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Committee approves property tax clarification for Renewable Energy Transmission Authority amid industry support
Summary
The committee approved House Bill 295, a statutory clarification to confirm property tax treatment for transmission infrastructure owned by the New Mexico Renewable Energy Transmission Authority (RETA). Supporters said the bill removes legal ambiguity and helps preserve investment; the committee recorded a 7-1 do pass vote.
The Senate Tax, Business and Transportation Committee on Feb. 28 voted to advance House Bill 295, a bill clarifying property tax treatment for transmission infrastructure owned by the New Mexico Renewable Energy Transmission Authority.
Representative Parajon introduced the bill and explained it “clarifies a portion of the property tax code to align with the actual practice and expectations around New Mexico Renewable Energy Transmission Authority standing as a governmental entity.” He and witnesses said the statutory language is intended to confirm that RETA-owned transmission improvements are tax-exempt, consistent with constitutional and prior statutory treatment.
Lynn Mostdahler, identified in committee as RETA’s executive director, testified that RETA has tax-exempt status under the New Mexico Constitution and that the bill is a technical clarification designed to remove ambiguity that could chill future transmission investment. “RETA as a state entity has tax exempt status under the New Mexico constitution,” Mostdahler said. She told the committee that the Taxation and Revenue Department had confirmed property tax obligations fall to property owners and that, because RETA is exempt, enforcement would be directed to RETA, creating a need for the statutory clarification.
Industry witnesses and supporters told the committee the measure would protect billions of dollars of planned investment and thousands of jobs. Jim Deschardins of the Renewable Energy Industry Association of New Mexico said the bill “clarifies the tax exempt status of NMRETA to enable it to continue its vital mission.” Representatives of developers and renewable energy groups also voiced support in the room.
Chair Hamlin called for committee questions before members moved the bill. Senator Wirth moved adoption and Senator Jaramillo seconded. The committee recorded seven votes in favor and one opposed; the clerk’s log showed the bill “do pass” on that 7–1 tally.
Ending: The committee’s recommendation sends House Bill 295 to the Senate floor with a committee “do pass” report. Committee testimony emphasized the sponsors’ view that the bill does not change county receipts and is intended only to remove statutory ambiguity.
