A. If any person liable for any tax neglects or refuses to pay the tax after assessment and demand for payment as provided in Section 7-1-17 NMSA 1978 or if any person liable for tax pursuant to Section 7-1-63 NMSA 1978 neglects or refuses to pay after demand has been made, unless and only so long as such a person is entitled to the protection afforded by a valid order of a United States court entered pursuant to Section 362 or 1301 of Title 11 of the United States Code, as amended or renumbered, the amount of the tax shall be a lien in favor of the state upon all property and rights to property of the person.
B. The lien imposed by Subsection A of this section shall arise at the time both assessment and demand, as provided in Section 7-1-17 NMSA 1978, have been made or at the time demand has been made pursuant to Section 7-1-63 NMSA 1978 and shall continue until the liability for payment of the amount demanded is satisfied or extinguished.
C. As against any mortgagee, pledgee, purchaser, judgment creditor, person claiming a lien under Sections 48-2-1 through 48-11-9 NMSA 1978, lienor for value or other encumbrancer for value, the lien imposed by Subsection A of this section shall not be considered to have arisen or have any effect whatever until notice of the lien has been filed as provided in Section 7-1-38 NMSA 1978.
History: 1953 Comp., § 72-13-51, enacted by Laws 1965, ch. 248, § 39; 1979, ch. 144, § 32; 1982, ch. 18, § 13; 1993, ch. 242, § 6.
ANNOTATIONSThe 1993 amendment, effective July 1, 1993, substituted "person claiming a lien under Sections 48-2-1 through 48-11-9 NMSA 1978, lienor for value" for "lienor" in Subsection C and made minor stylistic changes in Subsection A.
Jeopardy assessments become liens on all property and rights to property of a person when that person neglects or refuses to pay the tax after it has been assessed. Regents of N.M. Coll. of Agric. & Mechanic Arts v. Academy of Aviation, Inc., 1971-NMSC-087, 83 N.M. 86, 488 P.2d 343.
The requirements of Section 7-1-38 NMSA 1978 must be met in order to effectuate a lien under this section. In re What D'Ya Call It, Inc., 1986-NMSC-098, 105 N.M. 164, 730 P.2d 467.
Liens arising upon transfer of liquor license. — The tax liability referred to in Section 7-1-82 NMSA 1978, governing transfer of a liquor license, may become a lien in favor of the state in the amount of taxes due if the procedures set forth in this section and Section 7-1-38 NMSA 1978 are followed. In re What D'Ya Call It, Inc., 1986-NMSC-098, 105 N.M. 164, 730 P.2d 467 (1986).
Wholesaler's lien. — A lien pursuant to former Section 60-6B-3E NMSA 1978, which gives a lien to wholesale creditors of a liquor licensee, has a superpriority status over other lienholders, including the tax lien in favor of the state, unless the latter liens were perfected under Section 7-1-38 NMSA 1978 or under applicable general law prior to the date that the licensee incurred debts owed to wholesale creditors. In re What D'Ya Call It, Inc., 1986-NMSC-098, 105 N.M. 164, 730 P.2d 467.
Payment may be required prior to transfer of liquor license. — The state may require payment of delinquent taxes prior to transfer of a liquor license, pursuant to Section 7-1-82 NMSA 1978, where its liens under this section and Section 7-1-38 NMSA 1978 have been foreclosed. First Interstate Bank v. Taxation & Revenue Dep't, 1989-NMCA-067, 108 N.M. 756, 779 P.2d 133, cert. denied, 108 N.M. 771, 779 P.2d 549.
Am. Jur. 2d, A.L.R. and C.J.S. references. — 72 Am. Jur. 2d State and Local Taxation §§ 891 to 897.
Lien for tax imposed by one taxing unit as affected by lien or sale for tax imposed by another taxing unit of same state, 135 A.L.R. 1464.
85 C.J.S. Taxation §§ 804 to 842.