HIGHER ED HOUSING FACILITY PROPERTY TAX

SB 112 exempts student housing facilities from property tax when they are located on land owned by a New Mexico higher education institution (like a public university) and operated under a lease from the institution to a nonexempt entity (such as a private housing company). The exemption applies specifically to housing for students or medical residents at institutions listed in the state constitution, provided the institution owns the land and leases the housing to the nonexempt entity for operation. This change affects how property taxes are calculated for these facilities, removing tax liability on the housing improvements (not the land) starting in 2026. The bill does not alter tax rules for other housing types or land ownership arrangements.