This rule was filed as 3
NMAC 6.50.
TITLE 3 TAXATION
CHAPTER 6 PROPERTY TAXES
PART 50 PROCEDURES FOR COUNTY TREASURERS
3.6.50.1 Issuing agency: Department of Finance
and Administration, Local Government Division.
[7/15/98; Recompiled
10/01/01]
3.6.50.2 Scope: These rules and
regulations shall apply to procedures to be followed by all county treasurers
in the state of New Mexico.
[12/31/74, 7/15/98;
Recompiled 10/01/01]
3.6.50.3 Statutory authority: The local government
division of the department of finance and administration promulgates the
procedures for county treasurers, pursuant to the authority of NMSA 1978
Sections 6-6-2, 6-6-3, 7-35-6, 7-35-7 through 7-37-8, 7-38-32 through
7-38-38.1, 7-38-41 through 7-38-43, 7-38-63, 7-38-65 through 7-38-69, 7-38-71,
7-38-73, 7-38-76 through 7-38-77.1 and 7-38-80.
[7/15/98; Recompiled
10/01/01]
3.6.50.4 Duration: Permanent.
[12-31-74, 2-19-92,
7-15-98; Recompiled 10/01/01]
3.6.50.5 Effective date: July 15, 1998, unless a
different date is cited at the end of a section or paragraph.
[7/15/98; Recompiled
10/01/01]
[Compiler’s
note: The words or paragraph, above, are no longer applicable. Different dates are now cited only at the
end of sections, in the history notes appearing in brackets.]
3.6.50.6 Objective: The objective of Title
3, Chapter 6, Part 50 NMAC is to establish uniform procedures by which county
treasurers implement portions of the Property Tax Code and prepare financial
reports. The rule also provides procedures for suspension of a county treasurer
by the department of finance and administration.
[7/15/98; Recompiled
10/01/01]
3.6.50.7 Definitions:
A. "Assessor"
means a county assessor as defined by Sections 4-39-1 through 4-39-7 [repealed]
NMSA 1978, as amended.
B. "Board
of finance" means a county board of finance.
C. "Delinquent"
refers to any payment of taxes that is not paid within thirty days of the date
on which they were due.
D. "Department"
means the department of finance and administration.
E. "Forfeiture"
funds means cash or property that is subject to forfeiture and is under the
Controlled Substances Act, Sections 30-31-34 through Section 30-31-35 NMSA
1978.
F. "Local
government" means a local public body as defined in Section 6-6-1 NMSA
1978.
G. "Local
government division" means the local government division of the department
of finance and administration.
H. "Property
tax division" means the property tax division of the taxation and revenue
department.
I. "Refund"
is that portion of property taxes in controversy found to be in excess of the
amount legally due.
J. "Secretary"
means the cabinet secretary of the department of finance and administration.
K. "State
delinquency list" means the tax delinquency list collected by the property
tax division as defined in Section 7-38-62 NMSA 1978.
L. "Taxes
on omitted property" refers to taxes on property subject to property
taxation but was omitted from property tax schedules and for which taxes have
not been paid but would be due, except for the omission.
M. "Treasurer"
means a county treasurer as defined by Sections 4-43-1 [repealed] through
4-43-4 NMSA 1978, as amended.
[7-15-98; Recompiled
10/01/01]
3.6.50.8 Treasurer's duties:
A. Section
4-43-2 NMSA 1978 requires the treasurer to keep account of all moneys received
and disbursed in the county; keep regular accounts of all warrants drawn on the
treasurer and paid; and keep the books, papers and moneys pertaining to his
office ready for inspection by the county commissioners at all times. All moneys under the treasurer's control
include, but are not limited to: property taxes; property tax penalties and
interest; state shared taxes; gross receipts taxes; lodgers’ taxes; franchise
taxes; licenses and permits; charges for services; fines and forfeits,
including forfeiture funds; miscellaneous revenues; other revenues including
contributions, donations, investment income, refunds, rents, royalties,
insurance recoveries and inter-governmental grants.
B. Section
6-10-8 NMSA 1978 states the treasurer of each county in the state shall have
supervision of the deposit and safekeeping of public money in the county.
