New Mexico's highest court has upheld a state law that caps residential property tax valuation increases until a home changes ownership.
The state Supreme Court on Monday said the law was constitutional.
Critics of the tax limitation law contended it had improperly created a new class of taxpayers based on when someone bought a house.
Under a state law that took effect in 2001, most people are subject to a 3 percent limit on how much property values can climb each year for tax purposes. However, the cap doesn't apply when a home changes hands.
Critics contend new homeowners can be hit by "tax lightning" because their property tax bills often are much higher than their neighbors when the valuation of the newly purchased house is reassessed for tax purposes.
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