AI Generated Opinion Summaries

This summary was computer-generated without any editorial revision. It is not official, has not been checked for accuracy, and is NOT citable.

Facts

• The Department of Taxation and Revenue (the Department) conducted a public auction for a property (Parcel 114) in Santa Fe County, New Mexico, due to three years of unpaid property taxes by the owner. An error occurred when Department personnel mistakenly announced that Parcel 114 had been removed from the auction list, leading potential bidders, including Melissa Segura, to leave. The property was later erroneously returned to the auction list and sold to Duane Dearborn (Purchaser), the sole bidder, for the minimum price. The Department later invalidated the sale, deeming it not conducted substantially in accordance with the Property Tax Code, and returned Purchaser's payment. Purchaser then sought a writ of mandamus to compel the Department to issue a tax deed for Parcel 114 (paras 8-14).

Procedural History

• District Court of Santa Fe County: Granted summary judgment to Purchaser, issuing a preemptory writ of mandamus ordering the Department to issue a tax deed for Parcel 114 to Purchaser.

Parties' Submissions

• Relator-Appellee (Purchaser): Argued that the Department had a mandatory duty to issue and deliver a deed conveying Parcel 114 to him based on the plain language of Section 7-38-70(A) of the Code, which states that upon receiving payment for real property sold for delinquent taxes, the Department shall execute and deliver a deed to the purchaser (para 14).
• Respondents-Appellants (Department): Contended that it has no mandatory duty to issue a tax deed to the high bidder at auction because the tax sale was not conducted substantially in accordance with the Property Tax Code. The Department also argued that the Code authorizes it to invalidate and reschedule a tax sale it determines was not conducted substantially in accordance with the Code, so long as the deed has not yet been issued and delivered to the purchaser (para 1).

Legal Issues

• Whether the tax sale of Parcel 114 was conducted substantially in accordance with the Property Tax Code.
• Whether the Department is required to issue a tax deed to the high bidder at a public auction upon receipt of payment, even if the Department subsequently determines that the sale was flawed and not substantially in compliance with the Code.

Disposition

• The Court of Appeals reversed and vacated the preemptory writ of mandamus issued by the district court.

Reasons

• The Court of Appeals, per Yohalem, J., with Bogardus, J., and Medina, J., concurring, found that the tax sale of Parcel 114 was not conducted substantially in accordance with the Property Tax Code due to the Department's error in announcing the removal of the property from the auction and the subsequent departure of potential bidders. This action negated the purpose of a public auction, which is to attract bidders and rely on competition to increase the sale price. The court also held that the Department's authority to invalidate a tax sale for substantial noncompliance with the Code continues until the Department issues the tax deed. The court reasoned that issuing a tax deed upon payment, even when the sale was not in compliance with the Code, would conflict with the Legislature's intent to ensure that tax deeds convey secure title (paras 17-42).