CAVU Co. v. Martinez, 302 P.3d 126

CAVU Co. seeks exemption for a Santa FeSchool property (7300 Old Santa Fe Trail) for 2010; property used as school through 2008 and again briefly for dog-training in 2010.
On Jan 1, 2010 the property was not in active educational use, and the Assessor denied exemption for 2010.
Protest Board granted exemption, invoking uniformity under Article VIII, §1 of the NM Constitution because a similar property (St. Francis School) was exempted despite no Jan 1 use.
District court reversed Protest Board, holding that Jan 1 status controls exemption and that Taxpayer failed to show entitlement or fraud/discrimination.
Court of Appeals reverses in part: rejects narrow Jan 1 focus, affirms denial of exemption for 2010 based on lack of actual use, and denies relief based on non-uniform treatment.
The court emphasizes that educational use exemption depends on actual use and public benefit, not owner’s intent, and that ‘as of January 1’ is a cut-off for valuation, not a strict classification date for the entire year.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether Jan 1 focus for exemption is narrow or allows prior use.	Taxpayer: Jan 1 is a status cut-off, not sole determinant; prior use matters.	Assessor: Jan 1 determines exemption status for the year; no retroactive use allowed.	Affirmed that January 1 cannot be the sole determinant; however, ultimate result still denies exemption for 2010.
Whether there is a constitutional uniformity remedy for non-uniform exemptions.	Taxpayer: non-uniform treatment warrants exemption analogous to St. Francis.	Assessor: no fraud or systematic discrimination; remedy is not exemption but leveling other properties.	No constitutional basis for exemption based on non-uniform treatment; remedy limited to adjusting other properties’ valuations.

NRA Special Contribution Fund v. Bd. of Cnty. Comm’rs, 92 N.M. 541 (N.M. Ct. App. 1978) (educational use must provide direct public benefit; use must be present and substantial)
Georgia O’Keefe Museum v. Cnty. of Santa Fe, 2003-NMCA-003 (N.M. Ct. App. 2003) (educational/charitable use requires actual use for public benefit; use evidence over time)
Grand Lodge of Ancient & Accepted Masons of N.M. v. Taxation & Revenue Dep’t, 106 N.M. 179, 740 P.2d 1163 (Ct. App. 1987) (educational use can be non-exclusive; use need not be continuous)
Dillard v. New Mexico State Tax Commission, 53 N.M. 12, 201 P.2d 345 (1948) (distinguishable binary status on Jan 1 in a veteran’s exemption context)
AMREP Southwest Inc. v. Sandoval County Assessor, 2012-NMCA-082 (N.M. Ct. App. 2012) (cut-off date for valuation evidence; permits use of prior-year data)
Sisters of Charity of Cincinnati v. Bernalillo County, 93 N.M. 42, 596 P.2d 255 (1979) (precedent on charitable/educational exemptions and use-based analysis)
Grace, Inc. v. Bd. of County Commissioners, Bernalillo County, 97 N.M. 260, 639 P.2d 69 (Ct. App. 1981) (educational use exemption does not rest on owner’s declared purposes alone)
BPOE, Lodge No. 461 v. N.M. Prop. Appraisal Dep’t, 83 N.M. 445, 493 P.2d 411 (1972) (educational/charitable use principles in appraisal context)