TITLE 2. TAXATION

CHAPTER 1 – TAX ADMINISTRATION

Section 2-1-1. Title.

This chapter may be cited as the "Tax Administration Ordinance."

Section 2-1-2. Definitions.

For purposes of this title:

District Court means the CFR Court authorized by the Governing Council to exercise judicial jurisdiction over the District. Also referred to as “19 Pueblos District Court.”

Cigarette means

any roll of tobacco or any substitute for tobacco wrapped in paper or in any substance not containing tobacco;
any roll of tobacco that is wrapped in any substance containing tobacco, other than one hundred percent natural leaf tobacco, which, because of its appearance, the type of tobacco used in the filler, its packaging and labeling, or its marketing and advertising, is likely to be offered to, or purchased by, consumers as a cigarette, as described in part (a) of this definition;
bidis and kreteks; or
any tobacco which, because of its appearance, type, packaging, or labeling is suitable for use and likely to be offered to, or purchased by, consumers as tobacco, for making cigarettes ("roll-your-own" tobacco); 0.09 ounces of roll- your-own tobacco shall constitute one cigarette.

Construction means:

the building, altering, repairing or demolishing in the ordinary course of business of any:
1. road, highway, bridge, parking area or related project;
2. building, stadium or other structure;
3. park, trail, athletic field, golf course or similar facility;
4. dam, reservoir, canal, ditch or similar facility;
5. sewerage or water treatment facility, power generating plant, pump station, natural gas compressing station, gas processing plant, coal gasification plant, refinery, distillery or similar facility;
6. sewerage, water, gas or other pipeline;
7. transmission line;
8. radio, television, microwave, cellular telephone, or other tower or facility;
9. water, oil or other storage tank;
10. retaining wall, wall, fence, gate or similar structure; or
11. similar work;
the leveling or clearing of land;
the excavating of earth;
the drilling of wells of any type, including seismograph shot holes or core drilling; or
similar work; and
includes construction material.

Construction material means tangible personal property that becomes or is intended to become an ingredient or component part of a construction project.

Day means calendar day.

District means all lands subject to the jurisdiction of the Governing Council pursuant to the 19 Pueblos District Charter.

Designated agent means the person who has been identified in writing to the Tax Office as responsible for performing all the obligations of a taxpayer under this title, including all obligations to provide information necessary to permit the accurate computation of all applicable taxes, provided that if the designated agent is not a natural person, it shall identify an individual Tax Officer, by name or position, to serve as the contact person for the Tax Office and to sign and submit all required forms.

Engaging in business means carrying on or causing to be carried on any activity with the purpose of direct or indirect benefit, profit, gain or advantage, and includes selling tangible personal property, leasing tangible personal property, and performing services, including without limitation, construction services, lodging services, recreational services, and entertainment services. Engaging in business includes making sales of tangible personal property through vending machines and similar devices. Engaging in business does not include granting a lease or sublease of real property.

Food means any food or food product for home consumption that meets the definition of food in 7 U.S.C. § 2012(g)(1) for purposes of the federal food stamp program.

Governing Council means the governing body of the District under the 19 Pueblos District Charter.

Gross receipts means the total amount of money or the value of other consideration received from engaging in business within the District. Gross receipts include receipts from (a) the sale of tangible personal property if the sale takes place within the District, (b) the leasing of tangible personal property if the leased property is located within the District, (c) the performance of services, including without limitation lodging services and construction, within the District, and (d) admission to any place of recreation or entertainment. Gross receipts exclude cash discounts allowed and taken, and any gross receipts tax imposed by the state of New Mexico or its political subdivisions, provided that such entity provides for a reciprocal exclusion for gross receipts tax imposed by the District. Gross receipts excludes rent received under a lease or sublease of real property.

Gross taxable rent means the total amount of rent paid for lodging services, not including the gross receipts tax paid on such rent. Rent includes all consideration received by a vendor for providing lodging services, whether paid in money, credits, property or other consideration valued in money.

Itinerant vendor means a person who does not have a permanent place of business within the District and who sells or purchases tangible personal property within the District from a temporary location or who performs services within the District at a temporary location;

Levy means the lawful power, hereby invested in the Tax Office, to take into possession or to require the present or future surrender to the Tax Office of any property or rights to property belonging to a delinquent taxpayer.

