DISABLED VETERAN PROPERTY TAX CHANGES

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AN ACT
RELATING TO TAXATION; AMENDING THE DISABLED VETERAN PROPERTY
TAX EXEMPTION; CLARIFYING OCCUPANCY REQUIREMENTS; CLARIFYING
EXEMPTION DETERMINATIONS FOR PROPERTIES WITH MULTIPLE
OWNERSHIP INTERESTS; PROVIDING PROTEST PROCEDURES AND
PROCEDURES TO CLAIM THE EXEMPTION; DECLARING AN EMERGENCY.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 7-37-5.1 NMSA 1978 (being Laws 2000,
Chapter 92, Section 1 and Laws 2000, Chapter 94, Section 1,
as amended) is amended to read:
"7-37-5.1. DISABLED VETERAN EXEMPTION.--
A. As used in this section:
(1) "disabled veteran" means an individual
who:
(a) has been honorably discharged from
membership in the armed forces of the United States or has
received a discharge certificate from a branch of the armed
forces of the United States for civilian service recognized
pursuant to federal law as service in the armed forces of the
United States; and
(b) has been determined pursuant to
federal law to have a permanent service-connected disability;
and
(2) "honorably discharged" means discharged
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from the armed forces pursuant to a discharge other than a
dishonorable or bad conduct discharge.
B. The property of a disabled veteran, including
joint or community property of the veteran and the veteran's
spouse, is exempt from property taxation in an amount equal
to the percentage of the veteran's disability as determined
by federal law multiplied by the taxable value of the
property after the amount that may be exempted pursuant to
Section 7-37-5 NMSA 1978 is deducted; provided that the
disabled veteran occupies the property continuously as the
veteran's principal place of residence pursuant to
regulations issued by the department and claimed pursuant to
Section 7-38-17 NMSA 1978. Property held in a grantor trust
established under Sections 671 through 677 of the Internal
Revenue Code of 1986, as those sections may be amended or
renumbered, by a disabled veteran or the veteran's surviving
spouse is also exempt from property taxation if the property
otherwise meets the requirements for exemption in this
subsection or Subsection C of this section.
C. The property of the surviving spouse of a
disabled veteran is exempt from property taxation if:
(1) the surviving spouse and the disabled
veteran were married at the time of the disabled veteran's
death; and
(2) the surviving spouse continues to occupy
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the property continuously after the disabled veteran's death
as the spouse's principal place of residence.
D. Upon the transfer of the principal place of
residence of a disabled veteran or of a surviving spouse of a
disabled veteran entitled to and granted a disabled veteran
exemption, the disabled veteran or the surviving spouse may
choose to:
(1) maintain the exemption for that
residence for the remainder of the year, even if the
residence is transferred during the year; or
(2) remove the exemption for that residence
and apply it to the disabled veteran's or the disabled
veteran's surviving spouse's new principal place of
residence, regardless of whether the exemption was applied
for and claimed within thirty days of the mailing of the
county assessor's notice of valuation made pursuant to the
provisions of Section 7-38-20 NMSA 1978.
E. The exemption provided by this section may be
referred to as the "disabled veteran exemption".
F. If two or more disabled veterans qualify for
the disabled veteran exemption on the same property, the
exemption shall be determined using the highest disability
percentage among the eligible disabled veteran owners.
G. The veterans' services department shall assist
the department and the county assessors in determining which
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veterans qualify for the disabled veteran exemption."
SECTION 2. Section 7-38-17 NMSA 1978 (being Laws 1973,
Chapter 258, Section 57, as amended) is amended to read:
"7-38-17. CLAIMING EXEMPTIONS--REQUIREMENTS--
PENALTIES.--
A. Subject to the requirements of Subsection E of
this section, head-of-family exemptions, veteran exemptions,
disabled veteran exemptions or veterans' organization
exemptions claimed and allowed in a tax year need not be
claimed for subsequent tax years if there is no change in
eligibility for the exemption nor any change in ownership of
the property against which the exemption was claimed. Head-
of-family, veteran and veterans' organization exemptions
allowable under this subsection shall be applied
automatically by county assessors in the subsequent tax
years.
B. Other exemptions of real property specified
under Section 7-36-7 NMSA 1978 for nongovernmental entities
shall be claimed in order to be allowed. Once such
exemptions are claimed and allowed for a tax year, they need
not be claimed for subsequent tax years if there is no change
in eligibility. Exemptions allowable under this subsection
shall be applied automatically by county assessors in
subsequent tax years.
C. An exemption required to be claimed under this
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section shall be applied for no later than thirty days after
the mailing of the county assessor's notices of valuation
pursuant to Section 7-38-20 NMSA 1978 in order for it to be
allowed for that tax year. A property owner claiming an
exemption that is still pending thirty days after the mailing
of the county assessor's notices of valuation may file a
protest pursuant to Section 7-38-21 NMSA 1978. A
determination on the pending claim shall be made by the
county assessor within the protest period.
D. A person who has had an exemption applied to a
tax year and subsequently becomes ineligible for the
exemption because of a change in the person's status or a
change in the ownership of the property against which the
exemption was applied shall notify the county assessor of the
loss of eligibility for the exemption by the last day of
February of the tax year immediately following the year in
which loss of eligibility occurs.
