Title
Adoption of Property Tax Rates for Calendar Year 2021 as Certified by the State Department of Finance and Administration
Recommended Action
I move that Council adopt the official 2021 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 2021 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.
Attachment B compares changes in the residential and non-residential mill levy rates for tax years 2020 and 2021. 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, 2021. The first installment of the bills becomes delinquent after December 10, 2021 and the second installment after May 10, 2022. These are normal work items in the Assessor's Office and the Finance Division.
Attachments
A - Certificate of 2021 Property Tax Rates
B - Property Taxes - Comparison of Rates, Values and Revenues - Tax Years 2020 and 2021
C - Property Taxes - Imposed Rates vs. Levied Rates