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Firms hit by rise in tax assessment

Owners see a 27 percent increase in property tax

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A 27 percent increase in commercial property values in part of Sandoval County has a business owner hit by the hike ready to go to court.

The increase pushed the property tax for Alex Chavez's business in Bernalillo to $6,400 a year, up from $2,200 last year. He owns Trusmaster, a company along N.M. 528 that makes trusses for builders.

"We're going to fight it," Chavez said. "That's a lot of tax to go up on one piece of property overnight."

Commercial property values went from $2.75 a square foot to $3.50 a square foot, said Rick Garcia, commercial appraiser with Sandoval County.

Properties in an area riding Rio Rancho's northern edge, most situated along N.M. 528 and N.M. 550, were affected, but Chavez has been the only one to bring a complaint, Garcia said.

Garcia said residential property values also went up, but only by 3 percent, the maximum allowed by state statute.

There is no law limiting how much commercial property values can be raised.

The last time an appraisal had been done was 1991, Garcia said.

It took so long to do another appraisal because the county needed enough land sales to occur to provide data demonstrating what the new market value of the land is.

"Property values are increasing substantially in Rio Rancho, especially in that length of time," he said. "We had ample sales to defend the values, so we had them raised."

He wasn't sure how many sales records were looked at. However, he said the sales ranged from $3.50 a square foot to $4.25 a square foot.

The county chose the lower end of the scale because it seemed more fair to the taxpayer, Garcia said.

Chavez said he wants to see a state law limiting how much commercial property values can be raised, just like the residential property values.

"It's a hell of a jump," he said. "I just don't understand it."

Garcia said the County Assessor's Office mailed out notices of the property value change on April 1. Taxpayers have 30 days to contest the increase. Tax bills are sent out Nov. 1.

Garcia said district court is the next place Chavez can protest the bill.

If Chavez goes to court, the judge's ruling would determine the next step. That could include lowering the property value to its previous value, lowering it another amount, or leaving it at its adjusted value, Garcia said.

Gayland Bryant, director of public affairs with the Sandoval County Commission, said property tax rates for the county are down from last year. The property value increase doesn't shock him.

"Sandoval County is one of the fastest growing counties in the country," he said. "It's not surprising to see a subsequent increase in the values of property."