HOUSE MEMORIAL 2

49th legislature - STATE OF NEW MEXICO - first special session, 2009

INTRODUCED BY

Sandra D. Jeff

A MEMORIAL

REQUESTING THE ECONOMIC DEVELOPMENT DEPARTMENT AND THE TAXATION AND REVENUE DEPARTMENT TO STUDY THE EFFECTS OF NATIONAL CHAIN STORES AND MULTINATIONAL COMMERCIAL ENTERPRISES ON RURAL AND TRIBAL COMMUNITIES.

     WHEREAS, large national chain stores and multinational commercial enterprises have a significantly disproportionate impact on rural and tribal communities and reservations; and

     WHEREAS, residents of rural and tribal communities must rely on these commercial enterprises for needed supplies and staples; and

     WHEREAS, all residents of rural and tribal communities must go to the larger municipalities to transact certain business; and

     WHEREAS, the larger municipalities become the centers of commerce for rural communities, particularly where the larger municipality is surrounded by tribal communities or reservations; and

     WHEREAS, large national chain stores and multinational commercial enterprises locate in larger municipalities for the purpose of attracting residents from the outlying rural and tribal communities; and

     WHEREAS, residents from the unincorporated rural and tribal communities pay gross receipts taxes on purchases, gasoline tax on gasoline and special fuel excise tax on diesel or other special fuels made in the municipality; and

     WHEREAS, the tax revenue goes to the state and a portion is redistributed to either the municipality or the county in which the purchase was made; and

     WHEREAS, the current distribution of tax revenue goes predominantly to the municipalities in which the large national chain stores and multinational commercial enterprises are located; and

     WHEREAS, large national chain stores and multinational commercial enterprises drive many small local entrepreneurs out of business by offering products at reduced rates due to their purchasing power and exerting market control; and

     WHEREAS, profits from large national corporations and multinational commercial enterprises are exported from the state and removed from circulation in the local communities; and

     WHEREAS, profits from large national corporations and multinational commercial enterprises fail to target the needs of residents from rural and tribal communities that patronize those stores; and

     WHEREAS, large national chains and multinational commercial enterprises often fail to invest adequate dollars in rural and tribal communities for charitable purposes and service projects or to help the communities thrive; and

     WHEREAS, the residents of rural and tribal communities in New Mexico are in desperate need of many services; and

     WHEREAS, the current redistribution of tax revenue and profits from large national chains and multinational commercial enterprises is inadequate to cover the expenses of providing the needed services to rural and tribal residents; and

     WHEREAS, the legislature has a responsibility to provide an effective, efficient and equitable distribution of tax revenue back to municipalities and counties to provide the needed services to all residents of New Mexico, including residents of rural and tribal communities;

     NOW, THEREFORE, BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES OF THE STATE OF NEW MEXICO that the economic development department and the taxation and revenue department be requested to undertake a study of the effects of large national chain stores or multinational commercial enterprises on local commerce, including the dislocation of small businesses, the drainage of profits from rural and tribal communities and the relative proportion of rural and tribal residents patronizing the centers of commerce compared to the population of that commercial center, to determine an effective, efficient and equitable formula for redistributing the tax revenue and profits of large national chain stores and multinational commercial enterprises to adequately cover the expenses of providing services to the residents of rural and tribal communities in New Mexico; and  

     BE IT FURTHER RESOLVED that the two departments report the findings of the study to the appropriate interim legislative committees by November 1, 2010; and

     BE IT FURTHER RESOLVED that large national chain stores and multinational commercial enterprises be encouraged to invest more profits into charitable purposes and service projects to help rural and tribal communities thrive and deliver greater services in New Mexico; and

     BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the secretary of economic development, the secretary of taxation and revenue and the key executives for corporate affairs and government relations of large national chain stores and multinational commercial enterprises located in centers of commerce surrounded by rural and tribal communities.