Housing (Property Taxes)

This bill (SJR 5) proposes a constitutional amendment to allow New Mexico’s legislature to limit annual increases in the assessed value of **residential property** for property tax purposes. It would amend the state constitution to authorize rules restricting how much a home’s taxable value can rise each year, potentially based on factors like owner-occupancy, homeowner age, or income. These limits could apply statewide or be chosen by local governments, with tax rates applied to the property’s full value if the limit isn’t used. The amendment requires voter approval at the next general election. (Note: The bill title incorrectly states "nonresidential"; the text specifically addresses residential property.)

SB 149 amends New Mexico's Property Tax Code to clarify the definition of "residential property." It explicitly includes manufactured homes used for permanent habitation as residential property, while excluding temporary structures like hotels and motels. This change directly affects manufactured home owners by classifying their properties under residential tax rates instead of potentially higher nonresidential rates. The bill makes a technical adjustment to tax classification rules without creating new taxes or exemptions.

HB 194 expands New Mexico's Metropolitan Redevelopment Program to include areas with housing shortages, defined as locations experiencing affordable housing scarcity, rising costs, or low vacancy rates. The bill allows redevelopment projects in these areas to include qualifying multifamily housing and exempts such properties from property taxation for up to 20 years. This directly affects developers and property owners building or maintaining affordable housing in designated shortage areas. The policy aims to increase housing supply by reducing financial barriers for developers in regions with critical housing needs.