2017 property valuation maintenance program & … valuation maintenance program & annual...

2017 Property Valuation Maintenance Program& Annual Report

Bernalillo County offiCe of the assessor

Tanya R. Giddings, Assessor

Prepared by:Tanya R. Giddings, Bernalillo County Assessor

Bobby Espinosa, Deputy Assessor/Chief Information Officer Michelle Aguilar, Deputy Assessor/Chief Administrative Officer

Leroy Jinzo, Customer Service Supervisor Stephen Sais, Appraisal Field Trainer

Staff of the Office of the Assessor

06.16.17

Table of ContentsTable of Contents

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Mission ....................................................................................................................................................... 2

Statutory Responsibility ......................................................................................................................... 2

Property Tax Code Calendar .................................................................................................................. 3

Property Valuation Maintenance Program ......................................................................................... 4

Timeline of Property Valuation Maintenance Program ................................................................... 5

Departments

Special Assessments ............................................................................................................. 6-10

Business Personal Property ............................................................................................... 11-12

Commercial Appraisal ....................................................................................................... 13-16

Customer Service ................................................................................................................ 16-19

GIS/Mapping ....................................................................................................................... 19-23

Manufactured Homes ......................................................................................................... 24-26

Quality Control ................................................................................................................... 26-27

Residential Appraisal ......................................................................................................... 28-29

Reappraisal Program ....................................................................................................................... 30-32

Budget and Organizational Structure .......................................................................................... 33-34

Annual Data and Statistical Analysis .......................................................................................... 35-43

Tax Savings Programs by Type ...................................................................................................... 44-46

Tax Roll Value Delivered to Treasurer ........................................................................................ 47-48

Contact and Agency Information ........................................................................................................ 49

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MISSION

The mission of the Office of the Assessor is to administer the New Mexico State Constitution and the New Mexico Property Tax Code in order to accurately and impartially value all taxable property in Bernalillo County and to maintain trust, integrity and transparency with the public by ensuring the fair and equitable treatment of all property owners and taxpayers.

STATUTORY RESPONSIBILITY

The County Assessor’s responsibility is to locate and identify the ownership of all taxable property in the county, determine the property value of homes, businesses, business equipment, vacant and agricultural land, livestock and all other taxable property within the county; and to notify property owners of established value, list the value of all property on the assessment roll, and apply all legal exemptions. Pursuant to NMSA 7-36-16, the responsibility of county assessors is to determine and maintain current and correct values of property.

Pursuant to NMSA 7-36-16.A, the County Assessors shall determine values of property for property taxation purposes in accordance with the Property Tax Code and the regulations, orders, rulings and instructions of the Taxation and Revenue Department. Except as limited in NMSA 7-36-21.2, County Assessors shall also implement a program of updating property values so that current and correct values of property are maintained and shall have sole responsibility and authority at the county level for property valuation maintenance, subject only to the general supervisory powers of the director.

Pursuant to NMSA 7-36-16.D, the Department of Finance and Administration shall not approve the operating budget of any county in which there is not an adequate allocation of funds to the county assessor for the purpose of fulfilling the responsibilities for property valuation maintenance program. If the Department of Finance and Administration questions the adequacy of any allocation of funds for this purpose, it shall consult with the Taxation and Revenue Department, the Board of County Commissioners and the County Assessor in making its determination of adequacy.

Pursuant to NMSA 7-36-16.E, to aid the Board of County Commissioners in determining whether the County Assessor is operating an efficient property valuation maintenance program and in determining the amount allocated for this function, the County Assessor shall present an annual budget and a written report (also known as an annual report) setting forth improvements of property added to valuation records during the year, additions of new property to valuation records during the year, increases and decreases of valuation during the year, the relationship of sales prices of property sold to values of the property for property taxation purposes and the current status of the overall property valuation maintenance program in the county.

Pursuant to NMSA 7-38-38.1.D, expenditures from the county property valuation fund shall be made pursuant to a property valuation program presented by the County Assessor and approved by the majority of the county commissioners. The Assessor is responsible for presenting an operating budget with an adequate allocation of funds to fulfill the responsibilities and duties of the Assessor’s Office.

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PROPERTY TAX CODE CALENDAR

Property Tax Code Calendar Date Subject NMSA 1978

January 1 Valuation date 7-38-7 January 1 Special method of valuation; livestock 7-36-21 January 1 - 21 Publication of notice 7-38-18

February - March

Director's supervisory power over county assessors - duty to evaluate performance and provide technical assistance - property valuation fund created 3.6.3.8

Last Day of February Special method of valuation; manufactured homes 7-36-26

Last Day of February Reporting of property for valuation; penalties for failure to report 7-38-8

Last Day of February Statement of decrease in value of property subject to local valuation 7-38-13

Last Day of February Presumption of nonresidential classification; declaration of residential classification 7-38-17.1

March 15 Verification of the dollar amount of veteran exemption claimed - New Claims 3.6.7.25 F-2 April 1 County Assessor and department to mail Notice of Valuation 7-38-20

May 1 Alternate mailing date to mail Notice of Valuation - requires County Assessor approval 7-38-20

May 1 Verification of the dollar amount of veteran exemption claimed - All Claims 3.6.7.25 F-2 NOV Date Plus 30 Days

Protesting values, classification, allocation of values and denial of exemption or limitation on increase in value determined by the county assessor 7-38-24

NOV Date Plus 30 Days

Claiming exemptions; requirements; penalties (Contingent effective date, See note) 7-38-17

NOV Date Plus 30 Days

Special method of valuation; claiming exemption for land used primarily for agriculture purpose 7-36-20

June 1 Department to allocate and certify valuations to county assessor 7-38-30 June 15 County assessor to certify net taxable values to the department 7-38-31

June 30 Department to prepare a compilation of net taxable values to be used for budget making and rate setting 7-38-32

July 1 Responsibility of county assessors to determine and maintain current and correct values of property 3.6.5.23

August 1 Department to prepare a compilation of net taxable values to be used for budget making and rate setting - Amended per protest 7-38-32

September 1 Department of finance and administration to set tax rates 7-38-33 Tax Rate Order Plus 5 Days Board of county commissioners to order imposition of the tax 7-38-34

October 1 Preparation of property tax schedule by assessor 7-38-35 October 1 - November 1 Preparation of mailing of property tax bills 7-38-36 Due Date Plus 60 Days Claims for Refund; civil action 7-38-40

December 1 Limitation on increase in value for single-family dwellings occupied by low-income owners 65 years of age or older or disabled (PTD Order) 7-36-21.3

December 1 Special method of valuation; livestock (PTD Order) 7-36-21

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PROPERTY VALUATION MAINTENANCE PROGRAM

Program PurPose and outlineIn order to maintain current and correct property values, the Assessor’s Office implemented a program that includes collecting and maintaining relevant information in order to apply appropriate statutory valuation methods. The program outline for 2017 is as follows:

• Program Purpose: Maintain Valuation of 274,526 Parcels • Program Outline:

A. Process and review 20,654 Residential and Non-Residential Real Property Transfers 1. Conduct a Sales Ratio Study to Establish Current and Correct Property Values 2. Reappraisal of Residential Real Property as Necessary 3. Maintain Current and Correct Non-Residential Real Property Values B. Process and Review 15,239 Residential and Non-Residential Real Property Building Permits 1. Field Check 9,994 Real Property Building Permits 2. Add New Construction Value for 8,348 Completed Building Permits C. Reappraisal and Maintenance of Personal Property 1. Process and Review 5,252 Business Licenses and Building Permits 2. Process, Review and Value 19,203 Business Equipment Reports 3. Process, Review and Value 13,891 Manufactured Homes 4. Process, Review and Value 825 Livestock Rendition Reports

• Establish an Operating Budget A. General Fund Maintenance Program Budget of $3.1 Million B. Revaluation Fund Reappraisal Program Budget of $6.9 Million

Program ComPonents• RESIDENTIAL Count Start Date End Date Sales Analysis 19,674 16-Nov 17-Feb Building Permits 13,326 16-Oct 17-Feb Reappraisal of Sales 9,431 16-Jan 17-Mar Protests 3,500 16-May 17-Apr

• NON-RESIDENTIAL Count Start Date End Date Sales Analysis 283 16-Mar 17-Feb Building Permits 1913 16-Aug 17-Feb Reappraisal of Permits 252 16-Oct 17-Feb Protests 1818 16-May 17-Apr

• PERSONAL PROPERTY Count Start Date End Date Building/License Permits 3,828 16-Jan 16-Dec Reappraisal of Permits 1,424 16-Jan 16-Dec Protests 73 16-Jan 16-Dec

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Program Timeline

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Program timeline

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DEPARTMENTS

sPeCial assessments In the first calendar quarter of 2016, the Agricultural Appraisal - Special Method of Evaluation was merged with the Research and Information department to create the Special Assessments Department. The merger is a strategic realignment as these two departments have considerable inter-operability. Therefore, the merger will simplify organizational structures and enhance operational efficiencies and effectiveness. Cross-training of staff within the newly formed department offers flexibility in task assignments and achievements by department staff. Additionally, the seasonal nature of tasks in the two departments lends to more efficient use of manpower with the goal of reducing the need of re-assigning employees to cover peak workloads.

agriCultural aPPraisal - sPeCial method evaluation

Responsibilities:The Agriculture Department assists the Assessor in complying with State Statute § 7-36-20 NMSA 1978 (Special method of valuation; land used primarily for agricultural purposes) and the New Mexico Taxation and Revenue Department Property Tax Division (PTD) Rules and Regulations by maintaining all applications and related records regarding the Special Method of Agricultural Valuation on land used primarily for agricultural purposes. The governing principles of the Assessor’s Office ensure the fair and equitable treatment of all property owners.

Other State Statutes and regulations include:

• NMSA §7-36-21 Special method of valuation; livestock. • NMAC §3.6.5.27 Special method of valuation – land used primarily for agricultural purposes.

2016 Accomplishments:For the 2016 assessment year, the agricultural department began a review of the properties that receive the Agricultural Special Method of Valuation as part of an annual process to update the information to insure compliance with the Tax Statutes associated with the Special Method of Valuation. In addition to gathering information on the agricultural aspects of the properties, extra attention was focused to update the appraisal information on all structures on each property, to make sure all outbuildings are properly accounted for and assessed properly. There are currently 3,588 parcels in the county that have the special method of valuation applied. Of those, field inspections were performed on 971 of the properties and appraisal reviews were performed on 1,130 of the agricultural properties.

Additional Accomplishments: • Handled 1,478 incoming phone calls • Conducted 971 field visits • Reviewed and processed 120 new agricultural exemption applications

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2 NMSA §7-38-35: Preparation of property tax schedule by assessor

Number of Field Visits, 971 , 37.80%

Number of New Agricultural Exemption

Applications, 120 , 4.67%

Number of Phone Calls, 1,478 , 57.53%

2016 Agricultural Apprisal Department Productivity

Number of Field Visits

Number of New AgriculturalExemption Applications

Number of Phone Calls

The chart above summarizes the operational activities the staff of the Agricultural Appraisal Department focused on in 2016. Each “Pie Slice” illustrates the activity as well as the percentage of their efforts dedicated to each activity.

