N.M. Stat. § 7-1-38 (2026)

A notice of the lien provided for in Section 7-1-37 NMSA 1978 may be recorded in
any county in the state in the tax lien index established by Sections 48-1-1 through 48-
1-7 NMSA 1978 or with the office of the secretary of state and a copy thereof shall be
sent to the affected taxpayer. The office of the secretary of state or a county clerk to
whom the notices are presented shall record them as requested without charge. The
notice of lien shall identify the taxpayer whose liability for taxes is sought to be enforced
and the date or approximate date on which the tax became due and shall state that New
Mexico claims a lien for the entire amount of tax asserted to be due, including
applicable interest and penalties. Recording of the notice of lien shall be effective as to
all property and rights to property of the taxpayer. Liens may be recorded electronically.

History: 1953 Comp., § 72-13-52, enacted by Laws 1965, ch. 248, § 40; 1979, ch. 144,
§ 33; 1996, ch. 15, § 6; 2025, ch. 130, § 33.

                                     ANNOTATIONS

The 2025 amendment, effective July 1, 2025, authorized the taxation and revenue
department to file tax liens electronically with the secretary of state in addition to county
clerk filing; after "48-1-7 NMSA 1978" added "or with the office of the secretary of state",
added "The office of the secretary of state or a" preceding the next occurrence of
"county clerk", and after "property of the taxpayer", added "Liens may be recorded
electronically".
The 1996 amendment, effective July 1, 1996, made stylistic changes in the second and
third sentences, and substituted "all property and rights to property of the taxpayer" for
"both real and tangible personal property" at the end of the section.

Requirements of this section must be met to effectuate a lien under Section 7-1-37
NMSA 1978. 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 Section 7-1-37 NMSA
1978 and this section are followed. In re What D'Ya Call It, Inc., 1986-NMSC-098, 105
N.M. 164, 730 P.2d 467.

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 this section 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 7-1-37
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.

The object of the notice of tax lien is to give constructive notice to mortgagees,
pledgees, purchasers, and other potential creditors. In re Hill, 166 Bankr. 444 (Bankr.
D.N.M. 1993).

Priority of tax lien. — Liquor wholesalers have a superpriority lien over all lien holders,
with the exception of the state taxation and revenue department, if the tax lien is
perfected pursuant to this section. The tax lien is effective as of the date the notice is
filed. In re D & M, Inc., 114 Bankr. 274 (Bankr. D.N.M. 1990).

Am. Jur. 2d, A.L.R. and C.J.S. references. — 72 Am. Jur. 2d State and Local
Taxation §§ 891 to 894.

Sufficiency of designation of taxpayer in recorded notice of federal tax lien, 3 A.L.R.3d
633.

85 C.J.S. Taxation §§ 824 to 827.
7-1-39. Release or extinguishment of lien; limitation on actions to
enforce lien.
    A. When any substantial part of the amount of tax due from a taxpayer is paid, the
department shall immediately file, in the same manner in which a notice of lien was
filed, and in the same records, a document completely or partially releasing the lien.
The official to whom such a document is presented shall record the release of the lien
without charge.

    B. The department may file, in the same manner as the notice of lien was filed, a
document releasing or partially releasing any lien filed in accordance with Section 7-1-
38 NMSA 1978 when the filing of the lien was premature or did not follow requirements
of law or when release or partial release would facilitate collection of taxes due. The
official to whom the document is presented shall record the release of the lien without
charge.

    C. In all cases when a notice of lien for taxes, penalties and interest has been filed
under Section 7-1-38 NMSA 1978 and a period of ten years has passed from the date
the lien was filed, as shown on the notice of lien, the taxes, penalties and interest for
which the lien is claimed shall be conclusively presumed to have been paid and the lien
is thereby extinguished, with no further action by the department. No action shall be
brought to enforce any lien extinguished in accordance with this subsection.

History: 1953 Comp., § 72-13-53, enacted by Laws 1965, ch. 248, § 41; 1972, ch. 73, §
1; 1979, ch. 144, § 34; 1985, ch. 58, § 1; 1986, ch. 20, § 21; 1997, ch. 67, § 4; 2013, ch.
214, § 1; 2025, ch. 130, § 34.

                                    ANNOTATIONS

The 2025 amendment, effective July 1, 2025, clarified certain language related to the
release of a tax lien; in Subsection A, after "shall record" deleted "it" and added "the
release of the lien"; in Subsection B, after "shall record" deleted "it" and added "the
release of the lien"; and in Subsection C, after "extinguished" added "with no further
action by the department".

The 2013 amendment, effective June 14, 2013, removed the notice requirement of the
expiration of tax liens; and in Subsection C, in the first sentence, after "presumed to
have been paid", deleted "The county clerk shall enter in his records a notice including
the words ‘canceled by act of legislature’".

The 1997 amendment, effective July 1, 1997, added Subsection B, redesignated
former Subsection B as Subsection C, and made a minor stylistic change.

Am. Jur. 2d, A.L.R. and C.J.S. references. — 72 Am. Jur. 2d State and Local
Taxation §§ 895, 896.
Effect of receiver's failure to discharge tax liens, 39 A.L.R. 1415.

Constitutionality, construction and application of statute permitting release of part of
property subject to tax liens or special assessments, 100 A.L.R. 418.

Applicability of general statute of limitations to real estate tax lien foreclosure action, 59
A.L.R.2d 1144.

85 C.J.S. Taxation §§ 831 to 833.