Section 13. Effect Of The Presumption Of Correctness

A. To overcome the presumption of correctness provided in Section 7-38-6 NMSA 1978, the taxpayer has the burden of coming forward with evidence showing that values for property taxation purposes determined by the division or the county assessor or determination of tax rates, classifications, allocations of net taxable values of property to governmental units and the computation and determination of property taxes made by the officer or agency responsible therefor under the Property Tax Code are incorrect. Failure to present evidence tending to dispute the factual correctness of the above determinations in any hearing pursuant to the provisions of the Property Tax Code may result in a denial of relief sought by a taxpayer. B. Where the only evidence presented by the taxpayer is the purchase price of the property which is the subject of the dispute over value for tax purposes and the evidence of comparable sales indicates the sales price was not the market value, the presumption of correctness of the determination of the division or the county assessor is not overcome. C. Once the presumption of correctness is overcome, the burden of showing a correct valuation shifts to the division or to the county assessor. [3/23/83, 12/29/94, 8/31/96; 3.6.7.13 NMAC - Rn & A, 3 NMAC 6.7.13, 4/30/01] 3.6.7.14 VALUATION DATE A. TAXABLE STATUS OF PROPERTY FIXED AS OF JANUARY 1 OF EACH YEAR: January 1 of each year is the date which determines the tax status of all property subject to valuation for property taxation purposes, except livestock valued as of the date and in the manner prescribed under Section 7-36-21 NMSA 1978. This status includes determination of whether the property is exempt from property taxation. Therefore, if property is not entitled to exemption from property taxation under the Property Tax Code on January 1 of the tax year, it is not exempted from taxation for that tax year rty taxation purposes, except livestock valued as of the date and in the manner prescribed under Section 7-36-21 NMSA 1978. This status includes determination of whether the property is exempt from property taxation. Therefore, if property is not entitled to exemption from property taxation under the Property Tax Code on January 1 of the tax year, it is not exempted from taxation for that tax year. The sale or transfer of the property to a tax exempt owner at a 3.6.7 NMAC 3 later date during the tax year does not entitle the property to exemption for that tax year. B. PROPERTY DESTROYED OR IMPROVED DURING THE YEAR: If property is destroyed or improved during the year, any resulting increase or decrease in valuation will not be reflected until January 1 of the following year, and no correction, reassessment, or proration of taxes is authorized because of such increase or decrease in valuation. [3/23/83, 12/29/94, 8/31/96; 3.6.7.14 NMAC - Rn & A, 3 NMAC 6.7.14, 4/30/01] 3.6.7.15 REPORTING OF PROPERTY FOR VALUATION - PENALTIES FOR FAILURE TO REPORT A. ANNUAL REPORT TO THE DIVISION - FORM AND REQUIRED INFORMATION: (1) The report required by Subsection A of Section 7-38-8 NMSA 1978 shall be made by the owner of the property or any other person who has written authorization from the owner to make the report on behalf of the owner. (2) In the case of mineral property valued pursuant to Sections 7-36-23 through 7-36-25 NMSA 1978, the operator of the mineral property may be required to report the property rather than the owner of the property. (3) The report shall be made on a form or forms approved by the division and shall contain all information required by the division to determine: (a) the value of the property pursuant to the Property Tax Code and these regulations; (b) the identification of the property; and (c) the owner or person in possession of the property equired to report the property rather than the owner of the property. (3) The report shall be made on a form or forms approved by the division and shall contain all information required by the division to determine: (a) the value of the property pursuant to the Property Tax Code and these regulations; (b) the identification of the property; and (c) the owner or person in possession of the property. (4) The form may require the attachment of copies of reports made to other agencies or departments of the state of New Mexico or agencies or departments of the United States. (5) Additionally, all railroad companies shall submit, on a yearly basis, a report of operations for the preceding year containing the following information: (a) copies of all New Mexico right-of-way maps; (b) complete legal description of all land parcels which are located in New Mexico, along with plats, if available; and (c) a statement setting forth, by individual counties, the total acreage of New Mexico real property and right of way. B. PROPERTY NOT VALUED IN THE TAX YEAR WHICH AGAIN BECOMES SUBJECT TO VALUATION - REPORT: The report required under Subsection B of Section 7-38-8 NMSA 1978 shall include: (1) the property owner's name and address; (2) the description of the property valued such that, if the description were included in a deed to