SENATE BILL 516
48th legislature - STATE OF NEW MEXICO - second session, 2008
INTRODUCED BY
Linda M. Lopez
AN ACT
RELATING TO PROPERTY TAX; CHANGING THE NOTIFICATION PERIOD AFTER WHICH NOTICE OF TAX DELINQUENCY IS PROVIDED; CHANGING THE PERIOD BEFORE WHICH PROPERTY IS LISTED AS TAX DELINQUENT; INCREASING THE PERIOD BEFORE WHICH TAX DELINQUENT PROPERTY MAY BE SOLD BY THE STATE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. Section 7-38-51 NMSA 1978 (being Laws 1973, Chapter 258, Section 91, as amended) is amended to read:
"7-38-51. NOTIFICATION TO PROPERTY OWNER OF DELINQUENT PROPERTY TAXES.--
A. In respect to any tax that is delinquent for more than thirty days as of June 30 of each year, the county treasurer shall mail a notice of delinquency to:
(1) the owner of the property as shown on the property tax schedule at the address of the owner as shown on the most recent property tax schedule; and
(2) any person other than the owner to whom the tax bill on the property was sent.
B. The notice required by this section shall be in a form and contain the information prescribed by [division] department regulations and shall include at least the following:
(1) a description of the property upon which the property taxes are due;
(2) a statement of the amount of property taxes due, the date on which they became delinquent, the rate of accrual of interest and any penalties that may be charged;
(3) a statement that if the property taxes due on real property are not paid within [three] four years from the date of delinquency, the real property will be sold and a deed issued by the [division] department; and
(4) a statement that if property taxes due on personal property are not paid, the personal property may be seized and sold for taxes under authority of a demand warrant."
Section 2. Section 7-38-60 NMSA 1978 (being Laws 1973, Chapter 258, Section 101, as amended) is amended to read:
"7-38-60. NOTIFICATION TO PROPERTY OWNER OF DELINQUENT TAXES.--By June 10 of each year, the county treasurer shall mail a notice to each property owner of property for which taxes have been delinquent for more than [two] three years. The notice shall be in a form and contain the information prescribed by department regulations and shall include the following:
A. a description of the property upon which the taxes are due;
B. a statement of the amount of property taxes due, the date on which they became delinquent, the rate of accrual of interest and any penalties or costs that may be charged;
C. a statement that the delinquent tax account on real property will be transferred to the department for collection;
D. a statement that if taxes due on real property are not paid within [three] four years from the date of delinquency, the real property will be sold and a deed issued; and
E. a statement that if taxes due on personal property are not paid, the personal property may be seized and sold for taxes under authority of a demand warrant."
Section 3. Section 7-38-61 NMSA 1978 (being Laws 1973, Chapter 258, Section 100, as amended) is amended to read:
"7-38-61. REAL PROPERTY TAXES DELINQUENT FOR MORE THAN [TWO] THREE YEARS--TREASURER TO PREPARE DELINQUENCY LIST--NOTATION ON PROPERTY TAX SCHEDULE.--
A. By July 1 of each year, the county treasurer shall prepare a property tax delinquency list of all real property for which taxes have been delinquent for more than [two] three years. The tax delinquency list shall contain the information and be in a form prescribed and submitted by the date required by department regulations. The county treasurer shall record the tax delinquency list in the office of the county clerk. There shall be no recording fee for recordation of the tax delinquency list. The updated final property tax sale list shall be recorded with the office of the county clerk the day following the sale of the property. There shall be no recording fee for recordation of the final property tax sale list.
B. The county treasurer shall make a notation on the property tax schedule indicating that the account has been transferred to the department for collection at the time the tax delinquency list is mailed to the department."
