45th legislature - STATE OF NEW MEXICO - first session, 2001

RELATING TO TAXATION; PROVIDING FOR LAND GRANT PARTICIPATION IN BIDDING ON GRANT LANDS SOLD AT DELINQUENT TAX AUCTIONS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. 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 may not be sold for delinquent taxes before the expiration of three 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 [must] shall be published in a newspaper of general circulation within the county where the real property is located at least once a week for the three weeks immediately preceding the week of the sale. 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 may 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. 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. A bid made at a public auction by the board of trustees of a community land grant described in Chapter 49 NMSA 1978 and functioning under the laws of the state, except for those land grants that have organized as for-profit corporations, shall be considered the highest bid at that public auction and 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 as contained in the United States patent to the community land grant;

(2) the bid is made in the amount of all past taxes, penalties, interest and costs due on the property; and

(3) the board of trustees agrees that if it sells the property within the life of any heir to the land grant living at the time of purchase of the property, all consideration received shall be paid to the state that is in excess of:

(a) what the board of trustees paid for the property; plus

(b) the value of all improvements to the property made after purchase by the board of trustees; plus

(c) an adjustment for inflation."