the property, title would pass; (3) the description of any improvements on the property; (4) the cost of the land, as evidenced by the most recent sale of the land, and the date of sale; (5) the cost of the improvements, as evidenced by the most recent sale of the improvements, and the date of sale; (6) the dates and reason for which the property was not previously subject to valuation; and (7) the date and reason for which the property again became subject to valuation. C e property; (4) the cost of the land, as evidenced by the most recent sale of the land, and the date of sale; (5) the cost of the improvements, as evidenced by the most recent sale of the improvements, and the date of sale; (6) the dates and reason for which the property was not previously subject to valuation; and (7) the date and reason for which the property again became subject to valuation. C. REPORTS TO COUNTY ASSESSOR: (1) Reports required under Subsection E of Section 7-38-8 NMSA 1978 shall be made either by the owner of the real or personal property or by any other person having written authorization from the owner to report on behalf of the owner. (2) When reporting property subject to valuation to the county assessor for property tax purposes, the report of or on behalf of the owner shall include, in the case of real property, both a complete legal description of the property and the improvements made to that property and, in the case of personal property, a description of both the personal property and its location sufficient to identify its site and the proper taxing jurisdictions. (3) A report shall be made on a form or forms approved by the department and shall contain all information required by the department or the county assessor to: (a) determine the value of the property pursuant to the Property Tax Code and Parts 1 through 7 of Chapter 3.6 NMAC; (b) identify the property and its location; (c) identify the owner or person in possession of the property. 3.6.7 NMAC 4 (4) A form may require the attachment of copies of reports made to the department, other agencies of the state of New Mexico or to agencies, departments or instrumentalities of the United States. D. FORM OF STATEMENT OF IMPROVEMENTS: The statement of improvements required by Subsection C of Section 7-38-8 NMSA 1978 must be on a standard preprinted form, prepared and paid for by the county assessor and in form and content prescribed by the director reports made to the department, other agencies of the state of New Mexico or to agencies, departments or instrumentalities of the United States. D. FORM OF STATEMENT OF IMPROVEMENTS: The statement of improvements required by Subsection C of Section 7-38-8 NMSA 1978 must be on a standard preprinted form, prepared and paid for by the county assessor and in form and content prescribed by the director. The standard preprinted form shall be mailed to each person to whom the notice of value is mailed pursuant to Subsection A of Section 7-38-20 NMSA 1978 at the time of the mailing of the notice of value. Any form other than the standard form prescribed by the director and any method of making the form available to property owners other than the method directed by this subsection will be used only after submitting the form, and the method, in writing to the director and receiving written approval from the director for the use of such form and method. E. LEASED PROPERTY. Property leased under a true lease is to be reported by the owner/lessor of the property. When the form of the document is that of a lease but the transaction is in substance a conditional sale or the document serves primarily to secure a lender’s interest in the property, the property shall be reported by the lessee. [3/23/83, 12/13/85, 10/2/92, 12/29/94, 8/31/96; 3.6.7.15 NMAC - Rn & A, 3 NMAC 6.7.15, 4/30/01, A, 6/29/01] 3.6.7.16 PROPERTY OWNED BY NONGOVERNMENTAL ENTITIES - PRESUMPTION OF TAXABILITY - CLAIMING OF EXEMPTION: A. Real property owned by a nongovernmental entity is presumed to be subject to taxation under the provisions of the Property Tax Code unless an exemption has been claimed and allowed in accordance with this section with respect to the property. B C - Rn & A, 3 NMAC 6.7.15, 4/30/01, A, 6/29/01] 3.6.7.16 PROPERTY OWNED BY NONGOVERNMENTAL ENTITIES - PRESUMPTION OF TAXABILITY - CLAIMING OF EXEMPTION: A. Real property owned by a nongovernmental entity is presumed to be subject to taxation under the provisions of the Property Tax Code unless an exemption has been claimed and allowed in accordance with this section with respect to the property. B. For the purposes of this section: (1) “exemption” means an exemption, other than the head-of-family and veteran exemptions authorized under Sections 7-37-4 and 7-37-5 NMSA 1978, from property taxation authorized by the New Mexico Constitution, the Property Tax Code or other law; and (2) “nongovernmental entity” means a property owner who is not the United States, an Indian nation, tribe or pueblo, the state of New Mexico or a political subdivision of the state of New Mexico or a department, agency or instrumentality of the United States, an Indian nation, tribe or pueblo, the state