Signed by Governor Michelle Lujan Grisham

Vote Smart's Synopsis:

Vote to pass a bill that exempts improvements on land owned by the New Mexico Renewable Energy Authority From Property Tax.

Highlights:

• Defines “fractional interest” as a tangible interest in real property that is less than the total interests of the property, with exceptions based on existing law (Sec. 1).

• Specifies that “improvements” include surface and subsurface structures, fixtures, transmission lines, pipelines, and other works (Sec. 1).

• Specifies that “improvements” do not include the following (Sec. 1):

• Properties included in certain mineral property legislation;

• A dwelling occupied by a low-income resident in a housing project; and

• Other property interests described in existing code.

• Exempts fractional interests of non-tax exempt entities in property owned by tax exempt entities from property taxation (Sec. 1).

• Specifies that this exemption does not apply to land improvements owned by a non-exempt entity that are (Sec. 1):

• Electric transmission and interconnected storage facilities or related infrastructure acquired by the New Mexico renewable energy transmission authority; and

• Leased by the New Mexico renewable energy transmission authority to a non-exempt entity.

• Specifies that fractional interests owned by a non-tax exempt entity but claimed to be tax exempt property are subject to the valuation authority for determination of exemption status (Sec. 1).

• Specifies that the provisions of this Act apply to the 2026 and subsequent property tax years (Sec. 2).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that exempts improvements on land owned by the New Mexico Renewable Energy Authority From Property Tax.

Highlights:

• Defines “fractional interest” as a tangible interest in real property that is less than the total interests of the property, with exceptions based on existing law (Sec. 1).

• Specifies that “improvements” include surface and subsurface structures, fixtures, transmission lines, pipelines, and other works (Sec. 1).

• Specifies that “improvements” do not include the following (Sec. 1):

• Properties included in certain mineral property legislation;

• A dwelling occupied by a low-income resident in a housing project; and

• Other property interests described in existing code.

• Exempts fractional interests of non-tax exempt entities in property owned by tax exempt entities from property taxation (Sec. 1).

• Specifies that this exemption does not apply to land improvements owned by a non-exempt entity that are (Sec. 1):

• Electric transmission and interconnected storage facilities or related infrastructure acquired by the New Mexico renewable energy transmission authority; and

• Leased by the New Mexico renewable energy transmission authority to a non-exempt entity.

• Specifies that fractional interests owned by a non-tax exempt entity but claimed to be tax exempt property are subject to the valuation authority for determination of exemption status (Sec. 1).

• Specifies that the provisions of this Act apply to the 2026 and subsequent property tax years (Sec. 2).

Full Bill Text