A. Real property shall not be sold for delinquent taxes before the expiration of three 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. History: 1953 Comp., § 72-31-67, enacted by Laws 1973, ch. 258, § 107; 1974, ch. 92, § 24; 1982, ch. 28, § 24; 1983, ch. 215, § 5; 1995, ch. 12, § 12; 2001, ch. 253, § 3; 2001, ch. 254, § 3; 2005, ch. 211, § 1. Cross references. — For laws relating to land grant-merced, see 49-1-1 to 49-1-22 NMSA 1978. The 2005 amendment, effective July 1, 2005, in Subsection E, provided that real property shall not be sold for less than the minimum price unless no offer met the minimum price when the property is sold in accordance with Subsection H and added Subsection H to provide that the board of trustees shall be allowed to match the highest bid at a public auction and purchase the property for the amount bid if the property is within a land grant-merced, the bid covers all past taxes, penalties, interest and costs and the land becomes part of the common lands of the land grant-merced. The 2001 amendment, effective June 15, 2001, in Subsection B, substituted "local newspaper" for "newspaper of general circulation", added "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", and added the second sentence. The 1995 amendment, effective June 16, 1995, substituted "department" for "division" throughout the section and substituted "costs" for "expenses of the sale" in Subsection D and in two places in Subsection E. Notice by publication inadequate for mortgagee. — Notice by publication, in compliance with this section, does not provide a mortgagee of real property with constitutionally adequate notice of a proceeding to sell the mortgaged property for nonpayment of taxes. Macaron v. Assocs. Capital Servs. Corp ., 1987-NMCA-005, 105 N.M. 380, 733 P.2d 11. Owner's interest. — Subsection E of this section requires the department to "consider" both the owner's interest and the amount of delinquent taxes, penalties, and costs, but then the department is directed to set the minimum price as not less than the total of the delinquent taxes, penalties, and costs. Thus, the legislature does not appear to have required any definite amount representing the owner's interest as part of the minimum sale price. Cochrell v. Mitchell , 2003-NMCA-094, 134 N.M. 180, 75 P.3d 396. A tax sale may be invalidated and rescheduled if not conducted substantially in accordance with the tax code so long as the deed has not yet been issued and delivered to the purchaser. — Where, after a three-year period of nonpayment of delinquent property taxes by the owner of a ten-acre parcel of land located in Santa Fe county, the taxation and revenue department (department) placed the property up for sale at public auction, and where the department complied with the notice requirements of 7-38-66 and 7-38-67(B) NMSA 1978, but on the day before the auction, a department employee mistakenly notified the department personnel charged with preparing the next day's auction that the taxes on the parcel at issue had been paid and that the parcel should be removed from the list of properties for sale, and where, on the day of the auction, certain potential bidders left the auction after they were notified that the property would not be sold that day, and where the parcel was placed on a list of properties removed from the auction for a short period of time, but was returned to the auction list after the county treasurer's office informed the department that payment of delinquent taxes had not been made, and where the property was then sold to purchaser, the sole bidder, for the minimum price of $17,100, the amount of taxes, penalty, interest and costs owed to the state, and where, two days after the tax sale, the department invalidated the tax sale for not substantially complying with the requirements of the tax code after learning from a potential bidder that she had left the auction in reliance on the department's announcement and subsequent assurances that the parcel would not be sold on the day of the auction, and where purchaser filed a petition for writ of mandamus in district court, asking the court to order the department to issue a tax deed for the parcel, the district erred in entering a peremptory writ of mandamus ordering the department to issue a tax deed, because the parcel was not sold substantially in compliance with the public auction requirement of the tax code when the property was sold without recognizing the property owner's interest and right to receive any amount generated at public auction in excess of the debt to the state, and by announcing at the outset of the auction that the parcel would not be sold that day, the department essentially negated the prior notice to potential purchasers required by 7-38-67(B) NMSA 1978 and undermined the legislature's purpose in requiring a public auction to increase the sale price. Dearborn v. Clarke , 2024-NMCA-002. The department is not required to execute and deliver a deed if the property was not sold in substantial compliance with the tax code. — Where, after a three-year period of nonpayment of delinquent property taxes by the owner of a ten-acre parcel of land located in Santa Fe county, the taxation and revenue department (department) placed the property up for sale at public auction, and where the property was sold to purchaser, the sole bidder, for the minimum price of $17,100, the amount of taxes, penalty, interest and costs owed to the state, and where, two days after the tax sale, the department invalidated the tax sale for not substantially complying with the requirements of the tax code after learning from a potential bidder that she had left the auction in reliance on the department's announcement and subsequent assurances that the parcel would not be sold that day, and where purchaser filed a petition for writ of mandamus in district court, asking the court to order the department to issue a tax deed for the parcel, and where the district court entered a peremptory writ of mandamus ordering the department to issue a tax deed for the parcel of land, finding that even assuming the sale was not conducted substantially in accordance with the tax code, the department had a mandatory duty under the plain language of 7-38-70(A) NMSA 1978 to issue and deliver a tax deed to petitioner upon receiving payment for the property and that the department lacked the authority to invalidate the sale once payment was received, the district court erred in entering a peremptory writ of mandamus, because the legislature intended that the department's authority to invalidate a substantially flawed tax sale to continue until the department has reviewed the conduct of the sale and determined that a valid tax deed can be issued. Dearborn v. Clarke , 2024-NMCA-002. Am. Jur. 2d, A.L.R. and C.J.S. references. — 72 Am. Jur. 2d State and Local Taxation §§ 931 to 939. 85 C.J.S. Taxation §§ 798 to 808.
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