2.3.16.040 Findings

The Council hereby finds and declares that:

(a) In 2013, the Pueblo entered into a Cooperative Agreement with the TRD for the administration of gross receipts taxes imposed by the Pueblo and TRD on certain transactions within the Pueblo's lands; and

(b) In January 2019, the State enacted legislation to require certain internet sellers to start collecting and paying gross receipts tax on their New Mexico transactions; and

(c) During the period from July 1, 2019 through June 30, 2021, the State collected, or will have collected, gross receipts taxes on internet sales delivered on Pueblo lands because internet retailers reported those sales to the State's general location code instead of the Pueblo's location codes; and

(d) Because of the changes to the State's gross receipts tax laws, it would be difficult for internet retailers to determine how to report their gross receipts on internet sales on Pueblo lands; and

(e) TRD met with pueblos and tribes to discuss taxation of internet sales and it was determined that the changes to the State's gross receipts law required an amendment to the Cooperative Agreements. An addendum was negotiated with TRD to memorialize how receipts from internet sales that are reportable to the Pueblo would be handled under the Cooperative Agreement; and

(f) Under the addendum, TRD also agrees to waive the TRD administrative fees on Class 1 and Class 2 receipts for a five-year period to compensate for gross receipts collected by the State during the period of July 1, 2019 to June 30, 2021 that were not reported to the Pueblo's location code; and

(g) The Council has reviewed the attached Addendum and has determined it is in the Pueblo's best interests to approve the Addendum and authorize Governor to sign the Addendum.