2017 Goal:This ongoing process of reviewing and confirming the agricultural use of properties will continue through 2017 and annually.

researCh and information

Responsibilities:The Research and Information Department (hereafter R&I) manages a database that includes every exempt parcel receiving a Special Method of Valuation; or, an Exemption granted by the New Mexico State Constitution. The department grants or denies exemptions based on required guidelines defined in the New Mexico State Constitution, Section 8, Article 3. It partially reads, “…all counties, towns, cities and school districts and other municipal corporations… all church property not used for commercial purposes, all property used for educational or charitable purposes…and all bonds of the state of New Mexico, and of the counties, municipalities and districts thereof shall be exempt from taxation.”1 This is distinguished from the office’s Customer Service Department whose exemption granting or denial is guided and governed by state statute. (Note: The listing of state statutes for the Customer Service Department are discussed in that segment of this report.)

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The department reviews exemptions applications to ensure compliance with statutory requirement, as well as performs customary inspections of exempted properties. Based on its research and findings, the department makes recommendations to the Assessor whether to grant or deny partial or total tax exemption status to applying organizations. All properties qualifying for a particular exemption are field checked the first year the property owner submits an application for exempt status.

The department is also responsible for scheduling protests initiated by property owners who do not agree with a value or values recorded on their Notice of Value (NOV). If a property owner disagrees with the valuation information contained in the notice, they have the right to put on record their protest of that value. 2 The department is tasked with recording the property owners initial protest notification, and then subsequently arranging a preliminary “informal” discussion between the property owner and an appraiser with the intent of resolving the valuation issue. If the informal hearing discussion does not resolve the valuation issue, then an ensuing hearing before an independent Bernalillo County Valuation Protest Board is scheduled.

Per statute 7-38-30, the department also has the responsibility of processing the Centrally Assessed accounts reported to the Assessor’s Office by June 1 of each year by the State Property Tax Division (hereafter PTD).3 These properties account for approximately $1.5 billion dollars of non-residential tax base. This includes reconciling values rendered to PTD and creating the Centrally Assessed Tax Roll in the CAMA system.

The department maintains database information that identifies and annually updates the levies of all properties in Public Improvement Districts (PID’s) or Tax Incremental Development Districts (TIDD’s). The current count of these types of properties represent 4,880 parcels of land in Bernalillo County.

The R&I department also maintains the information files for properties exempt from taxes due to Industrial Revenue Bonds issued by various municipalities. Other State Statutes and regulations include:

• NMSA §7-36-3. Industrial revenue bond, pollution control bond and economic development bond project property; health-related equipment; tax status.

• NMSA §7-36-7. Property subject to valuation for property taxation purposes. • NMSA §7-37-5.4. Property owned by a disabled veteran is exempt from a special benefit

assessment. • NMSA §7-38-17. Claiming exemptions; requirements; penalties. • NMSA §7-38-21. Protests; election of remedies. • NMSA §7-38-22. Protesting values, classification, allocation of values and denial of exemption

determined by the division. • NMSA §7-38-23. Protest hearings; verbatim record; action by hearing officer; time limitations. • NMSA §7-38-24. Protesting values, classification, allocation of values and denial of exemption

or limitation on increase in value determined by the county assessor. • NMSA §7-38-26. Scheduling of protest hearings. • NMAC § 7-38-29. Retention of hearing records. • NM Constitution article 8, § 11NM Const. art. 8, § 3. 2NMSA §7-38-20. County assessor and department to mail notices of valuation 3NMSA §7-38-30. Department to allocate and certify valuations to county assessors.

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2016 Accomplishments:As part of the Exemption Canvass, parcels associated with an IRB are being reconciled with the State’s Economic Development Departments to insure proper assessments of properties. This is of utmost importance and the Assessor’s Office is now obligated to assist in reporting all tax abatements as outlined in the Government Accountability Office’s tax abatement disclosure standards, also known as GASB77. This is a new procedure established by the State Auditor’s Office.

In 2016, the Assessor’s Office initiated a canvass of all the exempt properties within the County. The canvass review concentrated on updating the information on file certifying compliance with state statutes for exempt status of the properties. The review process consists of ownership verification, verification of actual use of the property and attaining current documentation in regard to their exempt status.

In 2016, the department scheduled 5,525 protests.

Additional Accomplishments: • Handled 7,134 incoming phone calls • Conducted 127 field visits • Received and reviewed 41 exemption applications

The chart above summarizes the operational activities the staff of the Research and Information Department focused on in 2016. Each “Pie Slice” illustrates the activity as well as the percentage of their efforts dedicated to each activity.

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Number of Taxpayer Protests Scheduled, 5,255

, 41.85%Number of Field Visits, 127

, 1.01%

Number of Exemption Applications Received, 41 ,

0.33% Number of Incoming Calls, 7,134 , 56.81%

2016 Research and Information Department Productivity

Number of Taxpayer Protests Scheduled

Number of Field Visits

Number of Exemption ApplicationsReceived

Number of Incoming Calls

The chart above summarizes the operational activities the staff of the Research and Information Department focused on in 2016. Each “Pie Slice” illustrates the activity as well as the percentage of their efforts dedicated to each activity. The total financial value of exempt properties is $10,819,468,944.

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•Per New Mexico State Statute (NMSA §7-38-27, paragraph C), “All protests shall be decided within one hundred eighty days of the date the protest is filed.”4 Under the requirements of this statute, depending on the method in which the protest request was received (e.g., in person, by email, etc.), the office’s procedures direct the department to schedule the protest into the Assessor’s CAMA system within two days of receipt. It is a requisite the department ensure all property owners who want to exercise the due process protest procedures have their requests promptly and accurately recorded for any subsequent procedures and data recording and tracking. As Notices of Value (NOV’s) are customarily mailed out on April 1 of each year, one of the department’s critical goals is to review the current process of scheduling protests hearings in front of an independent Bernalillo County Valuation Protest Board requested by property owners to ensure scheduling within 10 business days, if not sooner.

• Identify and verify all parcels with an Industrial Revenue Bond (IRB) with the state auditor’s Office for compliance with the GASB 77 reporting requirements. This will require reconciling all records with the County, City and State economic development departments as well as the New Mexico Hospital Equipment Bond Council.

•As the state issues Industrial Revenue Bonds (IRB’s) pursuant to the Industrial Revenue Bond Act, the department wants to ensure the proceeds from the bond(s) meet the eligibility requirements per the Act, as well as ensure properties that are no longer tax exempt per IRB rules are placed back on the tax roll.

•Ensure all parcels in Public Improvement District (PID) or Tax Incremental Development District (TIDD) are identified and tracked so any appropriate tax levy is applied allowing the Treasurer’s Office to add the levy amount to their tax bill.

4NMSA §7-38-27: Protest hearing; verbatim record; action by county valuation protests board; time limitations.

2017 Goals:

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Additional Accomplishments: • In January of 2017, 18,911 reports were mailed out.• Reviewed 1,424 building permits• Processed and reviewed 3,800 business licenses• Conducted 92 property valuation protests inquiries

Business Personal ProPerty

Responsibilities:Business Personal Property (hereafter BPP) is charged with assessing tangible business equipment annually. The Assessment Date, or lien date, is January 1st of each year. Business property reports submitted to the Assessor’s office contains those assets on which a federal depreciation deduction was taken and/or a Section-179 expense was taken and reported to the Internal Revenue Service (IRS) for the previous tax year (7-36-8 NMSA – Amended); excluding inventory held for resale, licensed vehicles, leasehold improvements, and supplies. The department continues its collaboration with (Property Tax Division) PTD on the revision of the Business Personal Property Valuation Guidelines publication. The purpose of the publication is to “provide county assessors, county and state appraisers…guidelines to value personal property of typical business enterprises.”5

Other related State Statutes include:

• NMSA §7-36-8 Tangible personal property exempt from property tax; exceptions.• NMSA §7-36-33 Department of finance and administration to set tax rates.• NMSA §7-38-8 Reporting of property for valuation; penalties for failure to report.

2016 Accomplishments:Each December, businesses receive via mail a report generated by the BPP Department. The report consists of a form called the Bernalillo County Personal Property Business Equipment Report. On this form, businesses are mandated to list, or “Render”, all depreciable assets reported for federal tax purposes. During 2016, the department worked with the software vendor Tyler Technologies to continue to improve the effectiveness of a software online application called “E-File.” The E-File online service is a system for submitting documents to BPP through the internet or direct connection, usually without the need to submit any paper documents. In 2016, the number of reports submitted via E-File was 817. To date in 2017, the number of reports submitted to the department is 11,663, with 1,076 (9.33%) being submitted via E-File. The department anticipates the E-File numbers to incrementally increase each year as property owners become more aware of and familiar with the E-File availability. The department will continue monitoring the use of the E-File software application to determine ease of use by the property owner, evaluate effectiveness of the software and what additional improvements or enhancements are called for, and finally, to analyze the inter-operability of the software with current operating procedures for continuous improvement of business practices.

Other departmental accomplishments for 2016, as well as new goals for 2017, with corresponding discussions of their purposes are listed below.

7New Mexico Taxation and Revenue Department Property Tax Division Business Personal Property Valuation Guidelines, 2015, page 1.

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Reviewed 1,424 building permits Processed and reviewed 3,800 business licenses Conducted 92 property valuation protests inquiries

2017 Goals

Goal – Work on improvements to e-file to improve both user and reviewer usability.

Purpose of Goal – The most requested update from the business community is to be able to download tax documents in pdf format directly on the e-file web site. On the reviewer end, updates need to be done to ensure correct values pull from Bernalillo Co e-file into Personal Property maintain along with some minor updates to increase reviewer usability.

Number of Reports Mailed Out,

18,911, 77.96%Number of Permits

Reviewed, 1,424, 5.87%

Number of Licenses Reviewed, 3,828, 15.78%

Number of Protests Resolved, 93, 0.38%

2016 Business Personal Property Department Productivity

Number of Reports Mailed Out

Number of Permits Reviewed

Number of Licenses Reviewed

Number of Protests Resolved

The chart above summarizes the operational activities the staff of the Business Personal Property Department focused on in 2016. Each “Pie Slice” illustrates the activity as well as the percentage of their efforts dedicated to each activity. An essential Business Personal Property process performed annually is the “Rendition” process. The total financial value of the process for 2016 is $1,363,574,734, with a taxable value of $454,479,458. For 2015, the total financial value was $1,312,032,463 with a taxable value of $439,970,713. This is an increase of 3.928%.

2017 Goals: The most requested update from the business community is to be able to download tax documents in PDF format directly on the e-file web site. On the reviewer end, updates need to be done to ensure correct values pull from Bernalillo Co e-file into Personal Property maintain along with some minor updates to increase reviewer usability.

The chart above summarizes the operational activities the staff of the Business Personal Property Department focused on in 2016. Each “Pie Slice” illustrates the activity as well as the percentage of their efforts dedicated to each activity. An essential Business Personal Property process performed annually is the “Rendition” process.

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CommerCial aPPraisal

Responsibilities:The Commercial Appraisal Staff is responsible for discovery, listing, and appraising commercial properties, which is defined as property used for retail, office, industrial, or multi-family (5+ apartment units) parcels, and gathering sales data and assisting the property owners as necessary in related matters. Valuation is derived by measuring land and buildings, gathering building component data and sales data, income and cost, and reviewing, analyzing and completing all necessary paperwork for purposes of supporting documentation.

