N.M. Const. art. VIII, § 5
B. The legislature shall exempt from taxation the property, including the community or joint property of married individuals, of every honorably discharged member of the armed forces of the United States and the widow or widower of every such honorably discharged member of the armed forces of the United States, in the sum of:
The 2023 amendment, proposed by H.J.R. No. 6 (Laws 2023) and adopted at the general election held on November 5, 2024, by a vote of 611,027 for and 240,349 against, increased a property tax exemption for honorably discharged members of the armed forces and their widows and widowers; in Subsection B, after "joint property of", deleted "husband and wife" and added "married individuals", and after "the sum of" deleted "three thousand dollars ($3,000) in 2004; three thousand five hundred dollars ($3,500) in 2005; and"; in Subsection B, Paragraph (1), added "in 2006 and in each year through 2023"; in Subsection B, Paragraph (2), deleted "(2006)" and added "2024, ten thousand dollars ($10,000); and"; in Subsection B, Paragraph (3), added "in 2025", and "the amount provided in Paragraph (2) of this subsection, adjusted for inflation"; and in Subsection C, deleted "as aforesaid" and added "pursuant to Subsection B of this section".
The 2003 amendment, which was proposed by H.J.R. 2 (Laws 2003) and adopted at a general election held November 2, 2004, by a vote of 452,386 for and 214,844 against, provides a property tax exemption of each head of family and also to honorably discharged veterans.
The 2002 amendment, which was proposed by S.J.R. No. 1 (Laws 2001) and adopted at the general election held on November 5, 2002, by a vote of 311,369 for and 123,260 against, deleted "as follows: in 1989, the legislature shall exempt from taxation eight hundred dollars ($800), in 1991, one thousand four hundred dollars ($1,400) and beginning in 1993, two thousand dollars ($2,000)" from the end of the first sentence and added "in tax years prior to 2003; two thousand five hundred dollars ($2,500) in 2003; three thousand dollars ($3,000) in 2004; three thousand five hundred dollars ($3,500) in 2005; and four thousand dollars ($4,000) in 2006 and each subsequent year" at the end of the second sentence.
The 1988 amendment, which was proposed by H.J.R. No. 3, § 2 (Laws 1988) and adopted at the general election held on November 8, 1988, by a vote of 282,926 for and 93,218 against, near the beginning, substituted "shall" for "may" and "two thousand dollars ($2,000) as follows: in 1989, the legislature shall exempt from taxation eight hundred dollars ($800), in 1991, one thousand four hundred dollars ($1,400) and beginning in 1993, two thousand dollars ($2,000). The legislature shall also exempt from taxation" for "two hundred dollars ($200) and ".
The 1973 amendment, which was proposed by H.J.R. No. 5 (Laws 1973) and adopted at a special election held on November 6, 1973, with a vote of 31,358 for and 11,294 against, inserted "or widower" following "widow" in the first sentence.
The 1953 amendment, which was proposed by S.J.R. No. 19 (Laws 1953) and adopted at a special election held on September 15, 1953, with vote of 20,700 for and 7,900 against, substituted "who served in such armed forces during any period in which they were or are engaged in armed conflict under orders of the President of the United States, and the widow of every such honorably discharged member of the armed forces of the United States, in the sum of two thousand dollars ($2,000)" for "and the widow of every such honorably discharged member of the armed forces of the United States who served in the armed forces of the United States at any time during which the United States was regularly and officially engaged in any war, in the sum of two thousand dollars ($2,000)" at the end of the first sentence.
The 1949 amendment, which was proposed by H.J.R. No. 6 (Laws 1949) and adopted at a special election held on September 20, 1949, with a vote of 23,478 for and 5,238 against, inserted "including the community or joint property of husband and wife" and substituted "member of the armed forces of the United States and the widow of every such honorably discharged member of the armed forces of the United States" for "soldier, sailor, marine and army nurse, and the widow of every such soldier, sailor or marine" in the first sentence.
The 1921 amendment, which was proposed by H.J.R. No. 41 (Laws 1921) and adopted at a special election held on September 20, 1921, with a vote of 24,216 for and 22,946 against, added provisions regarding discharged soldiers, sailors, marines, and army nurses and their widows, so that the section then read: "The legislature may exempt from taxation property of each head of a family to the amount of two hundred dollars, and the property of every honorably discharged soldier, sailor, marine and army nurse, and the widow of every such soldier, sailor, or marine, who served in the armed forces of the United States at any time during the period in which the United States was regularly and officially engaged in any war, in the sum of two thousand dollars. Provided, that in every case where exemption is claimed on the ground of the claimants having served with the military or naval forces of the United States as aforesaid, the burden of proving actual and bona fide ownership of such property, upon which exemption is claimed, shall be upon the claimant."
