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  3. Property Tax Rebate for Personal Income Tax

Property Tax Rebate for Personal Income Tax

Counties may institute a property tax rebate for their low-income residents who file a return and incur a property tax liability on their principal place of residence during the tax year and who are not dependents of other persons.

Section 7-2-14.3 NMSA 1978

The rebate is based on modified gross income on a sliding scale from $0 to $24,000 and results in a rebate of a percentage of the taxpayer’s property tax liability.

The county must enact an ordinance on the low-income property tax rebate after a public hearing in which the majority of the Board of County Commissioners votes in favor of the ordinance. The ordinance goes into effect 30 days after the public hearing.

The county then notifies the Department of the ordinance adoption and sends a copy to the Department by September 1 of the first tax year to which the ordinance applies.

By December 31 of each year the rebate has been in effect, the Department certifies to the county the amount of revenue lost to the state through the low-income property tax rebate. The county immediately pays the certified amount to the Department. If it does not pay within 30 days, the state can enforce collection and may withhold the certified amount from any revenue distributions to the county.

Currently there is a special property tax rebate for low-income residents of Los Alamos County and Santa Fe County only. Eligibility for the rebates is a modified gross income of $24,000 or lower. Please see the PIT-RC, New Mexico Rebate and Credit Schedule.