C. The
treasurer determines how to deposit and invest county funds. That decision must
then be approved by the board of county commissioners, sitting as the board of
finance.
D. The
board of finance must adopt an investment policy and permit the treasurer to
make investment decisions that conform to the policy.
[7/15/98; Recompiled
10/01/01]
3.6.50.9 Financial reports:
A. Subsection
F of Section 6-6-2 NMSA 1978 requires periodic financial reports of all local
public bodies. Section 6-6-3 NMSA 1978 requires that every local public body
shall make all reports as may be required by the local government division.
B. Every
county shall file a financial report on a quarterly basis with the local
government division. The first quarter is from July 1st to September 30th; the
second quarter is from October 1st to December 31st; the third quarter is from
January 1st to March 31st and the fourth quarter is from April 1st to June
30th. The reports are due at the local government division no later than thirty
days following the end of the quarter.
C. The
local government division may grant a county's written request, if warranted,
an extension for filing the quarterly financial report.
D. Monthly
financial reports shall be submitted to the county commission and may be
requested by the local government division.
E. Quarterly
financial reports shall be submitted on the prescribed local government
division format, unless the local government division approves submission of
similar data hand written, typed or using the county's current software
program.
F. The
treasurer's office should work cooperatively with the county managers office or
county finance department to ensure that reports are submitted accurately and
timely. The reports must include the signatures and titles of the individuals
who prepared the reports.
G. Instructions
and sample reporting formats of the quarterly financial reports are available
in the local government divisions
budgeting and financial accounting manual for local governments.
[7/15/98; Recompiled
10/01/01]
3.6.50.10 Suspension
of county treasurers' functions:
A. The
secretary shall follow the procedures set forth in Section 7-35-7 NMSA 1978, as
amended, for suspension of treasurers' functions and termination of a
suspension order.
B. The
costs counties are required to reimburse the department, when the department
performs the functions of a suspended treasurer, shall include the salaries and
expenses of department employees or contractors who carry out the functions of
the office of a suspended treasurer.
C. The
department will take all action necessary to assure reimbursement of costs by
the county.
[12/31/74, 7/15/98;
Recompiled 10/01/01]
3.6.50.11 Property
taxes:
A. Section
7-37-7 NMSA 1978, as amended, provides for the maximum property tax rates and
their limitations. The authority to impose general purpose tax rates is granted
to local governments and shall be done during the budget-making and approval
process. The general purpose tax rate imposed by each governmental unit for
residential property is the same rate that is imposed for nonresidential
property. The local government division shall apply the yield control formula
and other tax rate limitations in statute that apply to the imposed tax rates
prior to setting the tax rates.
B. Tax
rates for school districts and institutions of higher education are set by the
state department of education and the commission on higher education,
respectively. These rates are certified to the local government division by
August 15th of each year.
C. Pursuant
to Section 7-38-33 NMSA 1978, the department shall by written order set
property tax rates no later than September 1st each year for each county,
municipality, special district, school district, institution of higher
education and state debt service.
D. Pursuant
to Section 7-38-34 NMSA 1978, within five business days of the date of the tax
rate order set by the department, the board of county commissioners shall issue
by written order imposing the certified tax rates on the net taxable value of
property allocated to the appropriate governmental units. Within these five
days, it is the responsibility of the county to ensure that the rates set are
correct. The local government division must be notified of any errors with
regards to the validity of these rates during this five day period.
[7/15/98; Recompiled
10/01/01]
3.6.50.12 County
property valuation fund:
A. The
county property valuation fund is created in Section 7-38-38.1 NMSA 1978 and
prescribes the method and manner for the collection and distribution of the
administrative charge on revenue recipients to offset collection costs.
B. All
administrative charges shall be collected by the treasurer and distributed to
the county property valuation fund.
C. The
assessor’s budget for purposes of calculating the forty percent of the amount
shall include all appropriations made to the assessor’s budget including the
county property valuation fund.
D. The
treasurer is responsible for collecting the administrative charges and
distributing these collections to the county property valuation fund in
accordance with statute, relevant county ordinances and stipulated orders.