Other State Statutes and regulations include:

• NMSA §7-36-15 Methods of valuation for property taxation purposes; general provisions.• NMSA §3.6.5.22 Methods of valuation for property taxation purposes; general provisions.• NMSA §7-36-16 Responsibility of County Assessors to determine and maintain current and

correct values of property.• NMSA §3.6.5.23 Current and correct values of property defined.

2016 Accomplishments:The number of parcels the Commercial Appraisal department maintains attributes and values in the CAMA system went from 19,345 to 19,401 of that number 1,123 are charitable, educational, religious and affordable housing parcels for which the commercial department reviews the physical property characteristics and attributes, but for which eligibility is reviewed by the R & I department. The change in number is due to the parcel package development process and the change in charitable, educational, religious and affordable housing parcels.

The package process is the development of documentation when there is a change to the state of a parcel. This documentation is the supporting evidence for establishing new parcels within the county, or deleting parcels from the county’s assessment rolls. When a large acreage parcel that is zoned as Special Use (“SU”) is purchased by a contractor who then breaks the acreage into much smaller parcel segments, the Land Use Code in the CAMA system is changed. The effect of this change is to have the acreage in question shift from a commercial parcel to a residential parcel. As is sound appraisal practice and per IAAO (International Association for Assessment Officers) standards and by accepted Ad Valorem appraisal practices referenced in the New Mexico State Statutes (7-36-15 NMSA 1973; Regulation 3.6.5.23 (C )), all properties within a jurisdiction should be inspected and reappraised on a consistent cycle of every four to six years. This is performed and completed to ensure that the data contained in the CAMA system is current and correct and among other standards, parcels are appropriately classified in the CAMA system.

From the beginning of the most recent canvassing initiative, 7,015 parcels had been canvassed by the end of 2014, and 12,334 have been canvassed by the end of 2016. Additionally, 1,913 building permits were reviewed, 252 commercial parcels underwent significant renovations and additions, including at both Winrock and Coronado malls. Additionally, the vacant First Baptist church building at 101 Broadway SE is being converted to prime downtown office space. Furthermore, 101 previously vacant parcels had new construction built on them, including two 80,000+ square foot medical centers in the NW and SE areas of town. Similarly, six new 100+ unit apartment complexes were built; three of which are senior and assisted living communities. Also, a new

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movie theater concept Flix Brew house to the area, and other food establishments were built on the West Side.

A critical goal every year of the Commercial Appraisal Department is to address and resolve all property valuation protests filed by either commercial property owners or their designated agent. For calendar year 2016, 1,818 protests were filed and 1,798 were resolved through informal negotiation between the Commercial Appraisal Department and the property owner or their designated agent. This is a successful resolution rate of 98.90%. Nineteen protests proceeded through an additional procedure of being heard by the independent Bernalillo County Valuation Protest Board for their ruling on the proper valuation of the property. This resulted in a resolution rate of 0.99% for this procedure method. Two protests proceeded to the utmost process of being heard in the Bernalillo County District Court for the court’s ultimate verdict on the proper valuation of the property. This is a resolution rate of .11% for this procedure method.

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apartment complexes were built; three of which are senior and assisted living communities. Also, a new movie theater concept Flix Brew house to the area, and other food establishments were built on the West Side.

A critical goal every year of the Commercial Appraisal Department is to address and resolve all property valuation protests filed by either commercial property owners or their designated agent. For calendar year 2016, 1,818 protests were filed and 1,798 were resolved through informal negotiation between the Commercial Appraisal Department and the property owner or their designated agent. This is a successful resolution rate of 98.90%. Nineteen protests proceeded through an additional procedure of being heard by the independent Bernalillo County Valuation Protest Board for their ruling on the proper valuation of the property. This resulted in a resolution rate of 0.99% for this procedure method. Two protests proceeded to the utmost process of being heard in the Bernalillo County District Court for the court’s ultimate verdict on the proper valuation of the property. This is a resolution rate of .11% for this procedure method.

The department reviewed and adjusted all condominium common areas. This gave each condominium the proper percentage of common area value.


Additional accomplishments:

Conducted 1,663 canvass and permit field checks Conducted 945 parcel reviews by aerial Added 101 new construction buildings to the assessment rolls

Number Resolved by Informal Meetings,

1,798, 98.90%

Number Resolved by Protest Board Decision,

0.99%

Number Resolved in District Court, 2, 0.11%

Number of Protests in 2016

Number Resolved by InformalMeetings

Number Resolved by ProtestBoard Decision

Number Resolved in District Court

Each “Pie Slice” in the chart illustrates how protests were resolved in 2016. As 98+% were resolved by negotiation between the Assessor’s Office and the protestant, this indicates a significant savings of funds and time dedicated to this activity.

The department reviewed and adjusted all condominium common areas. This gave each condominium the proper percentage of common area value.


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Additional Accomplishments: • Conducted 1,663 canvass and permit field checks• Conducted 945 parcel reviews by aerial• Added 101 new construction buildings to the assessment rolls• 1,001 properties had changes in value due to field checks and aerial review• 1,564 properties had no changes• Mailed out 356 sales questionnaires with a 19% response• Performed sales analysis on 283 validated sales• Assisted 2,264 customer via phone, email and walk-in

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Number of Field Checks, 1,663, 16%

Customer Service Inquiries, 2,264, 22%

Number of Parcels with Change in

Value, 1,001, 10%

Number of Protests, 1,818,

18%

Number of Building Permits Inspected, 1,913, 19% Number of New

Construction Parcels, 101, 1%

Sales Analysis Performed, 283, 3%

Re-Appraised Building Permits, 252, 2%

Number of Parcels canvass by aerial, 945, 9%

2016 Commercial Appraisal Department Productivity

Number of Field Checks

Customer Service Inquiries

Number of Parcels with Change inValueNumber of Protests

Number of Building PermitsInspectedNumber of New ConstructionParcelsSales Analysis Performed

Re-Appraised Building Permits

Number of Parcels canvass byaerial

The charts above summarize the operational activities the staff of the Commercial Appraisal Department focused on in 2016 during the property owner protest period.

2017 Goals: •Analyzing and revising the current permit review process will have a positive impact on the review of 1,400 building permits during 2017. To ensure accuracy in updating information to the Assessor’s Computer-Assisted Mass Appraisal (CAMA) database so when contributory value is entered, the assessment roll is current and correct. Revision of process will include re-evaluation of distribution and assignment of person-hours to the process.

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•Reviewing the property valuation protest inquiries process to analyze and resolve property owner protest issues in as accurate and, timely manner to ensure all information in the CAMA system is current and correct.

•Re-initiate the review and analysis of warehouse parcels. The underlying premise for this effort is to quality check the data contained in the CAMA system for accuracy and equity among like parcels.

•By reviewing and analyzing parcels with land acreage values listed in the CAMA system by size as between two and five acres and in various areas of the county parcels can be re-delineated in the cottonwood area to maintain an equitable value now that new construction has increased in the area.

•Analysis of the market on income producing properties and assist in setting current and correct cost tables by Initiating the use of the Income models in the CAMA system.

Customer serviCe

Responsibilities:The Customer Service Department has a wide variety of responsibilities, such as answering property owner inquiries, data entry into the CAMA system from forms, various applications, documents of conveyance and affidavits required to be filed at the Assessor’s Office submitted to the department by property owners walking into the office, mailed in information, or other means of receiving property owner information. Data entry is comprised of deeds, exemptions, mailing address changes, and Value Freeze applications. Additionally, the customer service staff codes all deeds that the department receives from the Bernalillo County Clerk’s Office, individual property owners and title companies. The Title Abstractor and Informational Research analyst function ensures consistency regarding document quality and accuracy to ensure proper chain of title indicated on the deeds being submitted are acceptable and accurate. These distinct areas of responsibility are inter-linked to work in unison to ensure that the Assessor’s Office has the correct property owner’s information reflected the CAMA system.

The department has a high degree of interface with the property owners in the county. In 2016, 12,848 “walk-in” property owners received service, and another 25,746 in-coming property owner telephone calls were attended to by the staff of the department.

The department is governed by, among others, New Mexico State Statute 7-37-4, which refers to the Head of Household exemption6. In 2016, 2,019 property owner applications for this exemption were processed. To date in 2017, 1,831 applications for this exemption have been received and processed. This area of operations continues to be a key area of emphasis regarding clearly informing the public about the exemption process and the availability of and benefits the exemption offers to them.

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8 NMSA §7-37-4: Head-of-Family exemption


• NMSA §7-37-5 Veteran’s exemption• NMSA §7-37-5.1 Veteran’s exemption is exempt from property taxation.• NMSA §7-36-21.2; Limitation on increases in valuation of residential property.• NMSA §7-36-21.3; Limitation on increase in value for single-family dwellings occupied by

low-income owners sixty-five years of age or older or disabled; requirements; penalties.

2016 Accomplishments:The department’s goals were to reduce the Translog error rate, standardize data entry and increase consistent training within the staff. Specifically, the department added another FT Exemption Specialist to the Veterans and Value Freeze to assist with the property owners in these areas. As a department, the focus is to ensure the Veterans in the community as well as elderly, disabled and disadvantaged property owners are receiving the proper attention and information. By switching the resources, the department was able to concentrate their efforts and provide more home visits as well as provide quality, efficient processing of paperwork for intake of Veteran’s Exemptions and immediate approval of Value Freeze Applications.

Another goal was to educate and train the entire staff on the various operational processes of the department to allow better coverage and create fewer backlogs of paperwork processing when the department is not fully staffed due to annual or personal leave or other staffing considerations. Cross-trained staff can respond more efficiently to the property owners of the Bernalillo County, and can adapt to the changing needs of the Assessor’s Office and property owners.

The goal of identifying and correcting data errors in the system and to further reduce our error rate helped create a new full-time position titled Information Analyst. Created in 2015, the full time position focused initially on developing and executing quality control queries on all deed and exemption transactions. These queries ensure each exemption type are properly applied to properties. The department further advanced this position to help develop monthly reports shaping the training focus to areas where errors were more prevalent. This “review for errors” process is called “Translog.” Through this addition, the department reduced the translog error rate in 2014 from a rate of 14.85%; in 2015, to a rate of 9.87%, and currently, the 2016 rate of 6.5%. This process minimizes the amount of edits sent back from our Quality Assurance team.


Additional Accomplishments: • Processed 2,019 Head of family applications• Processed 1,305 Veteran applications• Processed 373 Veteran waiver applications• Processed 1,381 Value freeze applications• Processed 4,336 Mailing address changes• Processed 26,443 Documents of conveyance• Performed 25,210 Coding of documents• Performed 45,024 Quality edits to database

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24

Additional Accomplishments:

Processed 2,019 Head of family applications Processed 1,305 Veteran applications Processed 373 Veteran waiver applications Processed 1,381 Value freeze applications Processed 4,336 Mailing address changes Processed 26,443 Documents of conveyance Performed 25,210 Coding of documents Performed 45,024 Quality edits to database

2017 Goals

Goal – Create foundational Translog training manual. In addition, conduct annual refresher trainings on Documents of Conveyance and Exemptions.

