Up to $2000 of the taxable value of residential property subject to property tax is exempt if the property is owned by the head of a family who is a New Mexico resident or if the property is held in a grantor trust established under Sections 671 through 677 of the Internal Revenue Code, as those sections may be amended or renumbered, by a head of a family who is a New Mexico resident.
"Head of a family" as defined in state statute means an individual New Mexico resident who is either.
- a married person, but only one spouse in a household may qualify as a head of a family;
- a widow or a widower;
- a head of household furnishing more than one-half the cost of support of any related person;
- a single person, but only one person in a household may qualify as a head of family, or
- a member of a condominium association or like entity who pays property tax through the association.
Once the exemption is granted, it is retained for subsequent years without having to reapply. If property changes ownership, the exemption will be removed effective January 1st of the following year. The new owner of the property must apply after January 1st but no later than 30 days after the mailing of the county assessor's notice of value.