Committee Considers Enabling Measure for Voter-Approved Veteran Property Tax Amendments; Implementation Issues Remain

Representatives Dela Cruz and Martinez introduced the committee substitute for House Bill 47 to implement two constitutional amendments approved by voters in November 2024: raising the veteran property-tax exemption from $4,000 to $10,000 (with CPI adjustment beginning in tax year 2026) and extending the disabled-veteran property tax exemption to a proportional (prorated) benefit for partially disabled veterans.

The bill is an enabling statute to carry out the constitutional language. Representative Dela Cruz described the statutory changes as necessary to effect the voter-approved amendments: increase the flat exemption to $10,000 and add language to implement a prorated disabled-veteran exemption that had previously been limited to 100% disabled veterans. Committee members and witnesses praised the substantive policy goal — expanded property-tax relief for veterans — but raised implementation issues.

Several veteran and veterans-advocacy groups spoke in support. David Venus, Claudia Reisner (Veterans & Military Families Caucus), and James Anadero of the Department of Veterans Services urged passage, noting voter approval. The Greater Albuquerque Chamber and the New Mexico Association of Realtors also supported the bill.

Committee members pressed technical questions about timing and county impacts. Secretary Charlton Clark and Taxation & Revenue staff explained timelines for property-tax valuation notices and refunds: the $10,000 exemption applies to tax year 2025 valuations (assessors must mail valuations by April 1), which is why sponsors requested emergency treatment; the prorated disabled exemption becomes effective for tax year 2026, giving assessors additional time to adopt rules on stacking order. Tax staff and LFC provided county-by-county estimates and a yield-control analysis: most counties would be held harmless under yield control, but some counties with exhausted mill capacity could experience small revenue decreases. Committee members asked whether counties and assessors have consistent data and guidance; the Taxation & Revenue Department and the Department of Veterans Services said they have VA data on disability ratings by county and are coordinating with assessors to provide a common dataset and a new certificate form for veterans to claim proration.

Committee members also discussed legal timing issues for tax year 2024 protests and refunds. Staff noted the refund-suit deadline for tax year 2024 was January 9, 2025; the departments said relatively few timely refund suits had been filed and that most veterans understood the timing constraints. Several members asked for clearer statutory direction on how partially disabled exemptions and the $10,000 exemption will be stacked; sponsors and staff agreed to work with committee counsel and agency staff to draft clarifying language and to return quickly with a clean bill for the committee’s consideration.

No final committee vote was recorded during the hearing; sponsors and staff committed to reconcile stacking language and finalize technical drafts so counties and assessors have guidance before the April valuation mail date.