Bill > SB112

This bill modifies New Mexico's property tax law to create a specific exemption for student housing facilities located on land owned by higher education institutions. Under the new provision, if a residential housing facility for students or medical residents is located on land owned by an exempt higher education institution and leased to a non-exempt entity to operate or assist in operating the facility, the improvements and leasehold interests will be exempt from property taxation. Previously, improvements owned or leased by a non-exempt entity on land owned by an exempt entity were subject to property taxation. The bill applies to property tax years starting in 2026, which means the new exemption will first take effect for the 2026 tax year. This change is designed to support higher education institutions by providing a tax benefit for student housing facilities, potentially encouraging the development of more on-campus or affiliated student housing by reducing the tax burden associated with these properties.

Budget and Finance, Business and Industry

https://www.nmlegis.gov/Legislation/Legislation?chamber=S&legtype=B&legno=112&year=25