0001|                    SENATE JOINT MEMORIAL 12
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0002|     42ND LEGISLATURE - STATE OF NEW MEXICO - FIRST SPECIAL
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0003|     SESSION, 1996
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0004|                         INTRODUCED BY
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0005|                         LEONARD TSOSIE
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0006|     
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0007|                                
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0008|     
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0009|     
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0010|     
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0011|                        A JOINT MEMORIAL
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0012|     REQUESTING THE UNITED STATES CONGRESS TO REVIEW NATIONAL POLICY
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0013|     REGARDING STATE TAXATION OF ACTIVITIES, TRANSACTIONS AND
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0014|     PROPERTY IN INDIAN COUNTRY.
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0015|     
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0016|       WHEREAS, the Indian commerce clause of the United States
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0017|     constitution provides congress with plenary power to legislate
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0018|     in the field of Indian affairs; and 
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0019|       WHEREAS, the federal government has a trust responsibility
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0020|     to all Indian tribes in the United States; and
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0021|       WHEREAS, congress holds the power to prohibit or permit
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0022|     taxation by the state of activities or transactions involving
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0023|     non-Indians that occur in Indian country or of non-Indian
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0024|     property located within Indian country, a power that is
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0025|     essentially legislative according to the supreme court of the
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0001|     United States; and
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0002|       WHEREAS, pursuant to the holding in <u>Cotton Petroleum
</u>    |
<u></u>0003| <u>    Corporation</u> <u>v.</u> <u>New Mexico</u>, states have imposed taxes on
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0004|     activities and transactions that occur in Indian country and on
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0005|     property located within Indian country because congress has not
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0006|     exercised its power to prohibit states from taxing occurrences
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0007|     or property in Indian country; and
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0008|       WHEREAS, Indian nations, tribes or pueblos are sovereign
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0009|     and have the power to impose taxes on activities, transactions
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0010|     or property within their jurisdiction to generate revenue to
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0011|     provide essential governmental services to tribal members; and
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0012|       WHEREAS, conflict and friction between the states and the
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0013|     tribes that lead to expensive litigation, animosity and
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0014|     confrontation is occurring due to the federal policy that allows
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0015|     dual taxation by the state and the tribe of the same activities,
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0016|     transactions or property; and
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0017|       WHEREAS, state taxation of activities, transactions or
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0018|     property within Indian country places economic burdens on
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0019|     businesses within Indian country; and
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0020|       WHEREAS, state taxation of activities, transactions or
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0021|     property within Indian country infringes on basic tenets of
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0022|     tribal sovereignty, making tribal taxation a burden to
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0023|     businesses and reducing a tribe's ability to provide essential
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0024|     governmental services to tribal members; and
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0025|       WHEREAS, any economic burden placed on businesses in Indian
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0001|     country discourages economic development in Indian country; and
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0002|       WHEREAS, economic development in Indian country has
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0003|     proceeded slowly and with great difficulty over the last one
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0004|     hundred years; and
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0005|       WHEREAS, the economies of most Indian nations, tribes and
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0006|     pueblos are depressed and underdeveloped and are in many cases
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0007|     similar to the economies of third world countries; and
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0008|       WHEREAS, the federal government is now severely reducing
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0009|     funding for programs for Indian nations, tribes and pueblos and
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0010|     services to Indian people; and 
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0011|       WHEREAS, funding for tribal programs will be diminished or
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0012|     eliminated in many cases due to the reductions in funding from
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0013|     the federal government; and
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0014|       WHEREAS, Indian nations, tribes or pueblos will need
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0015|     greater sources of revenue to replace those funds that are being
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0016|     withdrawn from them; and
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0017|       WHEREAS, any additional burden, regardless of how small,
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0018|     imposed on businesses that are being recruited or encouraged to
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0019|     locate in Indian country can cause businesses to refuse to
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0020|     locate in Indian country; and
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0021|       WHEREAS, a review of the benefits and equity of current
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0022|     national policy regarding concurrent taxation jurisdiction by
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0023|     tribes and states is needed to determine if economic harm to
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0024|     tribes is produced when states are permitted to impose taxes on
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0025|     businesses in Indian country; 
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0001|       NOW, THEREFORE, BE IT RESOLVED BY THE LEGISLATURE OF THE
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0002|     STATE OF NEW MEXICO that the United States congress be requested
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0003|     to review the current national policy that permits states to tax
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0004|     activities, transactions or property involving non-Indians in
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0005|     Indian country and develop legislation that would prohibit
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0006|     states from taxing activities or transactions that occur in
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0007|     Indian country or from taxing property that is located in Indian
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0008|     country; and
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0009|       BE IT FURTHER RESOLVED that copies of this memorial be
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0010|     transmitted to the United States senate, the United States house
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0011|     of representatives, the members of the New Mexico congressional
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0012|     delegation and the leaders of each of the Indian nations, tribes
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0013|     and pueblos located in New Mexico.
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0014|                              
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