County valuation close to 100 percent of market

Time for a break from countywide property reappraisals by the county assessor, Lincoln County commissioners contended at a recent meeting.

Reviewing several spreadsheets prepared by the assessor’s office, County Commissioner Tom Stewart said at the commission meeting last week that the time has come to suspend for a while mass countywide annual reappraisals to establish property values.

The county sits at a ratio or more than 98 percent of market value and property owners have seen 3 percent increase each year for multiple years, he said during the commission meeting last week.

Property appraisals are used in the formula for establishing annual property tax bills. The higher the appraisal, the more the tax based on the same millage levy. One mill equates to $1 for each $1,000 of taxable property value. New Mexico taxes on one-third of market value.

“I know this is based on sales and I understand the chart,” Stewart told County Assessor Walter Hill. “But to me this says that’s enough in 2019, if every property in this county has seen a 3 percent increase year after year.”

Hill said preparation of the spreadsheets has been a good tool for him to analyze the data. He said with new software, he will be able to break down the county into neighborhoods and massive reappraisals may not be necessary.

“With what should be available next year, I will be able to break out each of the 500 subdivisions,” Hill said. “It’s never been done like that, but I see your point.”

“My sales ratio report enables me to evaluate the level of current assessment values to 2018 sales and is used to determine if the 3 percent cap (annual) increase is needed to obtain market value,” he explained.

“Lincoln County’s median ratio prior to sale was at 84.19 percent of market. We did increase the residential values countywide by the 3 percent allowable cap and re-inspected and valued all properties that sold in 2018 to market.

“Our median ratio now is at 98.49 percent of market.”

A median ratio between 90 percent and 110 percent is within International Association of Assessing Officers guidelines, he said.

Hill pointed out that the county this year is at 98 percent, but if 1,000 property sales occur next year, a new cycle of comparisons will be required.

“We keep throwing 98 percent (as the figure), but it is closer to 99 percent,” Chairman Preston Stone said.

Hill said his department is obtaining quotes for aerial pictometry and spatially-adjusted maps based on the images. They will show the fronts and sides of sites on the ground.

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“This will be used in large scale reappraisal program to ensure that all improvements to properties in the county will be accounted for and owners are paying their fair share of taxes,” he said. “Lincoln County has never had an aerial flyover and I believe this will be an exceptional tool for us to use in being accountable to all the taxpayers that we are assessing all properties equitably.”

He said he will return at the commission’s May 21 meeting with representatives from Eagleview, a company offering the service, to demonstrate its software.

Hill also handed out spreadsheets dealing with livestock values by district from 2016 through 2019, one on commercial values and two other valuation reports.