HOUSE BILL 288

50th legislature - STATE OF NEW MEXICO - second session, 2012

INTRODUCED BY

Brian F. Egolf

AN ACT

RELATING TO TAXATION; PROVIDING FOR THE AUTOMATIC EXTINGUISHMENT AND RELEASE OF A TAX LIEN AFTER TEN YEARS FROM THE DATE OF ASSESSMENT RATHER THAN THE DATE OF THE LIEN.

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

     SECTION 1. Section 7-1-38 NMSA 1978 (being Laws 1965, Chapter 248, Section 40, as amended) is amended to read:

     "7-1-38. NOTICE OF LIEN.--A notice of the lien provided for in Section 7-1-37 NMSA 1978 may be recorded in any county in the state in the tax lien index established by Sections 48-1-1 through 48-1-7 NMSA 1978 and a copy thereof shall be sent to the taxpayer affected. Any county clerk to whom the notices are presented shall record them as requested without charge. The notice of lien shall identify the taxpayer whose liability for taxes is sought to be enforced [and], the date or approximate date on which the tax became due and the date of assessment and shall state that New Mexico claims a lien for the entire amount of tax asserted to be due, including applicable interest and penalties. Recording of the notice of lien shall be effective as to all property and rights to property of the taxpayer."

     SECTION 2. Section 7-1-39 NMSA 1978 (being Laws 1965, Chapter 248, Section 41, as amended) is amended to read:

     "7-1-39. RELEASE OR EXTINGUISHMENT OF LIEN--LIMITATION ON ACTIONS TO ENFORCE LIEN.--

          A. When any substantial part of the amount of tax due from a taxpayer is paid, the department shall immediately file, in the same county in which a notice of lien was filed, and in the same records, a document completely or partially releasing the lien. The county clerk to whom such a document is presented shall record it without charge.

          B. The department may file, in the same county as the notice of lien was filed, a document releasing or partially releasing any lien filed in accordance with Section 7-1-38 NMSA 1978 when the filing of the lien was premature or did not follow requirements of law or when release or partial release would facilitate collection of taxes due. The county clerk to whom the document is presented shall record it without charge.

          C. In all cases when a notice of lien for taxes, penalties and interest has been filed under Section 7-1-38 NMSA 1978 and a period of ten years has passed from the date [the lien was filed] of assessment, as shown on the notice of lien, the taxes, penalties and interest for which the lien is claimed shall be conclusively presumed to have been paid. The county clerk shall enter in [his] the records a notice including the words "canceled by act of legislature" and the lien is thereby extinguished. No action shall be brought to enforce any lien extinguished in accordance with this subsection."

     SECTION 3. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2012.

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