Current through Register Vol. 35, No. 18, September 24, 2024
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.
