0001| SENATE BILL 884
|
0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997
|
0003| INTRODUCED BY
|
0004| NANCY E. RODRIGUEZ
|
0005|
|
0006|
|
0007|
|
0008|
|
0009|
|
0010| AN ACT
|
0011| RELATING TO PROPERTY TAX; ESTABLISHING DEADLINE FOR PAYMENT OF
|
0012| DELINQUENT TAXES TO PREVENT SALE OF PROPERTY; AMENDING CERTAIN
|
0013| SECTIONS OF THE NMSA 1978.
|
0014|
|
0015| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
|
0016| Section 1. Section 7-38-65 NMSA 1978 (being Laws 1973,
|
0017| Chapter 258, Section 105, as amended) is amended to read:
|
0018| "7-38-65. COLLECTION OF DELINQUENT TAXES ON REAL
|
0019| PROPERTY--SALE OF REAL PROPERTY.--
|
0020| A. The department may collect delinquent taxes on
|
0021| real property by selling the real property on which the taxes
|
0022| have become delinquent. The sale of real property for
|
0023| delinquent taxes shall be in accordance with the provisions of
|
0024| the Property Tax Code. Real property may be sold for
|
0025| delinquent taxes at any time after the expiration of three
|
0001| years from the first date shown on the tax delinquency list on
|
0002| which the taxes became delinquent. Real property shall be
|
0003| offered for sale for delinquent taxes either within four years
|
0004| after the first date shown on the tax delinquency list on which
|
0005| the taxes became delinquent or, if the department is barred by
|
0006| operation of law or by order of a court of competent
|
0007| jurisdiction from offering the property for sale for delinquent
|
0008| taxes within four years after the first date shown on the tax
|
0009| delinquency list on which the taxes became delinquent, within
|
0010| one year from the time the department determines that it is no
|
0011| longer barred from selling the property, unless:
|
0012| (1) all delinquent taxes, penalties, interest
|
0013| and costs due are paid [by] on or before the date that is
|
0014| three business days prior to the date of the sale; or
|
0015| (2) an installment agreement for payment of
|
0016| all delinquent taxes, penalties, [interests] interest and
|
0017| costs due is entered into with the department [by] on or
|
0018| before the date that is three business days prior to the date
|
0019| of the sale pursuant to Section 7-38-68 NMSA 1978.
|
0020| B. Failure to offer property for sale within the
|
0021| time prescribed by Subsection A of this section shall not
|
0022| impair the validity or effect of any sale which does take
|
0023| place."
|
0024| Section 2. Section 7-38-66 NMSA 1978 (being Laws 1973,
|
0025| Chapter 258, Section 106, as amended) is amended to read:
|
0001| "7-38-66. SALE OF REAL PROPERTY FOR DELINQUENT TAXES--
|
0002| NOTICE OF SALE.--
|
0003| A. At least twenty days but not more than thirty
|
0004| days before the date of the sale for delinquent taxes, the
|
0005| department shall notify by certified mail, return receipt
|
0006| requested, to the address as shown on the most recent property
|
0007| tax schedule, each property owner whose real property will be
|
0008| sold that the owner's real property will be sold to satisfy
|
0009| delinquent taxes, unless:
|
0010| (1) all delinquent taxes, penalties, interest
|
0011| and costs due are paid [by] on or before that date that is
|
0012| three business days prior to the date of the sale; or
|
0013| (2) an installment agreement for payment of
|
0014| all delinquent taxes, penalties, interest and costs due is
|
0015| entered into with the department [by] on or before that date
|
0016| that is three business days prior to the date of the sale in
|
0017| accordance with Section 7-38-68 NMSA 1978.
|
0018| B. The notice shall also:
|
0019| (1) state the amount of taxes, penalties,
|
0020| interest and costs due;
|
0021| (2) state the time and place of the sale;
|
0022| (3) describe the real property that will be
|
0023| sold; and
|
0024| (4) contain any other information that the
|
0025| department may require by regulation.
|
0001| C. At the same time a notice required by Subsection
|
0002| A of this section is sent to the owner of the property, a
|
0003| notice containing the information set out in Subsection B of
|
0004| this section shall also be sent to each person holding a lien
|
0005| or security interest of record in the property if an address
|
0006| for such person is reasonably ascertainable through a search of
|
0007| the property records of the county in which the property is
|
0008| located.
|
0009| D. Failure of the department to mail a required
|
0010| notice by certified mail, return receipt requested, shall
|
0011| invalidate the sale; provided, however, that return to the
|
0012| department of the notice of the return receipt shall be deemed
|
0013| adequate notice and shall not invalidate the sale.
|
0014| E. Proof by the taxpayer that all delinquent taxes,
|
0015| penalties, interest and costs had been paid on or before the
|
0016| date that was three business days prior to the date of the
|
0017| sale shall prevent or invalidate the sale.
