Tie Assessed Property Values to Market Values

Tax lightning is still striking New Mexico property owners. One of the problems associated with tax lightning is the convoluted way in which property is assessed and thus taxed in New Mexico.

Our own Micha Gisser, professor emeritus at UNM, wrote in the Albuquerque Journal about one component of the solution, that is, returning assessments to market values. This more logical system, as outlined by Gisser, would operate along the following model:

The market values of all homes are estimated as frequently as reasonably possible. By law, the assessed values of all homes are set equal to their estimated market values. The property-tax rate is by law defined as the ratio of the total required revenue to the aggregate estimated market values of all homes.

This sounds like a good system moving forward, but I’d like your comments.