Budget & Taxes

HB 103 caps annual increases in residential property tax assessments at 103% of the prior year's value or 106.1% of the value from two years prior, whichever is higher. This limit does not apply if a property's zoning changed or if ownership transferred in the year before the tax year. The bill also requires counties with low property sales ratios to reassess properties to meet a minimum threshold before the cap applies. It takes effect for tax years beginning January 1, 2026.

HB 332 reauthorizes and adjusts the use of existing state funds for specific capital projects, primarily extending their spending deadlines to fiscal year 2028 and modifying project purposes. It changes the original use of funds for the Lea County courthouse renovation (now for general county buildings) and expands the Albuquerque youth facility project to include young adults. The bill also extends timelines for a Navajo Nation bridge project and redirects unspent funds from a Curry County recreation complex to renovate a local park. These adjustments apply to previously appropriated funds without creating new spending, focusing on managing unspent balances from prior legislative actions.

SB 151 adjusts New Mexico's corporate tax calculation to better align with federal rules for certain income types. It modifies the state's definition of "base income" by adding back specific federal deductions (like interest from state bonds) and subtracting amounts for bonus depreciation and interest expenses that the federal government allows. This bill directly affects corporations operating in New Mexico that file federal tax returns, particularly those with income from controlled foreign corporations. The key change ensures New Mexico's tax calculation accounts for federal adjustments related to foreign income and depreciation, while applying standard apportionment rules to attributed income.

HB 8 creates a $300 million Higher Education Major Projects Fund in New Mexico's state treasury, funded by a transfer from the general fund. The bill allows state universities and community colleges to use these funds for major construction projects, including research facilities costing $50 million or more, student housing, and student life facilities like recreation centers. It requires institutions to cover 25-50% of project costs through non-state sources (like donations or bonds), with waivers possible if institutions cannot afford matches. Initial priorities include $150 million for a new UNM medical school, $50 million for a NMSU building, and $100 million for student housing statewide.

HB 4 adjusts how funds from New Mexico's health insurance premium surtax are distributed to the Health Care Affordability Fund. It changes the percentage of surtax revenue sent to the fund over time: 55% before July 2024, 30% from July 2024 to September 2025, 55% from September 2025 to September 2026, and 100% after September 2026. The bill directly affects the allocation of state revenue generated by the health insurance surtax, which supports healthcare affordability programs. This policy change modifies existing distribution rules without altering the surtax rate itself. The fund's purpose is to assist New Mexicans with healthcare costs, though the bill does not specify new eligibility criteria or program expansions.

HB 253 requires New Mexico school districts and charter schools to report projected enrollment numbers for students in distance learning programs. It changes school funding calculations by excluding distance learning students from membership counts used to determine state funding, and establishes a new approval process for these programs requiring state education department review. The bill also sets enrollment limits for distance learning with specific exceptions, clarifies requirements for students with disabilities in such programs, and renames the "Statewide Cyber Academy Act" as the "Distance Learning Act" while updating related definitions. These changes directly affect school districts, charter schools, and students enrolled in distance learning programs.