BILL ANALYSIS AND FISCAL IMPACT REPORT	Page 1 of  1

DATE: March 7, 2001	Submitted by: TAXATION AND REVENUE DEPT.       
	T. GLENN ELLINGTON, SECRETARY 
BILL NUMBER: SB-356 as amended by Senate Finance Committee

SPONSOR: Senator Campos

BILL SHORT TITLE: Changing the deadline for paying delinquent property taxes

CONFLICTS, DUPLICATES, COMPANIONS: HB-138 (duplicate) 

DESCRIPTION: 
This legislation would amend sections 7-38-65 and 7-38-66 NMSA 1978 governing the deadline by which individuals must pay delinquent property taxes to prevent sale of associated property by the Taxation and Revenue Department. Currently taxpayers may prevent sale of their property by paying delinquent taxes, penalty and interest by the day on which the Department is scheduled to sell their property. The proposed measure would require taxpayers to pay delinquent taxes, penalty and interest by 5:00 p.m. on the day prior to the sale date in order to prevent sales. 
	The Senate Finance Committee amendments would modify Section 7-38-67B NMSA 1978 requiring sale notices to be published in a newspaper of general circulation within the county where properties subject to sale are located. The amendment would allow the notices to be published in a newspaper near the county in which the property is located if there is no local county or municipal newspaper where the properties are located. The amendments would also allow the Department to publish notice of sales in newspapers not published within the county where the  properties are located, but which have "more general" circulation than the other newspapers in which sale notices are published.

EFFECTIVE DATE:  The measure would apply to sales of delinquent taxes conducted by the Taxation and Revenue Department on or after July 1, 2001.

FISCAL IMPACT:
The proposed legislation would impose no significant impacts on state or local revenues.

TECHNICAL ISSUES: The proposed legislation may create a condition wherein taxes are paid by mail and postmarked on a day prior to sale while the Department has no way of knowing that they have been placed in the mail, since postmarking does not insure delivery to the Department prior to the sale date. The problem may be resolved by requiring receipt of payment (by the treasurer or the Department) by the deadline.  This may be something the Department could do by regulation.

ADMINISTRATIVE IMPACT: The proposed measure would improve efficiency of New Mexico's property tax system by requiring taxpayers to notify this Department within a day prior to the one on which properties are sold, rather than on the day of sale. Providing the Department with notice of taxpayers intentions would eliminate some otherwise unnecessary preparation work prior to sale that would otherwise occur. As a practical matter, the Department would probably continue to accept payment on the date of sale in many cases. It would not be required to do so, however.

OTHER IMPACTS AND ISSUES:
none.