Purpose of Goal –

A Translog Manual will complete the beginning educational materials necessary for basic new employee training or a reference manual for most of the daily workflow for the Customer Service Department.

Renewed training on key operational processes for employees offers a deepened, consistent knowledge base and greater retention opportunities. Creating Annual Refreshers on daily processes also encourages implementation of new ideas to prevent complacency. Additionally, standardized processes lead to fewer errors and more productivity.

Goal – Reduce Translog Error Rate from rate of 6.5% to remain under 4.5%.

Purpose of Goal – The Customer Service Department strives to have the most current and accurate information in our system at all times. With a continued reduction in errors, the service we provide to Bernalillo County property owners will become more transparent and hopefully, remove the need for duplicated work efforts and research.

Goal – Like to cross train another person to code deeds that we receive from Clerks office.

Purpose of Goal – A cross trained staff can respond quickly to the needs of the Customer Service Department. With this cross-training, we hope to eliminate delays in coding deeds when we are short-staffed.

65 6699

167

75100

6998

129113

222 213

0

50

100

150

200

250

Property Owner Inquiries (Emails) by Month in 2016 January

FebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecember

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Another goal was to educate and train the entire staff on the various operational processes of the department to allow better coverage and create fewer backlogs of paperwork processing when the department is not fully staffed due to annual or personal leave or other staffing considerations. Cross-trained staff can respond more efficiently to the property owners of the Bernalillo County, and can adapt to the changing needs of the Assessor’s Office and property owners.

The goal of identifying and correcting data errors in the system and to further reduce our error rate helped create a new full-time position titled Information Analyst. Created in 2015, the full time position focused initially on developing and executing quality control queries on all deed and exemption transactions. These queries ensure each exemption type are properly applied to properties. The department further advanced this position to help develop monthly reports shaping the training focus to areas where errors were more prevalent. This “review for errors” process is called “Translog.” Through this addition, the department reduced the translog error rate in 2014 from a rate of 14.85%; in 2015, to a rate of 9.87%, and currently, the 2016 rate of 6.5%. This process minimizes the amount of edits sent back from our Quality Assurance team.


Taxpayer Walk-Ins, 12,848, 8.88%

Telephone Calls Received, 25,746, 17.79%

Head of Family Applications Processed, 2,019, 1.40%

Veteran's Applications Processed, 1,305, 0.90%

Veteran Waiver Applications Processed, 373, 0.26%

Value Freeze Applications Processed, 1,381, 0.95%

Mailing Address Changes, 4,336, 3.00%

Documents of Convayence Processed,

26,443, 18.28%

Documents Coded, 25,210, 17.42%

Quality Edits to Database, 45,024, 31.12%

2016 Customer Service Department Productivity

Taxpayer Walk-Ins

Telephone Calls Received

Head of Family Applications Processed

Veteran's Applications Processed

Veteran Waiver Applications Processed

Value Freeze Applications Processed

Mailing Address Changes

Documents of Convayence Processed

Documents Coded

Quality Edits to Database

The chart above summarizes the operational activities the staff of the Customer Service Department focused on in 2016. Each “Pie Slice” illustrates the activity as well as the percentage of their efforts dedicated to each activity.

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2017 Goals: •Create foundational Translog training manual that will complete the beginning educational materials necessary for basic new employee training or a reference manual for most of the daily workflow for the Customer Service Department. In addition, conduct annual refresher trainings on Documents of Conveyance and Exemptions that will provide renewed training on key operational processes for employees offers a deepened, consistent knowledge base and greater retention opportunities. Creating Annual Refreshers on daily processes also encourages implementation of new ideas to prevent complacency. Additionally, standardized processes lead to fewer errors and more productivity.

•The Customer Service Department strives to have the most current and accurate information in our system at all times. By reducing Translog Error Rate from rate of 6.5% to remain under 4.5% the service we provide to Bernalillo County property owners will become more transparent and hopefully, remove the need for duplicated work efforts and research.

•A cross trained staff can respond quickly to the needs of the Customer Service Department. With this cross-training, we hope to eliminate delays in coding deeds when we are short-staffed by cross training another person to code deeds that we receive from Clerks office.

gis/maPPing

Responsibilities:The GIS/Mapping Department provides parcel and spatial database management of all real property located within the boundaries of Bernalillo County by the use of the Geographic Information System. Key aspects of GIS/Mapping include planning, analysis, technical design, database design, data acquisition, hardware and software acquisition, and communication with the appraisers, management, property owners and other government entities.

The mapping functions performed by the GIS Department are essential in supporting accompanying business operations to all aspects of the office’s processes. As one of the three fundamental principles of the office is where a parcel is located, accurately and timely identifying and diagraming new parcels or changes to existing parcels into the office’s technological infrastructure is paramount to the successful completion of the office’s goal and objectives.

The department follows and abides by the tenets stated in the New Mexico Administrative Code. Code 3 NMAC 6.7.17.2 states in part, “The department and all county assessors shall substantially comply with the current New Mexico Mapping Manual prepared by the division pursuant to Section 7-35-4 NMSA 1978.”7

The department also follows the instructions and guidelines on cadastral mapping as specified in the New Mexico Taxation and Revenue Department’s Property Tax Division parcel handbook published in 2001. The handbook defines the standards to which the department is required to conform.

7 3 NMAC 6.7.17.2: Description of Property for Property Taxation Purposes

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2016 Accomplishments:The GIS/Mapping Department implemented an electronic-based process for accepting survey plats as well as providing Treasurer Certificates with the Unique Parcel Code for surveyors and other property owners. This process allows the property owner to send the survey plat via email and receive a response in a timely manner.

After the Dog Head Fire was contained, the GIS/Mapping Department provided an aerial map of Bernalillo County to the Assessor’s Administration as well as County Commissioners. The map showed the extent of damage the fire caused in Bernalillo County. In addition, the Emergency Management Response Team used the information to create an evacuation plan for the National Guard. The Assessor’s office Residential and Commercial appraisal departments also utilized the map for individual parcel review for property damage and reassessment purposes.

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The GIS/Mapping Department also provided a Percent of Cost Map indicating properties assessed in the percentage of cost assessed vs actual value of the property ratio. The purpose of the map shows areas close to cost and areas needing to be adjusted.


21

26


Moreover, the GIS/Mapping Department continues to work actively with the Canvass Department providing monthly progression maps of The NW Quadrant Canvass.

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Moreover, the GIS/Mapping Department continues to work actively with the Canvass Department providing monthly progression maps of The NW Quadrant Canvass.

Lastly, during the re-construction of the Assessor’s Office the GIS/Mapping Department relocated to Union Station Square. During residency there, the GIS/Mapping Department collaborated with the Bernalillo County Zoning Department on various projects. Specifically, they coordinated with the addressing department to verify SITUS addresses were correct and also worked with their mapping department to ensure ownership was also correct.

The GIS Mapping Department continuously strives to improve and expand access to and capabilities of parcel mapping images and data. This endeavor is just one of the steps the office is taking to improve the span and level of customer service to property owners of the county.

Additional Accomplishments

Received 2,965 phone calls. Responded to 1,395 Property owner in-office inquiries. Created and completed 195 new parcel “Packages”. Responded to 1,760 emails. Responded to 2,485 internal inquiries. Coded 2,481 property deeds.

Lastly, during the re-construction of the Assessor’s Office the GIS/Mapping Department relocated to Union Station Square. During residency there, the GIS/Mapping Department collaborated with the Bernalillo County Zoning Department on various projects. Specifically, they coordinated with the addressing department to verify SITUS addresses were correct and also worked with their mapping department to ensure ownership was also correct.

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The GIS Mapping Department continuously strives to improve and expand access to and capabilities of parcel mapping images and data. This endeavor is just one of the steps the office is taking to improve the span and level of customer service to property owners of the county.

Additional Accomplishments: • Received 2,965 phone calls.• Responded to 1,395 Property owner in-office inquiries.• Created and completed 195 new parcel “Packages”.• Responded to 1,760 emails.• Responded to 2,485 internal inquiries.• Coded 2,481 property deeds. • Coded 261 property owner affidavits.• Processed 236 Treasury Certificates of split or combinations of parcels.• Responded to 68 letters of inquiry.• Developed and executed 5,265 database queries.• Reviewed, analyzed and resolved 1,627 uncodable building permits.• Prepared 686 special maps.• Prepared 421 boundary surveys.• Prepared 3 Administrative Authorizations.• Corrected 190 Legal descriptions.• Corrected 2,179 Situs address• Corrected 200 Mapping discrepancies

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Number of Phone Calls, 2,965, 25.54%

Number of Taxpayer Walk-Ins, 1,395, 12.02%

Number of Packages Completed, 195, 1.68%

Emails Received, 1,760, 15.16%

Inquiries - Internal, 2,485, 21.40%

Letters - M&B, Splits, 68, 0.59%

Coding - Deeds, 2,481, 21.37%

Coding - Affidavits, 261, 2.25%

2016 GIS/Mapping Department Customer Service

Number of Phone Calls

Number of Taxpayer Walk-Ins

Number of Packages Completed

Emails Received

Inquiries - Internal

Letters - M&B, Splits

Coding - Deeds

Coding - Affidavits

The charts above summarize the Customer Service activities the staff of the GIS/Mapping Department focused on in 2016. Each “Pie Slice” illustrates the activity as well as the percentage of their efforts dedicated to each activity.

23 30

Forms - T-Certs, Splits/Combinations, 236,

2.19%Queries, 5,235, 48.58%

Uncodeable Bldg. Permits, 1,627, 15.10%Special Maps, 686, 6.37%

Administrative Authorizations, 3, 0.03%

Legal Corrections , 190, 1.76%

Situs Corrections , 2179, 20.22%

Mapping Corrections, 200, 1.86%

2016 GIS/Mapping Department Productivity

Forms - T-Certs, Splits/Combinations

Queries

Uncodeable Bldg. Permits

Special Maps

Boundary Surveys

Administrative Authorizations

Legal Corrections

Situs Corrections

Mapping Corrections

The chart above summarizes the operational activities the staff of the GIS/Mapping Department focused on in 2016. Each “Pie Slice” illustrates the activity as well as the percentage of their efforts dedicated to each activity.

2017 Goals: By providing an enhanced GIS online mapping system by integrating internal GIS mapping capabilities with the CAMA system the Commercial and Residential Appraisal departments will have the ability to use the enhanced online mapping to view specific parcel characteristics. For example, indications if a parcel is in a flood zone or particular tax districts. They will also be able to view permits and sales information for a specific tax year to ensure the data in the CAMA system is current and correct.

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manufaCtured homes

Responsibilities:The Manufactured Home Department (hereafter MH) is responsible for assessing property values for all manufactured homes in Bernalillo County. The fundamental objectives of the MH Department are property valuation data entry, corrective property valuation changes, or deactivation/inactivation/reactivation of property records, as well as additions and new construction in the Assessor’s CAMA system.

The MH Department performs field checks on manufactured homes, as defined by NMSA §7-36-26, as well as manufactured homes converted into “Real Property.” In late 2015, the Manufactured Homes Department team assumed the responsibility of converting mobile homes to real property. Converting a Manufactured home into real property status can cause an increase to the property’s assessed valuation due to the change in property classification. It is paramount for timely and thorough analysis of a parcel by a MH Department appraiser to ensure updated records in the CAMA system are current and correct.

