N.M. Stat. § 73-11-35
The district may appear as a bidder at the sale of any lands for delinquent district or other taxes, and may purchase and take title to said lands and dispose of them like any other purchaser. To protect its assessments the district, at a tax sale where there is no other bid for the full amount of the delinquencies, including interest and penalties, may bid and buy in the land; provided, the district shall never bid or pay a greater sum than the total of all taxes against the land, with interest and penalties; and, provided, further, when purchasing any land at any tax sale the district shall pay cash for all taxes, interest and penalties, including the district taxes, like other purchasers, and such expenditures shall be deemed operating expenses of the district, and may be assessed as maintenance charges.
NMS § 73-11-35