Property Tax Facts
Understanding Your Notice of Value
Each year the Assessor mails a “Notice of Value” to every property owner. This notice informs the owner of the total assessed value, property description and any exemptions applied to the property. Chaves County typically mails notices on or around March 31st of each year. Please review your notice and follow any applicable instructions on the back of the form. You have 30 days from the mailing date on the form to apply for any exemptions, freezes or to appeal your valuation.
What If You Disagree With Your Valuation?
Property owners may appeal the value or classification determined for their property by filing a petition of protest with the assessor’s office within 30 days of the mailing date shown on the notice of value. Protest forms are available on our website under forms or can be obtained from our office.
Limitation On Valuation Increases for Residential Property
Chaves County reappraises property each year. Even though New Mexico is a market value state there is a restriction on increases for residential properties, i.e. houses, apartments, and manufactured homes. Under state law, valuation increases on residential properties can not exceed 3 percent per year even though the market value may have exceeded that in the previous year. For example,
- 2008: Assessor’s full value was $100,000
- 2009: Assessor’s full value can not exceed $103,000
- 2010: Assessor’s full value can not exceed $106,090
There are specific exceptions to the limitation. The limitation does not apply to:
- Property that has changed ownership due to a sale. In this case the valuation limitation is removed in the tax year following the sale of the property. The value is changed to reflect the market value of the property. This is very important for potential home buyers. Please be aware that the potential increase in property valuation due to the sale of the property could lead to an increase in property taxes.
- Property that is placed on the tax rolls for the first time such as a new home.
- Any new improvements made to property in the year prior to the current tax year such as additions or outbuildings are not subject to the limitation
- Property whose use or zoning has changed.
Why Did My Property Value Increase by 3% When the Market Is Flat or Declining?
More than likely the value of your residential property was increased 3% because the assessor’s valuation was capped when property values were increasing by much more than 3% in the past eight or nine years. The law limiting increases in residential property values to 3% per year went in to effect in 2001. Therefore, the assessor’s capped value may be much lower than the current market value of the property and must be reappraised and increased by up to the 3% limitation each year.
A person that is 65 years or older OR 100 percent disabled at any age AND had a modified gross income of $35,400 for 2020 may qualify for a property valuation freeze on their residence. The application must be submitted along with proof of income, age and disability. The proof of income must be a PIT-RC income form from the State of New Mexico Taxation and Revenue Department. Freezing the valuation will prevent increases on the valuation of your home.
It does not freeze taxes.
When Is the Time to Apply?
The time to apply for the head of family, veterans, 100 percent disabled veteran’s exemptions or the valuation freeze is from January 1st of each tax year to 30 days after the official date of mailing of the assessor’s Notice of Value as shown on the notice. The Chaves County Assessor’s Office typically mails out on or around March 31st of each year. This time frame is the only time that you may apply for these exemptions and/or the valuation freeze.