E. Exemptions may be claimed by filing proof of
eligibility for the exemption with the county assessor. The
proof shall be in a form prescribed by regulation of the
department. Procedures for determining eligibility of
claimants for any exemption shall be prescribed by regulation
of the department, and these regulations shall include
provisions for requiring the veterans' services department to
issue certificates of eligibility for veteran and veterans'
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organization exemptions in a form and with the information
required by the department. The regulations shall also
include verification procedures to assure that veteran
exemptions in excess of the amount authorized under Section
7-37-5 NMSA 1978 are not allowed as a result of multiple
claiming in more than one county or claiming against more
than one property in a single tax year. For purposes of
claiming the disabled veteran property tax exemption pursuant
to Section 7-37-5.1 NMSA 1978:
(1) a disabled veteran shall present to the
assessor a form prescribed by the department certifying that
the veteran is an owner of the property and occupies the
property continuously as the veteran's principal place of
residence. The form shall be accompanied by the disabled
veteran's certificate of eligibility issued by the veterans'
services department and be presented to the county assessor
at the time the disabled veteran exemption is initially
claimed and upon any change in ownership of the property; or
(2) if the disabled veteran has submitted a
veteran's disability claim to the United States department of
veterans affairs and the disabled veteran certificate of
eligibility has not been issued by the veterans' services
department by thirty days after the mailing of the county
assessor's notices of valuation, the veteran may file a
protest and attach the notice of receipt of a disabled
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veteran's disability claim as required by 35 U.S.C. 5103.
F. The department shall consult and cooperate with
the veterans' services department in the development,
adoption and promulgation of regulations under Subsection E
of this section. The veterans' services department shall
comply with the promulgated regulations. The veterans'
services department shall collect a fee of five dollars
($5.00) for the issuance of a duplicate certificate of
eligibility to a veteran or to a veterans' organization.
G. A person who violates the provisions of this
section by intentionally claiming and receiving the benefit
of an exemption to which the person is not entitled or who
fails to comply with the provisions of Subsection D of this
section is guilty of a misdemeanor and shall be punished by a
fine of not more than one thousand dollars ($1,000). A
county assessor or the assessor's employee who knowingly
permits a claimant for an exemption to receive the benefit of
an exemption to which the claimant is not entitled is guilty
of a misdemeanor and shall be punished by a fine of not more
than one thousand dollars ($1,000) and shall also be
automatically removed from office or dismissed from
employment upon conviction under this subsection."
SECTION 3. Section 7-38-21 NMSA 1978 (being Laws 1973,
Chapter 258, Section 61, as amended) is amended to read:
"7-38-21. PROTESTS--COUNTY-ASSESSED PROPERTY--ELECTION
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OF REMEDIES.--
A. A property owner may protest:
(1) the value or classification determined
by the county assessor for the property owner's property for
property taxation purposes;
(2) the allocation of value of the property
to a particular governmental unit;
(3) a denial of a claim for an exemption or
a pending claim for an exemption; or
(4) a limitation on increase in value.
B. A property owner may protest pursuant to
Subsection A of this section, either by:
(1) filing a petition with the county
assessor as provided in the Property Tax Code; or
(2) filing a claim for refund after paying
the property owner's taxes as provided in the Property Tax
Code.
C. The initiation of a protest under Paragraph (1)
of Subsection B of this section is an election to pursue that
remedy and is an unconditional and irrevocable waiver of the
right to pursue the remedy provided in Paragraph (2) of
Subsection B of this section.
D. A property owner may also protest the
application to the property owner's property of any
administrative fee adopted pursuant to Section 7-38-36.1 NMSA
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1978 by filing a claim for refund after paying the property
owner's taxes as provided in the Property Tax Code."
SECTION 4. Section 7-38-24 NMSA 1978 (being Laws 1973,
Chapter 258, Section 64, as amended) is amended to read:
"7-38-24. PROTESTING VALUES, CLASSIFICATION, ALLOCATION
OF VALUES AND DENIAL OF EXEMPTION OR LIMITATION ON INCREASE
IN VALUE DETERMINED BY THE COUNTY ASSESSOR.--
A. Petitions for protest authorized by Section
7-38-21 NMSA 1978 shall:
(1) be filed with the county assessor on or
before:
(a) the later of April 1 of the
property tax year to which the notice applies or thirty days
after the mailing by the assessor of the notice of valuation
if the notice was mailed with the preceding year's tax bill
in accordance with Section 7-38-20 NMSA 1978;
(b) thirty days after the mailing of a
property tax bill on omitted property pursuant to Section
7-38-76 NMSA 1978; or
(c) in all other cases, thirty days
after the mailing by the assessor of the notice of valuation;
(2) state the property owner's name and
address and the description of the property;
(3) state why the property owner believes
the value, classification, allocation of value or denial of a
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claim of an exemption or of a limitation on increase in value
is incorrect and what the property owner believes the correct
value, classification, allocation of value or exemption to
be; and
(4) state the value, classification,
allocation of value or exemption that is not in controversy.
B. Upon receipt of the petition, the county
assessor shall schedule a hearing before the county valuation
protests board and notify the property owner by certified
mail of the date, time and place that the property owner may
appear to support the petition. The notice shall be mailed
at least fifteen days prior to the hearing date.
C. The county assessor may provide for an informal
conference on the protest before the hearing."
SECTION 5. EMERGENCY.--It is necessary for the public
peace, health and safety that this act take effect
immediately.