Fayerberg Dodd Files Class Action Challenging Unlawful Property-Tax Increases in Bernalillo County
- Fayerberg Dodd, LLC
- Dec 11, 2025
- 3 min read
Fayerberg Dodd has filed a civil-rights class action in the Second Judicial District Court on behalf of hundreds of Bernalillo County homeowners who were unlawfully subjected to “tax lightning” after transferring their homes into revocable living trusts. This routine estate-planning step does not constitute a change of ownership under New Mexico law, yet the Bernalillo County Assessor treated these transfers as taxable events and imposed large, sudden valuation increases.
The lawsuit is brought by two representative plaintiffs—former Bernalillo County District Attorney Kari Brandenburg and longtime homeowner Edward Roberts—and seeks relief for an estimated 400 similarly affected homeowners across the county.
What Happened
Under New Mexico law, annual increases in a home’s taxable value are capped at 3%, absent a narrow set of exceptions created by statute. A transfer into a revocable trust is expressly not one of those exceptions. The Legislature has made clear that these transfers do not break the 3% cap and do not authorize a reassessment as if the property changed hands.
Despite this, the Bernalillo County Assessor has repeatedly treated revocable trust transfers as ownership changes. That practice triggered steep valuation spikes—including:
Brandenburg: 26% jump, from $12,242 to $15,449, after placing her primary residence in a revocable trust in 2024.
Roberts: 32% increase, from $3,362 to $4,447, following the same type of transfer.
“This wasn’t a mistake. The statute is crystal clear, and the Assessor was repeatedly put on notice that these transfers were revocable and exempt,” said attorney Amber Fayerberg. “Instead of fixing the problem, he doubled down—and hundreds of homeowners now face penalties and long-term tax consequences they do not legally owe.”
Why This Matters for Homeowners Across New Mexico
Revocable trusts are one of the most common estate-planning tools used by everyday New Mexicans to ensure smooth transfers to spouses or children. Treating these lawful transfers as taxable events penalizes responsible homeowners for engaging in basic planning.
The consequences are not limited to a single year. As attorney Chris Dodd explained to the Albuquerque Journal, once a home is hit with tax lightning, “next year your taxes go up by 3%—but they go up 3% on the inflated value.” Over time, that compounding effect can translate into millions of dollars in unlawful tax burdens countywide.
According to the complaint, Bernalillo County appears to be the only county in New Mexico interpreting the statute this way, placing its homeowners at a unique and unlawful disadvantage.
What the Lawsuit Seeks
The class action requests:
Correction of affected property valuations under the lawful 3% cap
Refunds of improperly collected taxes
Damages owed to affected homeowners
Injunctive relief prohibiting the Assessor from continuing these practices
The complaint was filed together with a request for a temporary restraining order to halt delinquency penalties for homeowners who refused to pay the unlawful assessments while the litigation proceeds.
Our Commitment
Fayerberg Dodd is committed to ensuring that public-official conduct aligns with the law and the rights of New Mexicans. When government actors impose taxes contrary to statute, the consequences fall directly on families and communities. The law—not bureaucratic preference—must govern how property taxes are assessed.
We will continue to pursue accountability and relief for the homeowners who were improperly charged, and to safeguard the legal protections that New Mexico has put in place for all property owners.
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