The proper classification of properties has been enhanced by the re-emphasis of the canvassing field checks process. The department has intensified its canvassing procedures by having an appraiser conduct field checks of all dwellings in the CAMA system listed as manufactured homes. An appraiser hired in 2014 began the field checks in late October of that year, and continued the canvassing through the end of the calendar year which resulted in completing 2,220 field checks. In 2016, the field appraiser completed 1,648 field checks, a decrease of 26%.


• NMSA §7-38-17: Claiming exemptions; requirements; penalties.• NMSA §7-38-76: Property subject to property taxation but omitted from property tax schedules in

prior years.• NMSA §66-7-413: Permits for excessive size and weight; special notification required on

movement of manufactured homes.• NMSA §3.6.5.33: Special method of valuation; manufactured homes.

2016 Accomplishments:During the year, the department issued 3,493 tax releases to parties such as property owners, mortgage companies, title companies, and manufactured home dealers. This is an increase of 684 from tax year 2015, or 24.35%. The department had an increase of 21.95% of deactivated/inactivated compared to 2015, from 369 in 2015 to 450 in 2016. New parcels created increased from 367 in 2015 to 432 in 2016, representing an increase of 17.71%.

Additional Accomplishments:• Resolved 28 property owner protests.• Received 17,294 phone calls.• Received 2,893 requests for information.• Forms utilized with Manufactured homes translated into Spanish• Updated tax release request form to obtain all relevant information concerning the manufactured

home

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• Organized and performed educational workshop events for the public• Supervisor interviewed by local radio/television concerning educational workshop• First successful assessment of a park model in Bernalillo County• Manufactured Homes Department Appraiser conducted an outreach through the canvass with the

different mobile home park managers and owners• Ongoing training• IT Department created new view on public access search displaying manufactured homes

attributes such as: VIN #, MAKE, LICENSE, YEAR, SIZE – for manufactured homes assessed as Personal Property and also those assessed as real property

• IT Department updated the ALT-ID field to display the real property parcel associated with the manufactured home

• Reorganization of Manufactured Homes Department structure, providing more efficient customer service and increase of productivity

Beginning the last week of February 2017, Mobile Home Appraisals will utilize Pictometry to continue the Mobile Home canvass with the goal of completing the canvass by the deadline date of March 1, 2018.

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Number of Tax

Releases Issued, 3,493,

Number of Field Inspections, 4,338,

15.00%

Number of Protests Resolved, 28, 0.10%

Number of Phone Calls Received, 17,294,

59.78%

Number of Requests for Information, 2,893,

10.00%

Number of Parcels Deactivated/Inactivated, 450, 1.56%

Number of New Parcels Created, 432,

1.49%

2016 Manufactured Homes Department Productivity

Number of Tax ReleasesIssued

Number of FieldInspections

Number of ProtestsResolved

Number of Phone CallsReceived

Number of Requests forInformation

Number of ParcelsDeactivated/Inactivated

Number of New ParcelsCreated

The chart above summarizes the operational activities the Manufactured Homes Department focused on in 2016. Each “Pie Slice” illustrates the activity as well as the percentage of their efforts dedicated to each activity. The total financial value of Manufactured Homes properties is $142,987,810.

The chart above summarizes the operational activities the Manufactured Homes Department focused on in 2016. Each “Pie Slice” illustrates the activity as well as the percentage of their efforts dedicated to each activity.

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2017 Goals:•Canvass 3,000 manufactured homes parcels and contribute to the initiative to have all 13,195 manufactured homes parcel canvassed by the calendar year-end 2018.

•Translate all English manufactured homes forms on the Assessor’s web site into Spanish to better serve the property owners of the county by recognizing the bi-lingual makeup of the county and offering forms and other documentation in a more diverse platform.

•Organize and provide property owner outreach events for owners of manufactured homes to increase the level and frequency of interactivity with the public at-large. The outreach program offers property owners informational presentations, as well as individual consultation opportunities for the property owner.

Quality Control

Responsibilities:Quality Control Department focuses on its epicenter of three main components quality control, quality assurance, and quality improvement. The QC department has its underlying premise concentrated on the practice of monitoring the various business processes of the Residential Appraisal Department. It supports the Assessor Office’s mission of maintaining the highest possible standards and quality in the execution of the office’s duties. Quality assurance facilitates management staff remaining aware of their department’s goal of meeting or exceeding statutory, legal or other mandatory standards set forth on the office. Quality improvement enables the office to improve operational effectiveness, efficiency and overall customer satisfaction to the property owners of the county. The QC Department is focused on internal business operations ensuring data gathered by appraisers is entered into the Assessor’s CAMA system quickly, consistently, completely, and accurately. Additionally, the QC Department is responsible for ensuring only meaningful and relevant information is recorded in the CAMA system.

2016 Accomplishments:A vital aspect of QC’s responsibilities is the review and analysis of the “Edits” report. This weekly report is scrutinized to determine, among other specifics, if characteristic changes (such as additions) to properties indicate contributory value and have the appropriate, updated supporting documentation in the CAMA system. Additionally, QC reviews the edit report to ensure any newly constructed properties are adequately assessed for value; any properties signaling converted types of use are properly reclassified and re-valued, if appropriate; and, duplicate exemptions on properties are identified and corrected. In 2016, approximately 5,000 edits (or errors) were reviewed and corrected.

Additionally, the department performs a process called “Splits and Combinations”, resulting in the creation of documentation called a “Package.” A “Split” is a procedure where a single parcel may be split into multiple parcels, whereas a “Combination” combines multiple parcels into a single parcel. This procedure is critical to the office’s fundamental business principle of up-to-date information in the CAMA system especially for valuation purposes. This documentation supports creation of new parcels within the county, or deleting parcels from the county’s assessment rolls. The important process is crucial to the accuracy of the Assessor’s database for the annual mailing of Notices of Value (NOV’s). If packages are not completed on time, then NOV’s may not be mailed to existing parcels or mailed to parcels that no longer exist. In 2016, 195 packages were completed, culminating in 985 parcels created and 530 parcels deleted.

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The QC department is committed to the continuing training of appraisal staff in various areas of business operations and information documentation for improved quality assurance and the reduction in the amount and frequency of documentation errors requiring additional review and correction.

Additional Accomplishments:• Data entry of 3,900 parcel information updates stemming from the residential parcel canvassing

revaluation plan.• Data entry of 15,455 parcel information updates from the residential appraisal process.• Scanning of back logged documents• Completed all Residential Canvass entry into CAMA system, allowing Field Data Collectors to

focus on desk review of parcels, no longer creating source documentation.

2017 Goals:• The QC department is committed to continuing training of appraisal staff in various areas of business operations and information documentation for improved quality assurance. By re-initiating training for residential appraisers there will be a reduction in the amount and frequency of documentation errors requiring additional review and correction

• Eliminate duplicate documents submitted to Quality Control, increasing efficiency and quality.by assisting Residential Department with CAMA system for tracking purposes.

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Completed all Residential Canvass entry into CAMA system, allowing Field Data Collectors to focus on desk review of parcels, no longer creating source documentation

2017 Goals

Goal – Re-initiate training for residential appraisers

Purpose of Goal – The QC department is committed to continuing training of appraisal staff in various areas of business operations and information documentation for improved quality assurance. This will reduce the amount and frequency of documentation errors requiring additional review and correction

Goal – Assist Residential Department with CAMA system for tracking purposes

Purpose of Goal – Eliminate duplicate documents submitted to Quality Control, increasing efficiency and quality

Edits Checked and Corrected, 5,000,

20.37%

Canvass Re-Valuation Data Entered, 3,900,

15.89%Residential Appraisal

Documentation Entered, 15,455, 62.95%

Package Jobs Completed, 195, 0.79%

2016 Quality Control Department Productivity

Edits Checked and Corrected

Canvass Re-Valuation Data Entered

Residential AppraisalDocumentation Entered

Package Jobs Completed

The chart above summarizes the operational activities the Quality Control Department focused on in 2016. Each “Pie Slice” illustrates the activity as well as the percentage of their efforts dedicated to each activity.

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residential aPPraisal

Responsibilities:Residential Appraisal Department is responsible for discovery, listing, and appraising new construction and additions for residential, multi-family and light commercial properties. Residential appraisers perform field checks on single and multi-family units, apartments, town houses and condominiums to verify required data for accurate valuation and recording of such properties in the CAMA system. Valuation is derived by measuring land and buildings, gathering building component data and sales data, and applying the standards specified by USPAP (the Uniform Standards of Professional Appraisal Practice). These standards include Standard A which establishes requirements for the development of an appraisal, Standard B which establishes requirements for the development of a review and Standard C which establishes requirements for the reporting of an appraisal or review. 8

Other State Statutes include:

• NMSA §7-36-15 Methods of valuation for property taxation purposes; general provisions.• NMSA §3.6.5.22 Methods of valuation for property taxation purposes; general provisions.• NMSA §7-36-16 Responsibility of County Assessors to determine and maintain current and correct values

of property.• NMSA §3.6.5.23 Current and correct values of property defined.

2016 Accomplishments:The Assessor’s Office is committed to ensuring that all residential property valuation data is current and correct. In order to properly value the real property of the county, it is requisite to inspect each parcel for changes in physical characteristics, added improvements, accelerated depreciation, or locational adjustments that might affect each property’s value. Per IAAO (International Association for Assessment Officers) standards and by accepted Ad Valorem appraisal practices referenced in the New Mexico State Statutes (7-36-15 NMSA 1973; Regulation 3.6.5.23 (C )), all properties within a jurisdiction should be inspected and reappraised on a consistent cycle of every four to six years.

During 2017 the department performed sales analysis on 19,674 ownership changes of which 9,431 were valid sales. For 2018, the goal is to perform 10,374 sales analysis on residential parcels. The increase of 943 parcel reviews is a result of more anticipated sales transactions occurring in 2017. The department reviewed 13,326 building permits, and plans on reviewing 17,057 in 2018 (an increase of 28.00%). The 16,124 figure includes new building permits, as well as permits being re-reviewed from the prior year due to the construction not being 100% complete the prior year. During the year 19,674 residential ownership changes were reviewed of which 9,431 are valid sales and the values were updated to current and correct. This analysis was accomplished by reviewing market values within the respective neighborhoods. The target of re-appraisal of sales on residential parcels in 2017 is 9,431.

8 http://www.appraisalinstitute.org/assets/1/29/SVP_effective_1-1-20151.pdf

Additional Accomplishments:• Reorganized Sales team and created a new construction Team to be more efficient in both these key areas.• Conducted 3,705 property valuation protests inquiries.

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Sales Analysis & Re-Appraisal on Residential Parcels, 19,674, 53.60%

Building Permits Reviewed, 13,326,

36.31%

Property Valuation Protest Inquiries, 3,705,

10.09%

2016 Residential Appraisal Department Productivity

Sales Analysis & Re-Appraisal onResidential Parcels

Building Permits Reviewed

Property Valuation Protest Inquiries

The chart above summarizes the operational activities the staff of the Residential Appraisal Department focused on in 2016. Each “Pie Slice” illustrates the activity as well as the percentage of their efforts dedicated to each activity.

