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Senate committee clears bill to clarify property-tax exemption for Renewable Energy Transmission Authority
Summary
The Senate Tax, Business and Transportation Committee voted 7–1 to give House Bill 295 a do-pass recommendation after sponsors said the measure simply clarifies a long-standing property-tax exemption for property owned by the New Mexico Renewable Energy Transmission Authority.
The Senate Tax, Business and Transportation Committee on Thursday gave House Bill 295 a 7–1 do-pass recommendation, moving the bill to the Senate floor.
Representative Parajón presented HB 295 as a narrow clarification that aligns the property tax code with the long-standing practice and expectations surrounding the New Mexico Renewable Energy Transmission Authority (NMRETA). Parajón told the committee the change is intended to preserve developer and investor commitments made since the authority’s founding and to avoid chilling future transmission investment.
"This bill is really a cleanup," Representative Parajón said, adding that "the counties are not losing any extra revenue." Lynn Mostaller, identified in the hearing as NMRETA's executive director, told the committee the authority and its acquisition-leaseback structure are grounded in the constitutional exemption for state-owned property and that the statutory language simply removes ambiguity.
Supporters said the NMRETA model has helped unlock private transmission investments that enabled renewable generation projects and associated local economic activity. Testimony included industry and advocacy groups who said clear tax treatment lowers project cost and risk. Several witnesses quantified recent investment and jobs tied to transmission-enabled projects, with one witness citing roughly $13,000,000,000 of investment since the program’s start.
Committee members asked whether counties or school districts would lose property-tax revenues. Sponsor testimony repeatedly stated they would not: Taxation and Revenue Department guidance cited by witnesses characterized property-tax liability as the owner’s obligation and confirmed that NMRETA's constitutional exemption would mean enforcement would apply to the authority, not to counties or lessees.
Senator Wirth moved the motion to pass HB 295; Senator Jaramillo seconded. The roll call recorded recorded yes votes from Senators Figueroa, Jaramillo, Ramos, Sanchez, Wirth, Bergman and Hamblin; the committee reported one no vote and the motion carried 7–1.
The bill now heads to the floor. Supporters urged that clarifying the exemption would keep New Mexico competitive for transmission investment; opponents did not appear during the in-person hearing to contest the bill.
