This bill amends Section 7-36-4 of the New Mexico Statutes to exempt improvements made on land owned by the New Mexico Renewable Energy Authority from property tax, as long as the Authority retains title to the property. The new legal language specifies that improvements, including leasehold interests, are exempt if they consist of electric transmission and interconnected storage facilities and related infrastructure acquired by the Authority, or if they are leased by the Authority to a nonexempt entity for construction or operation of these facilities.

The bill also clarifies definitions related to fractional property interests and outlines the taxation and valuation processes for these interests. It maintains that fractional interests of nonexempt entities in the real property of exempt entities are generally exempt from property taxation, with specific exceptions for improvements owned or leased by nonexempt entities. The provisions of this act will take effect for the 2026 property tax year and beyond.

Statutes affected:
introduced version: 7-36-4