Lodging services means the business of furnishing rooms or other accommodations by a person to a customer who for a rent uses, possesses or has the right to use or possess any room or rooms or other units of accommodations in or at a hotel, apartment house, lodging house, motel, bed and breakfast, guest house, or other premises for lodging for a period of less than thirty (30) consecutive days.

New Mexico Tax Credit Stamp means the stamp issued by the New Mexico Taxation and Revenue Department for use by state-licensed cigarette distributors to indicate that the cigarette package bearing the stamp is to be or has been sold by a retailer located on land of a tribe that has imposed a qualifying tribal cigarette tax, as defined by § 7-12-2(K) NMSA 1978 as amended by Laws of New Mexico, 2010 2nd Special Session. Chapter 5.

Oversight Commission means the commission established by Article VI of the 19 Pueblos District Charter.

Package of cigarettes means an individual pack, box or other container, but does not include a container that itself contains other containers, such as a carton of cigarettes.

Person means any natural person, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, or any entity, department, agency, instrumentality or political subdivision of tribal, federal or state government.

Pueblo government entity means any of the Nineteen Pueblos; any political subdivision or governmental department, agency or entity of any of the Nineteen Pueblos; the District; or any other political subdivision or governmental department, agency or entity of two or more of the Nineteen Pueblos.

Pueblo-owned business means a business or joint venture that is at least fifty-one (51) percent owned by one or more of the Nineteen Pueblos, including such businesses organized as corporations under tribal, federal or state law, unincorporated business enterprises, limited liability companies, partnerships, and all other forms of business organization.

Purchase price means the amount received by a person in cash, credit or other consideration for the sale or lease of tangible personal property, or for the performance of a service.

Retail means a sale to a customer not for resale by the customer in the customer’s regular course of business.

Retail food store means a person that sells food for home preparation and consumption from a permanent place of business and that is authorized to accept food stamps under the federal Food Stamp Act.

Tangible personal property means all goods, wares, merchandise, produce, commodities and all tangible things and substances which are capable of being possessed or exchanged, and includes construction materials, electricity, natural gas, propane, and water.

Tax means the total amount of each tax imposed and required to be paid under the provisions of any chapter in this title, and unless the context otherwise requires, includes the amount of any interest or civil penalty relating thereto.

Taxable transaction means a business transaction that is subject to tax under any chapter in this title.

Tax Office means the Tax Administration Office, the Tax Administrator, or an employee of the Tax Office designated by the Tax Administrator to exercise the powers of the Tax Office under this title.

Taxpayer or taxable entity means any person who engages in a taxable transaction in the District and is responsible for paying to the District any tax imposed by any chapter in this title.

Tax year means the calendar year during which a taxable transaction occurs.

Section 2-1-3. Applicability.

This chapter applies to and governs the administration and enforcement of all taxes imposed by this title, as amended from time to time, unless another provision of this title expressly provides otherwise.

Section 2-1-4. Tax Administration Office; Tax Administrator.

