Exemptions 2019-12-09T09:33:23-07:00

Exemptions

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 family and qualifying veterans.

HOW CAN I FIND OUT IF MY ORGANIZATION WARRANTS AN EXEMPTION?

If you feel your organization meets the requirements established in the New Mexico Supreme Court decision in Grace Inc. vs. Bernalillo County, which requires that the primary use of land and/or improvements be for charitable, religious, or educational proposes, and then you must apply for an exemption with the Assessor’s Office. The burden of proof is on the property owner to document eligibility.

BY WHAT DATE MUST EXEMPTIONS BE CLAIMED?

Applications for exemptions for the current tax year must be submitted within thirty days of the date of the current year’s Notice of Value. The Notice of Value is typically issued on April 1st, so the deadline for exemption applications is usually May 1st.

IS THERE A HOMESTEAD EXEMPTION IN NEW MEXICO?

No, The New Mexico Legislature has established a Head of Family Exemption.

WHEN EXEMPTIONS MAY BE CLAIMED?

Exemptions for the current tax year must be submitted by May 1 st .

HEAD OF FAMILY EXEMPTION

If property changes ownership after the 1st of the year, the exemption will be removed on January 1st of the following year and the new owner must apply by May 1st to qualify for the new tax year.

WHO IS ELIGIBLE FOR THE FAMILY EXEMPTION AND HOW IS IT APPLIED?

The state statue on this reads: As used in this section, Head of Family means an individual New Mexico Resident who is either –
1. Married;
2. Widow or Widower;
3. Head of Household, furnishing more than one half the cost of support of any related person;
4. a single person.

Those eligible for this exemption must apply for it only once to receive it in subsequent years. Only one family exemption per household is permitted, and it must be the property in which the owner resides in the State of New Mexico. The Head of Household Exemption for 1988 was $200. In 1989 and 1990, the amount was $800 and in 1991 and 1992 it was $1,400. In 1993 to the current year it capped at $2,000. For the year 2004 no legislation has passed to increase the family exemption.

VETERAN EXEMPTION

If property changes ownership after the 1st of the year, the exemption will be removed on January 1st of the following year and the new owner must apply by May 1st to qualify for the new tax year.

7-37- 5. VETERAN EXEMPTION

  • (2003) 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 exemption form 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 in a New Mexico resident or if the property is held in a Grantor Trust established under Sections 671 through 677 of the Revenue Code of 1986.

7-37- 5.1 DISABLED VETERAN EXEMPTIONS

  • (2003) 100% Disabled Veteran:  Full exemption from property tax may be granted to veterans who are 100% disabled. To claim, present “Certificate of Eligibility” to the Assessor’s Office for confirmation of declaration.  Eligibility is determined and granted by the NM Veteran’s Service Commission (505-827-6300)

HOW IS THE VETERAN EXEMPTION STATUS DETERMINED AND HOW DOES IF AFFECT PROPERTY TAXES?

The New Mexico Veteran’s Service Commission determines all eligibility and issues a certificate to all qualifying veterans. This certificate (original document only) may be used to claim the New Mexico Property Tax Exemption for $4,000 a year. Once the exemption is claimed, it is retained for subsequent years without having to reapply. Veterans with certificates should apply for the exemption with the Assessor between January 1 and May 1st. Surviving spouses may receive the exemption if they qualify with the New Mexico Veteran’s Service Commission. For more information, call the Veteran’s Service Commission in Santa Fe for details on expanded eligibility by the legislature for veterans (505) 827-6300.

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
  • You must submit an application by 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) successive years before becoming permanent.

WHAT ARE THE QUALIFICATIONS FOR THE VALUE FREEZE?

  • You must be 65 years or older OR Disabled (Proof of disability status is required)
  • You must make less than $32,000 Modified Gross Income (All Income) this income requirement can change annually.

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 dependents
  • 2016 NM STATE PIT-RC FORM (NM Rebate and Credit Schedule)
  • 2016 Federal 1040 US Tax Return
  • If Applicant is 100% Disabled and less than 65 years old:
  • Also provide a letter from the Social Security Office stating the month/year when disability was first declared under the Social Security Act.

Once your application and related documents have been received, they will be reviewed. You will be notified if you have been approved or denied for the valuation freeze.

Forms