BERNALILLO COUNTY PROPERTY TAX Tax Year 2011

Commission Request No Tax Increase to Operational Tax Rates No later than September 1 of each year, the State Secretary of Finance and Administration, by written order, sets the property tax rates for governmental units County Commissioners are required by state statute to issue a written order imposing the tax rates Tax Year Residential Operational Rate included a tax rate increase Tax Year Residential Operational Rate again includes a tax rate increase

Commission Action Tax Year 2010 – September 2010 State calculated tax rates result in operational tax rate increase Commission are not allowed to leave operational rate at the same level as prior year Action – Commission approve a reduction of the debt tax rate to offset increase in the operational tax rate Action – Commission approve cash transfer from General Fund to make capital debt payment

Commission Action Tax Year 2011 – September 13, 2011 State calculated Operational property tax rates include a tax rate increase Commission do not approve the state secretary of finance and administration property tax rates Commission instruct county staff to meet with DFA to discuss tax rate reduction

Tax Year 2011 Tax Reduction Options Discussed with State DFA Options Discussed Option Result 1.Leave prior year operational rates unchanged No 2.Reduce County Imposed Rates to prior yearNo 3.Use FY2010 Original Tax Certificate RatesNo 4.Use FY2010 Amended Tax Certificate RatesNo 5.Reduce Debt Mill Rate Yes, with limits 6.Partner with DFA for future planningYes

Available Options Option 1 - Deliver Certificate of Tax Rates as calculated by the State of New Mexico Department of Finance and Administration, Local Government Division Option 2 – Deliver Certificate of Tax Rates as amended by the County Commission – decrease of to the debt tax rate

Option 1 State Calculated Rates Pros – Complies with state statute – Applies tax rate change in current year versus compounding rate increase in the following tax year – Provides revenue for the debt service fund for 12 months of capital improvement debt payment (18 months required) – Provides for strong credit ratings/low interest rates on public projects Staff recommended option Cons – rate increase on operational tax rate – roll back of prior year Commission adjustment to the debt tax rate

Option 2 – Reduce Debt Tax Rate Pros – operational tax rate savings to the property tax payer Cons – roll back of prior year Commission adjustment to the debt tax rate – Compounding rate increase in the following tax year – Continued adjustments to the debt rate and cash transfer subsidies may affect credit rating and rate of interest on future projects – $2,670,273 cash transfer from General Fund for capital improvement debt payments – Reduces ability for future capital improvement bonding without additional cash transfers from General Fund

Statutes that Govern Bernalillo County Administration of Property Tax

County Assessor to Certify Net Taxable Values to the State Department After receiving the values for property taxation purposes certified to him by the department, the county assessor shall determine the net taxable value for all property allocated to governmental units in the county and subject to valuation for property taxation purposes, whether valued by him or by the department. No later than June 15 of each year, the county assessor shall certify to the department the net taxable values for all property allocated to governmental units in the county and subject to property taxation.

State Department of Finance and Administration to set tax rates A. No later than September 1 of each year, the state secretary of finance and administration shall by written order set the property tax rates for the governmental units sharing in the tax in accordance with the Property Tax Code [Articles 35 to 38 of Chapter 7 NMSA 1978] and the budget of each as approved by the department of finance and administration. [Articles 3538Chapter 7 B. A copy of the property tax rate-setting order shall be sent to each board of county commissioners, each county assessor and the department within five days of the date the order is made. C. Net taxable values from the immediately preceding tax year may be used by the department of finance and administration for the purpose of estimating current tax year revenue in connection with setting tax rates when final net taxable values for the current tax year are incomplete or indefinite due to pending protests.

Board of County Commissioners to order imposition of the tax Within five days of receipt of the property tax rate-setting order from the State Department of Finance and Administration, each board of county commissioners shall issue its written order imposing the tax at the rates set on the net taxable value of property allocated to the appropriate governmental units. A copy of this order shall be delivered immediately to the County Assessor

Treasurer Preparation and mailing of property tax bills Collection and receipt of and accounting for property taxes Upon receipt of the property tax schedule, the County Treasurer shall prepare and mail property tax bills to either the owner of the property or any person other than the owner to whom the tax bill is to be sent The County Treasurer has the responsibility and authority for collection of taxes and any penalties or interest due under the Property Tax Code

Bernalillo County Treasurer The Bernalillo County Treasurer is the property tax collector for the County of Bernalillo for the following taxing agencies: State of New Mexico (STATE) County of Bernalillo (COUNTY) City of Albuquerque (ALBUQ) Village of Tijeras (TIJERAS) Village of Corrales (CORRALES) City of Rio Rancho (Non-Residential) Albuquerque Public Schools (SCHOOL 12) Moriarty Municipal Schools (SCHOOL 08/24) Albuquerque Technical Vocational Institute (TVI) University of New Mexico Hospital (UNMH/BCMC) Albuquerque Metropolitan Arroyo Flood Control Authority (AFC) Middle Rio Grande Conservancy District (MRGCD) Edgewood Soil and Water Conservation District (EDGE S/W) New Mexico Livestock Board (HORSE, SHEEP, CATTLE, DAIRY)