us-nm/stat
NMSA 1978, § 7-1-53 — Enjoining delinquent taxpayer from continuing in business
A.
To ensure or to compel payment of taxes and to aid in the enforcement of the
provisions of the Tax Administration Act, the secretary may apply to a district court of
this state to have any delinquent taxpayer or person who may be or may become liable
for payment of any tax enjoined from engaging in business until the delinquent taxpayer
ceases to be a delinquent taxpayer or until the delinquent taxpayer or person complies
with other requirements, reasonably necessary to protect the revenues of the state,
placed on the delinquent taxpayer or person by the secretary.
B.
Upon application to a court for an injunction against a delinquent taxpayer, the
court may forthwith issue an order temporarily restraining the delinquent taxpayer from
doing business. The court shall hear the matter within fifteen days. Upon written request
of the taxpayer, the hearing may be held earlier. Upon a showing by a preponderance of
the evidence that the taxpayer is delinquent and has been given notice of the hearing as
required by law, the court may enjoin the taxpayer from engaging in business in New
Mexico until the taxpayer ceases to be a delinquent taxpayer. Upon issuing an
injunction, the court may also order the business premises of the taxpayer sealed by the
sheriff and may allow the taxpayer access thereto only upon approval of the court.
C.
Upon application to a court for an injunction against a person other than a
delinquent taxpayer, the court:
(1) may issue an order temporarily restraining the person other than the
delinquent taxpayer from engaging in business;
(2) shall hear the matter within fifteen days, except that the hearing may be
held earlier if requested in writing by the person who is the subject of the temporary
restraining order; and
(3) may without delay issue an injunction to the taxpayer in terms
commanding the person who is the subject of the temporary restraining order to refrain
from engaging in business until that person complies in full with the demand of the
department to furnish security, if there is a showing that:
(a) the person who is the subject of the temporary restraining order has been
given notice of the hearing for the injunction as required by law;
(b) a demand by the department has been made upon the taxpayer to furnish
security;
(c) the taxpayer has not furnished security; and
(d) the secretary considers the collection from the person primarily
responsible for the total amount of tax due or reasonably expected to become due to be
in jeopardy.
D.
A temporary restraining order or injunction shall not issue by provision of this
section against any person who has furnished security in accordance with the
provisions of Section 7-1-54 NMSA 1978. Upon a showing to the court by any person
against whom a temporary restraining order or writ of injunction has issued by provision
of this section that that person has furnished security in accordance with the provisions
of Section 7-1-54 NMSA 1978, the court shall dissolve or set aside the temporary
restraining order or injunction.
Source: official text