The 1914 amendment, which was proposed by J.R. No. 10 (Laws 1913) and adopted at the general election held on November 3, 1914, with a vote of 18,468 for and 13,593 against, inserted the present first clause of this section, which was formerly in Section 11 of this article, and which, prior to this amendment read: "A state board of equalization is hereby created which shall consist of the governor, traveling auditor, state auditor, secretary of state and attorney general. Until otherwise provided, said board shall have and exercise all the powers now vested in the territorial board of equalization." See also compiler's note to N.M. Const., art. VIII, § 8.
Compiler's notes. — An amendment to this section proposed by H.J.R. No. 2 (Laws 1969), which would have allowed the legislature to exempt property from taxation, was, according to 1969 Op. Att'y Gen. No. 69-151, nullified by submission of the proposed constitution to the voters in 1969.
Cross references. — For head-of-family exemption, see 7-37-4 NMSA 1978.
For veteran exemption, see 7-37-5 NMSA 1978.
All tangible property subject to tax unless specifically exempt. — All tangible property in New Mexico is subject to taxation in proportion to value, and should be taxed, unless specifically exempted by the constitution, or by its authority. Sims v. Vosburg, 1939-NMSC-026, 43 N.M. 255, 91 P.2d 434.
It is the policy of this state that tangible property must be taxed unless specifically exempt by the constitution, or by legislative act authorized by the constitution. Town of Atrisco v. Monohan, 1952-NMSC-011, 56 N.M. 70, 240 P.2d 216.
Territorial provisions deemed repealed. — The constitutional provisions covering the whole subject of exemption from taxation repealed the territorial statutes on that subject. Albuquerque Alumnae Ass'n of Kappa Kappa Gamma Fraternity v. Tierney, 1933-NMSC-011, 37 N.M. 156, 20 P.2d 267.
Classification of property generally. — The constitution, in effect, classes tangible property into that exempt from taxation, that which may be exempted and that which must be taxed. State ex rel. Attorney Gen. v. State Tax Comm'n, 1936-NMSC-029, 40 N.M. 299, 58 P.2d 1204. See also N.M. Const., art. VIII, §§ 1, 3, and notes thereto.
Power to grant exemptions. — Judicial department has no power to extend time fixed by legislature for payment of taxes or to postpone delinquency date designated in statute, since power to grant exemptions is legislative, unless given in the constitution itself, as in this section. State v. Fifth Judicial Dist. Court, 1932-NMSC-023, 36 N.M. 151, 9 P.2d 691.
It is an open question in this jurisdiction whether the legislature has power to create tax exemptions, or to recognize any property as exempt, save as created or expressly authorized in the constitution. Oden Buick, Inc. v. Roehl, 1932-NMSC-050, 36 N.M. 293, 13 P.2d 1093.
Effect of 1921 amendment. — Amendment of this section in 1921 had effect of modifying it pro tanto. Asplund v. Alarid, 1923-NMSC-079, 29 N.M. 129, 219 P. 786.
This section, as amended in 1921, permitted legislature to exempt soldiers of World War II as well as those of the first World War. Flaska v. State, 1946-NMSC-035, 51 N.M. 13, 177 P.2d 174.
The amendment of this section in 1921 effected an exception to the earlier Section 32 of Article IV, to the extent that the legislature was authorized to exempt the qualified property from a tax already a fixed liability or obligation. This right to exempt did not extend to accrued taxes. Asplund v. Alarid, 1923-NMSC-079, 29 N.M. 129, 219 P. 786.
Authority of legislature. — Legislature is authorized to exempt certain property from taxation and that means none other. Dillard v. New Mexico State Tax Comm'n, 1948-NMSC-069, 53 N.M. 12, 201 P.2d 345.
Extent of power granted. — The supreme court is concerned in this section with an express power granted by the people to the legislature to allow tax exemptions to soldiers of a class defined, and it is not privileged to restrict that power by reading into the provision granting it words that are not there; nor may it confine the language used to one narrow channel of meaning, granting a limited power, when a broader meaning, granting a broader power, is implicit in the terms used unless proofs show that the narrower sense was intended. Flaska v. State, 1946-NMSC-035, 51 N.M. 13, 177 P.2d 174.
