44TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 1999

RELATING TO TAXATION; CREATING A DUAL TAXATION STUDY TASK FORCE; MAKING AN APPROPRIATION; DECLARING AN EMERGENCY.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. DUAL TAXATION STUDY TASK FORCE CREATED.--The "dual taxation study task force" is created. The task force shall function from the date of its creation until December 1 prior to the second session of the forty-fifth legislature.

Section 2. MEMBERSHIP--PER DIEM AND MILEAGE--OFFICERS.--

A. The dual taxation study task force shall be composed of eighteen voting members as follows:

(1) six members appointed by the governor;

(2) a representative appointed by the president of the Navajo nation;

(3) a representative appointed by the speaker of the Navajo nation council;

(4) a representative appointed by the Jicarilla Apache tribal council;

(5) a representative appointed by the Mescalero Apache tribal council;

(6) two representatives appointed by the all- Indian pueblo council;

(7) two members of the house of representatives appointed by the speaker, one a Native American and one a member of the house taxation and revenue committee from the minority party after consultation with the minority floor leader;

(8) two members of the senate appointed by the president pro tempore, one a Native American and one a member of the senate ways and means committee from the minority party after consultation with the minority floor leader;

(9) the chairman of the house taxation and revenue committee or his designee from the committee; and

(10) the chairman of the senate ways and means committee or his designee from the committee.

B. Vacancies shall be filled by the original appointing authorities.

C. Members appointed by the governor who are not state agency representatives or who are appointed by an Indian nation, tribe or pueblo shall receive per diem and mileage pursuant to the provisions of the Per Diem and Mileage Act and shall receive no other compensation, perquisite or allowance for authorized work performed as a member of the task force.

D. There shall be two co-chairmen appointed by the president pro tempore of the senate and the speaker of the house of representatives.

E. Staff for the task force shall be provided by the legislative council service.

F. Advisory members may be appointed by any of the appointing authorities upon approval of a majority of the task force. Advisory members may receive per diem and mileage but shall not be voting members of the task force.

Section 3. DUTIES.--The dual taxation study task force shall, to the extent reasonably possible:

A. conduct studies of state and tribal dual taxation in New Mexico, the laws governing dual taxation and the socioeconomic and fiscal impacts on the state and on Indian nations, tribes and pueblos located in the state;

B. identify taxes imposed by the state and by a tribe that create a dual taxation burden on businesses located on tribal land;

C. identify the annual dollar amount of all state and tribal taxes received from business activities in Indian country, including the taxation on production, income and property from non-Indian owned businesses under contract with Indian nations, tribes or pueblos;

D. quantify in dollars the annual level of services and capital improvements provided by the state to each of the Indian nations, tribes or pueblos since 1957;

E. examine and quantify in dollars the economic costs and benefits of Indian country economies on the economy and budget of the state;

F. identify and quantify the amount of tax dollars paid by Indian people to the state, including gross receipts tax, gasoline tax on purchases of fuel, income tax on income earned by Indian people earning from sources off their own tribal lands, excise taxes, license and vehicle registration fees and any other tax that is paid by Indian people to the state;

G. identify and quantify the amount of tax dollars paid by non-Indian people to the state from a business or any economic activity in Indian country to the state;

H. identify and quantify the dollar amount paid by non-Indian people to governments of Indian nations, tribes or pueblos;

I. determine the impact of dual taxation on the production of energy resources in Indian country;

J. examine and quantify the costs and benefits of the state's economy, population and off-reservation state services on Indian country economies;

K. determine if Indian nations, tribes or pueblos or the state are disadvantaged in attracting investment capital due to the presence of dual taxation;

L. determine if dual taxation impairs development and growth of existing markets for products from Indian country when compared with development and growth of markets for similar products from non-Indian country;

M. identify and evaluate alternative methods of approaching severance and other types of taxation, including property and income, on lands both within the state and in Indian country, and determine the status of taxation by the state or Indian nations, tribes or pueblos where mineral, energy resource or other businesses are under development in Indian country;

N. determine if there are feasible means of providing incentives to attract industries to locate in Indian country and determine the use of state incentives by industries in Indian country;

O. identify the roles that the state and Indian nations, tribes and pueblos should be playing in promoting development, production and marketing of industries in Indian country;

P. determine and quantify in dollars the costs and benefits of having Indian communities in the state on state social and educational programs, including the input of federal dollars and the use of state programs by Indian people;

Q. identify tax policies and procedures that can be implemented by the state and the Indian nations, tribes and pueblos to provide socioeconomic and fiscal benefits to those entities and areas of cooperation among those entities to facilitate the collection of taxes owed to those governments;

R. develop proposals to be submitted to the Navajo nation, Jicarilla Apache tribe, Mescalero Apache tribe, all- Indian pueblo council, eight northern Indian pueblos council, ten southern Indian pueblos council, the governor of the state and the legislature proposing changes in laws or ordinances that can be implemented to promote economic development and reduce dual taxation; and

S. submit a written report to the second session of the forty-fifth legislature and the governing bodies of the Indian nations, tribes and pueblos in New Mexico stating the findings, conclusions and proposals for beneficial changes in law or ordinances that developed from the work of the task force.

Section 4. APPROPRIATION.--One hundred sixty-two thousand dollars ($162,000) is appropriated from the general fund to the legislative council service for expenditure in fiscal years 1999 through 2001 for the purpose of purchasing supplies, paying the salaries and expenses of technical, legal and clerical contractors or support staff and for reimbursing per diem and mileage of members of the dual taxation study task force, including advisory and Indian members. Any unexpended or unencumbered balance remaining at the end of fiscal year 2001 shall revert to the general fund.

Section 5. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.