Title
Adoption of Property Tax Rates for Calendar Year 2023 as Certified by the State Department of Finance and Administration
Recommended Action
I move that Council adopt the official 2023 Certificate of Property Tax Rates prepared by the State Department of Finance and Administration, Local Government Division shown in Attachment A and forward notification of this adoption to the County Assessor.
County Manager's Recommendation
The County Manager recommends that Council approve the certificate of property tax rates as requested.
Body
In accordance with 7-3-38, NMSA 1978, the State of New Mexico Department of Finance and Administration (DFA) must calculate and certify property tax rates for all taxing entities within the State by September 1st of each year. The attached copy of the Certificate of Tax Rates from DFA (Attachment A) provides the 2023 property tax rates as calculated for all governmental units within the County sharing in the total tax levy and in accordance with the Property Tax Code.
The state statutes (7-38-34, NMSA, 1978) require that within five days of receipt of the order, the Board of County Commissioners (our County Council) issue a written order imposing the tax at the rates certified by DFA and set the net taxable value of property allocated to the appropriate governmental units. Tonight's meeting is the first opportunity for Council to consider the tax rates since receipt of the attached letter. A copy of that order is to be delivered immediately to the County Assessor for preparation of the tax schedule before October 1st.
The County has to adopt rates within 5 days of receipt from DFA, and at the time of publishing this agenda the rates have not been made available, therefore Attachments will be prepared and handed out the night of the Council meeting.
Attachment B compares changes in the residential and non-residential mill levy rates for tax years 2022 and 2023. Attachment B also shows examples of the total taxes due on various levels of property within the County. Individual taxpayers should not assume that their tax bills will change by the same percentage shown on attachment B because changes in individual property valuation are not constant and will affect individual tax bills.
Alternatives
State law does not appear to provide an alternative to this Council action.
Fiscal and Staff Impact/Planned Item
Attachment B shows County total revenue projected from these rates based upon a 99.61% collection factor. After the schedule is delivered, the Accounts Receivable staff will prepare tax bills and mail them before November 1, 2023. The first installment of the bills becomes delinquent after December 9, 2023 and the second installment after May 14, 2024. These are normal work items in the Assessor's Office and the Finance Division.
Attachments
At the time of publishing this agenda the rates have not been made available, therefore Attachments will be prepared and handed out the night of the Council meeting.
A - Certificate of 2023 Property Tax Rates
B - Property Taxes - Comparison of Rates, Values and Revenues - Tax Years 2022 and 2023
C - Property Taxes - Imposed Rates vs. Levied Rates