us-nm/stat
NMSA 1978, § 7-38-71 — Distribution of amounts received from sale of property
A.
Money received by the department from the sale of real or personal property for
delinquent property taxes shall be deposited in a suspense fund and distributed as
follows in the order provided:
(1) first, that portion equal to the costs shall be retained by the department for
use, subject to appropriation by the legislature, in administration of the Property Tax
Code;
(2) second, that portion equal to the penalties and interest due shall be
retained by the department for use, subject to appropriation by the legislature, by the
department in administration of the Property Tax Code [Chapter 7, Article 1 NMSA
1978];
(3) third, that portion equal to the delinquent taxes due shall be remitted by
the department to the appropriate county treasurer for distribution by the treasurer to the
governmental units in accordance with the law and the regulations of the department of
finance and administration;
(4) fourth, if the former owner of the property sold is a delinquent taxpayer
pursuant to Section 7-1-16 NMSA 1978, that portion equal to any delinquent amount for
any tax program administered by the department pursuant to Section 7-1-2 NMSA 1978
shall be retained by the department to satisfy the delinquent amount; and
(5) fifth, the balance shall be paid to the former owner of the property sold or
to any other person designated by order directed to the department by a court of
competent jurisdiction, provided that the department may first apply all or any portion of
the balance to be paid against the amount of any property tax, including any penalty
and interest related thereto, owed by the person to whom the balance would otherwise
be paid.
B.
As a condition precedent to payment of the balance of the sale amount received
to the former owner of the property, the department may require any person claiming to
be entitled to that payment to present sufficient evidence of proof of former ownership of
the property to the department. The department shall adopt regulations providing for
the procedures to be followed by persons claiming sale proceeds as former owners in
those instances where conflicting claims exist or the department requires proof of
ownership.
C.
If no person claims the balance of sale proceeds as the former owner of the
property within two years of the date of the sale and after a reasonable search to
determine the former owner is made by the department and no former owner is found,
the balance of the sale proceeds shall be considered abandoned property and
deposited in accordance with the provisions of the Uniform Unclaimed Property Act
(1995) ) [Chapter 7, Article 8A NMSA 1978].
D.
If the balance of proceeds from the sale after paying a higher priority claim under
Subsection A of this section is insufficient to pay all of the next priority claim, then the
complete balance shall be applied to that next priority claim as partial payment.
Source: official text