A. The occupancy tax imposed by a municipality or county constitutes a lien in favor of that municipality or county upon the personal and real property of the vendor providing lodgings in that municipality or county. The lien may be enforced as provided in Sections 3-36-1 through 3-36-7 NMSA 1978. Priority of the lien shall be determined from the date of filing.
B. Under process or order of court, no person shall sell the property of any vendor without first ascertaining from the clerk or treasurer of the municipality or county in which the vendor is located the amount of any occupancy tax due the municipality or county. Any occupancy tax due the municipality or county shall be paid from the proceeds of the sale before payment is made to the judgment creditor or any other person with a claim on the sale proceeds.
C. The clerk or treasurer of the municipality or county shall furnish to any person applying for such a certificate a certificate showing the amount of all liens in the records of the municipality or county against any vendor pursuant to Chapter 3, Article 38 NMSA 1978.
History: Laws 1992, ch. 12, § 1.
Alternative priorities. — The priority language of Subsection A of 3-38-18.1 NMSA 1978 applies where a municipality is enforcing its lodgers' tax lien as provided by 3-36-1 through 3-36-6 NMSA 1978. Subsection A does not apply when a municipality chooses to enforce its lien under Subsection B and receive first priority of payment from the proceeds of a foreclosure sale. When named as a defendant in a foreclosure action, a municipality can choose not to proceed by way of enforcement of its lien through foreclosure as provided in 3-36-1 through 3-36-6 NMSA 1978 with the priority of its lien being as specified in Subsection A of 3-38-18.1 NMSA 1978, but can rely instead on Subsection B for first priority of payment from the proceeds of a foreclosure sale. Wells Fargo Bank, N.A. v. City of Gallup, 2011-NMCA-106, 150 N.M. 706, 265 P.3d 1279.
Where a municipality was named as a defendant in a foreclose action of plaintiff's deed of trust; throughout the proceedings, the municipality maintained that its lodgers' tax lien was junior and inferior to deed of trust; and the municipality approved the foreclosure judgment, which declared the municipality's lien junior and inferior to the deed of trust, the municipality was entitled, pursuant to Subsection B of 3-38-18.1 NMSA 1978, to payment from the sales proceeds before plaintiff received any proceeds. Wells Fargo Bank, N.A. v. City of Gallup, 2011-NMCA-106, 150 N.M. 706, 265 P.3d 1279.
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