HOUSE MEMORIAL 01

46th legislature - STATE OF NEW MEXICO - second session, 2004

INTRODUCED BY

Ray Begaye

A MEMORIAL

REQUESTING THAT EACH INDIAN NATION, TRIBE AND PUEBLO WORK WITH THE TAXATION AND REVENUE DEPARTMENT AND THE ATTORNEY GENERAL TO ESTABLISH GOVERNMENT-TO-GOVERNMENT AGREEMENTS TO PROMOTE CIGARETTE TAXATION PARITY.

     WHEREAS, exempted from the cigarette tax are sales of cigarettes to the governing body or an enrolled tribal member licensed by the governing body of any Indian nation, tribe or pueblo for use or sale on a reservation or pueblo grant; and

     WHEREAS, competing needs and interests of tribal, state and local governments with partially overlapping taxing jurisdictions must be accommodated; and

     WHEREAS, dual taxation does not affect the state but threatens to cripple the economies of New Mexico's Indian nations, tribes and pueblos; and

     WHEREAS, the burden of unfair competition falls not on off-reservation or pueblo grant businesses but on reservation or pueblo grant enterprises saddled with both state and tribal taxes; and

     WHEREAS, Indian nations, tribes and pueblos object to the imposition of state taxes because they contribute to the loss of revenue; and

     WHEREAS, taxation issues on Indian reservations and pueblo grants have been effectively resolved through negotiated agreements at the tribal-state level for many years in other states because those states have adequate legal remedies to collect taxes on sales to nontribal members that occur on Indian lands; and

     WHEREAS, New Mexico has the necessary legal authority to resolve its taxation issues with Indian nations, tribes and pueblos;

     NOW, THEREFORE, BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES OF THE STATE OF NEW MEXICO that each Indian nation, tribe and pueblo be requested to work with the taxation and revenue department and the attorney general to establish government-to-government agreements to promote cigarette taxation parity; and

     BE IT FURTHER RESOLVED that each Indian nation, tribe and pueblo consider raising its tax on tobacco in parity with the state's tax increase on tobacco; and

     BE IT FURTHER RESOLVED that each Indian nation, tribe and pueblo consider raising its tax on smoke shop products; and

     BE IT FURTHER RESOLVED that each Indian nation, tribe and pueblo consider depositing tobacco taxes in an escrow account to fund community smoking cessation programs; and

     BE IT FURTHER RESOLVED that each Indian nation, tribe and pueblo shall retain its sovereignty in any tribal-state negotiations and government-to-government agreements; and

     BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the governor, the taxation and revenue department, the attorney general, legislative finance committee members, the department of health and the human services department.

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