The 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 an exempt higher education institution but leased by a nonexempt entity. Specifically, the new legal language states that 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 the institution, are located on land owned by the institution, and are leased to a nonexempt entity for operation.

Additionally, the bill clarifies definitions related to fractional property interests, exempt entities, and nonexempt entities. It specifies that fractional interests of nonexempt entities in the real property of exempt entities are generally exempt from property taxation, with certain exceptions. The provisions of this act will apply to property tax years starting in 2026 and beyond.

Statutes affected:
introduced version: 7-36-4