In past legislative sessions, bills like House Bill 342 and House Bill 148 proposed expanding mandatory sales price disclosure to commercial real estate. While those specific bills did not pass, the underlying issue remains active and a similar proposal is likely to return.
Giving county assessors verified commercial sale prices can support more accurate valuations, greater tax uniformity, and a broader tax base. That goal is legitimate.
However, past proposals limited the data to assessors only. The transfer affidavit would report the sale price and basic terms to the county assessor and keep that information confidential from the public and from independent appraisers.
This creates a structural information asymmetry. Under NMSA 7-38-6, an assessor’s valuation carries a statutory presumption of correctness. When the taxpayer’s appraiser cannot access the same verified sale prices the assessor is using, the taxpayer must attempt to overcome that presumption with incomplete evidence. The same information asymmetry disadvantages property owners in eminent domain cases, where just compensation depends on fair market value.
Commercial appraisers can still develop other adjustments (lease terms, tenant improvements, condition, financing structure) from their own research. What they cannot easily replace is a confirmed sale price when the only official record of that price is held exclusively by the assessor.
A Practical Solution
If the Legislature again considers commercial sales disclosure, a straightforward improvement is to grant licensed and certified commercial appraisers equal access to the same verified sale prices and basic terms, under strict confidentiality protections that prohibit public redistribution.
Certified appraisers are already bound by USPAP ethics and confidentiality rules. Equal access would:
- Give assessors the better data they need,
- Allow independent appraisers to confirm the same sale prices,
- Preserve a more level playing field in protests, appeals, and eminent domain matters, and
- Avoid a one-sided monopoly on verified transaction data.
Full public disclosure would eliminate the issue entirely but is more likely to face strong opposition and could delay or defeat any bill. Data parity under confidentiality is a narrower alternative that still protects the public interest and the integrity of independent appraisals.
A transparent tax system works best when both the assessor and the taxpayer’s appraiser can see the same verified sale prices.