[7/15/98; Recompiled
10/01/01]
3.6.50.13 Protested
property taxes and property tax suspense fund:
A. The
treasurer shall deposit in the property tax suspense fund an amount equal to
the portion of any property taxes paid to the treasurer that is not admitted to
be due and is the subject of a claim for refund.
B. The
property tax suspense fund shall be invested as permitted by Subsection B of
Section 7-38-41 NMSA 1978, as amended.
C. All
refunds to property owners pursuant to Section 7-38-41 NMSA 1978 shall be made
fifteen days after the treasurer receives a copy of the final order relating to
the protest.
D. If
final determination in a claim for refund is less than originally claimed, or
if the claim is denied, the difference between the amount placed in the
property tax suspense fund and the amount refunded to the taxpayer shall be
disbursed in the monthly distribution process as stated in subparagraph 15.6
[now Subsection F of 3.6.50.15 NMAC]. Upon the final determination of a claim,
the treasurer is to send a copy of the final order to the assessor and the
director of the property tax division who shall change their respective
valuation records to clearly reflect the final determination.
E. The
treasurer is authorized to transfer any surplus interest accrued in the
property tax suspense fund to the county general fund, when a case is closed or
at the close of the fiscal year.
[12/31/74, 7/15/98;
Recompiled 10/01/01]
3.6.50.14 Collection
and receipt of property taxes:
A. All
property tax payments shall be marked paid and recorded within 48 hours and
must be deposited within 72 hours.
B. Property
tax receipts or copies of the tax bills marked paid are not required to be
mailed to property taxpayers if payment of property taxes, penalties and
interest are received by mail. These amounts are sufficiently “receipted” if
indication of payment is made on the tax schedule by the treasurer. However,
the treasurer is not prohibited from mailing receipts or copies of the tax
bills marked paid.
C. Except
for accounts on the state delinquency list, any partial payments received by
the treasurer for delinquent property taxes, penalties and interest shall be
receipted and accounted for in accordance with Section 7-38-42 NMSA 1978.
D. If
the treasurer's office is unable to comply with this policy, the treasurer must
immediately notify the chairman of the board of finance and the county manager
in writing. The notification must include a description of the problem,
identification of the cause of the problem, an estimate of the anticipated
duration of non-compliance and the proposed remedial action. The notification
does not relieve the receipting authority of its statutory duty to collect,
record and account for property taxes.
E. Receipting
and depositing of revenues other than property tax payments shall be
implemented according to policies adopted by the county board of finance.
[12/31/74, 7/15/98;
Recompiled 10/01/01]
3.6.50.15 Distribution
of property taxes, penalties and interest:
A. The
treasurer shall distribute the receipts from property tax collections to each
governmental unit. All interest and penalties collected shall be deposited in
the county general fund without regard to the tax year for which it was paid,
other than as an agent of the taxation and revenue department under Section
7-38-62 NMSA 1978.
B. At
the time of distributing receipts from property taxes collected as agent for
the taxation and revenue department under Section 7-38-62 NMSA 1978, all
interest and penalties collected for tax years before 1990 will be placed in
the county general fund and all interest and penalties collected for 1990 and
subsequent tax years shall be remitted to the taxation and revenue department.
C. The
treasurer shall distribute taxes collected for the November 10th installment no
earlier than December 15th or later than the 5th working day after December
15th.
D. The
treasurer shall distribute taxes collected from the April 10th installment no
earlier than May 15th or later than the 5th working day after May 15th.
E. For
installment agreements pursuant to Section 7-38-38.2 NMSA 1978, no distribution
shall be made earlier than the 15th of the month following the month of
collection or later than the 5th working day after the 15th of month following
the month of collection.
F. For
delinquent taxes, normal distributions shall not be made earlier than the 15th
of the month following the month of collection or later than the 5th working
day after the 15th of month following the month of collection.
G. Once
a county has placed a property on the state delinquency list, the property tax
division shall have responsibility and exclusive authority to collect
delinquent taxes, interest and penalties for all tax years. However, the
property tax division may authorize treasurers to act as its agents in
accepting payments of taxes, penalties, interests or costs due.
