New Mexico Constitution Article VIII - Taxation and Revenue
New Mexico Constitution – Article VIII: Taxation and Revenue
Article VIII of the New Mexico Constitution outlines the state's rules and principles governing taxation, revenue collection, exemptions, and related fiscal matters.
🔑 Summary of Key Provisions in Article VIII – Taxation and Revenue
Section 1 – Equality and Uniformity of Taxes
Taxes must be equal and uniform upon subjects of taxation within the same class.
Property taxation must be based on value and assessed uniformly.
Section 2 – Property Tax Valuation
Property must be assessed at its “actual value” for tax purposes.
The Legislature may define how "actual value" is determined.
Capping assessments: Limits may be placed on how fast property values may increase year over year.
Section 3 – Tax Exemptions
The Legislature can exempt certain property from taxation, such as:
Government property
Places of religious worship
Cemeteries
Charitable institutions
Veterans, widows, and the disabled may qualify for certain property tax exemptions.
Section 4 – Mining and Natural Resources
Special provisions apply for the taxation of mines, minerals, and other natural resources, often to ensure they are equitably taxed.
Section 5 – Railroad and Utility Taxation
Property of railroads and public utilities is assessed and taxed differently, often centrally by the state rather than locally.
Section 6 – Local Taxes
Local governments (counties, cities, towns) may levy taxes only as authorized by law.
Special taxes for schools, infrastructure, or bonds require voter approval.
Section 7 – Tax Delinquency
Procedures are outlined for handling unpaid taxes, including:
Penalties
Interest
Seizure and sale of property
Section 8 – Revenue Use
Revenue from certain sources (e.g., severance taxes, oil and gas) may be earmarked for specific uses like education or infrastructure.
📝 Key Takeaways:
New Mexico's tax system emphasizes uniformity, fair valuation, and certain exemptions for public and charitable purposes.
There are clear procedures and restrictions on how both state and local taxes may be levied.
Voter participation is often required for new or special tax measures.
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