This bill amends the existing property tax law in New Mexico to clarify the definition of "agricultural use" in relation to land valuation for property tax purposes. It introduces a new provision that allows for the "resting of land" due to a failure of man-made infrastructure in a special water district, which results in a significant reduction of water delivery (seventy percent or less compared to the previous year), to be classified as "agricultural use." This classification is contingent upon certification of water scarcity by the special water district to the county assessor. The bill also defines "special water district" to include various types of water delivery entities in New Mexico.

Additionally, the bill requires that a special water district must certify any such infrastructure failure to the appropriate county assessor in the same tax year that the failure occurs. The provisions of this act will apply to property tax years beginning on or after January 1, 2026. The changes aim to provide relief to landowners affected by water delivery issues, ensuring that their land can still be valued as agricultural despite temporary setbacks in water availability.

Statutes affected:
introduced version: 7-36-20