Most folk’s monthly mortgage payment is comprised of three major pieces. The first piece, of course, is the amortization amount which is the most expensive part of your mortgage payment. The second piece is your hazard insurance or homeowners insurance which protects you against damages from floods, hail, fire, vandalism, and in some cases earthquakes.
The final piece of your monthly mortgage which is the biggest mystery to most home owners is the property tax calculation. In the great state of New Mexico, a home owner ONLY pays property tax on 1/3 of the assessed property value!
So if you are financing a $210,000 balance on your home, then you ONLY have to pay tax on one-third of $210,000 which turns out to be $70,000. The average property tax in NM is 0.8%. So 0.8 per cent of $70,000 is 560 dollars which would be around $47 extra dollars per month added to your monthly home mortgage payment.
Outside of Carlsbad Caverns and the “UFO scent” that emanates from Roswell, I see nothing more enchanting in the southeastern quadrant of the land of enchantment than the nation’s lowest property tax rates!!!
New Mexico has the lowest per capita property tax in the nation. Taxes are imposed on one-third of assessed value (“net taxable value”), which is typically between 80 and 100 percent of market value.
Most property is appraised by county assessors in the county in which it is located. The Taxation and Revenue Department assesses certain types of non-residential property, typically industrial property that extends across county boundaries, including property associated with railroads, pipelines, communication systems and mineral extraction. Property taxes are collected and distributed by county treasurers.
Major revenue recipients include counties, municipalities and school districts.
Rates vary substantially and depend on property type and location. Rates applicable to residential property range from about $9 to $38 per $1,000 of net taxable value after exemptions are taken. Non-residential
property tax rates range from $12 to $44 per $1,000 of net taxable value. The statewide average rates are about $26 per $1,000 for residential property and $29 per $1,000 for non-residential property, or about .8% of