2017 Goals:•Reorganize the sales team to verify all required data and descriptive data is correct on properties with ownership changes and implement Market Module. The Market Module will help identify the most similar properties and compare them to the subject. The Market Module will perform adjustments to the comparable properties as needed to match the subject’s criteria.

•Develop a new building permit process by creating a flag PE (pending entry) to identify reviewed or “worked” parcels that are pending entry. This will decrease duplicate field checks and paperwork.

•Create A New Construction team to assist in assessing new construction throughout the year and target areas with the most amount of new construction. The addition of the new team will lessen the load of permits up for review. The team will continue assessing homes the entire year while the other teams are working permits.

• During the past year, Quality Control documented all errors and error types in a detailed manner to help identify specific training needs for an individual person. Each training need will address and provide the necessary knowledge to reduce or eliminate a specific error identified through previously submitted documentation. Reducing the error rate on documents submitted to Quality Control will reduce time on corrections to fix documents previously submitted to Quality Control for entry. This will allow staff to dedicate to new tasks as well as meeting deadlines for projects.

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REAPPRAISAL PROGRAM: COUNTYWIDE CANVASS

While the Assessor’s Office, on an annual basis, conducts thousands of field checks on properties as a result of building permits, property transfers, and valuation protests; per International Association of Assessment Officers (IAAO) standards and by generally accepted Ad Valorem appraisal practices reference in the New Mexico State Statues (7-36-15 NMSA 1973; Regulation 3.6.5.23 (C)), all properties within a jursidiction should be inspected and reappraised on a consistent cycle of every four to six years. As such, each appraisal department within the Assessor’s Office has undertaken the initiative to fulfill the requirements of the statue. The specifics and status of each departments canvass are outlined within each respective Departments section. For an overall status of the program, see graph below:

RESIDENTIALCount Start Date End Date Total Canvassed 59,376205,500 2/3/2014 3/1/2020 Pending 71.11% Complete 28.89% NON-RESIDENTIAL Count Start Date End Date Total Canvassed 12,403 18,639 4/1/2013 3/1/2018 Pending 33% Complete 67% MANUFACTURED HOMES Count Start Date End Date Total Canvassed 4,338 13,891 10/15/2014 3/1/2020 Pending 69% Complete 31%

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Reappraisal Program

Current Status While the Assessor’s Office conducts thousands of field checks on properties as a result of building permits, property transfers, and valuation protests; a county wide canvass is necessary to meet international appraisal standards for property assessment per the International Association for Assessment Officers (IAAO). The long-term revaluation program current status is as follows: RESIDENTIAL Count Start Date End Date Total Canvassed 59,376 205,500 2/3/2014 3/1/2020 Pending 71.11% Complete 28.89% NON-RESIDENTIAL Count Start Date End Date Total Canvassed 12,403 18,639 4/1/2013 3/1/2018 Pending 33% Complete 67% MANUFACTURED HOMES Count Start Date End Date Total Canvassed 4,338 13,891 10/15/2014 3/1/2020 Pending 69%

Complete 31%

205,500

18,639 13,891

59,376

12,403 4,33829% 67% 31%

RESIDENTIAL REAL PROPERTY NON-RESIDENTIAL REAL PROPERTY MANUFACTURED HOMES

Current Status of Review

# of Parcels to be Reviewed # of Parcels Reviewed Progress Status by %

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Program Status: The residential canvassing department strengthened its valuation and verification initiative by implementing additional strategies to accomplish the canvassing mission. The use of new software product has significantly enhanced the effectiveness of the “desk top” review process has had a great impact. The software, Assessment Analyst, is a customizable solution allowing for review and modification of CAMA data, building sketches, imagery, street front photos and analytics. The effects of this software include optimized property tax revenues by revealing hidden omissions or inaccuracies in assessment data. It ensures uniformity and equity in the CAMA data; ensures, compliance with reassessment and re-inventory standards set by the International Association of Assessing Officers (IAAO), and reduces costs through increased productivity, less adhoc data maintenance and fewer onsite inspections.

The Assessor’s Office will continue to dedicate time and efforts committed to these initiatives, as one of the core values of the office is the information recorded in the CAMA system is current and correct to ensure all property owners are assessed fairly.

residential Countywide Canvass dePartment

Responsibilities:In March of 2016, the Canvass Department deployed the use of newly implemented desktop review solution software. With the use of this software, the canvass staff will be able to quickly review data on residential parcels by using aerial imagery and advanced sketching software. This will allow the staff to review more parcels on a daily basis as opposed to physically visiting them on foot, making the canvass effort more cost effective and enhance the accomplishment of the office’s anticipated canvassing completion date. This method of verification, while assisting with the completion of the canvass project on time, will also ensure parcel reviews for the canvass project meet the IAAO Standard on Mass Appraisal of Real Property – 2013, Section 3.3.5. The goal is to complete the review of 35,000 parcels within the second year of using the desktop review solution software.

2016 Accomplishments: •In 2016, 21,255 parcel reviews were completed (see chart below).• As of January 30, 2017, canvass crews inspected 60,008 properties, which represents 29.20% of the county.

In addition to verifying the accuracy of 18,213 properties utilizing desktop solution software, the department entered changes to the same properties not included in the data transfer process.

32

40

New Construction, 7, 0.03%

Additions, 9,426, 44.35%

No Change to Vacant Land, 1793, 8.44%

Unable to Verify (Escalation), 606, 2.85%

No Change to Dwelling, 4,669, 21.97%

Change to Dwelling -Increase in Square

Footage, 3153, 14.83%

Change to Dwelling -

Decrease in Square

Footage, 1592, 7.49%

ER Measured, 9, 0.04%

2016 Reappraisal Initiative ProductivityNew Construction

Additions

No Change to Vacant Land

Unable to Verify(Escalation)

No Change to Dwelling

Change to Dwelling -Increase in Square Footage

Change to Dwelling -Decrease in SquareFootageER Measured

The chart above summarizes the operational activities the staff of the Canvass Department focused on in 2016. Each “Pie Slice” illustrates the activity as well as the percentage of their efforts dedicated to each activity.

40

New Construction, 7, 0.03%

Additions, 9,426, 44.35%

No Change to Vacant Land, 1793, 8.44%

Unable to Verify (Escalation), 606, 2.85%

No Change to Dwelling, 4,669, 21.97%

Change to Dwelling -Increase in Square

Footage, 3153, 14.83%

Change to Dwelling -

Decrease in Square

Footage, 1592, 7.49%

ER Measured, 9, 0.04%

2016 Reappraisal Initiative ProductivityNew Construction

Additions

No Change to Vacant Land

Unable to Verify(Escalation)

No Change to Dwelling

Change to Dwelling -Increase in Square Footage

Change to Dwelling -Decrease in SquareFootageER Measured

The chart above summarizes the operational activities the staff of the Canvass Department focused on in 2016. Each “Pie Slice” illustrates the activity as well as the percentage of their efforts dedicated to each activity.

2017 Goals:• Effectively implement and utilize the integration of the CAMA system, the aerial photography software application and the newly procured desk-top review and analysis software to more efficiently and effectively perform canvassing procedures.

•In May of 2017, the Canvass department will implement the use of mobile application of the Advanced Sketching Software deployed in March of 2016. With the use of the mobile application, the canvass staff will be able to complete their parcel reviews more efficiently. Crews also will utilize this software for appointment field checks set with property owners; parcel reviews where aerial imagery cannot be utilized; replace hard copy maps to locate parcels to be field checked; and, take street front photos of homes visited by canvass staff. Any updates made while out in the field utilizing the mobile application are uploaded into the CAMA system, assisting with the data entry process of the parcel review.

33

BUDGET AND ORGANIZATIONAL STRUCTURE

ProPosed Budget for fisCal years 2017 and 2018

The Bernalillo County Assessor’s Office consists of two funding sources - the general fund and the reappraisal fund. The general fund revenue comes from general county contribution and fees the Assessor’s Office charges for items such as sale of maps, data CD’s and requested parcel data. The general fund appropriations are used to cover all expenditures, except those for which special statutory requirements demand separate accounting. For FY18, the general fund expenditures are a proposed budget of $3.1 Million. The revaluation fund revenue comes from the 1% Appraisal Fee from property tax collections as per State Statute section 7-38-38.1 NMSA 1978. The reappraisal fund appropriations are used to cover all items presented in this property valuation plan. As per State Statute section 7-38 NMSA 1978, the expenses must be related to maintaining and re-valuing current property records of all residential and non-residential properties. For FY18, the reappraisal fund expenditures are a proposed budget of $6.9 Million.

42

Budget and Organizational Structure

Proposed Budget for Fiscal Years 2017 and 2018 The Bernalillo County Assessor’s Office consists of two funding sources - the general fund and the reappraisal fund. The general fund revenue comes from general county contribution and fees the Assessor’s Office charges for items such as sale of maps, data CD’s and requested parcel data. The general fund appropriations are used to cover all expenditures, except those for which special statutory requirements demand separate accounting. For FY18, the general fund expenditures are a proposed budget of $3.1 Million. The revaluation fund revenue comes from the 1% Appraisal Fee from property tax collections as per State Statute section 7-38-38.1 NMSA 1978. The reappraisal fund appropriations are used to cover all items presented in this property valuation plan. As per State Statute section 7-38 NMSA 1978, the expenses must be related to maintaining and re-valuing current property records of all residential and non-residential properties. For FY18, the reappraisal fund expenditures are a proposed budget of $6.9 Million.

Bernalillo County Assessor's OfficeFY16 Actual, FY17 Approved, and FY18 Proposed Budget

Revenues: FY 16 Actuals FY17 Approved FY18 Proposed11001 General Fund: Assessor Fee 4,831.00 3,500.00 3,500.00 General Fund Contribution 2,864,379.00 2,872,228.00 2,872,228.00 Total General Fund, Fund 11001 2,869,210.00 2,875,728.00 2,875,728.00 12004 Reappraisal Fund: 1% Appraisal Fee 6,000,387.00 5,600,000.00 5,600,000.00 Fund Balance Appropriation 1,505,614.00 1,340,369.00 Total Reappraisal Fund, Fund 12004 6,000,387.00 7,105,614.00 6,940,369.00 Total Revenues, 11001 & 12004 8,869,597.00 9,981,342.00 9,816,097.00

Expenditures: FY 16 Actuals FY17 Approved FY18 Proposed 11001 General Fund: Salary and Benefits 2,824,228.00 2,784,807.00 3,083,448.00 Other Operating Expense 43,537.00 87,421.00 90,301.00 Elected Official Travel 1,444.00 3,500.00 3,500.00 Total Expenditures, Fund 11001 2,869,209.00 2,875,728.00 3,177,249.00 12004 Reappraisal Fund: Salary and Benefits 2,757,489.00 4,330,402.00 3,563,780.00 Terms - Field Canvass Project 516,819.00 939,839.00 1,542,157.00 Vehicle Fuel 11,443.00 20,000.00 20,000.00 Vehicle Maintenance 4,851.00 5,000.00 5,000.00 Professional Services 233,552.00 154,764.00 150,000.00 Contractual Services 1,039,380.00 1,340,413.00 600,000.00 Other Operating Expense 125,888.00 446,852.00 585,286.00 Training/Travel 77,403.00 102,342.00 100,000.00 Multi-Line Premium Insurance 19,304.00 26,000.00 26,000.00 Bond Payment 298,375.00 349,087.00 348,146.00 Total Expenditures, Fund 12004 5,084,504.00 7,714,699.00 6,940,369.00 Total Expenditures, 11001 & 12004 7,953,713.00 10,590,427.00 10,117,618.00

34

43

Organizational Chart

Employee Count

Department Fil led Vacant Total Fil led Vacant TotalAdministrative 14 0 14 3 3 6Appraisal: Commercial Property 8 1 9 0 0 0Appraisal: Residential Property 26 7 33 6 3 9Business Personal Property 5 0 5 0 0 0Data Entry/Coding/Customer Service 13 0 13 0 0 0Field Canvass Project 2 0 2 14 11 25GIS/Mapping 4 1 5 0 0 0Manufactured Homes 6 0 6 0 0 0Special Method of Valuation 7 1 8 0 0 0Quality Control 4 1 5 0 0 0Total Assessor's Office 89 11 100 23 17 40

Total General Fund 45 5 50 0 0 0Total Valuation Fund 41 9 50 23 17 40

Bernalillo County Assessor's Office

Full TimePositions

Term/TempPositions

2016Employee Count by Department

organizational Chart

35

ANNUAL DATA AND STATISTICAL ANALYSIS

Three of the fundamental operational processes that the Assessor’s Office performs are: 1) the review of property owner’s protests regarding the assessment of their property; 2) field inspection of properties arising from the issuance of building permits, and; 3) analysis and stratification of property sales to establish market values.

