SENATE MEMORIAL 43

48th legislature - STATE OF NEW MEXICO - second session, 2008

INTRODUCED BY

Lynda M. Lovejoy

A MEMORIAL

REQUESTING THE TAXATION AND REVENUE DEPARTMENT AND THE VETERANS' SERVICES DEPARTMENT TO STUDY WHETHER NATIVE AMERICAN VETERANS HAVE HAD STATE PERSONAL INCOME TAXES IMPROPERLY WITHHELD FROM THEIR ACTIVE DUTY MILITARY PAY, AND IF SO, TO CONSIDER THE FEASIBILITY OF ESTABLISHING A PROGRAM OF APPROPRIATE COMPENSATION.

     WHEREAS, Native Americans have had a long history of serving their country though active duty in the armed forces of the United States during periods of both war and peace; and

     WHEREAS, Native American veterans have made great sacrifices in serving their country through active duty in the military during periods of war and peace; and

     WHEREAS, Native American veterans domiciled on tribal lands during their periods of active military service may have been exempt from paying state personal income taxes on their military income; and

     WHEREAS, Native American veterans domiciled on tribal lands during their periods of active military service may have had state personal income taxes improperly withheld from their military income; and

     WHEREAS, Native American veterans who may have had state personal income taxes improperly withheld from their military income were unaware until recent years that such taxes may have been improperly withheld; and

     WHEREAS, New Mexico's statutes limit applications for personal income tax refunds to the three-year period following the tax year in question; and

     WHEREAS, in a lawsuit filed in federal district court seeking a refund for Native American veterans of improperly withheld state personal income taxes, all but eleven of the plaintiffs were barred from recovery due to the state's three-year statute of limitations; and

     WHEREAS, many other Native American veterans are now barred by the state statute of limitations from claiming refunds of state personal income taxes that may have been improperly withheld from their military income; and

     WHEREAS, even if not barred by the statute of limitations, the passage of time extending to decades will make it difficult for many Native American veterans to meet strict standards of proof that they are entitled to a refund of improperly withheld state personal income taxes; and

     WHEREAS, it is incumbent upon the state to ensure that it was not unjustly enriched by the improper withholding of state personal income taxes from Native American veterans; and

     WHEREAS, the state should investigate feasible means of refunding the Native American veterans any state personal income taxes that were improperly withheld from military pay;

     NOW, THEREFORE, BE IT RESOLVED BY THE SENATE OF THE STATE OF NEW MEXICO that the taxation and revenue department and the veterans' services department be requested to conduct a study on the question of whether Native American veterans who were domiciled on tribal lands during the period of their active military duty had state personal income taxes improperly withheld from their pay; and

     BE IT FURTHER RESOLVED that if the taxation and revenue department and the veterans' services department determine that Native American veterans who were domiciled on tribal lands during the period of their active military duty may have had state personal income taxes improperly withheld from their pay, that they consider the feasibility of establishing a state program to compensate Native Americans who had state personal income taxes improperly withheld from military income while on active duty; and

     BE IT FURTHER RESOLVED that the taxation and revenue department and the veterans' services department present their findings and recommendations to the appropriate interim legislative committees by October 1, 2008; and

     BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the governor, the secretary of taxation and revenue, the secretary of veterans' services, the president of the Navajo Nation, the speaker of the Navajo Nation council, the president of the Jicarilla Apache Nation, the president of the Mescalero Apache Tribe and the governors of the nineteen Indian pueblos.

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