SB 397 — TRIBAL LAND GROSS RECEIPTS

SENATE BILL 397 55TH LEGISLATURE -STATEOFNEWMEXICO-- STATEOFNEWMEXICO- FIRST SESSION, 2021 INTRODUCED BY Brenda McKenna 6This 8document 10may ANincorporate ACTamendments RELATINGproposed TOby TAXATION;a committee, but not yet adopted, as well as amendments that have been adopted during the current legislative session.

PROVIDINGThe THATdocument Ais GROSSa RECEIPTS,tool SALESto ORshow SIMILARamendments TAXin LEVIEDcontext BYand CERTAINcannot TRIBESbe SHALLused BEfor LIMITEDthe TOpurpose Aof RATEadding NOTamendments LESSto THANlegislation. THE TOTAL OF THE GROSS RECEIPTS TAX RATE AND LOCAL OPTION GROSS RECEIPTS TAX RATES IMPOSED WITHIN THE EXTERIOR BOUNDARIES OF THOSE TRIBES.

eh tAN 17ACT BEg ITo ENACTEDRELATING BYTO THETAXATION; LEGISLATURE OF THE STATE OF NEW MEXICO:

wPROVIDING THAT A GROSS RECEIPTS, SALES OR t hr g e i k SIMILAR TAX LEVIED BY CERTAIN TRIBES SHALL BE LIMITED TO A RATE h r i s NOT LESS THAN THE TOTAL OF THE GROSS RECEIPTS TAX RATE AND h , t, LOCAL OPTION GROSS RECEIPTS TAX RATES IMPOSED WITHIN THE e u g e b l e e h EXTERIOR BOUNDARIES OF THOSE TRIBES STBTCº TO BE ELIGIBLE FOR A n d 18d SECTIONi 1.= = o h GROSS RECEIPTS TAX CREDIT FOR TRANSACTIONS TAKING PLACE ON l ] b ,d i a º e TRIBAL LAND»STBTC .

Sectionr 7-9-88.1i NMSA= 1978r (beingt Lawse 1999,w =d =m 19 a ln Chaptero 223,d Sectionm 2,: as amended) is amended to read:

ib e d s º o t n = .219824.1AIC March 15, 2021 (11:55am) s k m e e a n e d r 20e "7-9-88.1.l u [ A d BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

CREDIT--GROSSSECTION RECEIPTS1. TAX--TAX PAID TO a t m m 21 CERTAIN TRIBES.-- d r e 22 A.

IfSection on7-9-88.1 aNMSA taxable1978 transaction(being takingLaws place1999, onChapter c223, eSection s2, kas 23amended) tribalis landamended a qualifying gross receipts, sales or similar tax e a n b 24 has been levied by the tribe, the amount of the tribe's tax may u [ be credited against gross receipts tax due this state or its .219824.1 political subdivisions pursuant to theread: Gross Receipts and Compensating Tax Act and a local option gross receipts tax on the same transaction.

The"7-9-88.1. 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.

NotwithstandingCREDIT--GROSS anyRECEIPTS otherTAX--TAX provisionPAID ofTO lawCERTAIN toTRIBES.-- theA. 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.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.

AThe qualifyingamount grossof receipts,the salescredit orshall similarbe eequal tto 17STBTCº the lesser of»STBTC seventy-five percent of the tax leviedimposed by the tribe shallon bethe limitedreceipts tofrom athe transaction or seventy-five percent of the revenue produced by the sum of the rate of tax that:imposed pursuant to the Gross Receipts and Compensating Tax Act and the total of the rates of local option h g gross receipts taxes imposed on the receipts from the same o t hr transaction.

wNotwithstanding lany nother dprovision 18of (1)law isto substantiallythe similarg toe i k contrary, the amount of credit taken and allowed shall be h r i s h applied proportionately against the amount of the gross =, =t, 19e au lg receipts tax imposedand bylocal theoption Grossgross Receiptsreceipts taxes and Compensatingagainst Taxe ib al e re 20h Act;the amount of distribution of those taxes pursuant to Section n d d i = = o h 7-1-6.1 NMSA 1978.

al t] mb m,d 21i (2)a doesº note unlawfullyr discriminatei among= d r eB. 22 persons or transactions based on membership in the tribe;

cA equalifying sgross kreceipts, 23sales (3)or issimilar leviedt one thew taxabled transactionm at a e a n bo 24tax ratelevied notby [greater] less than the totaltribe ofshall thebe grosslimited receiptsto ua [ tax ratethat: and local option gross receipts tax rates imposed by .219824.1 - 2 - this state and its political subdivisions located within the exterior boundaries of the tribe;

(4)d providesm 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;

andb (5)e isd subjects toº ao cooperativet agreementn between= the.219824.1AIC tribeMarch and15, the2021 secretary(11:55am) entereds intok pursuantm toe Section- 9-11-12.12 NMSA- 1978e anda inn effecte atd r e l u [ A d (1) is substantially similar to the timegross ofreceipts tax imposed by the taxableGross transaction.Receipts and Compensating Tax Act;

C.(2) does not unlawfully discriminate among persons or transactions based on membership in the tribe;

For(3) purposesis levied on the taxable transaction at a rate not [greater ] less than the total of the gross receipts tax creditrate allowedand local option gross receipts tax rates imposed by this section:state and its political subdivisions located within the exterior boundaries of the tribe;

e(4) tprovides 17a (1)credit "pueblo"against meansthe tribe's tax equal to STBTCº the Pueblolesser of»STBTC twenty-five percent of Acoma,the wtax limposed nby dthe 18tribe Cochiti,on Isleta,the Jemez,receipts Laguna,from Nambe,the Picuris,transactions Pojoaque,or =twenty-five =percent 19of athe ltax Sandia,revenue Sanproduced Felipe,by Santhe Ildefonso,sum Sanof Juan,the Santarate Ana,of Santatax iimposed apursuant eto rthe 20Gross Clara,Receipts Santoand Domingo,Compensating Taos,Tax Tesuque,Act Ziaand orthe Zunitotal orof the arates tof mthe mlocal 21h nineteenoption Newgross Mexicoreceipts pueblostaxes actingimposed collectively;on the receipts from the g o t hr same transactions;

dand rg e 22i (2)k "tribal(5) land"is meanssubject allto landa thatcooperative isagreement ownedh cr ei s kbetween 23the by a tribe locatedand within the exteriorsecretary boundariesentered ofinto apursuant tribe'sto eh a, nt, bSection 249-11-12.1 reservationNMSA or1978 grant and allin landeffect heldat by the Unitedtime Statesof inthe e u [g truste forb thatl tribe;e e h taxable transaction.

andn .219824.1d -d 3i -= (3)= "tribe"o meansh aC. pueblo, the Jicarilla Apache Nation or the Mescalero Apache Tribe." SECTION 2.

For purposes of the tax credit allowed by this l ] b ,d i a º e section:

r i = r t e w d m a n o (1) "pueblo" means the Pueblo of Acoma, d m :

b e d s º o t n = .219824.1AIC March 15, 2021 (11:55am) s k m e - 3 - e a n e d r e l u [ A d 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.

- 4 - 7h 9u 11» 13r 15t h g e l i h r i s h , e h t 17u wg e b l e e , gh n d 18d i = = 19o ah l i] ab e,d ri 20 a tº m m 21 d r e 22r c= t e sw kd 23m e a n bo 24d um [: .219824.1

b r e t º o t n = .219824.1AIC March 15, 2021 (11:55am) s k m e e a n e d r e l u [ A d