Section 4. Section 7-38-65 NMSA 1978 (being Laws 1973, Chapter 258, Section 105, as amended) is amended to read:
"7-38-65. COLLECTION OF DELINQUENT TAXES ON REAL PROPERTY--SALE OF REAL PROPERTY.--
A. If a lien exists by the operation of Section 7-38-48 NMSA 1978, the department may collect delinquent taxes on real property by selling the real property on which the taxes have become delinquent. The sale of real property for delinquent taxes shall be in accordance with the provisions of the Property Tax Code. Real property may be sold for delinquent taxes at any time after the expiration of [three] four years from the first date shown on the tax delinquency list on which the taxes became delinquent. Real property shall be offered for sale for delinquent taxes either within [four] five years after the first date shown on the tax delinquency list on which the taxes became delinquent or, if the department is barred by operation of law or by order of a court of competent jurisdiction from offering the property for sale for delinquent taxes within [four] five years after the first date shown on the tax delinquency list on which the taxes became delinquent, within one year from the time the department determines that it is no longer barred from selling the property, unless:
(1) all delinquent taxes, penalties, interest and costs due are paid by 5:00 p.m. of the day prior to the date of the sale; or
(2) an installment agreement for payment of all delinquent taxes, penalties, [interests] interest and costs due is entered into with the department by 5:00 p.m. of the day prior to the date of the sale pursuant to Section 7-38-68 NMSA 1978.
B. Failure to offer property for sale within the time prescribed by Subsection A of this section shall not impair the validity or effect of any sale which does take place.
C. The time requirements of this section are subject to the provisions of Section 7-38-83 NMSA 1978."
Section 5. Section 7-38-67 NMSA 1978 (being Laws 1973, Chapter 258, Section 107, as amended) is amended to read:
"7-38-67. REAL PROPERTY SALE REQUIREMENTS.--
A. Real property shall not be sold for delinquent taxes before the expiration of [three] four years from the first date shown on the tax delinquency list on which the taxes on the real property became delinquent.
B. Notice of the sale shall be published in a local newspaper within the county where the real property is located or, if there is no local county or municipal newspaper, then a newspaper published in a county contiguous to or near the county in which the real property is located, at least once a week for the three weeks immediately preceding the week of the sale. For more generalized notice, the department may choose to publish notice of the sale also in a newspaper not published within the county and of more general circulation. The notice shall state the time and place of the sale and shall include a description of the real property sufficient to permit its identification and location by potential purchasers.
C. Real property shall be sold at public auction either by the department or an auctioneer hired by the department. The auction shall be held in the county where the real property is located at a time and place designated by the department.
D. If the real property can be divided so as to enable the department to sell only part of it and pay all delinquent taxes, penalties, interest and costs, the department may, with the consent of the owner, sell only a part of the real property.
E. Before the sale, the department shall determine a minimum sale price for the real property. In determining the minimum price, the department shall consider the value of the property owner's interest in the real property, the amount of all delinquent taxes, penalties and interest for which it is being sold and the costs. The minimum price shall not be less than the total of all delinquent taxes, penalties, interest and costs. Real property shall not be sold for less than the minimum price unless no offer met the minimum price when it was offered at an earlier public auction or the property is sold in accordance with the provisions of Subsection H of this section. A sale properly made under the authority of and in accordance with the requirements of this section constitutes full payment of all delinquent taxes, penalties and interest that are a lien against the property at the time of sale, and the sale extinguishes the lien.
F. Payment shall be made in full by the close of the public auction before an offer may be deemed accepted by the department.
G. Real property not offered for sale may be offered for sale at a later sale, but the requirements of this section and Section 7-38-66 NMSA 1978 shall be met in connection with each sale.
H. The board of trustees of a community land grant-merced governed pursuant to the provisions of Chapter 49, Article 1 NMSA 1978 or by statutes specific to the named land grant-merced shall be allowed to match the highest bid at a public auction, which shall entitle the board of trustees to purchase the property for the amount bid if:
(1) the property is situated within the boundaries of that land grant-merced as shown in the United States patent to the grant;
(2) the bid covers all past taxes, penalties, interest and costs due on the property; and
(3) the land becomes part of the common lands of the land grant-merced."
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