New Mexico – The Senate has approved a proposal to limit property tax increases when a home changes ownership.
The legislation targets a problem called property tax lightning, where homes are reassessed after being sold and taxes increase because of higher valuations.
State law imposes a 3 percent cap on yearly increases in a home's assessed value until it's sold. That's created tax inequities between property that's sold and homes with no ownership change.
The Senate approved a bill 22-to-16 on Saturday to extend the 3 percent cap to homes that are sold. It requires county assessors to bring all homes up to near market value over five years. The measure goes to the House.
The property tax bill is SB160.
On the Net:
Copyright 2010 The Associated Press.