As a homeowner you’re asked to pay your fair share through property taxes. Your property is assessed and valued by the county assessor, the mill rate is set and imposed by your county and other taxing authorities, and the appropriate tax is calculated and issued by the county treasurer. We all pay it - maybe not with a smile on our faces - but it’s the law.

Business owners should be held to the same standard.

Sure, they pay taxes too, but did you know that most are not paying their fair share, because their property is currently undervalued. Assessors can establish the fair market value of residential property because the law requires the reporting of residential sales. The law requires the sale of your home always be provided for statistical and analytical purposes only.

In New Mexico, when a business owner buys, sells, adds on, or improves nonresidential, or commercial property, the owner is required to report any improvements in excess of $10,000. Business owners are supposed to file a yearly business personal property rendition to include items such as tables, chairs, freezers, computers, etc. Even that’s done on the honor system with almost no way to check what’s being reported. Due to a lack of data, assessors have a difficult time determining the fair market value of nonresidential properties. Therefore, almost all such property is undervalued, which means commercial owners are not paying their fair share of the tax burden.

Is that fair? Is that equitable for all property owners? Does that mean that businesses aren’t paying their fair share of taxes that someone is making up the difference? Well, go get a mirror, because that person paying the difference is YOU!

The New Mexico Assessors’ Affiliate, an association comprised of all 33 county assessors, is asking lawmakers to take up the issue of Equitable Disclosure. New Mexico is one of only nine states in the country which do not require Equitable Disclosure, or the reporting of commercial sales or property changes. Efforts have been made over the past decade to change the law in New Mexico, a law requiring legislative approval, but lawmakers have steadfastly rebuffed all attempts.

A lack of movement on this issue has left New Mexico homeowners holding the bag and shouldering the brunt of costs for critical county and city services. The lack of change is also allowing out of state investors to snatch up land, which many then leave vacant, boarded up and an eyesore or blight on our beautiful landscape. Unfortunately, our state has become a dumping ground for those looking for a loss to offset their home state gains; essentially making New Mexico a “write-off” state. You may see for sale signs on business property, but not all of them are truly “for sale.” Many land and building owners are taking a “make an offer” approach with no true intent on selling or improving their property as the current low taxes outweigh the improvement or sale profit.

The sad reality is that New Mexico, again, is behind the rest of the country when it comes to progress. And, not just progress, but being fair and equitable to businesses and homeowners. Rest assured, corporations will still locate in New Mexico if taxes are fair and equitable, the business climate offers a level playing field, and the future holds a promise of building better together.

Let’s not wait, let’s move forward and pass “Equitable Disclosure.” Tell your legislator that you only want to pay your fair share of the tax burden while supporting your local business owners. It’s a win-win for us all.
Fair, Equitable, and local will help New Mexico “Grow as it goes!”

Damian R. Lara
Chair, New Mexico Assessors’ Affiliate

Isaiah Romero
Vice Chair, New Mexico Assessors' Affiliate

Misty Trujillo
Grant County Assessor

Scott Johnson
Catron County Assessor

Raul Turrieta
Grant County Deputy Assessor