Unconstitutional Property Tax -- what to do next? (Santa Fe, Edgewood: lawyer, houses)

[GreatSantaFe]

Say What????
Property taxes in New Mexico are quite low compared to many other states. We are taxed at a local mil rate for 1/3 the value of the property. "Tax Lightning" is a term I am not familiar with - but what it pertains to I am. All it means is that when you buy a property, the price you paid for it becomes the new "value" of the property and the tax is computed on that new price. So, if the current owners bought the place for $200,000 ten years ago, and the house wasn't reappraised, they are paying taxes on an assessed value of roughly $67,000. At a mil rate of, say .018, their annual property tax would be around $1200. If you now bought the house for $350,000, then the assessed value would go up to $115,500, and your property tax would be $2079. Don't let some blogger's scare tactics throw you - get the facts.

Now, as for finding houses - good ones - for under $400,000 yes, check out Eldorado for sure. You can also find these properties in Rancho Viejo, and neighborhoods all over town. Plaza Bonita is in a good location, close to the hospital and not far from downtown. I'd consider that in the south side - not the east side. Not many homes are constructed there yet.

[Santa Fe]

Originally Posted by GreatSantaFe

Say What????
Property taxes in New Mexico are quite low compared to many other states. We are taxed at a local mil rate for 1/3 the value of the property. "Tax Lightning" is a term I am not familiar with - but what it pertains to I am. All it means is that when you buy a property, the price you paid for it becomes the new "value" of the property and the tax is computed on that new price. So, if the current owners bought the place for $200,000 ten years ago, and the house wasn't reappraised, they are paying taxes on an assessed value of roughly $67,000. At a mil rate of, say .018, their annual property tax would be around $1200. If you now bought the house for $350,000, then the assessed value would go up to $115,500, and your property tax would be $2079. Don't let some blogger's scare tactics throw you - get the facts.

I have not used any scare tactics and I resent the implication that I have. If some one wants to accuse me of scare tactics, then they should be able to ascribe a motive. But in fact, I have no motive for scare tactics. If anyone has a motive for misleading people, it is not a homeowner. If people know the truth about tax lightning, it will hold down prices and as a homeowner that hurts me.

For a number of years housing prices zoomed. As a result if you bought recently or if you buy now you could pay two, three times what your neighbors are paying. This is the multiple that was reported in the ABQ Journal. I did not make it up.

If the recent decision is upheld by the NM Supreme Court or if the legislature acts then people buying now may be treated fairly. But these are maybes. This is the truth -- I have no reason to mislead or scare anybody on this.

[Santa Fe]

If people want facts, here is a recent editorial in the ABQ Journal:

ABQjournal.com: Albuquerque Journal

(The site is subscription, but you can get a free trial by watching a commercial.

Again the multiple cited is "double, even triple."

[GreatSantaFe]

Whoa, slow down SantaFe - I was referring to Stephanie Dzur's blog - the link to which you provided us in your 8/17 posting. Stephanie says "I am presenting my opinions about New Mexico laws and about my own case involving a dispute over my property's assessment...." So she's writing from her perspective (as most bloggers do), and she's certainly entitled to her opinions and to speak about them. I was just cautioning WEisMD to make his decisions based on facts - not on what some blogger had to say.
I don't consider our postings "blogs", and because you gave us the link to her blog I didn't think it necessary to refer to her when I wrote my post. I see where what I wrote could have been misinterpreted by you and am sorry you thought I was slamming you. I wasn't.

[GreatSantaFe]

"If people want facts, here is a recent editorial in the ABQ Journal"

Not to belabor the point, but editorials are just that - an editor's opinion.

[Santa Fe]

Yes, but I earlier cited the news story which also had the multiple of 2 or 3.

[Santa Fe]

And most of us find a tax increase by a multiple of 2 to 3 to be a shock. That is why it is called the Lightning Tax.

[RamblinRoseRanch]

A home we're looking at buying had a tax bill last year of about 900.00. If we buy at asking price, our taxes would be over 3500.00.
All things relative, it may seem a low tax bill, but when you see the difference between the years, it hurts.

[Santa Fe]

Originally Posted by RamblinRoseRanch

A home we're looking at buying had a tax bill last year of about 900.00. If we buy at asking price, our taxes would be over 3500.00.
All things relative, it may seem a low tax bill, but when you see the difference between the years, it hurts.

That is almost a multiple of four. And now you know about it. You can make an informed decision. When I bought no one had told us about it. If I had known, I would not have bought. Funny thing is that the bank didn't know either. If they had known I would not have qualified for the loan I got.

Again, this problem MAY go away for you. The district court decision may be upheld or the legislature may act. If you do buy, then protest the tax at every opportunity citing Constitutional grounds. Do this even if the Assessor's office tells you that you cannot protest on Constitutional grounds. This is simply not true.

The problem is that a very corrupt and powerful politician -- who represents my district -- was behind Tax Lightning in the first place, and he will fight to keep it in place.

[Santa Fe]

Originally Posted by RamblinRoseRanch

A home we're looking at buying had a tax bill last year of about 900.00. If we buy at asking price, our taxes would be over 3500.00.
All things relative, it may seem a low tax bill, but when you see the difference between the years, it hurts.

Your posting raises an interesting point -- property tax in NM seems to depend upon sales price rather than an appraisal looking at multiple sales in the area. If this is the case -- I don't know for sure, Maybe Greater Santa Fe does -- then it opens the door for unfairness of different sorts. Sometimes you get a good deal -- you have a motivated seller in a big hurry -- and sales price may be low. Also in this area -- a lot of sales are between family members. Reported sales price may be much less than any reasonable appraisal would indicate.