Disabled veteran exemption

A. As used in this section: (1) "disabled veteran" means an individual who: (a) has been honorably discharged from membership in the armed forces of the United States or has received a discharge certificate from a branch of the armed forces of the United States for civilian service recognized pursuant to federal law as service in the armed forces of the United States; and (b) has been determined pursuant to federal law to have a permanent service-connected disability; and (2) "honorably discharged" means discharged from the armed forces pursuant to a discharge other than a dishonorable or bad conduct discharge. B. The property of a disabled veteran, including joint or community property of the veteran and the veteran's spouse, is exempt from property taxation in an amount equal to the percentage of the veteran's disability as determined by federal law multiplied by the taxable value of the property after the amount that may be exempted pursuant to Section 7-37-5 NMSA 1978 is deducted; provided that the disabled veteran occupies the property continuously as the veteran's principal place of residence pursuant to regulations issued by the department and claimed pursuant to Section 7-38-17 NMSA 1978. Property held in a grantor trust established under Sections 671 through 677 of the Internal Revenue Code of 1986, as those sections may be amended or renumbered, by a disabled veteran or the veteran's surviving spouse is also exempt from property taxation if the property otherwise meets the requirements for exemption in this subsection or Subsection C of this section. C. The property of the surviving spouse of a disabled veteran is exempt from property taxation if: (1) the surviving spouse and the disabled veteran were married at the time of the disabled veteran's death; and (2) the surviving spouse continues to occupy the property continuously after the disabled veteran's death as the spouse's principal place of residence. D. Upon the transfer of the principal place of residence of a disabled veteran or of a surviving spouse of a disabled veteran entitled to and granted a disabled veteran exemption, the disabled veteran or the surviving spouse may choose to: (1) maintain the exemption for that residence for the remainder of the year, even if the residence is transferred during the year; or (2) remove the exemption for that residence and apply it to the disabled veteran's or the disabled veteran's surviving spouse's new principal place of residence, regardless of whether the exemption was applied for and claimed within thirty days of the mailing of the county assessor's notice of valuation made pursuant to the provisions of Section 7-38-20 NMSA 1978. E. The exemption provided by this section may be referred to as the "disabled veteran exemption". F. If two or more disabled veterans qualify for the disabled veteran exemption on the same property, the exemption shall be determined using the highest disability percentage among the eligible disabled veteran owners. G. The veterans' services department shall assist the department and the county assessors in determining which veterans qualify for the disabled veteran exemption. History: Laws 2000, ch. 92, § 1; 2000, ch. 94, § 1; 2003, ch. 29, § 1; 2003, ch. 57, § 2; 2004, ch. 19, § 21; 2015, ch. 126, § 1; 2025, ch. 10, § 2; 2026, ch. 9, § 1.