AN ACT
RELATING TO TAXATION; EXPANDING THE AUTHORITY OF THE
TAXATION AND REVENUE DEPARTMENT TO ENTER INTO A COOPERATIVE TAX CREDIT
AGREEMENT WITH A TRIBE THAT HAS IMPOSED A TAX SIMILAR TO THE GROSS RECEIPTS
TAX; AMENDING AND REPEALING SECTIONS OF THE NMSA 1978.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. Section 7-9-88.1 NMSA 1978 (being Laws 1999,
Chapter 223, Section 2, as amended) is amended to read:
"7-9-88.1. CREDIT--GROSS RECEIPTS TAX--TAX PAID TO
CERTAIN TRIBES.--
A. If on a taxable transaction taking place on
tribal land a qualifying gross receipts, sales or similar tax has been levied
by the tribe, the amount of the tribe's tax may be credited against gross
receipts tax due this state or its political subdivisions pursuant to the Gross
Receipts and Compensating Tax Act and a local option gross receipts tax on the
same transaction. The amount of the
credit shall be equal to the lesser of seventy-five percent of the tax imposed
by the tribe on the receipts from the transaction or seventy-five percent of
the revenue produced by the sum of the rate of tax imposed pursuant to the
Gross Receipts and Compensating Tax Act and the total of the rates of local
option gross receipts taxes imposed on the receipts from the same
transaction. Notwithstanding any other
provision of law to the contrary, the amount of credit taken and allowed shall
be applied proportionately against the amount of the gross receipts tax and
local option gross receipts taxes and against the amount of distribution of
those taxes pursuant to Section 7-1-6.1 NMSA 1978.
B. A qualifying gross receipts, sales or similar
tax levied by the tribe shall be limited to a tax that:
(1) is substantially similar to the gross
receipts tax imposed by the Gross Receipts and Compensating Tax Act;
(2) does not unlawfully discriminate among
persons or transactions based on membership in the tribe;
(3) is levied on the taxable transaction at a
rate not greater than the total of the gross receipts tax rate and local option
gross receipts tax rates imposed by this state and its political subdivisions
located within the exterior boundaries of the tribe;
(4) provides a credit against the tribe's tax
equal to the lesser of twenty-five percent of the tax imposed by the tribe on
the receipts from the transactions or twenty-five percent of the tax revenue
produced by the sum of the rate of tax imposed pursuant to the Gross Receipts
and Compensating Tax Act and the total of the rates of the local option gross
receipts taxes imposed on the receipts from the same transactions; and
(5) is subject to a cooperative agreement between
the tribe and the secretary entered into pursuant to Section 9-11-12.1 NMSA
1978 and in effect at the time of the taxable transaction.
C. For purposes of the tax credit allowed by
this section:
(1) "pueblo" means the Pueblo of Acoma,
Cochiti, Isleta, Jemez, Laguna, Nambe, Picuris, Pojoaque, Sandia, San Felipe,
San Ildefonso, San Juan, Santa Ana,
Santa Clara, Santo Domingo, Taos, Tesuque, Zia or Zuni or
the nineteen New Mexico pueblos acting collectively;
(2) "tribal land" means all land that
is owned by a tribe located within the exterior boundaries of a tribe's
reservation or grant and all land held by the United States in trust for that
tribe; and
(3) "tribe" means a pueblo, the
Jicarilla Apache Nation or the Mescalero Apache Tribe."
Section 2. Section 9-11-12.1 NMSA 1978 (being Laws 1997,
Chapter 64, Section 1, as amended) is amended to read:
"9-11-12.1. TRIBAL COOPERATIVE AGREEMENTS.--
A. The secretary may enter into cooperative
agreements with the Pueblos of Acoma, Cochiti, Jemez, Isleta, Laguna, Nambe,
Picuris, Pojoaque, Sandia, San Felipe,
San Ildefonso, San Juan, Santa Ana, Santa Clara, Santo Domingo, Taos, Tesuque, Zia and Zuni; the
Jicarilla Apache Nation; the Mescalero Apache Tribe; and with the nineteen
pueblos acting collectively for the exchange of information and the reciprocal,
joint or common enforcement, administration, collection, remittance and audit
of gross receipts tax revenues of the party jurisdictions.
B. Money collected by the department on behalf
of a tribe in accordance with an agreement entered into pursuant to this
section is not money of this state and shall be collected and disbursed in
accordance with the terms of the agreement, notwithstanding any other provision
of law.
C. The secretary is empowered to promulgate such
rules and to establish such procedures as the secretary deems appropriate for
the collection and disbursement of funds due a tribe and for the receipt of
money collected by a tribe for the account of this state under the terms of a
cooperative agreement entered into under the authority of this section,
including procedures for identification of taxpayers or transactions that are
subject only to the taxing authority of the tribe, taxpayers or transactions
that are subject only to the taxing authority of this state and taxpayers or
transactions that are subject to the taxing authority of both party
jurisdictions.
D. Nothing in an agreement entered into pursuant
to this section shall be construed as authorizing this state or a tribe to tax
persons or transactions that federal law prohibits that government from taxing
or as authorizing a state or tribal court to assert jurisdiction over persons
who are not otherwise subject to that court's jurisdiction or as affecting any
issue of the respective civil or criminal jurisdictions of this state or the
tribe. Nothing in an agreement entered
into pursuant to this section shall be construed as an assertion or an
admission by either this state or a tribe that the taxes of one have precedence
over the taxes of the other when the person or transaction is subject to the
taxing authority of both governments. An
agreement entered into pursuant to this section shall be construed solely as an
agreement between the two party governments and shall not alter or affect the
government-to-government relations between this state and any other tribe.
E. As used in this section:
(1) "tribal" means of or pertaining to
a tribe; and
(2) "tribe" means an Indian nation,
tribe or pueblo located entirely in New Mexico."
Section 3. REPEAL.--Section 7-9-88 NMSA 1978 (being Laws
1997, Chapter 64, Section 2) is repealed.
Section 4. EFFECTIVE DATE.--The effective date of the
provisions of this act is July 1, 2003.