New Mexico (Summary)
Last Updated: March 2020
Tax Type: Current Use and Severance Tax
Description: Agricultural land is to be valued based on its capacity to produce, not on its actual production.
Law: NMSA 1978, §§ 7-26-5, 7-36-20, NMAC 3.6.5.27, NMAC 19.4.10.
Objective: Legislative intent behind this special method of property tax valuation is to aid the small subsistence farmers in the state.
Principal Forest Property Tax Incentive Program:
Program legal-common name: General property tax program
Program Requirements
Min/Max Acreage: at least 1 acre
Min. Stocking Growth: N/A
Forest Management Plan: N/A
Duration of Enrollment: Automatic annual renewal of initial application
Evidence of Use: Parcel inspections at discretion of county tax assessor
Penalties for Use Change: Failure to report change could result in a penalty equal to the greater of $25 or 25% of the difference between the property taxes ultimately determined to be due and the property taxes originally paid for the year the report was required.
Program Administration
State: The application should be filed on a form approved by the Property Tax Division of the New Mexico Taxation and Revenue Department.
County Tax Assessor and Commissioner: The assessors determine whether the property is eligible for special valuation as land used primarily for agricultural purposes. The assessors are responsible for determining and maintaining current values of property.
University: N/A
Landowners: File application. The owner of the land bears the burden of demonstrating that the use of the land is primarily agricultural.
For a more in depth discussion of New Mexico property taxes click here!