disability pursuant to the Workers’ Compensation Act