N.M. Admin. Code § 3.2.102.10

Current through Register Vol. 35, No. 24, December 23, 2024

Section 3.2.102.10 - USE OF PROPERTY BY INDIAN GOVERNMENTS

A. Use of property by an Indian nation, tribe or pueblo in Indian country is exempt from compensating tax. The use, to be exempt, is not required to be on the territory of the Indian nation, tribe or pueblo using the property but must be in Indian country.

B. The exemption from compensating tax created by Subsection B of Section 7-9-14 NMSA 1978 does not extend to the use of property owned by individuals who are members of an Indian nation, tribe or pueblo. The use of such property on the territory of the member's nation, tribe or pueblo, however, is not subject to the compensating tax if taxation is prohibited by federal law.

C. The following examples illustrate the provisions of Section 3.2.102.10 NMAC.

(1) Example 1: The Y Tribe purchases a bulldozer outside New Mexico, for use in clearing land in New Mexico on its own land and that of other Indian governments. Compensating tax is not applicable to this transaction.

(2) Example 2: X, an Indian, purchases a tractor outside New Mexico, for use in New Mexico. X contends that, being an Indian, X is exempt from the payment of the compensating tax. The exemption set forth in Section 7-9-14 NMSA 1978 does not apply to individual Indians. It applies only to Indian nations, tribes or pueblos. As long as federal law prohibits taxation of it, however, X's use of the tractor on land within the territory of X's nation, tribe or pueblo is exempt from compensating tax.

N.M. Admin. Code § 3.2.102.10

3/16/95, 11/15/96; 3.2.102.10 NMAC - Rn, 3 NMAC 2.14.10 & A, 5/15/01