[2/19/92, 7/15/98;
Recompiled 10/01/01]
3.6.50.16 Notification
to property owner of delinquent property taxes:
A. In
accordance with Section 7-38-51 NMSA 1978, any property tax delinquent more
than thirty days as of June 30th of each year, the treasurer shall mail a
notice of delinquency to the assessed owner and any person other than the owner
to whom the tax bill on the property was sent. This applies to every
delinquency and not just those on the state delinquency list.
B. If
payment has not been received within 90 days following the written notice of
delinquency, the treasurer shall pursue further collection efforts.
C. If
the collection rate for a tax year for any jurisdiction in the county falls twenty
percent below anticipated collections as of December 31st of that year or June
30th of the following year, the treasurer must immediately notify the board of
finance in writing.
[7/15/98; Recompiled
10/01/01]
3.6.50.17 Sale
of real property for delinquent taxes:
Section 7-38-66 NMSA 1978 states the taxpayer must show proof of the
following to prevent or invalidate a sale:
A. All
delinquent taxes, penalties, interest and costs had been paid prior to the date
of sale shall prevent or invalidate the sale. The treasurers office must be in
possession of the funds prior to the time of the sale or the payment must be
postmarked prior to the date of the sale.
B. The
taxpayer has entered into a written installment agreement to pay all delinquent
taxes, penalties, interest and costs prior to the date of sale as provided in
Section 7-38-68 NMSA 1978 and that payments are being made in accordance with
the terms of such agreement. The installment agreement must be signed by both
parties at least the day prior to the date of sale.
[7/15/98; Recompiled
10/01/01]
3.6.50.18 Installment
agreements or sale of property:
A. When
the property tax division collects delinquent taxes in total from the taxpayer
under installment agreements or sale of property, the money, excluding
interest, penalties and costs, will be remitted to the treasurer. When the
money is received by the treasurer, the tax bill will be validated as paid. The
distribution will be accomplished by the treasurer as the normal distribution
of delinquent taxes.
B. Upon
receipt of the money from the property tax division, the treasurer shall:
(1) validate the tax bill as paid in the
manner prescribed in Section 7-38-63 NMSA 1978;
(2) make a notation of the payment of
delinquent property taxes, penalties and interest on the property tax schedule;
and
(3) distribute the amount of property taxes
to the appropriate governmental units at the time of normal monthly
distributions.
[12/31/74, 7/15/98;
Recompiled 10/01/01]
3.6.50.19 Taxes
on omitted property: When taxes on omitted
property are placed on tax schedules, tax bills mailed and money is received
for payment of these taxes, the receipting and accounting of the money is the
same as for other property taxes. For distribution purposes, all the monies
received for taxes on omitted property for years prior to current tax year will
be considered to be receipts of delinquent taxes.
[12/31/74; Recompiled
10/01/01]
3.6.50.20 Changes
in the property tax schedule:
A. Pursuant
to Section 7-38-77.1 NMSA 1978, the department may order the treasurer to make
changes in the property tax schedule in connection with any property listed on
the schedule if the department determines that an error was made in the
certification of tax rates.
B. Upon
such a determination, the department will issue a statement to the county
commission and treasurer stating the reason for the error along with the
amended certificate of tax rates.
[7/15/98; Recompiled
10/01/01]
3.6.50.21 Bankhead-Jones farm tenant
act: Pursuant to the national grasslands and
land utilization project receipts for the Bankhead-Jones Farm Tenant Act, the
county shall deposit these funds directly into the county road fund for the
purpose of maintaining county roads or school bus routes, or both.
[3/30/73, 7/15/98;
Recompiled 10/01/01]
HISTORY OF 3.6.50 NMAC:
Pre-NMAC History: The material in this Part was derived from
that previously filed with the State Records Center and Archives:
DFA 73-1, (Directive LGD
61-32) Distribution of Bank Head Jones Farm Tenant Act (Sub-Marginal Land) and
Federal Wild Life and Fishery Act Revenue, 3-30-73.
DFA 74-9, Regulations
Re: The Collection and Distribution of
Property Taxes by County Treasurers, 12-31-74.
History of Repealed
Material: [RESERVED]