Bernalillo commissioners publish ordinance to create low-income property tax rebate; $1.1M–$15.6M cost range debated

The Bernalillo County Commission on Jan. 28 voted to publish for final action a draft ordinance that would implement a low‑income property tax rebate under New Mexico law, directing staff to return with a final ordinance at the Feb. 11 meeting.

The ordinance would let the county participate in the state-administered low‑income property tax rebate established under the New Mexico Statutes Annotated (NMSA) (referenced in meeting material as NMSA 7‑2). The commission set the tax year for the rebate as 2025 and removed a draft provision to fund the rebate via a new county property tax before publication.

Why it matters: Commissioners said the rebate would target long‑time, low‑income homeowners and could keep people in their homes as housing and tax costs rise. Finance staff and outside analysts disagreed on the likely fiscal impact, presenting a wide range of possible county costs that commissioners said they would budget against cautiously.

Finance staff presented four methodology-based estimates and a dataset derived from assessor records. Principal Financial Analyst Jenny Hakan told the commission staff estimates ranged from roughly $1.1 million to $4.1 million based on different assumptions. Using assessor appraisals for properties valued under $100,000, staff produced an estimate of about $6.9 million. The state Taxation and Revenue Department provided a separate set of ranges, which staff said could run as high as about $15.6 million under a maximum assumptions scenario.

Consulting economist Kelly O'Donnell, who has worked at New Mexico Taxation and Revenue and authored an independent analysis for the county, gave a narrower figure and described the methodology she used. “I called it at about 1,650,000 a year. Probably gonna be less than that, frankly,” O'Donnell said, citing historical tax‑return data the agency publishes and her review of rebate participation in other counties.

Commissioners discussed fiscal risk and participation uncertainty. Commissioner Benson urged caution on budgeting and asked why Dona Ana County’s early participation rate appeared low; staff and O'Donnell explained participation is driven by the number of very low‑income homeowners in a county and that the rebate is linked to modified gross income on state returns.

Before publishing, the commission approved two amendments. The board unanimously struck language in the draft that would have submitted a county property‑tax increase to voters to fund the rebate. The commission also removed a repeal provision tied to a voter decision and left in the option for the commission itself to repeal by future ordinance. Chair Olivas and other commissioners said removing the voter‑tax language preserved flexibility without raising taxes now.

The procedural vote to set the rebate to apply to tax year 2025 passed 4–1 (Commissioner Benson opposed). Subsequent motion to publish the ordinance with the amendments passed 5–0.

Next steps: Staff will return with a revised ordinance and additional implementation detail at the Feb. 11 commission meeting; if adopted, the county would be billed by the state for rebates the Taxation and Revenue Department pays out, with the county responsible for 100 percent of that liability.

Background: The rebate is administered through state income tax filings rather than a direct change to an individual property tax bill. The county will be billed by the state after the state processes the relevant tax year’s returns; commissioners and staff noted transactions of timing and the need to plan budget offsets or reserves to cover the county obligation.

Sources: Presentations and testimony at the Jan. 28 Bernalillo County Commission administrative meeting, including staff analysis from the Finance Division and testimony from Dr. Kelly O'Donnell.