In order to implement and enforce this title, a Tax Administration Office of the District (the Tax Office) is hereby established to administer this title and to keep all records and accounts concerning District taxes. The Tax Office is authorized to:
1. Inspect or audit the records and books of account of taxpayers and designated agents and examine property or other evidence at such times as the Tax Office deems necessary for the effective execution of the Tax Office's responsibilities under this title;
2. Request and require taxpayers and designated agents to produce and make available for examination their records and books of account and other information or evidence;
3. Issue subpoenas in conformity with paragraph C of this section;
4. Issue regulations, rulings, instructions or orders, pursuant to section 2-1-5;
5. Conduct tax protest hearings, pursuant to section 2-1-15; agents and examine property or other evidence at such times as the Tax Office deems necessary for the effective execution of the Tax Office's responsibilities under this title;
6. Enter into cooperative agreements or joint powers agreements with the United States or any tribe or state for the exchange of information pertaining to, and the administration and enforcement of, tax laws; provided that any such agreement shall be valid only when approved by resolution of the Governing Council;
7. Perform such other activities as the Tax Office may find necessary to carry out its responsibilities under this title; provided that the Tax Office shall have no authority to waive the sovereign immunity of the Tax Office or any other entity of the District.
The administrative head of the Tax Office shall be the Tax Administrator, who shall be selected and hired by the Oversight Commission subject to ratification by the Governing Council. The Tax Administrator may be suspended or removed by the Oversight Commission with or without cause at any time, subject to ratification by the Governing Council. The Tax Administrator shall:
1. (1) be at least twenty-one (21) years of age,
2. (2) be of high moral character and integrity,
3. (3) never have been convicted of a misdemeanor involving dishonesty or any felony,
4. (4) be physically capable of carrying out the duties imposed by this chapter,
5. 5) have sufficient relevant experience and capacity to learn tax practices and procedures and to make sound judgments, and
6. (6) have the formal educational qualifications established by the Governing Council.
Subpoenas issued by the Tax Office shall be returnable no less than ten (10) days from the date of service, shall state with reasonable certainty the nature of the evidence required to be produced, the time and place the evidence is to be produced, and the consequences of failure to obey the subpoena, and shall be attested by the Tax Administrator. After service of a subpoena, if any person served neglects or refuses to produce records or other evidence or to allow the inspection of equipment, records, books, information or evidence in response to the subpoena, the Tax Office may assess civil penalties under section 2-1-25 and may invoke the aid of any court of competent jurisdiction or the United States Department of the Interior in enforcement of the subpoena.
The Tax Administrator and any employees of the Tax Office designated by resolution of the Governing Council shall be bonded in the performance of their duties and safekeeping of all funds and documents entrusted to their care, in an amount set by the Governing Council. The cost of all such bonds shall be included in the budget of the Tax Office.

Section 2-1-5. Administrative regulations, rulings, instructions and orders; presumption of correctness.

The Tax Administrator, as recommended by the Oversight Commission and with the concurrence of the Governing Council, is authorized to issue all regulations necessary to implement and enforce any provision of this title, pursuant to the provisions of this section. The Tax Administrator is authorized to issue all rulings, instructions or orders necessary to implement and enforce any provision of this title, pursuant to the provisions of this section.
Regulations are written statements of the Tax Administrator, of general application, interpreting and implementing this title. Before issuing a regulation, the Tax Administrator shall comply with the following requirements:
1. (1) The Tax Administrator shall publish notice of the proposed regulation, as approved by the Oversight Commission, in a local newspaper of general circulation and post such notice at the Tax Office. The notice shall make available to the public a copy of the proposed regulation, and shall specify the period available for public comment and the date, time and place of a public hearing on the proposed regulation.
2. The Tax Administrator shall establish a rule-making docket no later than the date of notice of the proposed regulation, shall maintain the docket as necessary during the rule-making process, and shall make the docket available to the public for inspection and copying during regular business hours. The docket shall contain copies of transcripts of any hearings and of each document submitted to or relied on by the Tax Administrator in the rule-making process.
3. The Tax Administrator shall provide a comment period of at least thirty (30) days, within which any person may submit written comments, data or documentary information, and present orally their views, data or arguments at the hearing scheduled for consideration of the proposed regulation. If no person notifies the Tax Administrator of an intent to participate in the hearing on a proposed regulation in advance thereof, the Tax Administrator may cancel the hearing without advance notice. If a hearing is held on a proposed regulation, the Tax Administrator shall keep the docket open for at least ten (10) days thereafter to provide an opportunity for submission of rebuttal and supplementary information.
4. After the comment period, the Tax Administrator and Oversight Commission shall revise the proposed regulation as deemed appropriate by the Tax Administrator and Oversight Commission and shall, with the written concurrence of the Governing Council, promulgate the regulation as final. All final regulations under this title shall be based on the record of the rule-making proceeding contained in the docket and shall be accompanied by an explanation of the need for the regulation, the reasons for any major changes from the proposed regulation, and a response to each significant comment submitted in writing during the comment period.
Rulings are written statements of the Tax Administrator, of limited application to one or a small number of taxpayers, interpreting the tax laws to which they relate, ordinarily issued in response to a request for clarification of the tax consequences of a specified set of circumstances.
Orders are written statements of the Tax Administrator to implement a decision after a hearing.
Instructions are other written statements or directives of the Tax Administrator not dealing with the merits of any tax but otherwise in aid of the accomplishment of the duties of the Tax Administrator.
The extent to which regulations, rulings and orders will have retroactive effect shall be stated and, if no such statement is made, they will be applied prospectively only.

