Zhao v. Montoya
2012 NMCA 056
N.M. Ct. App.2012Background
- consolidated case where Homeowners challenge a large post-sale reassessment due to tax lightning
- property is reassessed to market value after change of ownership under §7-36-21.2
- statute purportedly limits annual increases in value for 3% per year, with exceptions when ownership changes
- Homeowners allege the law violates Article VIII, §1 of the New Mexico Constitution by creating an impermissible class based on acquisition time
- district court certified a question to the NM Court of Appeals on whether subsections (A)(3)(a), (B), and (E) of §7-36-21.2 violate the constitution
- majority holds §7-36-21.2 does not violate the constitution and remands for further proceedings consistent with the opinion
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether §7-36-21.2 violates Article VIII, §1(B) by creating a new class based on acquisition time | Homeowners contend acquisition-time classification is impermissible | State contends the limitation applies to ownership status, not a constitutional class | No constitutional violation |
Key Cases Cited
- Nordlinger v. Hahn, 505 U.S. 1 (U.S. 1992) (equal protection rational basis for time-of-acquisition schemes)
- Allegheny Pittsburgh Coal Co. v. Cnty. Comm'n of Webster Cnty., 488 U.S. 336 (U.S. 1989) (equal and uniform taxation questions; classification themes)
- Gruschus v. Bureau of Revenue, 399 P.2d 105 (N.M. 1965) (statutory classification and equal protection principles in NM)
- Jicarilla Apache Nation v. Rio Arriba Cnty. Assessor, 135 N.M. 630 (2004 NMCA) (certification/public interest; deference to constitutional readings)