Assessment Limitation for Low-income Disabled or Elderly Homeowners

State

New Mexico

Year

2016

Variations in Receipt of Benefit

No Variation in Receipt of Benefits

Benefit Type

Assessment Freeze

Benefit

The benefit is an assessment freeze at the value for the tax year when the owner first becomes eligible and is in place as long as the owner remains eligible. There are two components to the program, one that was adopted in 2001, which was expanded in 2003 to include the disabled regardless of age, and another modification enacted in 2008. The distinction between the two programs is the income limit. An owner who is entitled to a limitation in valuation under both the pre or post-2008 program may designate the limitation that shall be applied.

How is Benefit Disbursed

Exemption from assessed value

Eligible Property Type

Residential

Characteristics of Eligible Property

Only owner-occupied single-family dwellings are eligible for this benefit.

Eligibility Criteria

Age

Disability

Homeowner

Income Ceiling

Description of Eligibility Criteria

There are two income levels and both apply. The lower income ceiling applies to those 65 or older in 2001 or before 2009 or disabled in or after 2003; the higher income ceiling applies those are 65 or older or disabled in or after 2009. For the homeowner who is entitled to both programs,i.e. over 65 before 2009, the owner may designate which applies. Beginning in 2009, the income level has been $32,000. For those who qualified for the assessment limitation prior to 2009, the 2015 maximum income for Tax Year 2016 is $24,600. Applicants must be either disabled or over 65. An owner who applies for the limitation of value and files proof of income eligibility for the three consecutive years immediately prior 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. The county assessor shall apply that limitation automatically in subsequent tax years until a change in eligibility occurs.

Local Option in Adoption of Program

Local government is unable to exercise an option

Local Option Regarding Program Features

No local option regarding program features

State Funding for Local Tax Loss

Local government covers all of its tax loss

Description of State Funding for Tax Loss

State statutes are silent on funding for this benefit.

Record ID

NM101_RR16

Footnotes

The limitation of value does not apply to a change in valuation resulting from any physical improvements made to the property during the year immediately prior to the tax year or a change in the permitted use or zoning of the property during the year immediately prior to the tax year; or a residential property in the 1st tax year that is valued for property taxation purposes. “Disabled” means a person who has been determined to be blind or permanently disabled with medical improvement not expected or who is determined to have a permanent total disability pursuant to the Workers' Compensation Act.

Sources

N.M. Stat. § 7-36-21.3 (in effect for 2016)
New Mexico Taxation and Revenue Department 2016 Limitation Increase 65 & Older or Disabled Application and Instructions (2015) New Mexico Taxation & Revenue Department [http://www.tax.newmexico.gov/uploads/files/Property%20Tax%20Division/Appraisal/2016%20Over%2065%20%20low%20income%20Disabled%20Form%20and%20Instructions.pdf Accessed on 11/03/2017] View Archived Source

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