Section 2-1-6. Address of notices; timely filing.

Any notice required or authorized to be given by mail is effective when mailed to or served by the Tax Office on the person in question at the last address shown in the records of the Tax Office. Any notice, return, application or payment required or authorized to be delivered to the Tax Office by mail shall be addressed to Tax Administration Office, 19 Pueblos District, 2401 12th Street NW, Suite 200N, Albuquerque, New Mexico 87104 or such other address designated by the Tax Administrator.
Except as otherwise provided by applicable law, all notices, returns, applications or payments authorized or required to be made or given by mail are timely if mailed on or before the date on which they are required, as shown by the postmark on the document.

Section 2-1-7. Taxpayer Registration; designation of agent; required records; information returns.

Before engaging in any transaction subject to tax under this title, a taxpayer shall register with the Tax Office on the forms and in the manner determined by the Tax Administrator. If a taxpayer fails to register as required by this section, the Tax Administrator may assess a civil penalty under section 2-1-25 in addition to any tax due under this title.
Each taxpayer shall designate, in writing to the Tax Office, an agent who shall represent and legally bind the taxpayer with respect to all obligations under this title.
1. The written designation shall be signed by the taxpayer; shall identify the taxpayer for which the agent is designated; shall list the name, address, telephone and facsimile numbers of the designated agent; and shall state that the taxpayer acknowledges it is bound by the designated agent's actions, inactions or submissions with regard to this title and that it is bound by any orders issued to the designated agent by the Tax Office or the District Court with regard to this title.
2. Taxpayers may change their designated agent at any time, provided that the change shall be effective only when written notice of the change is received by the Tax Office. The taxpayer will be bound by the previous designated agent until the Tax Office receives the written change of designation.
Every designated agent and taxpayer shall maintain books and records of account or other records in a manner that will permit the accurate computation of the taxes due under this title.
The Tax Office may, by regulation, require any person doing business within the District to submit to the Tax Office information returns that are reasonable and necessary for the administration of this title, whether or not that person is a taxpayer.

Section 2-1-8. Liability for tax; taxpayer returns; extension of time.

Each taxpayer is required to make payment to the Tax Office for all taxes due under this title, and shall be responsible for the performance of all the other obligations of taxpayers under this title.
Incomplete or otherwise inadequate tax returns may result in the computation of additional tax by the Tax Office, and the taxpayer shall be liable for additional assessed taxes, interest, and penalties as provided in this chapter.
A taxpayer is liable for any tax liability determined from information revealed in an audit of the taxpayer's records performed by the Tax Office pursuant to section 2-1-17. Liability for the tax, interest, and penalties is computed from the date of the taxable transaction, irrespective of when the audit is performed or the tax liability is discovered by the Tax Office, whether by audit or otherwise.
Payment of all taxes due under this title shall accompany the applicable tax return. Delivery to the Tax Office of a check that is not paid upon presentment does not constitute payment. Taxes shall be paid by check or money order made payable to the 19 Pueblos District. Payment is timely made if it is received by the Tax Office before midnight on the date on which the tax is due.
The Tax Office may grant an extension of time for the filing of a tax return and/or the payment of any tax, upon the timely request of the taxpayer. A request for extension is timely only if submitted on or before the due date of the return or payment at issue. No penalty for late payment shall be imposed on any payment for which an extension has been granted. However, interest on the tax shall begin to accrue from the date the tax was originally due notwithstanding the extension.

Section 2-1-9. Delinquent taxpayer.

Any taxpayer to whom taxes have been assessed or from whom payment has been demanded, as provided in section 2-1-10, who does not within thirty (30) days after the date of assessment or demand for payment make payment, protest the assessment or demand for payment as provided in section 2-1-15, or furnish security for payment acceptable to the Tax Office, becomes a delinquent taxpayer and remains delinquent until (A) payment of the total amount of all such taxes, interest and penalties is made, (B) security is furnished for payment, or (C) no part of the assessment remains unabated.

Section 2-1-10. Assessment of taxes; presumption of correctness.

