HB 342 - For a more transparent property tax system

Quick Summary of the Legislation

House Bill 342 (HB 342) aims to create a fairer, more transparent property tax system in New Mexico by requiring commercial property sales to be reported for tax assessments—just like residential properties. Currently, commercial property owners do not have to disclose sale prices, which leads to inconsistent and unfair property tax valuations.

What HB 342 Does:

• Requires commercial property sales transfer affidavits to ensure accurate and fair tax assessments.

• Caps annual increases at 12% over 12 years, preventing sudden tax spikes for businesses.

• Ensures commercial properties contribute their fair share to funding essential services.

• Reduces local revenue loss and strengthens public finances.

• Creates a more balanced tax structure, so residential homeowners don’t bear an unfair burden.

Why This Legislation Is Important

New Mexico’s property tax system is outdated and imbalanced. Right now, residential property owners provide sales data for tax assessments, but commercial properties do not—leading to inconsistent valuations and an unfair tax burden on homeowners.

 The Problem:

• Commercial properties can be severely under-assessed due to a lack of required sales disclosures.

• Local governments lose tax revenue, which impacts roads, schools, and essential services.

• Residential homeowners end up paying more because commercial properties don’t always contribute their fair share.

• Without transparency, tax assessments can be unpredictable and inequitable, leading to an unbalanced tax system.

The Solution: HB 342 makes the system fairer by ensuring that commercial properties are assessed accurately, reducing revenue loss for cities and counties, and preventing unfair tax shifts onto homeowners.

Why Strong Towns ABQ Supports HB 342

At Strong Towns ABQ, we believe in financially sustainable, transparent, and equitable development. HB 342 aligns with Strong Towns principles because:

✔ It Promotes Fair and Transparent Taxation: Just like residential property sales, commercial property sales should also be reported to create a level playing field.

✔ It Helps Cities and Towns Stay Financially Resilient: Property tax revenue funds streets, schools, and public safety. A fairer system ensures long-term financial stability for local governments.

✔ It Supports Smarter Growth and Stronger Communities: When tax assessments reflect real market values, cities can make better planning decisions and invest in infrastructure without relying on wasteful subsidies.

✔ It Prevents Unfair Burdens on Homeowners: Residential homeowners shouldn’t bear an unfair share of taxes while commercial properties go under-assessed. HB 342 corrects this imbalance.

🚀 By supporting HB 342, we can ensure that New Mexico’s property tax system is more fair, transparent, and financially sustainable for future generations.

Status

HB 342 is currently in the House Taxation & Revenue Committee. Your voice can help move it forward!

Contact the Committee Members
A short, respectful email or phone call can make a real difference. If you have personal experience with property taxes affecting your neighborhood, be sure to share it!

📩 Chairman & Sponsor: Derrick J. Lente | derrick.lente@nmlegis.gov
📩 Vice Chair: Micaela Lara Cadena | micaela.cadena@nmlegis.gov
📩 Ranking Member: Mark Duncan | mark.duncan@nmlegis.gov
📩 Christine Chandler | christine.chandler@nmlegis.gov
📩 Doreen Y. Gallegos | doreen.gallegos@nmlegis.gov
📩 Jonathan A. Henry | jonathan.henry@nmlegis.gov
📩 Joshua N. Hernandez | joshua.hernandez@nmlegis.gov
📩 Patricia A. Lundstrom | patricia.lundstrom@nmlegis.gov
📩 Javier Martínez | javier.martinez@nmlegis.gov
📩 Rod Montoya | rod.montoya@nmlegis.gov
📩 Cristina Parajón | cristina.parajon@nmlegis.gov
📩 Sarah Silva | sarah.silva@nmlegis.gov
📩 Luis M. Terrazas | luis.terrazas@nmlegis.gov

Provide Testimony
Want to do more? Consider testifying in person or via Zoom during the committee hearing. Personal stories about the impact of unfair property taxes on homeowners and local businesses are powerful tools for change.

Next Steps & Updates
Stay tuned for updates on HB 342’s progress in the House Taxation & Revenue Committee. If it passes, it will move to the full House for a vote before heading to the Senate.

📌 We’ll update this page as more information becomes available!

Template email of Support

Subject: Please Support HB 342 – Equitable Property Tax Reform

Dear [Legislator's Name],

I am writing to express my strong support for House Bill 342 (HB 342), which will create a fairer, more transparent property tax system in New Mexico. As a resident of [Your City] and someone who cares deeply about our community’s financial sustainability, I urge you to vote YES on HB 342 when it comes before the House Taxation & Revenue Committee.

Currently, residential property owners are required to provide sales data for tax assessments, while commercial property owners are not. This has led to inconsistencies in valuations, an unfair tax burden on homeowners, and revenue shortfalls for local governments. HB 342 is a common-sense reform that corrects this imbalance by requiring commercial properties to report sales data, just like residential properties.

This bill creates a more equitable tax structure by ensuring commercial properties are assessed fairly, preventing homeowners from shouldering an unfair share of taxes. It also improves transparency in property tax assessments, ensures all properties are taxed based on real market values, and reduces local revenue loss so cities and counties can better fund infrastructure, schools, and essential services. At the same time, it provides predictability for businesses with a 12 percent cap on assessment increases over 12 years, preventing sudden tax spikes.

HB 342 is a reasonable and balanced approach that promotes fair taxation and financial resilience for New Mexico communities. By passing this bill, we can ensure both residential and commercial property owners contribute fairly while strengthening our local economies.

Thank you for your time and consideration. I appreciate your leadership on this issue and urge you to vote YES on HB 342 to support a fair and transparent property tax system in New Mexico.

Sincerely,
[Your Name]
[Your Address (Optional)]
[Your City, NM]
[Your Email]