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NM Affordable Housing Property Tax Benefit

Below is a letter from the Property Tax Division of the Taxation and Revenue Department regarding a property tax relief law that we believe is important for you, our partners, to know about. HB 661, which was passed during this year’s legislative session, could provide immediate tax benefits for anyone involved with encumbered affordable housing property. To take advantage of this new law, follow the guidelines below and make a visit to your local county tax assessor. Please help us spread the word by passing on this information to those who would benefit from it.

 

Affordable Housing Property Tax Benefit

 

A new law became effective starting with the 2008 property tax year to provide property tax relief for owners of affordable housing. That’s the good news. The challenging news is that the law became effective in the middle of the 2008 property tax cycle and 2008 property values had already been set. However, the Property Tax Division (PTD) of the Taxation and Revenue Department is committed to getting this tax relief to qualified taxpayers for 2008 tax year. PTD has been working closely with the county assessors to work as a team to get this tax relief to qualifying taxpayers. To assure we are clear on the process of what needs to be done, PTD issued a written order directing county assessors to implement the law now and your assistance is needed also.

 

Taxpayers who qualify for this property tax benefit have several remedies available to them to assure they receive this benefit for tax year 2008, ASSUMING they get the required documents to the County Assessor’s Office and work with the Assessor to value their affordable housing within the provisions of the new law (HB 661 passed in 2008):

  • If the affordable housing owner received a notice of value and protested it with the County, they should continue this process. The assessor should grant their protest within the provisions of HB 661 and provide them the property tax relief for the 2008 tax year

  • If the affordable housing owner did not protest the valuation, they should see the benefits provided for in HB 661 reflected in the property tax bill issued on November 1

  • If the affordable housing owner gets a property tax bill that does not reflect the benefits of HB 661, they can still get the benefits provided for in HB 661 per an Order issued by PTD to the County Assessors

Required Documents that must be provided to the County Assessor ASAP

PTD has determined the following documents must be presented for each qualifying affordable housing program owner to the County Assessor . This is necessary to apply the property tax benefits in HB 661 appropriately to qualifying participants in affordable housing programs:

  • Copy of the Closing Settlement

  • Lien and Purchase Agreement

  • Lien and Purchase Agreement Notice

For Multi-family housing the Assessor would need to review the following

  • Structured financing on the project

  • All viable tax credits that effect the project

  • All deed restrictions

PTD has issued an order to all County Assessors to revalue subsidized affordable housing according to the new law. The corrected values should be reflected in property tax bills issued by November 1 of each year.

 

If an affordable housing organization or homeowner has questions they cannot get answered to their satisfaction through the County Assessor ‘s Office, please call myself or Michael O’Melia at 505-827-0817 or 505-827-0876.

 

It is very important to PTD that taxpayers understand the benefits of the new law and the procedures to apply for these benefits. PTD thanks the New Mexico Mortgage Finance Authority for disseminating information concerning this legislation. Their contacts throughout the State of New Mexico are invaluable in notifying property owners who could benefit from the new law.

 

Sincerely,

Rick Silva
Director
Property Tax Division
Taxation and Revenue Department

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