Property Tax Exemption for Solar Systems

7-36-21.2 NMSA 1978 exempts roof‐top scale solar energy system installations from property tax assessments at the time the system is installed. The solar system improvement would not be assessed property taxes until the property is sold. When the property is sold, the solar improvement will indirectly contribute to property tax assessments (and therefore a county’s revenue base) based on the market price at which the property sold (which presumably includes the value of the solar system). Thus, in the longer‐run, counties do not lose out on property tax revenues from HB 233.

The bill defines a “solar energy system installation” as an installation that is used to provide space heat, hot water or electricity to the property in which it is being installed and is an installation that uses solar panels that are not also windows, a dark‐colored water tank exposed to the sunlight, or a non‐vented trombe wall (heat storage wall).

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