Senate committee backs technical fix to clarify RETA property-tax exemption

At a Senate Tax Committee meeting (date not specified), the committee heard testimony on House Bill 295, a technical bill to clarify how the property tax code applies to property owned by the Renewable Energy Transmission Authority (RETA). Proponents said the clarification aligns the tax code with long-standing practice and constitutional exemptions and is necessary to continue attracting large-scale clean-energy transmission investment.

Representative Small introduced House Bill 295 and said the bill “clarifies the portion of the property tax code to align with current practice and the historical expectations around the Renewable Energy Transmission Authority.” Lynn Mosteller, RETA executive director, testified that RETA was created in 2007 as a governmental entity and that the authority’s tax-exempt status in the New Mexico Constitution has been used by RETA to structure acquisition-leaseback transactions with developers. Mosteller told the committee the structure “allows a tax exemption just for RETA-owned projects, RETA-owned property, including the transmission lines and related structures, not for wind farms that use the transmission.”

Proponents argued the clarification is intended to preserve the state’s ability to attract tens of billions in renewable-transmission investment, ensure developers can rely on RETA’s tax-exempt status and avoid creating a new property-tax liability that could impede planned projects. They also said the change would not affect existing county revenues because counties currently receive payments through community benefit agreements rather than property tax from RETA-owned transmission.

During the roll call, multiple senators voted in favor and one senator voted against; several members were excused. The recorded tally in the committee was four yeas, one nay and four excused; the chair announced a do-pass recommendation for House Bill 295. The transcript records proponents present from RETA, including Jeremy Turner (former RETA executive director) appearing as an expert, and public attendees who stood in support when asked.

Votes at a glance: committee recorded a do-pass recommendation with a reported tally of four yeas, one nay and multiple excused members. The transcript contains individual roll-call lines but several members were excused or left during the call; the committee secretary called the roll and the chair announced the do-pass recommendation.

The committee adjourned for lack of quorum shortly after the vote; the transcript does not record subsequent floor action or final disposition beyond the committee recommendation.

Lynn Mosteller and other RETA representatives framed the bill as a cleanup measure to retain an established financing tool for large transmission projects and to allow New Mexico to continue positioning itself as a site for major renewable-energy transmission infrastructure.