If the Tax Office determines that a taxpayer is liable for taxes that are due and that have not been previously assessed to the taxpayer, the Tax Office shall promptly assess the amount thereof to the taxpayer. The filing of a tax return with the Tax Office showing that a tax is due constitutes a self-assessment of the unpaid amount of the tax shown on the return.
Assessments of tax are effective:
1. When a return of a taxpayer is received by the Tax Office showing a liability for taxes in excess of the tax payment accompanying the return, or
2. When a notice of tax assessment issued by the Tax Office is mailed or delivered in person to the taxpayer against whom the liability for tax payment is asserted, stating the nature and amount of taxes claimed, demanding immediate payment and informing the taxpayer of the remedies available to the taxpayer.
When taxes have been assessed to a taxpayer and remain unpaid, the Tax Office may demand payment at any time.
Any assessment of taxes or demand for payment made by the Tax Office is presumed to be correct, and the taxpayer has the burden of showing the assessment or demand is not correct. A self-assessment by the taxpayer is not presumed to be correct.

Section 2-1-11. Limitations period for assessments and collections.

No assessment of tax may be made by the Tax Office for a tax reporting period more than five (5) years after the date on which the claim for the unpaid tax accrues.
A claim for unpaid tax accrues when the tax is first payable, pursuant to the relevant chapter, provided that claims for tax liability that can only reasonably be determined by the Tax Office from information that the taxpayer has failed to disclose in a tax return or other submittal to the Tax Office are not barred and do not accrue until such information is provided to the Tax Office.
No administrative or judicial action or proceeding shall be brought to collect taxes assessed by the Tax Office more than three (3) years after the date of such assessment.]

Section 2-1-12. Exhaustion of administrative remedies.

No court has jurisdiction to entertain any proceeding by a taxpayer in which he calls into question his liability for any tax or the application to him of any provision of this title, except as a consequence of the appeal by the taxpayer to the District Court from the action and order of the Tax Office, as provided in section 2-1-16.

Section 2-1-13. Authority to abate tax assessments.

The Tax Office may abate any part of an assessment of tax, penalty and/or interest determined by the Tax Office to have been incorrectly, erroneously or illegally made, either in response to a written protest submitted in accordance with section 2-1-15 or on the Tax Office's own initiative, based on information otherwise available to the Tax Office.
In the event of a final decision of the Tax Office or the District Court under section 2-1-15 or section 2-1-16 that a person is not required to pay any portion of a tax assessed to that person, the Tax Office shall cause that amount of the assessment to be abated.

Section 2-1-14. Claims for refund.

Any taxpayer who believes that he has paid a tax subject to this chapter in excess of the amount for which he is liable, may apply for a refund within one (1) year from the date the tax was paid. The taxpayer has the burden of proving that the tax has been erroneously paid.
Every claim for refund shall be filed as a fully completed amended tax return, shall state the nature of the claim and shall contain information sufficient to allow processing of the claim. Filing a fully completed amended tax return that shows a lesser tax liability than the original return constitutes the filing of a claim for refund for the difference in the tax due shown on the original and amended returns.
In response to a claim for refund, the Tax Office may authorize the refund of any overpayment of tax determined by the Tax Office to have been erroneously made, together with allowable interest as described in section 2-1-19.
The Tax Office may allow the claim in whole or in part or may deny the claim in whole or in part in writing. If the claim is denied in whole or in part, the taxpayer may, within sixty (60) days after mailing of the Tax Office's decision, file a written protest of the denial. If the Tax Office has neither granted nor denied any portion of the claim for refund within one-hundred eighty (180) days after the date the claim was mailed or delivered to the Tax Office, the claim shall be deemed denied, and the taxpayer may file a protest of the denial pursuant to section 2-1-15.
Any refund may in the discretion of the Tax Office be in the form of cash (in a lump sum or in installations over not more than two years) or a credit against future tax payments. Credits may be applied by the taxpayer in the amounts and on the schedule (not exceeding two years) approved by the Tax Office.

Section 2-1-15. Protest procedure.

