0001| AN ACT | 0002| RELATING TO PROPERTY TAX; ESTABLISHING DEADLINE FOR PAYMENT OF | 0003| DELINQUENT TAXES TO PREVENT SALE OF PROPERTY; AMENDING CERTAIN | 0004| SECTIONS OF THE NMSA 1978. | 0005| | 0006| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0007| Section 1. Section 7-38-65 NMSA 1978 (being Laws 1973, Chapter | 0008| 258, Section 105, as amended) is amended to read: | 0009| "7-38-65. COLLECTION OF DELINQUENT TAXES ON REAL PROPERTY--SALE | 0010| OF REAL PROPERTY.-- | 0011| A. The department may collect delinquent taxes on real | 0012| property by selling the real property on which the taxes have become | 0013| delinquent. The sale of real property for delinquent taxes shall be | 0014| in accordance with the provisions of the Property Tax Code. Real | 0015| property may be sold for delinquent taxes at any time after the | 0016| expiration of three years from the first date shown on the tax | 0017| delinquency list on which the taxes became delinquent. Real property | 0018| shall be offered for sale for delinquent taxes either within four | 0019| years after the first date shown on the tax delinquency list on which | 0020| the taxes became delinquent or, if the department is barred by | 0021| operation of law or by order of a court of competent jurisdiction from | 0022| offering the property for sale for delinquent taxes within four years | 0023| after the first date shown on the tax delinquency list on which the | 0024| taxes became delinquent, within one year from the time the department | 0025| determines that it is no longer barred from selling the property, | 0001| unless: | 0002| (1) all delinquent taxes, penalties, interest and | 0003| costs due are paid on or before the date that is three business days | 0004| prior to the date of the sale; or | 0005| (2) an installment agreement for payment of all | 0006| delinquent taxes, penalties, interest and costs due is entered into | 0007| with the department on or before the date that is three business days | 0008| prior to the date of the sale pursuant to Section 7-38-68 NMSA 1978. | 0009| B. Failure to offer property for sale within the time | 0010| prescribed by Subsection A of this section shall not impair the | 0011| validity or effect of any sale which does take place." | 0012| Section 2. Section 7-38-66 NMSA 1978 (being Laws 1973, Chapter | 0013| 258, Section 106, as amended) is amended to read: | 0014| "7-38-66. SALE OF REAL PROPERTY FOR DELINQUENT TAXES--NOTICE OF | 0015| SALE.-- | 0016| A. At least twenty days but not more than thirty days | 0017| before the date of the sale for delinquent taxes, the department shall | 0018| notify by certified mail, return receipt requested, to the address as | 0019| shown on the most recent property tax schedule, each property owner | 0020| whose real property will be sold that the owner's real property will | 0021| be sold to satisfy delinquent taxes, unless: | 0022| (1) all delinquent taxes, penalties, interest and | 0023| costs due are paid on or before that date that is three business days | 0024| prior to the date of the sale; or | 0025| (2) an installment agreement for payment of all | 0001| delinquent taxes, penalties, interest and costs due is entered into | 0002| with the department on or before that date that is three business days | 0003| prior to the date of the sale in accordance with Section 7-38-68 NMSA | 0004| 1978. | 0005| B. The notice shall also: | 0006| (1) state the amount of taxes, penalties, interest | 0007| and costs due; | 0008| (2) state the time and place of the sale; | 0009| (3) describe the real property that will be sold; and | 0010| (4) contain any other information that the department | 0011| may require by regulation. | 0012| C. At the same time a notice required by Subsection A of | 0013| this section is sent to the owner of the property, a notice containing | 0014| the information set out in Subsection B of this section shall also be | 0015| sent to each person holding a lien or security interest of record in | 0016| the property if an address for such person is reasonably ascertainable | 0017| through a search of the property records of the county in which the | 0018| property is located. | 0019| D. Failure of the department to mail a required notice by | 0020| certified mail, return receipt requested, shall invalidate the sale; | 0021| provided, however, that return to the department of the notice of the | 0022| return receipt shall be deemed adequate notice and shall not | 0023| invalidate the sale. | 0024| E. Proof by the taxpayer that all delinquent taxes, | 0025| penalties, interest and costs had been paid on or before the date that | 0001| was three business days prior to the date of the sale shall prevent or | 0002| invalidate the sale. | 0003| F. Proof by the taxpayer that the taxpayer has entered into | 0004| an installment agreement on or before the date that was three business | 0005| days prior to the date of the sale to pay all delinquent taxes, | 0006| penalties, interest and costs as provided in Section 7-38-68 NMSA 1978 | 0007| and that timely payments under such agreement are being made shall | 0008| prevent or invalidate the sale." | 0009| Section 3. Section 7-38-68 NMSA 1978 (being Laws 1973, Chapter | 0010| 258, Section 108, as amended) is amended to read: | 0011| "7-38-68. INSTALLMENT AGREEMENTS.