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F I S C A L I M P A C T R E P O R T





SPONSOR: Cisneros DATE TYPED: 03/13/01 HB
SHORT TITLE: Acquisition of Certain Real Property SB 798
ANALYST: Padilla


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY01 FY02 FY01 FY02
NFI



(Parenthesis ( ) Indicate Expenditure Decreases)



Conflicts with HB 974



SOURCES OF INFORMATION



LFC Files

Taxation and Revenue Department



SUMMARY



Synopsis of Bill



Senate Bill 798 provides a means for an individual who owns adjoining property to acquire a quitclaim deed to a property listed on valuation records as "owned by an unknown owner."



Significant Issues



To acquire a quitclaim deed for adjacent property owned by an "unknown owner", an individual must:



When the above requirements are met, the following steps must be taken:



The applicant then files the quitclaim deed with the county clerk. After one year from the filing, no person can challenge the applicant's title to the property.



ADMINISTRATIVE IMPLICATIONS



The task of assessing a property retroactively for twenty-five years and determining taxes that would have been paid on it may place a burden on county assessors and treasurers.



CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP



This bill conflicts with House Bill 794, which provides another method for a person to claim title to property of an "unknown owner."



TECHNICAL ISSUES



TRD believes the provisions of the bill would be more properly placed in Chapter 47, Property Law.



OTHER SUBSTANTIVE ISSUES



TRD notes that the bill's intent is unclear, as there are methods currently in place to accommodate unclaimed property. If taxes are not paid on real property, TRD's Property Tax Division researches title to the property and offers it for sale within about three years after the property taxes are unpaid. TRD reports that it is therefore extremely unlikely that significant amounts of real property exist in New Mexico in which the owner is really unknown.



POSSIBLE QUESTIONS



1. Is this bill designed to address a particular piece of property, or is it designed to address more common occurrences?



LP/njw