A notice of lien provides public notice of our interest in a taxpayer’s property or rights to property. It establishes the state’s priority among creditors.
A levy authorizes us to seize taxpayer property.
Lien
When any person neglects or refuses to pay taxes after assessment and demand for payment has been made, a lien automatically exists, and we may file a notice of the lien in favor of the state on all taxpayer property under Section 7-1-37 NMSA 1978. A notice of lien is prepared and filed with the appropriate county clerk’s office.
To obtain a pay-off amount of a lien currently filed against you, please contact the Audit and Compliance Division District Office.
Release of Lien
When you pay the amount of tax due, we prepare and file a document releasing the lien. This document is filed with the same county clerk’s office in which the notice of lien was filed.
Levy
A levy is made by taking possession of property upon service of a warrant of levy on a person who is in possession of any property of a taxpayer. Pursuant to Section 7-1-31 NMSA 1978, the Department’s Secretary or the Secretary’s delegate may proceed to collect delinquent tax by seizure of property. All of the taxpayer’s property or rights to property may be seized by the state. A warrant of levy may also be served upon the taxpayer’s employer for wages or upon any person who owes money to or holds funds that belong to the taxpayer.
A levy may be stopped by posting security or by paying the liability in full.