Legislature may require listing of all persons to whom exemptions may be allowed, either originally, by adding their names upon application to the assessor, or on order of district court, before delivery of tax rolls to county treasurer. Dillard v. New Mexico State Tax Comm'n, 1948-NMSC-069, 53 N.M. 12, 201 P.2d 345.
Name on list prima facie proof of right to exemption. — Name of honorably discharged soldier on list of assessments entitled to exemption stands as prima facie proof that he is entitled to the exemption, and it can be removed only on showing he is not so entitled. Dillard v. New Mexico State Tax Comm'n, 1948-NMSC-069, 53 N.M. 12, 201 P.2d 345.
Burden of establishing right to exemption. — Claimant of exemption has responsibility of furnishing necessary proof where assessor does not have knowledge which authorizes him to place claimant upon exemption list, since assessor need not search out this information. Dillard v. New Mexico State Tax Comm'n, 1948-NMSC-069, 53 N.M. 12, 201 P.2d 345.
A war veteran has burden of establishing his right to the exemption and if he fails to follow the method prescribed by statute, he waives his right thereto. Dillard v. New Mexico State Tax Comm'n, 1948-NMSC-069, 53 N.M. 12, 201 P.2d 345.
Common lands of Atrisco not within exemptions. — The common lands of the town of Atrisco in the Atrisco land grant do not come within either this section or Section 3 of this article and are, therefore, subject to taxation. Town of Atrisco v. Monohan, 1952-NMSC-011, 56 N.M. 70, 240 P.2d 216.
Community interest in property. — War veteran's wife's community interest in property was not entitled to exemption from taxation under this section. Dillard v. New Mexico State Tax Comm'n, 1948-NMSC-069, 53 N.M. 12, 201 P.2d 345 (decided prior to 1949 amendment).
Soldier's tax exemption statute (repealed) allowing exemptions to every honorably discharged soldier of any prior war, who served for 30 days or more in the armed forces of the United States at any time in which the nation was engaged in war, applied to a soldier of World War II, provided he acquired his residence prior to January 1, 1934. Flaska v. State, 1946-NMSC-035, 51 N.M. 13, 177 P.2d 174.
Where amendatory act increasing time of service to make exemption available to 90 days became effective on March 13, 1947, widow of World War I soldier who served more than 30 but less than 90 days was entitled to exemption on 1947 taxes, since exemption status was determined on January 1, 1947. Dillard v. New Mexico State Tax Comm'n, 1948-NMSC-069, 53 N.M. 12, 201 P.2d 345.
Exemption to be deducted from true or cash value of property. — The $200 exemption was to be deducted from true or cash value of taxpayer's property, since all property is taxable at that value, and not from the one-third thereof which legislature had fixed arbitrarily as the value for purposes of taxation. Samosa v. Lopez, 1914-NMSC-061, 19 N.M. 312, 142 P. 927.
Voting in bond elections. — Property owner and his wife, exempt from property tax under this section, were qualified electors in voting on general obligation bonds for municipal improvements. Hair v. Motto, 1971-NMSC-001, 82 N.M. 226, 478 P.2d 554.
Veteran voting in bond election. — A veteran whose exemption is $2,000 and who does not pay property tax above that sum is not entitled to vote in county bond elections. 1953 Op. Att'y Gen. No. 53-5809.
All tangible property subject to tax. — The constitution sets forth the only areas of allowable ad valorem tax exemption. 1969 Op. Att'y Gen. No. 69-137. See also N.M. Const., art. VIII, § 3, and notes thereto.
Section is not self-executing, and exemptions are granted by means of enabling legislation. 1964 Op. Att'y Gen. No. 64-24.
Residency requirements not set forth. — This section, in and of itself, does not set forth any requirements as to residency in order for one to qualify. 1964 Op. Att'y Gen. No. 64-24.
Authority to grant exemptions. — By this section, the legislature is authorized to grant an exemption on property to the value of $2,000 to one who qualifies as a veteran and $2,000 to one who qualifies as a widow (or widower now) of a veteran, and both exemptions to one who qualifies as both. 1964 Op. Att'y Gen. No. 64-125.
Legislature could limit the veterans' exemption to disabled members of the armed forces, but should take care to define carefully what it means by "disabled" so as to avoid endless controversy and litigation. 1947 Op. Att'y Gen. No. 47-4987.
