DO YOU KNOW WHAT YIELD CONTROL IS?
Yield control is commonly referred to as the “yield control statute” because it limits revenue yields that result when property values are increased. The statue is rather complex but really deals with value and mill rates and how they off-set each other.
Yield control is like the playground seesaw. Assessed property values are on one side and the mill rate is on the other. The mill is a rate each taxing entity uses and is multiplied by your property’s taxable value to get amount you owe, yearly. This is money that taxing entities use to operate. Taxing entities are county’s, municipalities, irrigation districts, school districts…well, you get the idea. In Bernalillo County alone there are 14 taxing entities associated with your yearly property tax bill. Anyway, yield control tries to keep the tax seesaw, level. So, if property values go up, the mill rates should go down, keeping taxes even. Conversely, if property values go down, the taxing entities will likely raise the mill rate so that taxes remain level and the governments still have money to operate.
Of course, tax rates can still go up because municipalities and counties and school districts all need to pay for more roads or sewer lines or classrooms. But, as the city and county grow, businesses will fill those new roads and the tax base gets bigger and hopefully, the mill rates go down. Ah, we’re back on the yield control seesaw again.
Not an easy concept, but necessary.
If you have questions, call the Assessor’s Office at 505-222-3700 and one of our staff members will break it down for you.
Assessor Damian Lara is also teaching a class on Yield Control through New Mexico State University. Anyone may sign up at nmedge.nmsu.edu. Once here, find the enroll in or pay for classes tab. If you are an existing student log in and choose class AO 110. If you are a new student, enroll and then choose class AO 110. The class will be held online, Sept. 19 from 8:30 - 11 a.m.
Assessor Damian Lara want YOU to Know Your Value.