N.M. Const. art. VIII, § 2
Taxes levied upon real or personal property for state revenue shall not exceed four mills annually on each dollar of the assessed valuation thereof except for the support of the educational, penal and charitable institutions of the state, payment of the state debt and interest thereon; and the total annual tax levy upon such property for all state purposes exclusive of necessary levies for the state debt shall not exceed ten mills; provided, however, that taxes levied upon real or personal tangible property for all purposes, except special levies on specific classes of property and except necessary levies for public debt, shall not exceed twenty mills annually on each dollar of the assessed valuation thereof, but laws may be passed authorizing additional taxes to be levied outside of such limitation when approved by at least a majority of the qualified electors of the taxing district who paid a property tax therein during the preceding year voting on such proposition. (As amended November 3, 1914, September 19, 1933, and November 7, 1967.)
The 1967 amendment, which was proposed by H.J.R. No. 23, § 1 (Laws 1967) and adopted at a special election held on November 7, 1967, with a vote of 38,231 for and 13,682 against, inserted "qualified" preceding "electors" and "who paid a property tax therein during the preceding year" preceding "voting on" in the proviso.
The 1933 amendment, which was proposed by S.J.R. No. 21 (Laws 1933) and adopted at a special election held on September 19, 1933, with a vote of 41,393 for and 27,541 against, added the proviso.
The 1914 amendment, which was proposed by J.R. No. 10 (Laws 1913) and adopted at the general election held November 3, 1914, with a vote of 18,468 for and 13,593 against, substituted that part of the present section preceding the proviso for the original section which read: "The legislature shall have power to provide for the levy and collection of license, franchise, excise, income, collateral and direct inheritance, legacy and succession taxes; also graduated income taxes, graduated collateral and direct inheritance taxes, graduated legacy and succession taxes, and other specific taxes, including taxes upon the production and output of mines, oil lands and forests; but no double taxation shall be permitted." See also compiler's note to N.M. Const., art. VIII, § 8.
Cross references. — For statutory provisions relating to property taxes generally, see Articles 35 to 38 of Chapter 7 NMSA 1978.
Comparable provisions. — Idaho Const., art. VII, § 9.
Wyoming Const., art. XV, § 4.
Phrase "taxes levied upon real or personal property" as used in this section has same meaning as "taxes levied upon tangible property" used in Section 1 of this article. Hamilton v. Arch Hurley Conservancy Dist., 1938-NMSC-004, 42 N.M. 86, 75 P.2d 707.
Legislature has power to levy excise tax on gasoline. Lujan v. Triangle Oil Co., 1934-NMSC-080, 38 N.M. 543, 37 P.2d 797. See also notes to N.M. Const., art. VIII, § 1.
Provisions authorizing levies for public highways and roads held valid. — Laws 1921, ch. 153 (temporary), authorizing levy of taxes and issuance and sale of state debentures in anticipation of taxes, for construction and improvement of public highways, and to meet, dollar for dollar, allotments to the state of federal funds under Federal Aid Road Act, was validated by adoption of amendment to state constitution, adding Section 16 to Article IX. Lopez v. State Hwy. Comm'n, 1921-NMSC-074, 27 N.M. 300, 201 P. 1050.
Laws 1919, ch. 168 (temporary), authorizing and directing the counties of the state to levy a tax of three mills on the dollar for construction and maintenance of public roads in the several counties, and to meet allotments of federal funds, was not an act for raising of state revenue and did not violate this section. State v. Red River Valley Co., 1922-NMSC-032, 28 N.M. 94, 206 P. 695.
Evidence regarding uniformity in assessment of property for taxation. — To arrive at uniformity in the assessment of property for taxation, as provided in N.M. Const., art. VIII, § 1 and this section, the taxing authority and the taxpayer can introduce evidence regarding the ratios of assessed values to market values as the latter are reflected in actual sales of any other real estate in the taxing district for a reasonable period prior to the assessment date. Peterson Properties v. Valencia Cnty. Valuation Protests Bd., 1976-NMCA-043, 89 N.M. 239, 549 P.2d 1074.
Conservancy district assessments not subject to limitation. — Conservancy district's preliminary fund assessment was not subject to the limitation provision of this section. Hamilton v. Arch Hurley Conservancy Dist., 1938-NMSC-004, 42 N.M. 86, 75 P.2d 707.
