SENATE JOINT MEMORIAL 60

49th legislature - STATE OF NEW MEXICO - second session, 2010

INTRODUCED BY

Phil A. Griego

A JOINT MEMORIAL

REQUESTING THE NEW MEXICO CONGRESSIONAL DELEGATION TO ACTIVELY PROMOTE FEDERAL LEGISLATION TO ENABLE NEW MEXICO TO TAX SALES INTO NEW MEXICO BY REMOTE SELLERS.

     WHEREAS, many out-of-state vendors are exploiting the New Mexico market by selling goods and services by remote means, including internet sales and catalog sales; and

     WHEREAS, the untaxed transactions of out-of-state vendors place New Mexico businesses at a competitive disadvantage; and

     WHEREAS, the gross receipts taxes paid by New Mexico businesses support not only the state's budget but those of each municipality and county in the state as well; and

     WHEREAS, remote vendors that have no nexus with New Mexico do not contribute their fair share of the costs of New Mexico government; and

     WHEREAS, the current economic situation places extraordinary stress on the ability of state and local governments to deliver even basic services to New Mexicans; and

     WHEREAS, New Mexico does not have the jurisdiction to ensure an equitable sharing of the burden of gross receipts taxes among New Mexico businesses and out-of-state businesses; and

     WHEREAS, the United States supreme court in Quill v. North Dakota asserted that the United States congress has the authority under the commerce clause of the constitution of the United States to require interstate vendors to comply with the tax laws of states into which they are selling goods or services;

     NOW, THEREFORE, BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO that members of the New Mexico congressional delegation be requested to actively promote the enactment of federal law enabling New Mexico to assert its jurisdiction to tax sales into New Mexico by all remote sellers; and

     BE IT FURTHER RESOLVED that the governor and the taxation and revenue department assist the congressional delegation by providing relevant information and testimony; and

     BE IT FURTHER RESOLVED that copies of this memorial be transmitted to each member of the New Mexico congressional delegation, the governor and the secretary of taxation and revenue.

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