The Assessor makes a concerted effort to issue Notices of Value (NOV’s) reflecting fair and equitable property valuation information. As a result, there is a decrease in the number of property owner protests. An additional consequence of the anticipated recovery in the housing construction market will, in all likelihood, be an increase in sales analysis, which offers more accurate assessment of information regarding the current status of the housing market.

statistiCs on Changes of assessed valuation

Value Change by Class for real ProPerty only

Total Residential Real Property Tax Class Parcels Count Percentage Parcels that decreased in value 14,250 6.92% Parcels with unchanged value 19,190 9.32% Parcels that increased in value 172,355 83.75% Total 205,795 100.00% Total Non-Residential Real Property Tax Class Parcels Count Percentage Parcels that decreased in value 5,308 12.06% Parcels with unchanged value 34,462 78.29% Parcels that increased in value 4,251 9.66% Total 44,021 100.00% Total Real Property Parcel Count 249,816 *Difference in parcel count due to 955 property splits and combines. (955 + 249,816 = 250,771)

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Total Taxable Parcel Count by tax Class

Residential Count Real Property (Residential) 205,948 Manufactured Home (Residential) 13,330 Total 219,278 Non-Residential Count Real Property (Vacant and Commercial) 44,823 Manufactured Home (Commercial) 275 Livestock 731 Business Personal Property 9,419 Total 55,248 Total Residential and Non-Residential Parcel Count 274,526

36

45

Property Value Changes from Previous Years:

Residential Properties

Neighborhood Total Parcel Count Increase in Value % Increase No Change in Value % No Change Decrease in Value % Decrease

Condominiums 4,055 2,369 58.42% 1,034 25.50% 652 16.08%

Mountains 15,955 6,018 37.72% 8,467 53.07% 1,470 9.21%

Southeast 27,804 22,514 80.97% 3,788 13.62% 1,502 5.40%

Southwest 50,800 32,169 63.32% 13,676 26.92% 4,955 9.75%

Northeast 67,579 59,798 88.49% 5,783 8.56% 1,998 2.96%

Northwest 62,811 51,585 82.13% 8,523 13.57% 2,703 4.30%

Unincorporated 1,871 6 0.32% 1,850 98.88% 15 0.80%

Totals 230,875 174,459 75.56% 43,121 18.68% 13,295 5.76%

Property Value Changes from Previous Years: Residential Properties by Neighborhood

2,369

6,018

22,514

32,169

59,79851,585

61,034

8,467

3,788

13,6765,783 8,523

1,8506521,470 1,502 4,955 1,998 2,703 15

Property Value Changes from Previous Year: Residential Properties by Neighborhood

Number of Properties with Increase in Value from Previous Year

Number of Properties with no Change in Value from Previous Year

Number of Properties with Decrease in Value from Previous Year

ProPerty value Changes from Previous year

- Residential Properties -

37

- Non-Residential Properties - by Neighborhood & Apartment

Neighborhood Total Parcel Count Increase in Value % Increase No Change in Value % No Change Decrease in Value % Decrease

Mountains 315 28 8.89% 221 70.16% 66 20.95%

Southeast 5,095 651 12.78% 3,580 70.26% 864 16.96%

Southwest 4,830 534 11.06% 3,292 68.16% 1,004 20.79%

Northeast 4,142 793 19.15% 2,231 53.86% 1,118 26.99%

Northwest 4,499 514 11.42% 2,586 57.48% 1,399 31.10%

Tribal & Government 520 - 0.00% 520 100.00% - 0.00%

Totals 19,401 2,520 12.99% 12,430 64.07% 4,451 22.94%

Property Value Changes from Previous Years: Commercial & Apartments by Neighborhood

MOUNTAINS SOUTHEAST SOUTHWEST NORTHEAST NORTHWEST TRIBAL & GOVERNMENT

28

651534

793514

0221

3,580

3,292

2,2312,586

52066

864 1,004 1,1181,399

0

Property Value Changes from Previous Year: Commercial & Apartments by Neighborhood

Number of Properties with Increase in Value from Previous Year

Number of Properties with no Change in Value from Previous Year

Number of Properties with Decrease in Value from Previous Year

38

Protests

new Building Permits

47

Protests

New Building Permits

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2012 2013 2014 2015 2016

7,520

5,832 5,066 5,035

5,623

1,000

3,000

5,000

7,000

9,000

11,000

13,000

2012 2013 2014 2015 2016

12,44

10,264 8,566 8,590

11,349

The chart above illustrates the number of protests scheduled over the last five years. The extent of decrease in the number of protest has plateaued. It is anticipated the magnitude will begin to increase again as a result of the canvassing initiative identifying improvements to properties, thus adding contributory values to properties. Additionally, as anticipated increases in ownership changes are culminated, the removal of the 3% cap will apply to a greater amount of properties, thus more ownership inquiries will be generated.

The chart above illustrates the number of building permits issued over the last five years. The extent of decrease in the number of building permits has plateaued, and it is anticipated the number of permits will begin to increase again as a result of the economy recovery beginning to have an impact on the housing market. Impacts can be seen in the form of new construction of houses as the increase in sales by properties owners becomes more intense.

47

Protests

New Building Permits

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2012 2013 2014 2015 2016

7,520

5,832 5,066 5,035

5,623

1,000

3,000

5,000

7,000

9,000

11,000

13,000

2012 2013 2014 2015 2016

12,44

10,264 8,566 8,590

11,349

The chart above illustrates the number of protests scheduled over the last five years. The extent of decrease in the number of protest has plateaued. It is anticipated the magnitude will begin to increase again as a result of the canvassing initiative identifying improvements to properties, thus adding contributory values to properties. Additionally, as anticipated increases in ownership changes are culminated, the removal of the 3% cap will apply to a greater amount of properties, thus more ownership inquiries will be generated.

The chart above illustrates the number of building permits issued over the last five years. The extent of decrease in the number of building permits has plateaued, and it is anticipated the number of permits will begin to increase again as a result of the economy recovery beginning to have an impact on the housing market. Impacts can be seen in the form of new construction of houses as the increase in sales by properties owners becomes more intense.

The chart above illustrates the number of building permits issued over the last five years. The extent of decrease in the number of building permits has plateaued, and it is anticipated the number of permits have begun to increase again as a result of the economy recovery beginning to have an impact on the housing market.

39

ownershiP transfers

48

Ownership Transfers

19,000

19,500

20,000

20,500

21,000

21,500

22,000

22,500

23,000

2012 2013 2014 2015 2016

22,859

22,517

21,042

20,563 20,573

The chart above illustrates the number of actual ownership changes issued over the last five years. The extent of decrease in the number of ownership changes has plateaued, and it is anticipated that the number of ownership changes will begin to increase again as a result of the economy recovery beginning to have an impact on the housing market. Impacts can be seen in the form of new construction of houses as the increase in sales by properties owners becomes more intense.

The chart above illustrates the number of actual ownership changes issued over the last five years. The extent of decrease in the number of ownership changes has plateaued, and it is anticipated that the number of ownership changes will begin to increase again as a result of the economy recovery beginning to have an impact on the housing market.

40

sales analysis

sales ratio study

49

Sales Analysis

Sales Ratio Study

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

2012 2013 2014 2015 2016

7,640 6,772 7,675

8,155 9,431

0

500

1000

1500

2000

2500

3000

RATIOS, UP TO AND INCLUDING

285 30229 22 89 281

789

2,136

2,738

1,441

646323182 88 42 1 1 0 1 1 0 0 0 0 0 0

Ratio Distribution - Pre-Assessment Values for 2016

10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 110% 120% 130%

140% 150% 160% 170% 180% 190% 200% 210% 220% 230% 240% 250% 260%

The chart above depicts the number of residential property sales by year. The sales analysis metric applied to these sales is a means of establishing if the estimated market value of a property equals the sale price of a comparable property after adjustments for differences are made (i.e., property type, stories, year built, etc.) Rather than considering properties one at a time, assessors use mass appraisal techniques and computer software to appraise many properties of the same general type. An area sales analysis offers an accurate assessment of information regarding the current status of the housing market.

49

Sales Analysis

Sales Ratio Study

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

2012 2013 2014 2015 2016

7,640 6,772 7,675

8,155 9,431

0

500

1000

1500

2000

2500

3000

RATIOS, UP TO AND INCLUDING

285 30229 22 89 281

789

2,136

2,738

1,441

646323182 88 42 1 1 0 1 1 0 0 0 0 0 0

Ratio Distribution - Pre-Assessment Values for 2016

10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 110% 120% 130%

140% 150% 160% 170% 180% 190% 200% 210% 220% 230% 240% 250% 260%

The chart above depicts the number of residential property sales by year. The sales analysis metric applied to these sales is a means of establishing if the estimated market value of a property equals the sale price of a comparable property after adjustments for differences are made (i.e., property type, stories, year built, etc.) Rather than considering properties one at a time, assessors use mass appraisal techniques and computer software to appraise many properties of the same general type. An area sales analysis offers an accurate assessment of information regarding the current status of the housing market.

41

In a sales ratio study, appraised values are compared to true market value indicators (sale prices). The Price Related Differential (PRD) is used to measure value related inequities in the appraisal system, referred to as regressivity or progressivity. The PRD is calculated by dividing the mean ratio by the weighted mean ratio. The statistic should be close to 1.00%. Measures considerably above 1.00 tend to indicate appraised values are regressive, indicating- high value properties are under-appraised relative to the low value properties. Measures below 1.00 suggest appraised values are progressive, indicating high value properties are over-appraised relative to the low value properties. A PRD between 98% and 103% shows that the low- and high-value sale prices are equally appraised. The overall PRD for Bernalillo County is 101.045%, indicating the appraised values for Bernalillo County are unbiased.