Levy for tort judgment against county commissioners compelled. — Mandamus lay to compel state tax commission to approve a levy of tax to pay tort judgment against county commissioners; statutory debt limitation could not be interposed, especially where evidence failed to show that the combined rate would exceed the constitutional 20-mill limitation or the five-mill limitation on expenditures of county purposes and neither limitation would shield county from a forced levy to satisfy such a judgment. State ex rel. Martin v. Harris, 1941-NMSC-032, 45 N.M. 335, 115 P.2d 80.
Levy for caring for indigent patients. — Constitutional provision permitting levies for public debts in excess of 20-mill limitation does not contemplate judgment for hospital against board of county commissioners for cost of care of indigent persons. Board of Dirs. of Mem. Gen. Hosp. v. County Indigent Hosp. Claims Bd., 1967-NMSC-042, 77 N.M. 475, 423 P.2d 994.
Words "but laws may be passed authorizing additional taxes" should not be construed to provide that only laws which are passed authorizing additional taxes after the enactment of the constitutional amendment are effective. 1968 Op. Att'y Gen. No. 68-105.
Qualified electors those who paid property tax during preceding year. — This section would preclude the legislature from limiting persons entitled to vote on a special levy to those who own or pay property taxes. 1956 Op. Att'y Gen. No. 56-6492.
The effect of the 1967 amendment to this section was to amend former 21-16-12 and 21-16-17 NMSA 1978 by adding the additional qualification that those voting in district elections be those qualified electors who paid a property tax therein during the preceding year. 1968 Op. Att'y Gen. No. 68-105.
"Public debt" means judgments arising out of involuntary debt of a political subdivision. This includes tort judgments and possibly condemnation awards. It does not include debts for ordinary current obligation of the county. A judgment arising out of a contractual obligation may not be placed on the tax rolls if the levy would exceed the 20-mill limitation of this section. 1970 Op. Att'y Gen. No. 70-01.
Conservancy district assessments. — The assessments levied through the provisions of 73-18-8 NMSA 1978, relating to conservancy district reclamation, are not within the purview of the limitations imposed by this section, and thus are not subject to the 20-mill limitation. 1960 Op. Att'y Gen. No. 60-209.
Assessments of flood control authority. — The "one half of one mill" property tax which the Albuquerque flood control authority may levy pursuant to Subsection J (now I) of 72-16-22 NMSA 1978 is not a general tax, but a benefit assessment, and hence is not subject to the 20-mill limitation of this section. 1964 Op. Att'y Gen. No. 64-90.
Paving assessments against school district property. — Taxes levied for payment of paving assessments against school district property are levies for public debt and do not come within 20-mill limitation appearing in the proviso clause. 1934 Op. Att'y Gen. No. 34-765.
Exemption of church property. — If property is owned by a church, it is exempt from taxation, regardless of the use made of the property. 1926 Op. Att'y Gen. 26-3893 (opinion rendered prior to 1972 amendment).
Law reviews. — For comment, "Approaches to State Taxation of the Mining Industry," see 10 Nat. Resources J. 156 (1970).
For article, "Indians - Civil Jurisdiction in New Mexico - State, Federal and Tribal Courts," see 1 N.M. L. Rev. 196 (1971).
For note, "Serrano v. Priest and Its Impact on New Mexico," see 2 N.M. L. Rev. 266 (1972).
For article, "An Intergovernmental Approach to Tax Reform," see 4 N.M. L. Rev. 189 (1974).
For comment, "Coal Taxation in the Western States: The Need for a Regional Tax Policy," see 16 Nat. Resources J. 415 (1976).
Am. Jur. 2d, A.L.R. and C.J.S. references. — 71 Am. Jur. 2d State and Local Taxation §§ 122, 126.
Corporate property, assessment at full value when valuations generally are illegally fixed lower, 3 A.L.R. 1370, 28 A.L.R. 983, 55 A.L.R. 503.
Limitation of power to tax as limitation on power to incur indebtedness, 97 A.L.R. 1103.
Presumptions and burden of proof as to violation of or compliance with public debt limitation, 16 A.L.R.2d 515.
Inclusion of tax-exempt property in determining value of taxable property for debt limit purposes, 30 A.L.R.2d 903.
84 C.J.S. Taxation § 56.