N.M. Admin. Code § 3.6.6.12

Current through Register Vol. 35, No. 21, November 5, 2024

Section 3.6.6.12 - VETERAN EXEMPTION

A. Property taxes authorized by laws outside the property tax code and special benefit assessments: The veteran exemption applies to property taxes imposed by laws other than the Property Tax Code, such as the ad valorem tax on taxable property within a hospital district Section 4-48A-16 NMSA 1978; the property tax on taxable property within a college district Section 21-2A-5 NMSA 1978; the property tax on all property subject to taxation within a flood control district Section 72-18-20 NMSA 1978; and, the general ad valorem tax on all property subject to taxation within a solid waste authority Section 74-10-27 NMSA 1978. The veteran exemption is not effective against impositions or levies of taxes on specific classes of property authorized by laws outside the property tax code or impositions of special benefit assessments authorized by laws outside the Property Tax Code.

B. Application of veteran exemption - general

(1) Married persons. Where both persons are veterans within the meaning of Subsection C of Section 7-37-5 NMSA 1978, they may each claim the exemption allowed in Subsection A of Section 7-37-5 NMSA 1978.

(2) Military relationship:

(a) The veteran's exemption contained in Section 7-37-5 NMSA 1978 requires that claimant has been honorably discharged from membership in the armed forces of the United States. A person has been "honorably discharged" if he or she has been discharged and has not received either a dishonorable discharge or a discharge for misconduct.

(b) Any veteran who did not serve at least 90 continuous days on active duty is not entitled to the exemption; except for failure to have served in the armed forces continuously for 90 days is considered to have met that qualification if the reason for not having served for that period was a discharge brought about by service-connected disablement.

(c) A veteran does not lose their right to a veteran's exemption by re-enlisting immediately after receiving his or her honorable discharge.

(d) A person whose civilian service has been recognized as service in the armed forces of the United States under federal law as determined under Title 32, Part 47 of the Code of Federal Regulations, as amended, shall be considered to have serviced in the armed forces of the United States.

(3) Residency. Pursuant to Section 7-37-5 NMSA 1978, it is required that a person be a current New Mexico resident to qualify for the veteran's exemption.

(4) Veteran's interest in property:

(a) A veteran who qualifies under Section 7-37-5 NMSA 1978, who is a life tenant of real estate, is entitled to exemption on taxation on the property in which the veteran is a life tenant.

(b) A veteran cannot claim exemption from taxation on land where the veteran holds no title to the land, either legal or equitable.

(c) If a veteran entitled to claim the exemption owns property on January 1, it remains exempt even though the veteran sells it during the year.

(d) A veteran who has purchased property on an executory contract with legal title remaining in escrow pending the final payment under the purchase contract is the beneficial owner of the property and is the owner for purposes of taxation and may apply the exemption to the property.

(e) A veteran cannot claim exemption from taxation for his or her spouse's separate property or his or her spouse's portion of community property.

(f) A veteran cannot claim exemption from taxation when the veteran is one of the partners in a partnership, and the partnership owns the property on which the exemption is claimed.

(5) Surviving spouse:

(a) A resident unmarried surviving spouse of a veteran who died in service is entitled to the veteran's exemption.

(b) If a veteran's surviving spouse remarries and thereafter obtains a divorce from the subsequent spouse, he or she does not revert to the status of an unmarried surviving spouse entitled to claim the exemption.

(c) A surviving spouse of an eligible veteran is not, if a subsequent marriage is annulled, entitled to the exemption.

(d) An unmarried surviving spouse of a deceased veteran who is also a veteran may receive a tax exemption as veteran and also as a surviving spouse of a veteran.

(e) An unmarried surviving spouse of a veteran who at the time of the veteran's death was legally separated from the veteran is entitled to the exemption.

C. Application of veteran exemption - certain taxes and fees outside property tax code:

(1) Aircraft registration fees: The veteran's exemption may not be applied to aircraft registration fees.

(2) Motor vehicle registration fees: Under Section 66-6-7 NMSA 1978, a veteran who has claimed any portion of the veteran's exemption on real or personal property for the year in which the veteran may be liable for the payment of a registration fee for a motor vehicle is not entitled to the reduction in rate for the motor vehicle registration fee. However, if the exemption for motor vehicle registration fees is taken prior to the claiming of the exemption on real and personal property, both exemptions may be claimed to the extent permitted by Section 7-37-5 NMSA 1978.

D. Activities which are not service in the armed forces: Medical laboratory technician. A medical laboratory technician, subject to orders of the war department, but not in uniform and not given a formal discharge when terminated from hospital service, is a civilian employee and not entitled to the veteran's exemption.

N.M. Admin. Code § 3.6.6.12

3/23/83, 12/29/94, 8/31/96; 3.6.6.12 NMAC - Rn & A, 3 NMAC 6.6.12, 4/30/01; A, 9/15/09, Adopted by New Mexico Register, Volume XXXV, Issue 14, July 30, 2024, eff. 7/30/2024