A taxpayer may dispute the assessment of any amount of tax, the application to the taxpayer of any provision of this title, or the denial of a claim for refund made in accordance with section 2-1-14, by filing with the Tax Office a written protest. Every protest shall identify the taxpayer and the tax or taxes involved and shall state the grounds for the protest and the affirmative relief requested.
Any protest shall be filed:
1. Within sixty (60) days after mailing or personal delivery of a notice of assessment;
2. Within sixty (60) days of denial of a claim for refund made in accordance with section 2-1-14; or
3. At the time of payment of a tax that is being paid under protest, pursuant to section 2-1-18.
A protesting taxpayer must timely pay all accrued tax, penalty and interest on or before the date the protest is filed. Delinquent taxes may not be paid under protest.
Taxes that have been timely paid under protest shall be deposited in a suspense account and held in such account until the protest is resolved, including any timely appeals as authorized by this chapter.
If a protest is not filed in accordance with this section, the Tax Office may proceed to enforce collection of any delinquent tax.
The Tax Office may request additional information or hold such hearings or meetings as it deems necessary before issuing a decision on the protest. If the Tax Office holds a hearing, the taxpayer shall appear at the hearing, either in person or through representatives of his choice. The hearing shall not be open to the public and shall be conducted in an informal manner. Technical rules of procedure and evidence shall not apply at the hearing, but the hearing shall be conducted to allow the Tax Office and the taxpayer to present their evidence and positions in a fair and reasonable manner. A written transcript shall be made of the hearing.
The Tax Office shall issue a written decision on the protest, summarizing the basis for the decision, within one-hundred eighty (180) days after the protest is filed. Failure to issue a final decision within that period shall constitute denial of the protest. The written decision shall include an order granting or denying the relief requested or granting such part thereof as is appropriate and supported by evidence, and it shall inform the protesting taxpayer of the right to, and the requirements for perfection of, an appeal from the decision to the District Court and of the consequences of a failure to appeal. The Tax Office shall serve the taxpayer with a copy of the decision by certified mail or in person.
Unless the decision is appealed pursuant to section 2-1-16, a decision of the Tax Office that grants in whole or in part a tax refund to the taxpayer shall be paid to the taxpayer or credited against future tax liabilities of the taxpayer, in the discretion of the Tax Office, together with allowable interest as described in section 2-1-19. The payment may in the discretion of the Tax Office be in the form of cash (in a lump sum or in installments over not more than two years) or a credit against future tax payments. Credits may be applied by the taxpayer in the amounts and on the schedule (not exceeding two years) approved by the Tax Office.

Section 2-1-16. Appeals from Tax Office's decision and order.

If the taxpayer is dissatisfied with the decision and order of the Tax Office, or if the Tax Office fails to decide the protest within the time required by section 2-1-15, the taxpayer or designated agent may appeal to the District Court, but only to the same extent and upon the same theory as was asserted before the Tax Office. If an appeal is not so taken, the decision and order of the Tax Office are conclusive.
An appeal shall be perfected by filing a notice of appeal with the Clerk of the District Court, in the form prescribed by the Court, along with any docketing fee required by law. The date of filing shall be the date the notice of appeal is received and stamped by the Court Clerk.
Simultaneously with the filing of a notice of appeal, the taxpayer shall serve a true copy thereof on the Tax Office. A certificate stating the date and manner of service shall be filed with the notice of appeal.
The notice of appeal must be filed within thirty (30) days from the date the decision and order of the Tax Office is served on the taxpayer or from the date the protest is deemed denied under section 2-1-15.G, as the case may be.
Within thirty (30) days of the filing of the notice of appeal, the Tax Office shall prepare the record on appeal taken in the proceedings and file it with the District Court.
All appeals shall be upon the record made within the Tax Office.
Except as otherwise provided in this chapter, the rules of procedure and evidence applicable to civil proceedings in the District Court shall apply to the appeal.
The District Court shall independently weigh the evidence of record to assure that the applicable tax ordinances are lawfully administered and shall issue a written decision on the appeal.
The District Court, in its appellate capacity, shall apply the following standard of review and shall affirm the Tax Office decision unless the Court concludes that the decision is not supported by substantial evidence, is contrary to District law, is arbitrary and capricious, or is an abuse of discretion.
Nothing in this chapter shall authorize the District Court to enter any money judgment against the Tax Office or any other agency of the District other than an order to refund the amount of any tax, interest or civil penalty erroneously paid by the taxpayer plus interest.
The decision of the District Court shall be final and not subject to further review.
A final decision of the District Court that grants in whole or in part a tax refund to the taxpayer shall be submitted to the Tax Office for payment.

