NM
New Mexico House Bill HB295

New Mexico 2025 Regular Session

New Mexico House Bill HB295 Compare Versions

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1-HB 295
2-Page 1
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2+[bracketed material] = delete
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28+HOUSE BILL 295
29+57
30+TH LEGISLATURE
31+-
32+
33+STATE
34+
35+OF
36+
37+NEW
38+
39+MEXICO
40+
41+-
42+ FIRST SESSION
43+,
44+
45+2025
46+INTRODUCED BY
47+Nathan P. Small
2848 AN ACT
29-RELATING TO TAXATION; MAKING IMPROVEMENTS ON LAND OWNED BY
30-THE NEW MEXICO RENEWABLE ENERGY AUTHORITY EXEMPT FROM
31-PROPERTY TAX FOR SO LONG AS THE AUTHORITY HOLDS TITLE TO THE
32-PROPERTY.
49+RELATING TO TAXATION; MAKING IMPROVEMENTS ON LAND OWNED BY THE
50+NEW MEXICO RENEWABLE ENERGY AUTHORITY EXEMPT FROM PROPERTY TAX
51+FOR SO LONG AS THE AUTHORITY HOLDS TITLE TO THE PROPERTY.
3352 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
3453 SECTION 1. Section 7-36-4 NMSA 1978 (being Laws 1976,
3554 Chapter 61, Section 1, as amended) is amended to read:
3655 "7-36-4. FRACTIONAL PROPERTY INTERESTS--DEFINITIONS--
3756 TAXATION AND VALUATION OF FRACTIONAL INTERESTS.--
3857 A. As used in this section:
3958 (1) "fractional interest" means a tangible
4059 interest in real property, except for mineral property as
4160 defined in Section 7-36-22 NMSA 1978, that is less than the
4261 total of the interests existing in the property, but
43-"fractional interest" does not include those property
44-interests described in Sections 7-36-3, 7-36-3.1 and 7-36-3.2
45-NMSA 1978 nor does it include the lessee's interest under a
46-lease when the term of the lease is more than seventy-five
47-years;
48-(2) "exempt entity" means any person whose
49-real property is exempt from taxation under the constitution
50-of New Mexico or the Enabling Act (36 Stat. 557, as amended)
51-by reason of ownership; HB 295
52-Page 2
62+"fractional interest" does not include those property interests
63+.229943.1 underscored material = new
64+[bracketed material] = delete
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90+described in Sections 7-36-3, 7-36-3.1 and 7-36-3.2 NMSA 1978
91+nor does it include the lessee's interest under a lease when
92+the term of the lease is more than seventy-five years;
93+(2) "exempt entity" means any person whose
94+real property is exempt from taxation under the constitution of
95+New Mexico or the Enabling Act (36 Stat. 557, as amended) by
96+reason of ownership;
7897 (3) "exempt property" means property that is
79-exempt from property taxation pursuant to Article 8, Section
80-3 of the constitution of New Mexico by reason of use;
98+exempt from property taxation pursuant to Article 8, Section 3
99+of the constitution of New Mexico by reason of use;
81100 (4) "improvements" includes surface and
82-subsurface structures, fixtures, transmission lines,
83-pipelines and other works, but "improvements" does not
84-include:
101+subsurface structures, fixtures, transmission lines, pipelines
102+and other works, but "improvements" does not include:
85103 (a) that property either included or
86104 specifically excluded under the terms "property used in
87105 connection with mineral property" under Section 7-36-23 NMSA
88106 1978, "property used in connection with potash mineral
89-property" under Section 7-36-24 NMSA 1978 and "property used
90-in connection with uranium mineral property" under Section
107+property" under Section 7-36-24 NMSA 1978 and "property used in
108+connection with uranium mineral property" under Section
91109 7-36-25 NMSA 1978;
92110 (b) a dwelling occupied by a low-income
93111 resident in a housing project authorized under the provisions
94112 of the Municipal Housing Law; and
95113 (c) those property interests described
96114 in Sections 7-36-3, 7-36-3.1 and 7-36-3.2 NMSA 1978;
97-(5) "nonexempt entity" means any person that
98-is not an exempt entity; and
99-(6) "nonexempt property" means property that
100-is not exempt property.
101-B. Fractional interests of nonexempt entities in
102-real property of exempt entities are exempt from property HB 295
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117+[bracketed material] = delete
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129-taxation under the Property Tax Code, but this exemption
130-shall not apply to the following property:
143+(5) "nonexempt entity" means any person that
144+is not an exempt entity; and
145+(6) "nonexempt property" means property that
146+is not exempt property.
147+B. Fractional interests of nonexempt entities in
148+real property of exempt entities are exempt from property
