New Mexico state record. (Santa Fe, N.M.) 1914-19??, 1917-03-23
OPERATION OF NEW
LEASE LAW EXPLAINED

The State Land Office has issued
a summary OF the new "ThirtyYear'
or "Deferred Payment Plan" law for
the sale of state lands, enacted by
the recent lcgis ature, which will be
of very general interest to the peo-
pie of New Mexico. Those who
have studied the new law and com.
pared it with the old state lann sale
c'rtract believe it will have The ef-
:ect of ir;mediately increasing the
demand for state lands, both in large
and small tracts and in cncourtg-
lrg interest in the public auctions a
wL..h al st;tc land sarc sod.
. Under the old law the purchaser
oi state lands paid ten percent OF
the pu' chase price al time o. sale
and the balance in thirty annual
nstallments, the deferred payments
bearing interest at 4ft per annun.
The buyer paid taxes only on his
equity and Improvements.
Under the new law the success
iul bidder at sale of state and
pays in cash 5 per cent of the pur-
chase price. The remaining ninety
five per cent may be paid at any time
within thirty years, the only quail
! fication being that such payment
must be made on an interest pay
ing date and may not be for less
than onc-thirtieth of this original
unpaid balance. Interest charged
upon the unpaid balance is 4fo, per
annum, payable annually in advance
Interest due and unpaid bears in
terest at the rate of ! percent per
month until paid. In other words,
the buyer upon payment of per-
cent of the purchase price, and tn.
annual interest in advance, come, in
to unrestricted possession OF the
land and remains in such possession
without any further payments ex-
cept the annual interest, for thirty
years, or, if desired, the purchaser
may complete payment Of the pur-
chase price at any time within that
period The state is projected by
42o income bearing mor:ga &c, based
on the land.
Section 3 of the new law provides
that the purchaser shall become res
ponsible fpr the taxes on the land
from date 'of purchase, thus pulling
all state land so4I on the tax
rolls Immediately, instead of by
small equity increases as under the
cd law. Taxes are to be assessed
as other similar property is assess
ed and failure to pay taxes works
as forfeiture of the contract.
While the item of taxes is rela-
lively unimportant to the buyer
under the new law, except, perhaps,
in the case of very large tracts, the
aggregate of all these taxes will
be of very great Importance to the
state in the total of its assessed
valuation. Thus the new law not
only will stimulate demand for state
lands, particularly in small tracts,
and encourage more active bidding
and consequent advances in prices
realized, but it will place all land
sold at once upon the tax rolls
so that deve 'opment of the state
lands will be of double benefit to the
state.
Section 4 of the new law pro-
vides that all existing contracts to
purchase state land may be adapted
% conform to the provisions of the
lew law, at the option of the hold
,r and upon his application, on pay
nent of a fee of four dollars for
Zach contract of one section or less,
md ten cents for each additional
section or fraction thereof. These
ees are nominal, covering the cost
IF clerical work involved in tho
State Land Office. The land selected
or the account of the Santa Fe
nd Grant county railroad bond fund !
re excepted from the provisions of t
he new law. All other state lards
ONE under its operation, subject to
he provisions of the Public Land !
ode. I
The new law carries the e,ner- :
ency clause and became effective
n its approval by Governor Lind !:
ey