From Albuquerque member Bobbi Hayes - BHayes@rpcllp.com
The state personal property tax division in Santa Fe is interpreting the following clause as requiring that a construction contractor prorate every piece of equipment used by the time spent in any taxing jurisdiction in New Mexico for the 2017 personal property tax reports being filed, as opposed to a piece of equipment’s specific location on the measurement date (1/1/17). There were regulations that were modified during 2016 (see attached). So, if you had an excavator that was moved from county to county during the year, you are supposed to be tracking it to allocate the value. Anyone else run into this line of argument from NMTRD?
Situs in regard to personal property is property "…physically present in the state on the date when it is required to be valued for property taxation purposes…" That date is, in almost all cases, January 1 of the tax year. If personal property, including livestock and construction equipment, is present in the taxing jurisdiction on January 1 of the tax year, it is subject to property taxation. Livestock and construction equipment, however, are subject to yet another date. If livestock or construction equipment is present in a New Mexico taxing jurisdiction for more than 20 days after January 1, then the livestock or construction equipment is valued for property taxation as of the first day of the month after the month in which they spent the 20 days in the state. Use a basic allocation formula that prorates value according to the amount of time that livestock or construction equipment is in the state and subject to valuation for property taxation.