New Mexico's Valuation Limitation (also known as the 'Value Cap' or 'ValueCap') protects qualifying residential property owners from sharp increases in taxable value. Which of the following is NOT a requirement for a property to qualify for New Mexico's residential valuation limitation under NMSA 1978, § 7-36-21.2?
Correct Answer
B) The owner must have owned the property for at least three consecutive tax years.
Under NMSA 1978, § 7-36-21.2, New Mexico's residential valuation limitation (Value Cap) does NOT require the owner to have held the property for a minimum of three consecutive years before qualifying. The cap applies automatically once the property qualifies as the owner's primary residential property and has been valued for at least one prior tax year. There is no three-year minimum ownership period requirement in the statute.
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