|
0018| F. Proof by the taxpayer that the taxpayer has
|
0019| entered into an installment agreement on or before the date
|
0020| that was three business days prior to the date of the sale to
|
0021| pay all delinquent taxes, penalties, interest and costs [prior
|
to the date of sale] as provided in Section 7-38-68 NMSA 1978
|
0023| and that timely payments under such agreement are being made
|
0024| shall prevent or invalidate the sale."
|
0025| Section 3. Section 7-38-68 NMSA 1978 (being Laws 1973,
|
0001| Chapter 258, Section 108, as amended) is amended to read:
|
0002| "7-38-68. INSTALLMENT AGREEMENTS.--
|
0003| A. The [division] department may enter into an
|
0004| installment agreement for the payment of all delinquent
|
0005| property taxes, penalties, interest and costs due with respect
|
0006| to either real property or a manufactured home with the owner
|
0007| of the real property or manufactured home whose taxes have
|
0008| become delinquent and whose account for all or part of the
|
0009| delinquent taxes has been transferred for collection to the
|
0010| [division] department. Execution of an installment
|
0011| agreement under this section by a property owner is an
|
0012| irrevocable admission of liability for all taxes that are the
|
0013| subject of the agreement. The installment agreement shall be
|
0014| in writing and shall not extend for a period of more than
|
0015| thirty-six months. Interest shall accrue on the unpaid balance
|
0016| during the period of the installment agreement. The rate of
|
0017| interest shall be one percent a month, and no other interest on
|
0018| that portion of the principal representing unpaid taxes shall
|
0019| accrue while an installment agreement is in effect. The
|
0020| [division] department shall not enter into an installment
|
0021| agreement with a property owner [on or] after the date that
|
0022| is three business days prior to the date of the initial sale
|
0023| of real property or manufactured home for delinquent taxes
|
0024| whether or not the real property or manufactured home is sold
|
0025| and a deed issued as a result of that sale. The [division]
|
0001| department shall promulgate regulations establishing re-
|
0002|
|
0003| quirements for a minimum down payment and substantially equal
|
0004| monthly payments for installment agreements.
|
0005| B. An installment agreement prevents any further
|
0006| action to collect the delinquent taxes stated in the agreement
|
0007| as long as the terms of the agreement are met.
|
0008| C. The [division] department may proceed under
|
0009| the Property Tax Code to collect the property taxes, penalties,
|
0010| interest and costs due and unpaid if:
|
0011| (1) installment payments are not made on or
|
0012| before the dates specified in the agreement;
|
0013| (2) the property owner fails to pay other
|
0014| property taxes when required; or
|
0015| (3) any other condition contained in the
|
0016| agreement is not met.
|
0017| D. For the purpose of computing the time when real
|
0018| property or a manufactured home may be sold for delinquent
|
0019| taxes, the date of original delinquency shall be used when the
|
0020| delinquent taxes have been the subject of an installment
|
0021| agreement that was subsequently breached by the property owner.
|
0022| E. If an owner of real property or a manufactured
|
0023| home enters into an installment agreement and subsequently
|
0024| breaches the agreement under this section, the [division]
|
0025| department shall not enter into another installment agreement
|
0001| with that property owner for the payment of the delinquent
|
0002| taxes that were the subject of the installment agreement.
|
0003| F. Alphabetically indexed and serially numbered
|
0004| records of installment agreements must be kept in the office of
|
0005| the director and made available for public inspection."
|
0006| Section 4. Section 7-38-70 NMSA 1978 (being Laws 1973,
|
0007| Chapter 258, Section 110, as amended) is amended to read:
|
0008| "7-38-70. ISSUANCE OF DEEDS AS RESULT OF SALE OF REAL
|
0009| PROPERTY FOR DELINQUENT TAXES--EFFECT OF DEEDS--LIMITATION OF
|
0010| ACTION TO CHALLENGE CONVEYANCE.--
|
0011| A. Upon receiving payment for real property sold
|
0012| for delinquent taxes, the [division] department shall
|
0013| execute and deliver a deed to the purchaser.
|
0014| B. If the real property was sold substantially in
|
0015| accordance with the Property Tax Code, the deed conveys all of
|
0016| the former property owner's interest in the real property as of
|
0017| the date the state's lien for real property taxes arose in
|
0018| accordance with the Property Tax Code, subject only to
|
0019| perfected interests in the real property existing before the
|
0020| date the property tax lien arose.
|
0021| C. After two years from the date of sale, neither
|
0022| the former real property owner shown on the property tax
|
0023| schedule as the delinquent taxpayer nor anyone claiming through
|
0024| him may bring an action challenging the conveyance.
