2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-88.1 - Credit; gross receipts tax; tax paid to certain tribes.

A. 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. The 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. 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 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 tribe;
(3) provides 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; and
(4) is subject to a cooperative agreement between the 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:
(1) "pueblo" means the Pueblo of Acoma, 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.
History:
Laws 1999, ch. 223, § 2; 2000, ch. 62, § 1; 2001, ch. 42, § 1; 2003, ch. 414, § 1; 2023, ch. 85, § 16.
ANNOTATIONS
Cross references.
— For definition of local option gross receipts tax,
see
7-1-3 NMSA 1978.
The 2023 amendment,
effective July 1, 2023, removed a provision that required that a gross receipts or similar tax levied by a tribe be at a rate not greater than the total of the gross receipts tax rate and local option gross receipts tax rate; and in Subsection B, deleted former Paragraph B(3) and redesignated Paragraphs B(4) and B(5) as Paragraphs B(3) and B(4), respectively.
The 2003 amendment,
effective July 1, 2003, substituted "tribes" for "pueblos" in the section heading; deleted "any" following "be credited against" in Subsection A; rewrote Subsection C; and substituted "tribal" or "tribe's" for "pueblo" throughout the section.
The 2001 amendment,
effective July 1, 2001, substituted "certain pueblos" for "Santa Ana pueblo, Laguna pueblo or Nambe pueblo" in the section heading; substituted "pueblo land" for "Santa Ana pueblo land, Laguna pueblo land or Nambe pueblo land" near the beginning of Subsection A and rewrote Subsection C, which formerly defined each of the pueblo lands separately.
The 2000 amendment,
effective July 1, 2000, inserted "or Nambe pueblo" in the section heading, inserted "or Nambe pueblo land" in Subsection A, assigned designations (1) and (2) to existing Subsection C text, and added Subsection C(3).