The 2017 Regular Legislative Session has come to an end but the calmness won’t last long. 

The legislature produced a budget that includes some $350 million in tax increases, a scenario that the Governor has opposed all along.  She is not going to sign a budget with tax increases and cuts are getting harder and harder to identify.  It is anticipated that Governor Martinez will call a special session soon to finish the job of passing a balanced budget without tax increases.

The GOOD NEWS is that the Real Estate Industry was virtually unharmed by any of the legislation that did pass.  That can be scored as a BIG WIN!!

Thank you to everyone who made an effort to testify or communicate with their legislators.  The Realtor Brand is respected and well represented in the New Mexico Legislature.

Highlights

SB244 – HOA Act, has passed the Senate and the House.  This compromise bill takes the fee cap for disclosure documents to $300, payable at closing, good for 60 days, updates will be $50 good for another 60 days, no indexing to inflation.  Will preempt the Albuquerque ordinance.  Will not exempt HOA management companies from licensure if they perform Property Management functions.  Mandates that management companies fully disclose ALL fees and charges in their contracts with HOA boards.  A last minute house amendment would exempt HOA’s with 30 or fewer lots from having to comply with certain subsections of the act.

HB266 – Lodgers Tax (AIRBNB, VRBO) Passed both House and Senate and since it is effectively not a “tax increase”, but rather just a collection of an already existing tax, should give the Governor reason to sign it since revenue is scarce.

HB199/SB210 – Roof Top Solar Disclosure, Passed both chambers and is on the Govs desk.

HB362 Home Inspector Licensing Act died at the end of the session because of lack of available resources.

SB387 - QB License Requirements has passed the Senate and House. A late amendment exempts small, one person operations and leaves them at two years.  They will still be subject to any new rules the commission develops.

Legislative Details

Changes to Tax Code Provisions – SB343

SB343 Introduced by Sen. Ron Griggs is an omnibus bill to overhaul the tax code in NM. We will watch this one closely as it does have a provision for a Real Estate Transfer Tax.

Updates

Distributed Generation Consumer Protection – HB199/SB210

HB199 introduced by Representative Debbie Rodella - PROVIDING MINIMUM DISCLOSURES FOR THE LEASE OR SALE OF A DISTRIBUTED ENERGY GENERATION SYSTEM; (Rooftop Solar)

Updates

HOA Act – SB244/HB374

Senator Mimi Stewart introduced SB 244 Homeowner Association Dispute Resolution.  SB244 addresses some governance issues but also tries to “fix” the disclosure document pricing issue.  Some HOA management firms have been charging exceptionally high rates for the service while HOA members have nowhere else to go.  SB244 caps the rate at $400 and indexes the fee to inflation so it will always be going up.  We will be watching this bill and offering amendments to make sure it works for consumers.

Updates       

Home Inspector Licensing Act– HB362

Updates

Defective Building Materials – SB14

SB14 introduced by Senator Bill Payne of Albuquerque would change the statute of repose to essentially say that a builder would be liable indefinitely if he “knew or should have known” of the use of defective materials. (Kitec-realted bill)

Updates

Real Estate Auctioneer License Exemptions – SB125

SB125 introduced by Senator Pat Woods of Broadview, NM will exempt an auctioneer working under the control of a licensee from the licensure requirements.

Updates

Lodgers Tax (VRBO/AIRBNB) – HB266

HB263 would provide a mechanism to collect tax on short term rentals like AIRBNB and VRBO

Updates

QB License RequirementsSB387

SB 387 would change the requirement that brokers be licensed for two years before qualifying to become a QB to four years. Also allows the commission to develop additional education requirements.

Updates          

PACE Loans- SB215

SB215 CHANGING THE PRIORITY OF LIENS UNDER THE ACT.

Updates 

Rural Building Codes

HB205 will make it easier for small businesses to occupy vacant buildings in rural areas.

Updates 

Protection Against Financial Exploitation – HB146

This bill makes it a crime to exploit a vulnerable adult by misappropriating, misusing, transferring, or selling their property.

Updates

Tax Incentives to Attract Retirees to New Mexico – SJM26

A Joint Memorial requesting the Economic Development Dept. and the Taxation and Revenue Dept. to study the costs and benefits of various options for tax relief designed to attract retirees from other states to settle in New Mexico.

Updates

Construction Industries Private Inspectors – SB352

RELATING TO CONSTRUCTION INDUSTRIES; LICENSING PRIVATE INSPECTION COMPANIES; ALLOWING COMPANIES TO PROVIDE PRIVATE INSPECTORS FOR GOVERNMENTS AND FOR CONTRACTORS AND HOMEOWNERS

Updates

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RANM and GAAR are tracking approximately 150 bills at this time.  We will do our best to keep you up to date on bills that affect YOUR business.  You can watch them too at https://www.nmlegis.gov/Legislation/Bill_Finder