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Northern NM fire victims will be spared additional taxes under provision approved by Legislature • Source New Mexico

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Northern NM fire victims will be spared additional taxes under provision approved by Legislature • Source New Mexico


Those who hired lawyers to help them get compensation for losses to the biggest wildfire in state history won’t have to worry about additional taxes on legal services if Gov. Michelle Lujan Grisham signs the tax package sent to her by lawmakers last month. 

But at least one elected official in the burn scar and a municipal advocacy group oppose the measure, saying it will deprive local governments that are also struggling after the Hermits Peak-Calf Canyon Fire of sorely-needed tax dollars. And the legislation’s sponsor ultimately withdrew his support in fear of how the measure could harm those small governments.

The tax measure approved by the Legislature gives tax credits to law firms for gross receipts taxes, which are basically sales taxes, on services they provide to victims of the fire. Law firms can only get the tax credit if they don’t pass the taxes onto fire survivors in their bill for services. 

Lujan Grisham has until March 6 to sign the tax bill into law. 

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After the U.S. Forest Service accidentally ignited the 530-square-mile wildfire in spring of 2022, destroying hundreds of homes, local and national law firms arrived and began soliciting clients. Congress in late 2022 approved nearly $4 billion to compensate victims of the fire. In the same law, Congress capped payments to law firms at 20% of compensation they secure on behalf of clients.

 

They lost everything in New Mexico’s biggest wildfire. Now they’re sounding the alarm for others.

Those legal services, like all goods and services in the state, are taxed by states and localities. The gross receipts taxes on legal services for Hermits Peak-Calf Canyon survivors are estimated to be about 7%, split among the state, counties and towns. 

A $100,000 payment to a fire victim who hired a lawyer, for example, would mean $20,000 would go to lawyers, and then there would be an additional $1,400 in taxes on that payment levied on the fire victim without the legislation.

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State senator Leo Jaramillo (D-Española) sponsored the legislation this session and said getting rid of the tax on survivors would let them keep more of the money they’re owed. Local law firms and advocates for fire victims spoke in favor of the proposal. 

But as the bill wound through committee and ended up in the overall tax package, Jaramillo grew increasingly concerned about the impact it would have on local governments, he told fellow lawmakers. He mentioned there could be a substitute bill that would have “held harmless” local governments like the City of Las Vegas and Mora County, but it was never introduced. 

Administratively, it would be “extremely difficult” for the New Mexico Taxation and Revenue Department to apply the tax credit for law firms only on the state’s portion of the credit, while still sending the revenue to local governments, department spokesperson Charlie Moore told Source New Mexico

When the New Mexico Senate deliberated an 88-page tax package that included the provision, Jaramillo ultimately voted against it, saying that he was withdrawing support because local governments would be harmed. 

A car promoting Mora County Commissioner Veronica Serna is parked outside the polling site at the Ledoux Volunteer Fire Station during the 2022 election. (Photo by Patrick Lohmann / Source NM)

Still, the Senate approved the tax reforms Feb. 12 by a vote of 26-13, and the legislation was sent to the governor for her signature. Jaramillo has not responded to repeated requests for comment since that vote.

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While the 30-day session was ongoing, the three-member Mora County Commission voted 2-1 on a resolution supporting the bill, saying that the Commission believes landowners and residents “should not be penalized, through the imposition of gross receipts tax, for having elected to be represented by legal counsel.”

The Feb. 9 resolution also said “it is understood” that a substitute bill would allow local governments like Mora County to continue to collect their portion of the taxes, although that ended up not being the case.

Mora County Commissioner Veronica Serna was the lone vote against the resolution. She noted that the gross receipts tax is imposed on law firms, not their clients, and so Mora County could still collect the taxes it needs if law firms simply paid the tax instead of passing it on. 

“So the vendor should be paying that tax if they really want to help the claimant, not expect the state of New Mexico or any of the counties to take it,” Serna said in an interview. “Because the State of New Mexico and Mora and San Miguel Counties, we’re victims as well.”

In response, Brian Colón, a lawyer with law firm Singleton Schreiber and former state auditor, told Source NM that the law Congress passed means law firms like his are already receiving less than their usual 33% cut, and that the legislation is an effective way to prevent fire victims from having to pay additional taxes on the funds they deserve. 

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In the scar of New Mexico’s largest wildfire, a legal battle is brewing over the cost of suffering

“I’m very pleased that the legislature decided that those individuals who opted to hire attorneys will not have a gross receipts tax implication on that transaction,” he said. “And that makes me very happy. It’s the right outcome.”

It’s not clear how much of an impact the wildfire and subsequent floods had on Mora County’s tax revenues, according to online records. In the fiscal year leading up to the fires, the county received $317,000 in gross receipts tax revenues, comprising 11% of its $2.9 million budget. 

It’s also hard to estimate how much in taxes the county could make from legal services provided to fire victims, Serna said. 

A legislative analysis on the tax bill, while noting how difficult making a calculation would be, guessed that the state could give up between $7 million and $12.5 million in tax revenues in the upcoming fiscal year if the provision becomes law. The bill limits the amount in credits given to law firms to $5 million every year, a cap Colón said firms were very unlikely to hit. 