149+taxation under the Property Tax Code, but this exemption shall
150+not apply to the following property:
131151 (1) improvements of land of an exempt entity
132-if the improvements are owned or leased by a nonexempt
133-entity; these improvements are subject to valuation for
134-property taxation purposes and to property taxation to be
135-paid by the nonexempt entity; provided, however, that
136-improvements, including leasehold interest in the
137-improvements, are exempt if the improvements are:
152+if the improvements are owned or leased by a nonexempt entity;
153+these improvements are subject to valuation for property
154+taxation purposes and to property taxation to be paid by the
155+nonexempt entity; provided, however, that improvements,
156+including leasehold interest in the improvements, are exempt if
157+the improvements are:
138158 (a) electric transmission and
139159 interconnected storage facilities and all related structures,
140160 properties and supporting infrastructure that have been
141161 acquired by the New Mexico renewable energy transmission
142162 authority and qualify as an eligible facility pursuant to the
143163 New Mexico Renewable Energy Transmission Authority Act; and
144164 (b) leased by the New Mexico renewable
145165 energy transmission authority to a nonexempt entity to
146166 construct, operate or assist the authority in constructing or
147167 operating the eligible facility; and
148-(2) property interests of nonexempt entities
149-held under equitable title in the property of exempt
150-entities.
151-C. When fractional interests are created in
152-property:
153-(1) fractional interests that are nonexempt HB 295
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196+(2) property interests of nonexempt entities
197+held under equitable title in the property of exempt entities.
198+C. When fractional interests are created in
199+property:
200+(1) fractional interests that are nonexempt
180201 property shall be reported to the appropriate valuation
181202 authority by the fractional interest owners for valuation for
182203 property tax purposes if the owner is a nonexempt entity; and
183204 (2) except for fractional interests owned by
184-the United States, an Indian nation, tribe or pueblo, the
185-state of New Mexico or a political subdivision of the state,
205+the United States, an Indian nation, tribe or pueblo, the state
206+of New Mexico or a political subdivision of the state,
186207 fractional interests that are owned by a nonexempt entity but
187208 are claimed to be exempt property shall be reported by the
188209 owner to the appropriate valuation authority for a
189210 determination of exemption status and valuation if determined
190211 to be nonexempt property.
191-D. Fractional interests that are nonexempt
192-property shall be valued by the applicable method of
193-valuation pursuant to the Property Tax Code, and if
194-fractional interests that are exempt property have been
195-created, the value of the remaining nonexempt fractional
196-interests shall be determined in the property tax year
197-following the creation of the interests as the value of the
198-property in the property tax year immediately prior to the
199-year in which creation of the fractional interests occurred,
200-increased or decreased by the value directly attributable to
201-the creation of the fractional interests that are exempt
202-property. For subsequent property tax years, the nonexempt
203-fractional interests shall be valued pursuant to the
204-applicable methods of valuation." HB 295
205-Page 5
212+D. Fractional interests that are nonexempt property
213+shall be valued by the applicable method of valuation pursuant
214+to the Property Tax Code, and if fractional interests that are
215+exempt property have been created, the value of the remaining
216+nonexempt fractional interests shall be determined in the
217+property tax year following the creation of the interests as
218+the value of the property in the property tax year immediately
219+prior to the year in which creation of the fractional interests
220+occurred, increased or decreased by the value directly
221+.229943.1
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249+attributable to the creation of the fractional interests that
250+are exempt property. For subsequent property tax years, the
251+nonexempt fractional interests shall be valued pursuant to the
252+applicable methods of valuation."
231253 SECTION 2. APPLICABILITY.--The provisions of this act
232254 apply to the 2026 and subsequent property tax years.
255+- 5 -
256+.229943.1