A. Each county treasurer shall establish a fund to be known as the "property tax suspense fund." The portion of any property taxes paid to the county treasurer that is not admitted to be due and is the subject of a claim for refund shall be deposited in this fund.
B. The fund shall be invested in interest-earning securities, accounts or deposits that are legal investments for county funds under the law and regulations of the department of finance and administration. The county treasurer shall keep records of interest earned by the investment of the fund.
C. If a property owner's property taxes are reduced as a result of a decrease in value of the property taxed, a change in the classification, a change in the allocation of the value of the property to a particular governmental unit or granting of a claim for an exemption ordered by a court after a claim for refund, the portion of the property taxes in controversy found to be in excess of the amount legally due and paid shall be refunded by the county treasurer to the property owner. The refund shall be made within fifteen days after the county treasurer receives a copy of the final order relating to the protest. The amount of property taxes in controversy found to be legally due and paid shall be distributed to the appropriate governmental units in accordance with the distribution regulations of the department of finance and administration. All payments authorized under this section shall be made from the property tax suspense fund.
D. In addition to the payments authorized under Subsection C of this section, the county treasurer shall pay to the property owner and the governmental units their pro rata share of interest earned by the protested taxes computed by applying the earned interest rate of the fund to the principal amounts of refund and distribution for the period of time from the date of payment into the fund until a date not more than thirty days prior to the date the actual refund payment and distribution payment are made. Payments are considered made on the date a refund payment is mailed or delivered to the property owner and on the date a transfer occurs on the county treasurer's books showing a distribution payment.
E. The department of finance and administration may authorize the transfer of any surplus interest accruing in the property tax suspense fund to the county general fund at the close of the fiscal year.
History: 1953 Comp., § 72-31-41, enacted by Laws 1973, ch. 258, § 81; 1974, ch. 92, § 15; 1981, ch. 37, § 78.
Section authorizes refunds upon decrease or change in property value. — This section authorizes refunds only when property taxes are reduced as a result of a decrease in value of the property taxed or a change in the allocation of the value of the property to a particular governmental unit. It does not authorize a refund of property taxes paid on property that was constitutionally exempt from taxation and, thus, was not to be valued for property tax purposes. Lovelace Ctr. for Health Sciences v. Beach, 1980-NMCA-004, 93 N.M. 793, 606 P.2d 203.
Am. Jur. 2d, A.L.R. and C.J.S. references. — Interest on tax refunds: right to, 88 A.L.R.2d 823.
Structure 2021 New Mexico Statutes
Article 38 - Administration and Enforcement of Property Taxes
Section 7-38-1 - Applicability.
Section 7-38-2 - Investigative authority and powers.
Section 7-38-3 - Information reports.
Section 7-38-4 - Confidentiality of information.
Section 7-38-6 - Presumption of correctness.
Section 7-38-7 - Valuation date.
Section 7-38-7.1 - Valuation date; tangible personal property; construction contractors.
Section 7-38-8 - Reporting of property for valuation; penalties for failure to report.
Section 7-38-8.1 - Division to adopt regulations to require reporting of exempt property.
Section 7-38-9 - Description of property for property taxation purposes.
Section 7-38-11 - Property reported in the wrong county.
Section 7-38-12.1 - Residential property transfers; affidavit to be filed with assessor.
Section 7-38-12.2 - Penalties.
Section 7-38-13 - Statement of decrease in value of property subject to local valuation.
Section 7-38-16 - Condemnation proceedings; duty of condemning authority to notify county assessor.
Section 7-38-17 - Claiming exemptions; requirements; penalties.
Section 7-38-19 - Valuation records.
Section 7-38-20 - County assessor and department to mail notices of valuation.
Section 7-38-21 - Protests; election of remedies.
Section 7-38-23 - Protest hearings; verbatim record; action by hearing officer; time limitations.
Section 7-38-25 - County valuation protests boards; creation; duties; funding.
Section 7-38-26 - Scheduling of protest hearings.
Section 7-38-28 - Appeals from orders of the hearing officer or county valuation protests boards.
Section 7-38-29 - Retention of hearing records.
Section 7-38-30 - Department to allocate and certify valuations to county assessors.
Section 7-38-31 - County assessor to certify net taxable values to the department.
Section 7-38-33 - Department of finance and administration to set tax rates.
Section 7-38-34 - Board of county commissioners to order imposition of the tax.
Section 7-38-35 - Preparation of property tax schedule by assessor.
Section 7-38-36 - Preparation and mailing of property tax bills.
Section 7-38-37 - Contents of property tax bill.
Section 7-38-38 - Payment of property taxes; installment due dates; refund in cases of overpayments.
Section 7-38-38.3 - Optional prepayment of property taxes in monthly payments.
Section 7-38-39 - Protesting values; claim for refund.
Section 7-38-40 - Claims for refund; civil action.
Section 7-38-41 - Protested property taxes; suspense fund; refunds; interest.
Section 7-38-43 - Distribution of receipts from collected property taxes, penalties and interest.
Section 7-38-45 - Special provisions relating to administration of taxes on livestock.
Section 7-38-46 - Delinquent property taxes.
Section 7-38-47 - Property taxes are personal obligation of owner of property.
Section 7-38-49 - Unpaid property taxes; imposition of interest.
Section 7-38-50 - Delinquent taxes; civil penalties.
Section 7-38-51 - Notification to property owner of delinquent property taxes.
Section 7-38-54 - Demand warrant; contents.
Section 7-38-55 - Surrender of personal property; penalty for refusal.
Section 7-38-56 - Release of personal property seized.
Section 7-38-57 - Notice of sale of personal property.
Section 7-38-58 - Personal property sale requirements.
Section 7-38-59 - Certificates of sale; effect of certificates of sale.
Section 7-38-60 - Notification to property owner of delinquent taxes.
Section 7-38-63 - Payment of delinquent taxes to the department; distribution.
Section 7-38-65 - Collection of delinquent taxes on real property; sale of real property.
Section 7-38-66 - Sale of real property for delinquent taxes; notice of sale.
Section 7-38-67 - Real property sale requirements.
Section 7-38-67.1 - Sale of abandoned real property; notice of sale; requirements.
Section 7-38-68 - Installment agreements.
Section 7-38-69 - Distribution of amounts collected under installment agreements.
Section 7-38-71 - Distribution of amounts received from sale of property.
Section 7-38-75 - Exception to property tax due date.
Section 7-38-78 - Action by property owner in district court to change property tax schedule.
Section 7-38-84 - Notices; mailing.
Section 7-38-85 - Extension of deadlines; general provision.
Section 7-38-86 - Extension of deadlines at request of property owners.
Section 7-38-87 - Administrative regulations; promulgation; general provisions.
Section 7-38-89 - Validity of certain regulations; judicial review.
Section 7-38-92 - Attempts to evade or defeat the property tax.
Section 7-38-93 - Interference with the administration of the Property Tax Code.