Clash Over Property Taxes

Bernalillo County Treasurer Patrick Padilla says thousands of people who fell behind on their property taxes will find it harder to pay them back because of a new directive issued by state government.

New Mexico’s secretary for Taxation and Revenue, in turn, says the county treasurer’s comments are just a “scare tactic” and that the state is, in fact, trying to help property owners avoid the auction block because of delinquent taxes.

The back-and-forth started Thursday morning, when Padilla blasted the state for instructing him – and other county treasurers – not to accept partial payments from people who owe back taxes from 2009 or earlier.

Instead, the state wants delinquent taxpayers to set up installment plans with the state if they can’t pay the full amount.

Padilla estimates that about 2,650 properties in Bernalillo County are on the state’s delinquency list, totaling about $14.6 million in taxes, interest, penalties and fees.

Padilla said the terms of the state installment plan, such as a down payment and paperwork on three denials of credit, are impractical.

“It’s been a huge disservice to the taxpayer,” Padilla said in a news conference. “… The installment plan is ridiculous.”

But Taxation and Revenue Secretary Demesia Padilla said the county treasurer is simply “scaring people” instead of giving them the correct advice to protect their homes.

The best way for delinquent taxpayers to ensure their homes won’t be sold is to enter into an installment agreement with the state, Demesia Padilla said. That’s because the state may not know about any verbal or informal agreements a county treasurer makes to accept partial payments, she said, and the home could still be sold if payments are made to the treasurer.

“What he was doing was giving folks a false sense of security,” Demesia Padilla said.

It’s the state Taxation and Revenue Department, not the county, that is authorized by state law to collect delinquent taxes that are at least two years old, she said.

“Mr. Padilla has just been instructed to follow the statutes,” Demesia Padilla said. “… The No. 1 priority is to make sure property owners’ rights are protected.”

As for terms of installment agreements, she said property owners can request the down payment or other hurdles be waived.

“We actually do very few sales,” she said. “We work with folks up to the 11th hour.”

Demesia Padilla said other counties may also have been accepting partial payments, but Patrick Padilla has been the most vocal about it.

In any case, a property owner who has delinquent taxes at least two years old needs to contact the state Property Tax Division in the Taxation and Revenue Department, Demesia Padilla said.

People on the delinquency list don’t need to visit the Property Tax Division’s office in Santa Fe, she said. They should call – the telephone number is (505) 827-0870, according the division’s website – to get the paperwork process started, she said. In some cases, the division may have examiners in the field who can help, Demesia Padilla said.

Patrick Padilla said the directive to stop accepting partial payments will hurt low-income and elderly residents the most. It’s not unusual, he said, for someone to come to his office with $200 – or whatever they can afford at the time – then return whenever they next have some money available.

The county treasurer’s office has already turned away “a few dozen people” who have shown up to pay on their delinquent tax bills, he said.

Payments through the state are more cumbersome, he said.

Ten-page letter

The state’s instructions on partial payments came last month in a 10-page letter to county treasurers across New Mexico. The letter covers a variety of topics centering on a review of how counties are handling delinquent taxes and collection of penalties, interest and other costs.

“Reviews and verifications conducted to date have disclosed serious deficiencies in the practices of some counties and some fundamental legal misunderstandings that other County Treasurers may also be operating under and that are appropriately addressed through this communication to all County Treasurers,”the letter said.

It’s signed by Demesia Padilla and Finance and Administration Secretary Thomas Clifford. They are appointees of Gov. Susana Martinez, a Republican.

Patrick Padilla, a Democrat, is in his second consecutive term as county treasurer and will step down at the end of the year. He couldn’t run for re-election this year because of term limits.

Patrick and Demesia Padilla aren’t related.
— This article appeared on page A1 of the Albuquerque Journal