Forest Incentive Programs - Property Taxes for New Mexico

Type of Tax

Yield tax of 1/8%

Current Use Tax based on set price per acre

Law

NMSA 7-26-5 of 1978 sec. 7-36-20

Agricultural Land Assessment

Objective

The purpose of the Resources Excise Tax Act [Chapter 7, Article 25 NMSA 1978] is to provide revenue for public purposes by levying a tax on the privilege of severing and processing natural resources within New Mexico.

Requirements

One time application with county assessor

No withdrawal penalties

Agricultural Use classification

Production capacity determined from income or possible income

There is no penalty for withdrawing from the Agricultural Land Assessment program.

Under the Agricultural Land Assessment program a landowner must prove ownership and have 40 contiguous acres of agricultural or woodland.

Woodland alone can be included in Agricultural if land is being used for grazing.

Program Administration

State Department of Revenue assures the implementation and compliance of applicable statutes, rules and regulations.