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The New Mexico Municipal League also weighed in against the provision, saying that “revenue loss could be especially detrimental to municipalities in fire affected areas, which may need to provide additional services to residents impacted by the fires.”

The Federal Emergency Management Agency is overseeing the compensation fund. As of Feb. 14, it had paid $391 million to individuals, government bodies and nonprofits, or about 10% of the total allocated by Congress. FEMA officials have said they hope to pay out $1 billion by Jan. 1, 2025.



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New Mexico

What to know: Election Day 2026 in Rio Rancho

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What to know: Election Day 2026 in Rio Rancho


Polls are now open in Rio Rancho where voters are set to elect a new mayor and decide several key measures Tuesday.

RIO RANCHO, N.M. — Rio Rancho voters are set to elect a new mayor and decide several key measures Tuesday in one of New Mexico’s fastest growing cities.

Voters will make their way to one of the 14 voting centers open Tuesday to decide which person will become mayor, replacing Gregg Hull. These six candidates are running:

Like Albuquerque, Rio Rancho candidates need to earn 50% of the votes to win. Otherwise, the top two candidates will go to a runoff election.

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Regardless of who wins, this will be the first time Rio Rancho voters will elect a new mayor in over a decade. Their priorities include addressing crime and how fast the city is growing, as well as improving infrastructure and government transparency, especially as the site of a new Project Ranger missile project.

The only other race with multiple candidates is the District 5 city council seat. Incumbent Karissa Culbreath faces a challenge from Calvin Ducane Ward.

Voters will also decide the fate of three general obligation bonds:

  • $12 million to road projects
  • $4.3 million to public safety facility projects
  • $1.2 million to public quality of life projects
    • e.g., renovating the Esther Bone Memorial Library

The polls will stay open until 7 p.m.



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New Mexico Livestock Board accused of abuse of power in rancher, inspector feud

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New Mexico Livestock Board accused of abuse of power in rancher, inspector feud


LAS VEGAS, N.M. — The approaching desert dusk did nothing to settle Travis Regensberg’s nerves as he and a small herd of stray cattle awaited the appearance of a state livestock inspector with whom he had a 30-year feud.

This was Nov. 3, 2023, and, as Regensberg tells it, the New Mexico Livestock Board had maintained an agreement for almost a decade: Livestock Inspector Matthew Romero would not service his ranch due to a long history of bad blood between the two men. False allegations of “cattle rustling” had surfaced in the past, Regensberg said. 

A dramatic standoff that evening, caught on lapel camera video, shows Regensberg at the entrance gate of his ranch. Defiant, Regensberg says anyone but Romero can pick up the stray cattle he had asked state livestock officials to pick up earlier in the day. Romero, who is backed up by two New Mexico State Police officers, directs Regensberg to open the gate or he will be arrested.

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Travis Regensberg, rancher and contractor, practices his throw on a roping dummy in his barn in Las Vegas, N.M., on Feb. 17, 2025.



Unlawful impound?







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A small herd of Travis Regensberg’s cattle eat feed on his property in Las Vegas, N.M.

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The history

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Travis Regensberg takes a bag of feed out to his cattle followed by his dog Rooster in Las Vegas, N.M., on Feb. 17, 2025.



‘A matter of principle’







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Travis Regensberg gathers his rope while practicing his throw on a roping dummy in his barn in Las Vegas, N.M., on Feb. 17, 2025.


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William McCasland, retired general who led Air Force Research Laboratory, goes missing

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William McCasland, retired general  who led Air Force Research Laboratory, goes missing


A retired US Air Force general was reported missing in New Mexico, with authorities warning that medical concerns have heightened fears for his safety.

Retired Maj. Gen. William Neil McCasland, 68, was last seen around 11 a.m. Friday near Quail Run Court NE in Albuquerque, the Bernalillo County Sheriff’s Office said.

Officials said they do not know what McCasland was wearing or in which direction he may have traveled. The sheriff’s office has issued a Silver Alert.

“Due to his medical issues, law enforcement is concerned for his safety,” the sheriff’s office said.

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McCasland was a longtime leader at Kirtland Air Force Base in New Mexico and previously commanded Kirtland’s Phillips Research Site and Air Force Research Laboratory.

Col. Justin Secrest, commander of the 377th Air Base Wing at Kirtland, told the Albuquerque Journal that the base is coordinating with local authorities.

Retired Maj. Gen. William Neil McCasland, a longtime leader at Kirtland Air Force Base in New Mexico, has gone missing. United States Air Force
1st Lt. Steven McNamara (left) and McCasland cut the cake celebrating 100 years of heritage for the Air Force Research Laboratory at the Heritage Annex. Jim Fisher / United States Air Force
“Due to his medical issues, law enforcement is concerned for his safety,” the sheriff’s office said. Bernalillo County Sheriff’s Office

“Our thoughts are with his family during this difficult time,” Secrest said.

McCasland was commissioned in 1979 after graduating from the US Air Force Academy with a degree in astronautical engineering and held multiple leadership roles in space research, acquisition and operations, including work with the National Reconnaissance Office.

Authorities asked anyone with information about McCasland to text BCSO to 847411 or call the sheriff’s Missing Persons Unit at +1 (505) 468-7070.

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