Regional
1:37 pm
Sun February 14, 2010

Bill Clears Senate To Ease Property Taxes

New Mexico – The Senate has approved a proposal to limit property tax increases when a home changes ownership.

The legislation targets a problem called property tax lightning, where homes are reassessed after being sold and taxes increase because of higher valuations.

State law imposes a 3 percent cap on yearly increases in a home's assessed value until it's sold. That's created tax inequities between property that's sold and homes with no ownership change.

The Senate approved a bill 22-to-16 on Saturday to extend the 3 percent cap to homes that are sold. It requires county assessors to bring all homes up to near market value over five years. The measure goes to the House.

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The property tax bill is SB160.

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On the Net:

Legislature: www.nmlegis.gov

Copyright 2010 The Associated Press.