of New Mexico or a political subdivision of the state of New Mexico. C. For the 1991 and succeeding property tax years, no exemption shall be allowed for any real property owned by a nongovernmental entity unless a completed “claim for exemption of property - nongovernmental entities” form has been filed with and approved by the valuation authority. The claim form shall provide for the following: (1) a description of the property; (2) a description of the owner's activities or tax status for federal purposes if relevant to the claim for exemption; (3) the legal basis upon which the claim is made; (4) evidence to support the claim and, if exemption is claimed because the property is used for educational or charitable purposes, evidence that such use is the “primary and substantial use” of the property must be presented; and (5) such other information as the department may require. D. A written statement containing all required information may be submitted in lieu of the standard form made; (4) evidence to support the claim and, if exemption is claimed because the property is used for educational or charitable purposes, evidence that such use is the “primary and substantial use” of the property must be presented; and (5) such other information as the department may require. D. A written statement containing all required information may be submitted in lieu of the standard form. The claim must be signed under oath by the property's owner or authorized agent. E. Once an exemption has been claimed and allowed, a new claim must be submitted for approval whenever the ownership of the property changes. If no claim is submitted upon change of ownership, the property is subject to valuation and taxation under the Property Tax Code beginning with the property tax year in which the ownership changed if the change occurred on January 1; if ownership changed on a date other than January 1, the property is subject to valuation and taxation beginning with the property tax year immediately following the year in which ownership changed. F. Once an exemption has been claimed and allowed, no further report need be made to the valuation authority so long as the eligibility and ownership remain unchanged. Should the eligibility status or ownership of the property change, the change shall be reported to the valuation authority not later than the last day of February of the property tax year if the change occurred on January 1; if the change occurred on any other day of the year, the change shall be reported by the last day of February of the year immediately following the year in which the changed occurred. 3.6.7 NMAC 5 G status or ownership of the property change, the change shall be reported to the valuation authority not later than the last day of February of the property tax year if the change occurred on January 1; if the change occurred on any other day of the year, the change shall be reported by the last day of February of the year immediately following the year in which the changed occurred. 3.6.7 NMAC 5 G. If a nongovernmental entity has claimed and been allowed, in substantial compliance with the provisions of this section, an exemption for a property for any property tax year in the period 1983 through 1990 and the eligibility status and ownership of the property have not changed, the nongovernmental entity shall be deemed to have complied with the provisions of this section with respect to that property for the 1991 and subsequent property tax years so long as the eligibility status and ownership do not change. [10/15/90, 12/29/94, 8/31/96; 3.6.7.16 NMAC - Rn & A, 3 NMAC 6.7.16, 4/30/01] 3.6.7.17 DESCRIPTION OF PROPERTY FOR PROPERTY TAXATION PURPOSES A. DESCRIPTION SUFFICIENTLY ADEQUATE AND ACCURATE TO IDENTIFY REAL PROPERTY - IMPROVEMENTS MUST BE DESCRIBED: A description sufficiently adequate and accurate to identify real property is a description such that, if the description were included in a deed, title would pass and which identifies it sufficiently to permit it to be located on the ground and its boundaries determined. B. UNIFORM SYSTEM OF REAL PROPERTY DESCRIPTION TO BE USED BY THE DEPARTMENT AND ALL COUNTY ASSESSORS: The department and all county assessors shall substantially comply with the current “New Mexico mapping manual” prepared by the division pursuant to Section 7-35-4 NMSA 1978. The system described in that manual replaces the “unit tax system” and any other system now in use in any county for the description, indexing or identification of real property. The director may permit, however, a reasonable time for replacement of these other systems l substantially comply with the current “New Mexico mapping manual” prepared by the division pursuant to Section 7-35-4 NMSA 1978. The system described in that manual replaces the “unit tax system” and any other system now in use in any county for the description, indexing or identification of real property. The director may permit, however, a reasonable time for replacement of these other systems. The department may insure substantial compliance with this subsection by installation of the required system by the department pursuant to Section 