46th legislature - STATE OF NEW MEXICO - first session, 2003
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 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 [PUEBLOS] TRIBES.--
A. If on a taxable transaction taking place on
[pueblo] tribal land a qualifying gross receipts, sales or
similar tax has been levied by the [pueblo] tribe, the amount
of the [pueblo] tribe's tax may be credited against [any] gross
receipts tax due this state or its political subdivisions
pursuant to the Gross Receipts and Compensating Tax Act and
[any] 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
[pueblo] 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 [pueblo] 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 [pueblo]
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 [pueblo] tribe;
(4) provides a credit against the [pueblo]
tribe's tax equal to the lesser of twenty-five percent of the
tax imposed by the [pueblo] 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 [pueblo] 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: ["pueblo land" means all land located within the
exterior boundaries of the reservation or pueblo grant and all
land held by the United States in trust for one of the
following:
(1) the Pueblo of Isleta;
(2) the Pueblo of Laguna;
(3) the Pueblo of Nambe;
(4) the Pueblo of Sandia; or
(5) the Pueblo of Santa Ana]
(1) "pueblo" means the Pueblo of Acoma, Cochiti, Isleta, Jemez, Laguna, Nambe, Picuris, Pojoaque, Sandia, San Felipe, San Ildefonso, San Juan, Santa Ana, Santo Domingo, Taos, Tesuque, Zia or Zuni or the nineteen New Mexico pueblos acting collectively;
(2) "tribal land" means all land 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 [WITH THE
PUEBLOS OF ISLETA, LAGUNA, NAMBE, SANDIA, SANTA ANA AND SANTA
CLARA].--
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, [and] 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
[pueblo] 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
[pueblo] tribe and for the receipt of money collected by a
[pueblo] 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 [pueblo] 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
[pueblo] tribe to tax persons or transactions that federal law
prohibits that government from taxing or as authorizing a state
or [pueblo] 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 [pueblo] 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 [pueblo] 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 [Indian
nation] tribe [or pueblo].
E. Nothing in an agreement entered into with the
Pueblo of Santa Clara [pueblo] pursuant to this section shall
apply to a taxable transaction subject to the taxing authority
of a municipality pursuant to a local option gross receipts tax
act or distribution to a municipality from gross receipts taxes
pursuant to Section 7-1-6.4 NMSA 1978, except that such
agreement shall apply to such taxable transactions, and related
distributions, reported from business locations on land of the
Pueblo of Santa Clara [pueblo land] annexed by a municipality
after January 1, 1997.
F. 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. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2003.