NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

(Parenthesis ( ) Indicate Revenue Decreases)

Duplicates/Conflicts with/Companion to/Relates to

SOURCES OF INFORMATION

LFC Files

SUMMARY

Synopsis of Bill

Senate Bill 41 adds a new deduction for gasoline taxes on retail sales of gasoline on an Indian reservation, pueblo or trust land. The new deduction would be provided to "a person other than a registered Indian tribal distributor." The deduction is contingent upon the Indian nation, tribe or pueblo having imposed an excise tax on gasoline sales. The size of the deduction increases with the amount of the excise tax imposed by the Indian government up to the point where their gasoline excise tax is equal to the state's.

Significant Issues

A retailer exemption was passed during the 1999 regular legislative session for registered Indian tribal distributors. Absent this legislation, distributors who are not registered Indian tribal distributors could be subject to the full amount of both the state and Indian nation's gasoline taxes.

FISCAL IMPLICATIONS

The Taxation and Revenue Department has not issued a fiscal impact report at this time. Whether there is a fiscal impact depends on whether the revenue losses estimated from providing the retailer deduction to registered tribal distributors for gasoline sold on Indian lands provided during the regular 1999 legislative session assumed that persons other than a registered Indian tribal distributor were eligible for the deduction.

BT/njw