HOUSE BILL 463

51st legislature - STATE OF NEW MEXICO - first session, 2013

INTRODUCED BY

David M. Gallegos

AN ACT

RELATING TO TAXATION; PROVIDING FOR A WARRANT OF LEVY ON A FINANCIAL INSTITUTION TO BE SERVED ELECTRONICALLY.

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

     SECTION 1. Section 7-1-31 NMSA 1978 (being Laws 1965, Chapter 248, Section 33, as amended) is amended to read:

     "7-1-31. SEIZURE OF PROPERTY BY LEVY FOR COLLECTION OF TAXES.--

          A. The secretary or secretary's delegate may proceed to collect tax from a delinquent taxpayer by levy upon all property or rights to property of [such person and the conversion thereof] the delinquent taxpayer and convert that property or rights to property to money by appropriate means.

          B. A levy is made by taking possession of property pursuant to authority contained in a warrant of levy or by the service, by the secretary or secretary's delegate or any sheriff or certified law enforcement employee of the department of public safety, of the warrant upon the taxpayer or other person in possession of property or rights to property of the taxpayer, upon the taxpayer's employer or upon any person or depositary owing or who will owe money to or holding funds of the taxpayer, ordering [him] the employer or person to reveal the extent thereof and surrender it to the secretary or secretary's delegate forthwith or agree to surrender it or the proceeds therefrom in the future, but in any case on the terms and conditions stated in the warrant.

          C. The department may serve a warrant of levy upon a financial institution in electronic format when the electronic format is mutually agreed upon by the department and the financial institution."

     SECTION 2. Section 7-1-32 NMSA 1978 (being Laws 1965, Chapter 248, Section 34, as amended) is amended to read:

     "7-1-32. CONTENTS OF WARRANT OF LEVY.--A warrant of levy shall:

          A. bear on its face a statement of the authority for its service and compelling compliance with its terms, shall be attested by the secretary, by electronic signature if necessary, and shall bear the seal of the department, unless the warrant is served in electronic format upon a financial institution;

          B. identify the taxpayer whose liability for taxes is sought to be enforced, the amount thereof and the date or approximate date on which the tax became due;

          C. order the person on whom it is served to reveal the amount of property or rights to property in [his own] the person's possession that belong to the taxpayer and the extent of [his own] the person's interest therein and to reveal the amount and kind of property or rights to property of the taxpayer that are, to the best of [his] the person's knowledge, in the possession of others;

          D. order the person on whom it is served to surrender the property forthwith but may allow [him] the person to agree in writing to surrender the property or the proceeds therefrom on a certain date in the future when the taxpayer's right to it would otherwise mature;

          E. order the employer of the taxpayer to surrender wages or salary of the taxpayer in excess of the amount exempt under Section 7-1-36 NMSA 1978 owed by the employer to the taxpayer at the time of service of the levy and [which] that may become [owing] owed by the employer to the taxpayer subsequent to the service of the levy until the full amount of the liability stated on the levy is satisfied or until notified by the secretary or the secretary's delegate;

          F. state on its face the penalties for willful failure by any person upon whom it is served to comply with its terms; and

          G. state that the state of New Mexico claims a lien for the entire amount of tax asserted to be due, including applicable interest and penalties."

     SECTION 3. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2013.

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