Glossary

Glossary

Glossary Ad Valorem A tax levied in proportion to the value of the thing(s) being taxed. Exclusive of exemptions, use-value assessment provisions, and the like, the property tax is an ad valorem tax. Agricultural Property Improved or unimproved land that is devoted to or available for the production of crops and/or other agricultural products, livestock and agricultural support buildings. Arms Length Sale A sale in the open market between two unrelated parties, each of whom is reasonably knowledgeable of market conditions and under no undue pressure to buy or sell. Commercial Property Generally any nonindustrial, nonresidential realty of commercial enterprise. Includes realty used as a retail or wholesale establishment with living quarters office building, hotel or motel, gasoline service station, commercial garage, parking lot, warehouse, theater, bank, clinic, nursing home, proprietary school, and the like. Cost Approach One of the three approaches to value, the cost approach is based on the principle of substitution - that a rational, informed purchaser would pay no more for a property than the cost of building an acceptable substitue with like utility. The cost approach seeks to determine the replacement cost new of an improvement less depreciation plus land value. (2) The method of estimating the value of property by: (a) estimating the cost of construction based on replacement or reproduction cost new or trended historic cost (often adjusted by a local multiplier); (b) subtracting depreciation; and, (c) adding the estimated land value. The land value is most frequently determined by the sales comparison approach. County Appraiser An Appraiser employeed by the county that assesses property on a mass scale for valuation for tax assessment purposes. Distressed Sale A sale made to meet the immediate and pressing needs of the seller at whatever price the property will bring. Head of Family Exemption A $2,000 exemption off of the taxable value or a property that is available to anyone that owns residential property in the state of New Mexico. Improvement A structure on a piece of property (i.e. Residential Structure) Income Approach One of the three approaches to value, based on the concept that current value is the present worth of future benefits to be derived through income production by an asset over the remainder of its economic life. The income approach uses capitalization to convert the anticipated benefits of the ownership of property into an estimate of present value. Market Value The major focus of most real property appraisal assignments. Both economic and legal definitions of market value have been developed and refined. A current economic definition agreed upon by agencies that regulate federal financial institutions in the United States is: The most probable price (in terms of money) which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: The buyer and seller are typically motivated. Mass Appraisal The process of valuing a group of properties as of a given date, using standard methods, employing common data, and allowing for statistical testing. Mill One mill is one-thousandth of one dollar or one-tenth of one cent. Mill Rate A tax rate expressed as mills per dollar. For example, a 2 percent tax rate is $2 per $100, $20 per $1,000, or 20 mills per dollar. Notice of Value A document usually mailed out on or around April 1st of each year that gives an estimation of taxes for the current year using the prior year's tax rate. Personal Property Consists of every kind of property that is not real property; movable without damage to itself or the real estate; subdivided into tangible and intangible. Also called "personalty" Real Property Consists of the interests, benefits, and rights inherent in the ownership of land plus anything permanently attached to the land or legally defined as immovable; the bundle of rights with which ownership of real estate is endowed. To the extent that “real estate” commonly includes land and any permanent improvements, the two terms can be understood to have the same meaning. Also called “realty.” Sales Comparison Approach One of three approaches to value, the sales comparison approach estimates a property’s value (or some other characteristic, such as its depreciation) by reference to comparable sales. Uniform Property Code A Uniform Property Code (UPC) helps to identify a specific parcel of land located in the County. The UPC is based on a coded system established by eighteen (18) numbers that represent the map number, grid, quadrant, block and parcel of any lot. Get in Touch We want to ensure you always have a truly exceptional experience with us. Let us help bring about great things! Contact Us