|
0025| D. Subject to the limitation of Subsection C of
|
0001| this section, in all controversies and suits involving title to
|
0002| real property held under a deed from the state issued under
|
0003| this section, any person claiming title adverse to that
|
0004| acquired by the deed from the state [must] shall prove, in
|
0005| order to defeat the title, that:
|
0006| (1) the real property was not subject to
|
0007| taxation for the tax years for which the delinquent taxes for
|
0008| which it was sold were imposed;
|
0009| (2) the [division] department failed to
|
0010| mail the notice required under Section 7-38-66 NMSA 1978 or to
|
0011| receive any required return receipt;
|
0012| (3) he, or the person through whom he claims,
|
0013| had title to the real property at the time of the sale and had
|
0014| paid all delinquent taxes, penalties, interest and costs on or
|
0015| before the date that was three business days prior to the
|
0016| date of the sale as provided in Subsection E of Section 7-38-
|
0017| 66 NMSA 1978; or
|
0018| (4) he, or the person through whom he claims,
|
0019| had entered into an installment agreement on or before the
|
0020| date that was three business days prior to the date of the
|
0021| sale to pay all delinquent taxes, penalties, interest and
|
0022| costs [prior to the sale] as provided in Section 7-38-68 NMSA
|
0023| 1978 and that all payments due were made timely."
|
0024| Section 5. APPLICABILITY.--The provisions of this act
|
0025| apply to the 1998 and subsequent property tax years.
|
0001| State of New Mexico
|
0002| House of Representatives
|
0003|
|
0004| FORTY-THIRD LEGISLATURE
|
0005| FIRST SESSION, 1997
|
0006|
|
0007|
|
0008| March 14, 1997
|
0009|
|
0010|
|
0011| Mr. Speaker:
|
0012|
|
0013| Your TAXATION AND REVENUE COMMITTEE, to whom has
|
0014| been referred
|
0015|
|
0016| SENATE BILL 884
|
0017|
|
0018| has had it under consideration and reports same with
|
0019| recommendation that it DO PASS, and thence referred to the
|
0020| JUDICIARY COMMITTEE.
|
0021|
|
0022| Respectfully submitted,
|
0023|
|
0024|
|
0025|
|
0001|
|
0002|
|
0003| Jerry W. Sandel, Chairman
|
0004|
|
0005|
|
0006| Adopted Not Adopted
|
0007|
|
0008| (Chief Clerk) (Chief Clerk)
|
0009|
|
0010| Date
|
0011|
|
0012| The roll call vote was 12 For 0 Against
|
0013| Yes: 12
|
0014| Excused: Sandoval
|
0015| Absent: None
|
0016|
|
0017|
|
0018| G:\BILLTEXT\BILLW_97\S0884 State of New Mexico
|
0019| House of Representatives
|
0020|
|
0021| FORTY-THIRD LEGISLATURE
|
0022| FIRST SESSION, 1997
|
0023|
|
0024|
|
0025| March 14, 1997
|
0001|
|
0002|
|
0003| Mr. Speaker:
|
0004|
|
0005| Your TAXATION AND REVENUE COMMITTEE, to whom has
|
0006| been referred
|
0007|
|
0008| SENATE BILL 884
|
0009|
|
0010| has had it under consideration and reports same with
|
0011| recommendation that it DO PASS, and thence referred to the
|
0012| JUDICIARY COMMITTEE.
|
0013|
|
0014| Respectfully submitted,
|
0015|
|
0016|
|
0017|
|
0018|
|
0019|
|
0020| Jerry W. Sandel, Chairman
|
0021|
|
0022|
|
0023| Adopted Not Adopted
|
0024|
|
0025| (Chief Clerk) (Chief Clerk)
|
0001|
|
0002| Date
|
0003|
|
0004| The roll call vote was 12 For 0 Against
|
0005| Yes: 12
|
0006| Excused: Sandoval
|
0007| Absent: None
|
0008|
|
0009|
|
0010| G:\BILLTEXT\BILLW_97\S0884 State of New Mexico
|
0011| House of Representatives
|
0012|
|
0013| FORTY-THIRD LEGISLATURE
|
0014| FIRST SESSION, 1997
|
0015|
|
0016|
|
0017| March 21, 1997
|
0018|
|
0019|
|
0020| Mr. Speaker:
|
0021|
|
0022| Your JUDICIARY COMMITTEE, to whom has been referred
|
0023|
|
0024| SENATE BILL 884
|
0025|
|
0001| has had it under consideration and reports same with
|
0002| recommendation that it DO PASS.
|
0003|
|
0004| Respectfully submitted,
|
0005|
|
0006|
|
0007|
|
0008|
|
0009|
|
0010| Thomas P. Foy, Chairman
|
0011|
|
0012|
|
0013| Adopted Not Adopted
|
0014|
|
0015| (Chief Clerk) (Chief Clerk)
|
0016|
|
0017| Date
|
0018|
|
0019| The roll call vote was 6 For 1 Against
|
0020| Yes: 6
|
0021| No: King
|
0022| Excused: Alwin, Foy, Luna, Rios, Sanchez, Stewart
|
0023| Absent: None
|
0024|
|
0025|
|
0001| G:\BILLTEXT\BILLW_97\S0884
|