Why House Bill 342 Matters to Commercial Property Owners

The first hearing for this has been rescheduled to 2/21 at 8:30 am.

A fair, transparent, and predictable property tax system is essential to a thriving real estate market and business environment.

Currently, residential properties benefit from limits on annual valuation increases, preventing sudden tax spikes that create financial uncertainty. However, commercial property owners lack these same protections, leaving businesses and investors vulnerable to unpredictable tax hikes. HB 342 seeks to correct this imbalance by extending valuation protections to commercial properties while promoting equitable disclosure and ensuring a more stable economic environment for property owners across New Mexico.

Access House Bill 342
Access CARNM's Position

Key Provisions of HB 342
  • Equitable Disclosure: Title companies will be required to provide an affidavit to the county assessor stating the final sale price of commercial properties. This information will remain confidential and will not be subject to public records requests.
  • 12% Cap on Commercial Property Assessments: From 2025 to 2036, all commercial properties will be subject to a maximum 12% annual increase in assessed value, providing predictability and stability for businesses. This is not an automatic increase but a cap on potential adjustments.
  • Land Purchase Incentives: Land purchased for development will receive a 50% discount on valuation for the first three years after a transaction occurs.
Why REALTORS® and Business Owners Should Support HB 342
  • Fair Treatment for All Property Owners – Ensures commercial properties receive the same protections as residential properties.
  • Predictability for Businesses & Investors – Limits extreme valuation spikes, helping property owners plan with confidence.
  • Transparency in Property Transactions – Clarifies reporting requirements, reducing uncertainty for buyers and sellers.

TAKE ACTION – Support HB 342

NMAR SUPPORTS THIS LEGISLATION, as it promotes a fairer and more transparent tax system, encourages investment in our state, and prevents the risk of sudden and extreme tax increases on commercial properties.

2/13/25 STATUS: The hearing for this bill has been delayed. Check back for updates on a new hearing date.

Thank you for your time and support in ensuring fairness, transparency, and stability in New Mexico’s property tax system.