Summary:

 House Joint Resolution 20 (HJR 20) proposes an amendment to Article 8, Section 5 of the New Mexico Constitution to provide a property tax exemption for certified and commissioned police officers, deputy sheriffs, and active firefighters who are members of the Public Employees Retirement Association and have earned a pension equal to at least 95% of their final average salary. The proposed exemption amount is $5,000. The resolution requires voter approval at the next general election or at a special election called for this purpose. 

Legislation Overview:

 House Joint Resolution 20 (HJR 20) seeks to amend the New Mexico Constitution to create a property tax exemption for certain retired public safety employees. The resolution adds a new subsection to Article 8, Section 5, granting a $5,000 exemption for certified and commissioned police officers, deputy sheriffs, and active firefighters who are members of the Public Employees Retirement Association and who have earned a pension equal to at least 95% of their final average salary. The resolution specifies that the exemption applies to property owned by eligible individuals, including community or joint property of married couples, and places the burden of proving eligibility on the claimant.

The resolution also maintains existing property tax exemptions, including the $2,000 exemption for heads of families and the exemption for honorably discharged veterans and their unmarried surviving spouses. The resolution clarifies that claimants for the new exemption must demonstrate ownership of the property and eligibility based on their service and pension status.

HJR 20 requires voter approval and directs that the amendment be placed on the ballot for the next general election or a special election called for that purpose. If approved by voters, the exemption would become part of the state constitution.

Implications

HJR 20 provides targeted tax relief for retired police officers, deputy sheriffs, and firefighters who meet the pension threshold, potentially reducing the financial burden of property taxes for qualifying individuals. The exemption may serve as an incentive for public safety personnel to remain in New Mexico after retirement, potentially addressing concerns about retention and financial security for retired law enforcement officers and firefighters. The requirement that retirees must have earned a pension equal to at least 95% of their final average salary ensures that the exemption is targeted at long-serving public safety professionals rather than individuals who leave service earlier in their careers.

The financial impact of the exemption will depend on the number of eligible retirees and the effect on property tax revenues at the state and local levels. Local governments that rely on property tax revenue may experience a reduction in taxable property value, potentially leading to shifts in tax burdens or adjustments in local budgets. However, the specific fiscal impact cannot be determined without data on the number of eligible retirees and their property holdings.

The requirement that claimants prove eligibility places an administrative burden on county assessors, who will need to verify pension status and employment history before granting the exemption. While the constitutional amendment establishes the exemption, the implementation details would need to be clarified through legislation or administrative rules.

By requiring voter approval, the resolution ensures that taxpayers have the opportunity to decide whether to extend this property tax benefit to retired public safety personnel. If approved, the exemption would be permanently enshrined in the state constitution, making future modifications more difficult than statutory changes.
 

Current Law:

 Under current law, New Mexico provides a $2,000 property tax exemption for heads of families and a property tax exemption for honorably discharged veterans and their unmarried surviving spouses, which increases over time based on inflation adjustments. There is no existing property tax exemption specifically for retired police officers, deputy sheriffs, or firefighters. Local governments set property tax rates, and exemptions must be authorized at the state level through constitutional or statutory provisions.