TIME OF SALE OR TRANSFER FOR DELINQUENT TAXES

HB0220

HOUSE BILL 220

57th legislature - STATE OF NEW MEXICO - second session, 2026

INTRODUCED BY

Pamelya Herndon
and
D. Wonda Johnson
and
Cynthia Borrego

AN ACT

RELATING TO TAXATION; AMENDING THE TIME OF TRANSFER TO THE
TAXATION AND REVENUE DEPARTMENT BY COUNTIES AND THE TIME OF
SALE FOR REAL PROPERTY SUBJECT TO SALE DUE TO DELINQUENT
PROPERTY TAXES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

SECTION 1.
Section 7-38-61 NMSA 1978 (being Laws 1973,
Chapter 258, Section 100, as amended) is amended to read:

"7-38-61. REAL PROPERTY TAXES DELINQUENT FOR MORE THAN
[
TWO
]
FOUR
YEARS--TREASURER TO PREPARE DELINQUENCY LIST--NOTATION ON PROPERTY TAX SCHEDULE.--

A. By July 1 of each year, the county treasurer
shall prepare a property tax delinquency list of all real
property for which taxes have been delinquent for more than
[
two
]
four
years. The tax delinquency list shall contain the
information and be in a form prescribed and submitted by the
date required by department regulations. The county treasurer
shall record the tax delinquency list in the office of the
county clerk. There shall be no recording fee for recordation
of the tax delinquency list. The updated final property tax
sale list shall be recorded with the office of the county clerk
the day following the sale of the property. There shall be no
recording fee for recordation of the final property tax sale
list.

B. The county treasurer shall make a notation on
the property tax schedule indicating that the account has been
transferred to the department for collection at the time the
tax delinquency list is mailed to the department."

SECTION 2.
Section 7-38-67 NMSA 1978 (being Laws 1973,
Chapter 258, Section 107, as amended) is amended to read:

"7-38-67. REAL PROPERTY SALE REQUIREMENTS.--

A. Real property shall not be sold for delinquent
taxes before the expiration of [
three
]
five
years from the
first date shown on the tax delinquency list on which the taxes
on the real property became delinquent.

B. Notice of the sale shall be published in a local
newspaper within the county where the real property is located
or, if there is no local county or municipal newspaper, then a
newspaper published in a county contiguous to or near the
county in which the real property is located, at least once a
week for the three weeks immediately preceding the week of the
sale. For more generalized notice, the department may choose
to publish notice of the sale also in a newspaper not published
within the county and of more general circulation. The notice
shall state the time and place of the sale and shall include a
description of the real property sufficient to permit its
identification and location by potential purchasers.

C. Real property shall be sold at public auction
either by the department or an auctioneer hired by the
department. The auction shall be held in the county where the
real property is located at a time and place designated by the
department.

D. If the real property can be divided so as to
enable the department to sell only part of it and pay all
delinquent taxes, penalties, interest and costs, the department
may, with the consent of the owner, sell only a part of the
real property.

E. Before the sale, the department shall determine
a minimum sale price for the real property. In determining the
minimum price, the department shall consider the value of the
property owner's interest in the real property, the amount of
all delinquent taxes, penalties and interest for which it is
being sold and the costs. The minimum price shall not be less
than the total of all delinquent taxes, penalties, interest and
costs. Real property shall not be sold for less than the
minimum price unless no offer met the minimum price when it was
offered at an earlier public auction or the property is sold in
accordance with the provisions of Subsection H of this section.
A sale properly made under the authority of and in accordance
with the requirements of this section constitutes full payment
of all delinquent taxes, penalties and interest that are a lien
against the property at the time of sale, and the sale
extinguishes the lien.

F. Payment shall be made in full by the close of
the public auction before an offer may be deemed accepted by
the department.

G. Real property not offered for sale may be
offered for sale at a later sale, but the requirements of this
section and Section 7-38-66 NMSA 1978 shall be met in
connection with each sale.

H. The board of trustees of a community land grant-merced governed pursuant to the provisions of Chapter 49,
Article 1 NMSA 1978 or by statutes specific to the named land
grant-merced shall be allowed to match the highest bid at a
public auction, which shall entitle the board of trustees to
purchase the property for the amount bid if:

(1) the property is situated within the
boundaries of that land grant-merced as shown in the United
States patent to the grant;

(2) the bid covers all past taxes, penalties,
interest and costs due on the property; and

(3) the land becomes part of the common lands
of the land grant-merced."

SECTION 3.
APPLICABILITY.--The provisions of this act
apply to property tax years beginning on or after January 1,
2026.

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