Commissioners review House Bill 47 impact on veterans property tax exemptions

In a recent work session held by the Doña Ana County Board of County Commissioners on April 1, 2025, significant discussions centered around the impact of new property tax exemptions for veterans, following the approval of House Bill 47. This legislation amends existing property tax exemptions, which are crucial for supporting veterans in the community.

Lucio Luttrell, the county's budget and research officer, presented the key changes in the bill. The most notable amendment increases the veteran property tax exemption from $4,000 to $10,000 starting in the 2025 tax year. This adjustment is expected to be indexed to the Consumer Price Index (CPI) in subsequent years, ensuring that the exemption keeps pace with inflation. Additionally, the bill introduces a new percentage-based exemption for veterans with less than a 100% disability rating, effective from 2026. This means that these veterans will receive property tax exemptions proportional to their disability percentage as determined by federal law.

The financial implications of these changes are significant. The county anticipates a revenue loss of approximately $1.9 million due to the increase in the exemption amount for all taxing entities within the county. Specifically, Doña Ana County's budget is projected to experience a loss of around $630,000. The impact of the new percentage-based exemption for disabled veterans is less clear, as the county lacks data on how many veterans will qualify under this new system. Currently, the estimated revenue loss for all taxing entities due to the existing disabled veteran exemption stands at about $3.5 million, with the county's share being approximately $1.15 million.

Despite these potential losses, Luttrell noted that Doña Ana County has a history of exceeding budget expectations, primarily due to the way property tax revenues are budgeted. This historical trend may help the county absorb some of the financial impacts of the new exemptions.

The meeting concluded with commissioners expressing concerns about the lack of data on the number of disabled veterans who may benefit from the new exemption structure. As the budget office continues to work with the assessor's office to gather this information, the county will be better positioned to estimate future impacts.

Overall, the discussions highlighted the county's commitment to supporting veterans while also navigating the financial challenges posed by these new tax exemptions. The board's ongoing efforts to assess the implications of these changes will be crucial in ensuring that the county can maintain its fiscal health while honoring its obligations to veterans.