7-38-10 NMSA 1978. C. REAL PROPERTY DESCRIPTIONS RECORDED WITH THE COUNTY CLERK: Legal descriptions or plats of real property filed pursuant to Section 14-8-16 NMSA 1978, for record in the office of the county clerk, certified as correct by a professional engineer or land surveyor licensed in the state and delivered to the county assessor are, in the case of legal descriptions, adequate descriptions for property taxation purposes, and in the case of plats, adequate documents for reference in descriptions for property taxation purposes. D. MAPS PREPARED BY THE STATE ENGINEER PURSUANT TO THE LAND SURVEY ACT OF 1969: Where the state engineer has prepared maps containing a legal description of tracts of land surveyed pursuant to the Land Survey Act of 1969 and assigned each such tract a number, such lands for taxation shall be described by reference to the tract number and map number that designate the land and the date the map was filed and placed on record in the office of the county clerk. E. DESCRIPTIONS BY REFERENCE TO RECORDED INSTRUMENTS: Descriptions by reference to instruments fully recorded with the county clerk and containing a description of the property sufficiently adequate and accurate to identify it, unless otherwise ordered by the secretary, are adequate descriptions for property taxation purposes when the instruments meet the conditions of this subsection ounty clerk. E. DESCRIPTIONS BY REFERENCE TO RECORDED INSTRUMENTS: Descriptions by reference to instruments fully recorded with the county clerk and containing a description of the property sufficiently adequate and accurate to identify it, unless otherwise ordered by the secretary, are adequate descriptions for property taxation purposes when the instruments meet the conditions of this subsection. The instrument containing any such description by reference must show the time and place of filing or recordation of the instrument containing the description referred to, or other similar information, so that the instrument containing the description referred to can be located and identified. F. DESCRIPTION BY CO-ORDINATES: Descriptions pursuant to the New Mexico coordinate system established by Sections 47-1-49 through 47-1-56 NMSA 1978 are adequate descriptions for property taxation purposes, provided they are otherwise adequate pursuant to Section 3.6.7.17 NMAC. In the event, however, there is a conflict in a legal description where state plane co-ordinates are used to describe any tract of land which in the same document is also described by reference to any subdivision, line or corner of the United States public land surveys, the description based on the public land survey will prevail. G. SUBDIVISION DESCRIPTIONS BY NUMBER AND PLAT DESIGNATION: Description of parcels by number and plat designation are valid for the purpose of taxation for subdivisions approved pursuant to the New Mexico Subdivision Act (Sections 47-6-1 NMSA 1978 et seq.) provided they are otherwise adequate pursuant to these regulations. H. EFFECT OF SUBSECTION B OF SECTION 7-38-9 NMSA 1978: The effect of Subsection B of Section 7-38-9 NMSA 1978 is to validate assessments, records and instruments maintained or issued by tax officers prior to the effective date of the Property Tax Code. This provision in no way authorizes the use of past practices of description, mapping or coding after January 1, 1975 ursuant to these regulations. H. EFFECT OF SUBSECTION B OF SECTION 7-38-9 NMSA 1978: The effect of Subsection B of Section 7-38-9 NMSA 1978 is to validate assessments, records and instruments maintained or issued by tax officers prior to the effective date of the Property Tax Code. This provision in no way authorizes the use of past practices of description, mapping or coding after January 1, 1975. However, certain subsections of this section do authorize the use of past practices of description and coding but only to the extent and subject to the conditions stated in those subsections. I. GEOGRAPHIC INFORMATION SYSTEMS: (1) A “geographic information system” consists of three parts: (a) a digitized map or set of maps for the county in a format conforming to standards set by the 3.6.7 NMAC 6 department, with smart points, lines and areas; (b) a computerized database or databases containing required valuation information for each property in the county; and (c) a set of rules relating the map features to each other and to the property valuation database or databases such that every parcel mapped is identified with a property in the database. (2) Every county shall have a digitized set of maps for the county in place by June 2002. Every such set shall meet the specifications and standards set by the department for such sets. The department shall review each set to ensure conformance with requirements of this subsection and directives of the director. (3) Beginning in 2002, every county shall transmit to the department in accordance with instructions of the department but at least annually a copy of the county’s digitized county maps and property database. Such copies shall be retained by the department as back-up for the county system until replaced by a subsequent copy.