This bill amends Section 7-36-4 of the New Mexico Statutes to provide a property tax exemption for student housing facilities that are located on land owned by exempt higher education institutions but leased to nonexempt entities. Specifically, the bill inserts provisions that state improvements, including leasehold interests in these residential housing facilities, will be exempt from property taxation if they are used for students or medical residents of qualifying institutions, are situated on land owned by the institution, and are leased by the institution to a nonexempt entity for operation.

The bill also clarifies definitions related to fractional property interests, exempt entities, and nonexempt entities, while maintaining that fractional interests of nonexempt entities in the real property of exempt entities are generally exempt from property taxation, with specific exceptions. The new provisions will apply to property tax years starting in 2026 and beyond.

Statutes affected:
introduced version: 7-36-4