Summary:

 House Bill 142 (HB 142) proposes elimination of the requirement that a board of county commissioners conduct a public hearing before adopting an ordinance allowing a property tax rebate for low-income taxpayers. The bill retains the authority of county commissioners to enact such ordinances but removes the obligation for a formal hearing. HB 142 does not specify an effective date, making it effective ninety days after the legislative session ends on June 20, 2025 if passed. 

Legislation Overview:

 House Bill 142 (HB 142) proposes amending Section 7-2-14.3 NMSA 1978 by repealing the requirement that counties hold a public hearing before adopting an ordinance to offer property tax rebates to low-income residents. Under the current law, counties that do not have a rebate ordinance in place must hold a hearing every two years to consider adoption. This bill allows counties to adopt the ordinance at their discretion without the mandatory hearing process. The rebate structure remains unchanged, offering refunds ranging from 35% to 75% of a taxpayer’s property tax liability, up to a maximum of $350 per return.

Bill Implications

HB 142 is unlikely to have a direct fiscal impact on the state but may lead to increased adoption of tax rebate ordinances, reducing local government property tax revenue. If more counties adopt the rebate, the Taxation and Revenue Department may see an increase in certified revenue losses that counties must reimburse. While this may benefit low-income homeowners, counties enacting the rebate must account for potential reductions in revenue.

HB 142 does not specify an effective date, making it effective ninety days after the legislative session ends on June 20, 2025 if passed. 

Current Law:

 Under current law, counties without an ordinance allowing the property tax rebate must hold a public hearing every two years to consider adoption. If a majority of commissioners vote in favor, the ordinance is enacted, and the rebate becomes available. The rebate is funded locally, with reimbursements certified by the Taxation and Revenue Department. HB 142 eliminates the hearing requirement but does not modify rebate amounts or eligibility criteria.