Formal declaration of war held unnecessary. — This section and enabling legislation referred to "any time in which the United States is regularly and officially engaged in any war". This language did not say that the war must be declared. To be officially engaged in war does not necessarily mean that the United States must be in a formally declared war. In spite of the fact that there was an undeclared war, the United States was regularly and officially engaged in war in Korea. Therefore, a veteran of the Korean conflict was held entitled to a "soldier's tax" exemption. 1953 Op. Att'y Gen. No. 53-5660.
Veteran of Korean conflict is a "soldier" within the meaning of the constitution and statutes regarding tax exemption and is entitled to such exemption if otherwise qualified. 1953 Op. Att'y Gen. No. 53-5660.
Soldier's exemptions allowed and not allowed. — Exemptions held not allowable to the parents of a soldier, the husband of a war nurse or to a soldier whose property is in the name of his wife. Exemptions held allowed for a soldier's interest in his father's estate when established, to widows of Civil War veterans and to soldiers discharged for physical disability, after 30 days' service. 1923 Op. Att'y Gen. No. 23-3727.
No exemption from tax in year of purchase from nonveteran. — The veterans exemption laws do not exempt a veteran from the payment of ad valorem taxes for the taxable year during which property was purchased by the veteran from a nonveteran owning the property on January 1st of such year. 1959 Op. Att'y Gen. No. 59-133.
Participation in training in student's army training corps does not qualify a person for the tax exemption. 1958 Op. Att'y Gen. No. 58-94.
Civilian World War II merchant marine seamen held not exempt. — While congress has recognized the service of certain civilian groups in World War II for the purpose of receiving federal benefits, civilian World War II merchant marine seamen did not "serve in the armed forces of the United States" as contemplated in this provision and 7-37-5 NMSA 1978. 1989 Op. Att'y Gen. No. 89-01.
Full exemption where joint tenancy in veteran and nonveteran. — Where property is owned in joint tenancy by a veteran and a nonveteran, the exemption should be allowed to the full extent. 1963 Op. Att'y Gen. No. 63-148.
Partnership property held not within exemption. — Partnership property being neither joint or community property nor individually owned, and not individually owned under 54-1-25 NMSA 1978, did not come within any exemption for property tax granted by statute or authorized by the constitution; a veteran partner could not therefore apply any portion of his exemption pursuant to this section and 72-1-11 to 72-1-16, 1953 Comp. (repealed) (similar to 7-37-5 NMSA 1978) to property owned by a partnership of which he was a partner. 1963 Op. Att'y Gen. No. 63-148 (rendered under former law).
Levies of special taxes are not to be extended and assessed on livestock which is otherwise nontaxable because of the owner's soldier and head-of-family exemptions. 1937 Op. Att'y Gen. No. 37-1821.
Law reviews. — For article, "Ad Valorem Tax Status of a Private Lessee's Interest in Publicly Owned Property: Taxability of Possessory Interests in Industrial Projects under the New Mexico Industrial Revenue Bond Act," see 3 N.M. L. Rev. 136 (1973).
Am. Jur. 2d, A.L.R. and C.J.S. references. — 71 Am. Jur. 2d State and Local Taxation § 334.
Time: tax exemption of real property as affected by time of acquisition of title by private owner entitled to exemption, 54 A.L.R.2d 996.
Military service as basis of exemption, 83 A.L.R. 1235.
Remission, release or compromise of tax as an invalid exemption from taxation, 99 A.L.R. 1068, 28 A.L.R.2d 1425.
Failure to claim or delay in claiming exemption for past years, tax exemption as affected by, 115 A.L.R. 1484.
Veterans of world war, state statutes relating to exemption from taxation of amount paid as pension, war risk insurance, compensation, bonus or other relief, 116 A.L.R. 1437.
Military service, construction and application of statutory and constitutional provisions exempting property of persons in, or formerly in, such service, from taxation, 149 A.L.R. 1485.
Taxation of rights of insured or beneficiary under insurance policy as affected by exemption statutes, 150 A.L.R. 796, 167 A.L.R. 1052.
Tax on property held under executory contract with exempt vendor, 166 A.L.R. 595.
Impairment of obligation of contract with respect to tax exemption, 173 A.L.R. 15.
Constitutional exemption from taxation as subject to legislative regulation respecting conditions of its assertion, 4 A.L.R.2d 744.
84 C.J.S. Taxation §§ 219, 241.