-- | 0012| A. The department may enter into an installment agreement | 0013| for the payment of all delinquent property taxes, penalties, interest | 0014| and costs due with respect to either real property or a manufactured | 0015| home with the owner of the real property or manufactured home whose | 0016| taxes have become delinquent and whose account for all or part of the | 0017| delinquent taxes has been transferred for collection to the | 0018| department. Execution of an installment agreement under this section | 0019| by a property owner is an irrevocable admission of liability for all | 0020| taxes that are the subject of the agreement. The installment | 0021| agreement shall be in writing and shall not extend for a period of | 0022| more than thirty-six months. Interest shall accrue on the unpaid | 0023| balance during the period of the installment agreement. The rate of | 0024| interest shall be one percent a month, and no other interest on that | 0025| portion of the principal representing unpaid taxes shall accrue while | 0001| an installment agreement is in effect. The department shall not enter | 0002| into an installment agreement with a property owner after the date | 0003| that is three business days prior to the date of the initial sale of | 0004| real property or manufactured home for delinquent taxes whether or not | 0005| the real property or manufactured home is sold and a deed issued as a | 0006| result of that sale. The department shall promulgate regulations | 0007| establishing requirements for a minimum down payment and substantially | 0008| equal monthly payments for installment agreements. | 0009| B. An installment agreement prevents any further action to | 0010| collect the delinquent taxes stated in the agreement as long as the | 0011| terms of the agreement are met. | 0012| C. The department may proceed under the Property Tax Code | 0013| to collect the property taxes, penalties, interest and costs due and | 0014| unpaid if: | 0015| (1) installment payments are not made on or before | 0016| the dates specified in the agreement; | 0017| (2) the property owner fails to pay other property | 0018| taxes when required; or | 0019| (3) any other condition contained in the agreement is | 0020| not met. | 0021| D. For the purpose of computing the time when real property | 0022| or a manufactured home may be sold for delinquent taxes, the date of | 0023| original delinquency shall be used when the delinquent taxes have been | 0024| the subject of an installment agreement that was subsequently breached | 0025| by the property owner. | 0001| E. If an owner of real property or a manufactured home | 0002| enters into an installment agreement and subsequently breaches the | 0003| agreement under this section, the department shall not enter into | 0004| another installment agreement with that property owner for the payment | 0005| of the delinquent taxes that were the subject of the installment | 0006| agreement. | 0007| F. Alphabetically indexed and serially numbered records of | 0008| installment agreements must be kept in the office of the director and | 0009| made available for public inspection." | 0010| Section 4. Section 7-38-70 NMSA 1978 (being Laws 1973, Chapter | 0011| 258, Section 110, as amended) is amended to read: | 0012| "7-38-70. ISSUANCE OF DEEDS AS RESULT OF SALE OF REAL PROPERTY | 0013| FOR DELINQUENT TAXES--EFFECT OF DEEDS--LIMITATION OF ACTION TO | 0014| CHALLENGE CONVEYANCE.-- | 0015| A. Upon receiving payment for real property sold for | 0016| delinquent taxes, the department shall execute and deliver a deed to | 0017| the purchaser. | 0018| B. If the real property was sold substantially in | 0019| accordance with the Property Tax Code, the deed conveys all of the | 0020| former property owner's interest in the real property as of the date | 0021| the state's lien for real property taxes arose in accordance with the | 0022| Property Tax Code, subject only to perfected interests in the real | 0023| property existing before the date the property tax lien arose. | 0024| C. After two years from the date of sale, neither the | 0025| former real property owner shown on the property tax schedule as the | 0001| delinquent taxpayer nor anyone claiming through him may bring an | 0002| action challenging the conveyance. | 0003| D. Subject to the limitation of Subsection C of this | 0004| section, in all controversies and suits involving title to real | 0005| property held under a deed from the state issued under this section, | 0006| any person claiming title adverse to that acquired by the deed from | 0007| the state shall prove, in order to defeat the title, that: | 0008| (1) the real property was not subject to taxation for | 0009| the tax years for which the delinquent taxes for which it was sold | 0010| were imposed; | 0011| (2) the department failed to mail the notice required | 0012| under Section 7-38-66 NMSA 1978 or to receive any required return | 0013| receipt; | 0014| (3) he, or the person through whom he claims, had | 0015| title to the real property at the time of the sale and had paid all | 0016| delinquent taxes, penalties, interest and costs on or before the date | 0017| that was three business days prior to the date of the sale as provided | 0018| in Subsection E of Section 7-38-66 NMSA 1978; or | 0019| (4) he, or the person through whom he claims, had | 0020| entered into an installment agreement on or before the date that was | 0021| three business days prior to the date of the sale to pay all | 0022| delinquent taxes, penalties, interest and costs as provided in Section | 0023| 7-38-68 NMSA 1978 and that all payments due were made timely." | 0024| Section 5. APPLICABILITY.--The provisions of this act apply | 0025| to the 1998 and subsequent property tax years. |