The COEFFICIENT OF DISPERSION (COD) is the most common measure of uniformity in sales ratio studies. The COD measures the dispersion of ratios around the Median Ratio. It indicates how tightly the ratios are clustered around the median ratio. IAAO Standards suggest that this figure be below 15%. Bernalillo County’s COD is currently at 12.482% which indicates a relatively high level of equity across taxpayers’ assessments.

50

In a sales ratio study, appraised values are compared to true market value indicators (sale prices). The Price Related Differential (PRD) is used to measure value related inequities in the appraisal system, referred to as regressivity or progressivity. The PRD is calculated by dividing the mean ratio by the weighted mean ratio. The statistic should be close to 1.00%. Measures considerably above 1.00 tend to indicate appraised values are regressive, indicating- high value properties are under-appraised relative to the low value properties. Measures below 1.00 suggest appraised values are progressive, indicating high value properties are over-appraised relative to the low value properties. A PRD between 98% and 103% shows that the low- and high-value sale prices are equally appraised. The overall PRD for Bernalillo County is 101.045%, indicating the appraised values for Bernalillo County are unbiased.

The COEFFICIENT OF DISPERSION (COD) is the most common measure of uniformity in sales ratio studies. The COD measures the dispersion of ratios around the Median Ratio. It indicates how tightly the ratios are clustered around the median ratio. IAAO Standards suggest that this figure be below 15%. Bernalillo County’s COD is currently at 12.482% which indicates a relatively high level of equity across taxpayers’ assessments.

0.80

0.85

0.90

0.95

1.00

1.05

1.10

1.15

%

of

Market

Value

Price Related Differential for 2016

No Bias

Progessive

Regressive

PRD BernalilloCounty

High Property ValueLow Property Value

42

2017 notiCe of value

51

2017 Notice of Value

Tax Year 2016 2017 % Difference $ Difference

Net Taxable Residential Properties $11,778,060,520 $12,285,771,523 4.1325% $507,711,003

Net Taxable Non-Residential Properties $2,917,274,324 $2,926,149,790 0.3033% $8,875,466

Net Taxable Value of County $14,695,334,844 $15,211,921,313 3.3959% $516,586,469

Based on 2016 and 2017 Notices of Values

Real Property 250,771 Business Personal Property 18,408

Manufactured Homes 13,619 Livestock Accounts 820

Total Notices of Value Mailed 283,618

Notices of Value Mailed in 2017

Real Property, 250,771, 88.42%

Business Personal Property, 18,408, 6.49%

Manufactured Homes, 13,619, 4.80%

Livestock Accounts, 820, 0.29%

Notices of Value Mailed in 2017

Real Property

Business Personal Property

Manufactured Homes

Livestock Accounts

43

2017 notiCe of value - net taxaBle value

52

2017 Notice of Value - Net Taxable Value

All Real Property Residential Non-ResidentialApplied Land 18,386,428,213$ 9,621,782,503$ 8,764,645,710$ Appraised Improvements 38,002,920,447$ 29,025,584,799$ 8,977,335,648$ Total Appraised 56,389,348,660$ 38,647,367,302$ 17,741,981,358$ Assessed Land 6,128,195,504$ 3,206,393,375$ 2,921,256,129$ Assessed Improvements 12,666,372,812$ 9,674,226,758$ 2,992,146,054$ Total Assessed 18,794,568,316$ 12,881,166,133$ 5,913,402,183$ Total Exemptions 3,582,647,004$ 595,394,610$ 2,987,252,394$ Net Taxable 15,211,921,313$ 12,285,771,523$ 2,926,149,790$ Net New Value 136,685,682$ 114,949,687$ 21,735,995$

Estimated Values

$11,778,060,520

$2,917,274,324

$14,695,334,844

$12,285,771,523

$2,926,149,790

$15,211,921,313

$-

$2,000,000,000

$4,000,000,000

$6,000,000,000

$8,000,000,000

$10,000,000,000

$12,000,000,000

$14,000,000,000

$16,000,000,000

NET TAXABLE RESIDENTIAL PROPERTIES

NET TAXABLE NON-RESIDENTIAL PROPERTIES

NET TAXABLE VALUE OF COUNTY

Net Taxable Value

2016 2017

The chart and related table depicted above reflects only “real property” values and does not include Manufactured Homes, Business Personal Property, or Livestock values as the Notices of Value (NOV) data has not been finalized as of the date of this report.

All Real Property Residential Non-ResidentialApplied Land 18,386,428,213$ 9,621,782,503$ 8,764,645,710$ Appraised Improvements 38,002,920,447$ 29,025,584,799$ 8,977,335,648$ Total Appraised 56,389,348,660$ 38,647,367,302$ 17,741,981,358$ Assessed Land 6,128,195,504$ 3,206,393,375$ 2,921,256,129$ Assessed Improvements 12,666,372,812$ 9,674,226,758$ 2,992,146,054$ Total Assessed 18,794,568,316$ 12,881,166,133$ 5,913,402,183$ Total Exemptions 3,582,647,004$ 595,394,610$ 2,987,252,394$ Net Taxable 15,211,921,313$ 12,285,771,523$ 2,926,149,790$ Net New Value 136,685,682$ 114,949,687$ 21,735,995$

2017 Estimated Values

$11,778,060,520

$2,917,274,324

$14,695,334,844

$12,285,771,523

$2,926,149,790

$15,211,921,313

$-

$2,000,000,000

$4,000,000,000

$6,000,000,000

$8,000,000,000

$10,000,000,000

$12,000,000,000

$14,000,000,000

$16,000,000,000

NET TAXABLE RESIDENTIAL PROPERTIES

NET TAXABLE NON-RESIDENTIAL PROPERTIES

NET TAXABLE VALUE OF COUNTY

Net Taxable Value

2016 2017

Exemptions Granted to Individuals 2016 2017Agricultural Exemptions 3,524 3,588 Head of Household Exemptions 98,784 98,620 Veteran's Exemptions 26,865 26,176 Veteran's 100% Exemptions 3,481 3,555 Total Exemptions Granted 132,654 131,939

0 20,000 40,000 60,000 80,000 100,000

Agricultural Exemptions

Head of Household Exemptions

Veteran's Exemptions

Veteran's 100% Exemptions

Agricultural Exemptions Head of HouseholdExemptions Veteran's Exemptions Veteran's 100%

Exemptions2017 3,588 98,620 26,176 3,5552016 3,524 98,784 26,865 3,481

Exemptions Granted to Individuals

44

TAX SAVINGS PROGRAMS BY TYPE

Under New Mexico property tax law NMSA 1978, Chapter 7, there are two categories of property taxation exemptions; individuals and organizations. The tables and charts depicted on this page and the following page reflect the types and amounts of approved tax saving programs for both individuals and organizations. Also detailed in this segment is an accounting of the real property that is exempted from property taxes and part of an Industrial Revenue Bond issuance by the Economic Development Departments of the various Municipalities in Bernalillo County. These properties are exempted per Statue 7-36-3; Industrial Revenue Bond, Pollution Control Bond and economic bond development project property.

0 20,000 40,000 60,000 80,000 100,000

Agricultural Exemptions

Head of Household Exemptions

Veteran's Exemptions

Veteran's 100% Exemptions

Agricultural Exemptions Head of HouseholdExemptions Veteran's Exemptions Veteran's 100%

Exemptions2017 3,588 98,620 26,176 3,5552016 3,524 98,784 26,865 3,481

Exemptions Granted to Individuals

0 200 400 600 800 1,000 1,200

Veterans' Organizations

Constitutional Exemptions (Charitable,Educational, and Religious)

Affordable Housing Exemptions

Industrial Revenue Bonds

Veterans' OrganizationsConstitutional

Exemptions (Charitable,Educational, and

Religious)

Affordable HousingExemptions

Industrial RevenueBonds

2017 8 990 133 972016 8 1,005 100 52

Exemptions Granted to Organizations

Exemptions Granted to Organizations 2016 2017Veterans' Organizations 8 8 Constitutional Exemptions (Char i table, Educational , and Rel igious) 1,005 990 Affordable Housing Exemptions 100 133 Industrial Revenue Bonds 52 97 Total Exemptions Granted 1,165 1,228

45

exemPtions granted to organizations

0 200 400 600 800 1,000 1,200

Veterans' Organizations

Constitutional Exemptions (Charitable,Educational, and Religious)

Affordable Housing Exemptions


Veterans' OrganizationsConstitutional

Exemptions (Charitable,Educational, and

Religious)

Affordable HousingExemptions

Industrial RevenueBonds

2017 8 990 133 972016 8 1,005 100 52

Exemptions Granted to Organizations

Exemptions Granted to Organizations 2016 2017Veterans' Organizations 8 8 Constitutional Exemptions (Char i table, Educational , and Rel igious) 1,005 990 Affordable Housing Exemptions 100 133 Industrial Revenue Bonds 52 97 Total Exemptions Granted 1,165 1,228

Agricultural, $53,355,011, 11.29%

Head of Household, $195,174,338, 13.83%

Veteran's, $105,301,185

, 7.44%Veteran's 100%$202,118,814, 14.40%

Veteran's Organizations, $1,462,188, 0.10%

Value Freeze, $49,964,538, 3.52%

Charitable, $230,810,365,

16.28%

Affordable Housing, $49,074,615, 3.46%

Industrial Revenue Bonds, $153,023,706, 29.68%

Value of Tax Savings Programs by Type

Agricultural

Head of Household

Veteran's

Veteran's 100%

Veteran's Organizations

Value Freeze

Charitable

Affordable Housing


The chart and related table depicted above reflects all property type taxable values.

46

value of tax savings Programs By tyPe

47

TAX ROLL VALUE DELIVERED TO TREASURER

56

Tax Roll Value Delivered to Treasurer

Tax Year 2016 2015 % Difference $ Amount DifferenceNet Taxable Residential $11,775,274,216 $11,315,870,482 3.901% $459,403,734Net Taxable Non-Residential 3,315,763,067 3,318,091,909 -0.070% (2,328,842)Net Taxable Value of County $15,091,037,283 $14,633,962,391 3.029% $457,074,892




Tax Year 2012 2011 % Difference $ Amount DifferenceNet Taxable Residential $10,513,182,171 $10,409,867,174 0.983% $103,314,997Net Taxable Non-Residential 3,382,616,597 3,546,489,592 -4.845% (163,872,995)Net Taxable Value of County $13,895,798,768 $13,956,356,766 -0.436% ($60,557,998)

Historical Analysis of Assessed ValuationBased on Actual Tax Roll Delivered to County Treasurer

(Delivered October Each Year)

48

net taxaBle value of tax roll

57

Net Taxable Value of Tax Roll

13,200,000,000

13,400,000,000

13,600,000,000

13,800,000,000

14,000,000,000

14,200,000,000

14,400,000,000

14,600,000,000

14,800,000,000

15,000,000,000

15,200,000,000

2012 2013 2014 2015 2016

$13,895,798,768

$14,041,643,382

$14,350,664,547

$14,633,962,391

$15,091,037,283

Net Taxable Value of Tax Roll

Net Taxable Value of County

49

ContaCt and agenCy information

Bernalillo County assessor offiCe501 Tijeras Avenue, NWAlbuquerque, New Mexico 87102Tel (505) 222-3700Fax (505) [email protected]