2023 New Mexico Statutes › Chapter 7 - Taxation › Article 38 - Administration and Enforcement of Property Taxes › Section 7-38-65 - Collection of delinquent taxes on real property; sale of real property.

A. If a lien exists by the operation of Section 7-38-48 NMSA 1978, the department may collect delinquent taxes on real property by selling the real property on which the taxes have become delinquent. The sale of real property for delinquent taxes shall be in accordance with the provisions of the Property Tax Code. Real property may be sold for delinquent taxes at any time after the expiration of three years from the first date shown on the tax delinquency list on which the taxes became delinquent. Real property shall be offered for sale for delinquent taxes either within four years after the first date shown on the tax delinquency list on which the taxes became delinquent or, if the department is barred by operation of law or by order of a court of competent jurisdiction from offering the property for sale for delinquent taxes within four years after the first date shown on the tax delinquency list on which the taxes became delinquent, within one year from the time the department determines that it is no longer barred from selling the property, unless:
(1) all delinquent taxes, penalties, interest and costs due are paid by 5:00 p.m. of the day prior to the date of the sale; or
(2) an installment agreement for payment of all delinquent taxes, penalties, interest and costs due is entered into with the department by 5:00 p.m. of the day prior to the date of the sale pursuant to Section 7-38-68 NMSA 1978.
B. Failure to offer property for sale within the time prescribed by Subsection A of this section shall not impair the validity or effect of any sale that does take place.
C. The time requirements of this section are subject to the provisions of Section 7-38-83 NMSA 1978.
D. After January 1, 2014 and subject to the provisions of Subsection A of this section, the department shall annually offer for sale in each county at least one real property listed on that county's property tax delinquency list, unless the director of the property tax division of the department and the county treasurer enter into an agreement to postpone the delinquent property tax sale. The agreement to postpone the delinquent property tax sale shall be executed in writing, and copies shall be sent to the secretary of taxation and revenue and the secretary of finance and administration. That agreement shall state the reason for the postponement and the proposed remedy that will allow the department to conduct the sale in the future.
History:
1953 Comp., § 72-31-65, enacted by Laws 1973, ch. 258, § 105; 1983, ch. 215, § 3; 1985, ch. 109, § 9; 1985, ch. 226, § 1; 1990, ch. 22, § 7; 2001, ch. 253, § 1; 2001, ch. 254, § 1; 2003, ch. 95, § 4; 2013, ch. 155, § 1.
ANNOTATIONS
The 2013 amendment,
effective January 1, 2014, required the taxation and revenue department to conduct delinquent property tax sales in each county with delinquent properties at least one time in each calendar year; and added Subsection D.
Applicability.
— Laws 2013, ch. 155, § 2 provided that the provisions of Laws 2013, ch. 155, § 2 applies to property tax years beginning on or after January 1, 2014.
The 2003 amendment,
effective June 20, 2003, added "If a lien exists by the operation of Section 7-38-48 NMSA 1978" at the beginning of Subsection A.
The 2001 amendment,
effective June 15, 2001, in Paragraphs A(1) and (2), substituted "by 5:00 p.m. of the day prior to the date of sale" for "by the date of sale"; and added Paragraph C.
The 1990 amendment,
effective May 16, 1990, in Subsection A, substituted "department" for "division" in the first sentence and in Paragraph (2) and rewrote the fourth sentence which read "Real property must be offered for sale for delinquent taxes within four years after the first date shown on the tax delinquency list on which the taxes became delinquent, unless".
Purpose of statutes on tax deeds
is to give a measure of certainty and security to tax titles.
First Nat'l Bank v. State
, 1967-NMSC-097, 77 N.M. 695, 427 P.2d 225.
Tax deeds prima facie valid.
— Since tax deeds attacked were signed by the proper officials, they were prima facie valid unless some departure from statutory mandates, which made the conveyance a nullity and void, was established. The burden in this respect was on the state in order to overcome the prima facie effect granted the deeds by former 72-8-43, 1953 Comp.
First Nat'l Bank v. State
, 1967-NMSC-097, 77 N.M. 695, 427 P.2d 225.
Tax deed issued before period of redemption has expired
is void.
First Nat'l Bank v. State
, 1967-NMSC-097, 77 N.M. 695, 427 P.2d 225.
State is not an "owner"
neither is it "person entitled to redeem."
First Nat'l Bank v. State
, 1967-NMSC-097, 77 N.M. 695, 427 P.2d 225.
State has no standing to assert rights of owner.
— The rights preserved in the statutes are rights of "owners" as that term is interpreted, and the state cannot bring itself within the protection of the sections. Unless the conveyances were void and a nullity, the state has no standing to assert rights given by statute to "owners" or "persons entitled to redeem."
First Nat'l Bank v. State
, 1967-NMSC-097, 77 N.M. 695, 427 P.2d 225.
State in no better position than other strangers.
— The state is in no better position to avoid its tax deeds or to claim deprivation of rights guaranteed by statute to the prior owner than would be some other stranger to the right.
First Nat'l Bank v. State
, 1967-NMSC-097, 77 N.M. 695, 427 P.2d 225.
Action to declare rights under the Property Tax Code.
— A claim seeking to invalidate a tax sale due to inadequacy of price may be directed solely at the third-party purchasers of the property.
Valenzuela v. Snyder
, 2014-NMCA-061, cert. granted, 2014-NMCERT-005.
Where plaintiffs owed delinquent property taxes; the department sold the property at auction; the department established the minimum bid as $215; the fair market value of the property was at least $25,000; the buyers of the property, who were the only bidders, paid $215 for the property; the department issued a tax deed to the buyers; and plaintiffs filed suit against the buyers to set aside the sale, the suit against the buyers was permissible.
Valenzuela v. Snyder
, 2014-NMCA-061, cert. granted, 2014-NMCERT-005.
Inadequacy of purchase price.
— The inadequacy of the purchase price or gross disproportionality between the purchase price and the property's value are not grounds for setting aside a tax sale.
Valenzuela v. Snyder
, 2014-NMCA-061, cert. granted, 2014-NMCERT-005.
Where plaintiffs owed delinquent property taxes; the department sold the property at auction; the department established the minimum bid as $215; the fair market value of the property was at least $25,000; the buyers of the property, who were the only bidders, paid $215 for the property; the department issued a tax deed to the buyers; and plaintiffs filed suit against the buyers to set aside the sale, the inadequacy of the purchase price or gross disproportionality between the purchase price and the property's value were not unconscionable and were not grounds for setting aside the tax sale.
Valenzuela v. Snyder
, 2014-NMCA-061, cert. granted, 2014-NMCERT-005.
Failure of proper notice would not invalidate sale.
— If a valid assessment and levy had been made of the taxes, the county treasurer's failure to give a proper notice would not invalidate the tax sales. The neglect to give a proper notice or failure to give any notice at all would not discharge the tax or present a valid obstacle to the collection thereof.
Greene v. Esquibel
, 1954-NMSC-039, 58 N.M. 429, 272 P.2d 330.
Continuity of adverse possession interrupted where land forfeited for taxes.
— If, during the running of the statute of limitations in favor of the adverse occupant of land, the land is forfeited to the state for taxes, the general rule is that continuity of possession is interrupted for the reason that the statute of limitations does not run against the state in the absence of some special provision to that effect.
Greene v. Esquibel
, 1954-NMSC-039, 58 N.M. 429, 272 P.2d 330.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
Easement, servitude, or covenant as affected by sale for taxes, 7 A.L.R.5th 187.