Bill > SB186

This bill introduces a special method of property tax valuation for multifamily housing complexes with five or more units that are regularly rented or leased. The legislation creates new provisions that limit the valuation of such properties, including capping the per-unit value at 40% of the total property value, prohibiting the attribution of value to amenities or ancillary improvements beyond the housing units themselves, and allowing newly constructed multifamily housing to be valued at the lower of its current market value or the actual construction and land costs. For newly constructed properties, the property owner must submit evidence of actual costs to the county assessor. The bill also maintains existing property tax regulations that limit year-over-year value increases and requires the use of generally accepted appraisal techniques. Additionally, the bill specifically instructs assessors to consider potential decreases in property value due to affordable housing subsidies or covenants. These provisions will become applicable to property tax years starting in 2026, potentially providing financial relief and incentives for multifamily housing development by creating more favorable tax assessment methods.

Budget and Finance

https://www.nmlegis.gov/Legislation/Legislation?chamber=S&legtype=B&legno=186&year=25