Section 2-1-17. Audits of taxpayer records.

The Tax Office may, through an audit, examine and verify business records and tax returns of a taxpayer in order to determine whether the appropriate amounts of tax have been paid. The taxes and reporting periods included in an audit shall be determined by the Tax Office. An audit may involve requests that the taxpayer deliver additional information and records to the Tax Office, and/or the examination of information and records by the Tax Office at the taxpayer's place of business.
Upon completion by the Tax Office of an audit of the taxpayer for a tax and reporting period, the Tax Office may assess any additional tax liability discovered from information provided in the audit.
Any additional tax liability assessed by the Tax Office pursuant to this section shall be conclusive for the tax and report period treated in the audit; provided that, an audit may be reopened if the taxpayer has failed to disclose information material to the calculation of a tax or to the taxpayer's liability for a tax.

Section 2-1-18. Taxes paid under protest.

Any person timely paying a tax subject to this chapter may pay the tax under protest, by filing a notice of protest with the Tax Office at the time of payment. Delinquent taxes may not be paid under protest. Any protest filed under this section shall be subject to the procedures established by section 2-1-15 and section 2-1-16.

Section 2-1-19. Interest on overpayments of taxes.

Interest shall be allowed and paid on the amount of tax overpaid by a person that is subsequently refunded or credited to that person.
Interest on overpayments of tax shall accrue and be paid at the rate established for individuals pursuant to Section 6621 of the Internal Revenue Code, equal to the annual federal short term rate as determined by the United States Secretary of the Treasury under 26 CFR § 301.6621(b) plus three (3) percentage points, computed on a daily basis.
Unless otherwise provided by this section, interest on an overpayment resulting from a self-assessed tax or otherwise not arising from an assessment by the Tax Office shall be paid from the date of the claim for refund until a date preceding by not more than thirty days the date of the credit or refund to any person; interest on an overpayment arising from an assessment by the Tax Office shall be paid from the date of overpayment until a date preceding by not more than thirty days the date of the credit or refund to any person.
No interest shall be allowed or paid with respect to an amount credited or refunded if:
1. the amount of interest due is less than one dollar ($1.00);
2. the credit or refund is made within sixty days of the date of the claim for refund; or
3. the credit results from overpayments found in an audit of multiple reporting periods and applied to underpayments found in that audit or refunded as a net overpayment to the taxpayer.
Nothing in this section shall be construed to require the payment of interest upon interest.

Section 2-1-20. Collection of penalties and interest.

Any civil penalties and interest imposed under this chapter may be collected with the amount of tax to which it relates, without separate assessment.
The Tax Office may, in its discretion, issue separate assessments of civil penalties for late filing or non-filing of returns or reports as provided in section 2-1-25 and for willful attempts to evade any tax or the payment thereof, as provided in section 2-1-26. Any such assessment shall be subject to the provisions of this chapter governing tax assessments.

Section 2-1-21. Seizure of property by levy.

The Tax Office may collect tax from a delinquent taxpayer by levy upon all property or rights to property of such person and the conversion thereof to money by appropriate and lawful means.
A levy is made by taking possession of property pursuant to authority contained in a warrant of levy or by the service, by the Tax Office or any other person who is authorized by the Governing Council to enforce laws within the District, of the warrant upon the taxpayer or other person in possession of property or rights to property of the taxpayer or upon any person owing or who will owe money to the taxpayer, ordering him to reveal the extent thereof and surrender it to the Tax Office forthwith or agree to surrender it or the proceeds therefrom in the future, on the terms and conditions stated in the warrant.
A warrant of levy shall:
1. Bear on its face a statement of the authority for its service and compelling compliance with its terms and shall be attested by the Tax Administrator;
2. Identify the taxpayer whose liability for taxes is sought to be enforced, the amount thereof and the date or approximate date on which the tax became due;
3. Order the person on whom it is served to reveal the amount of property or rights to property in his own possession that belong to the taxpayer and the extent of his own interest therein, and to reveal the amount and kind of property or rights to property of the taxpayer that are, to the best of his knowledge, in the possession of others;
4. Order the person on whom it is served to surrender the property forthwith but may allow him to agree in writing to surrender the property or the proceeds therefrom on a certain date in the future when the taxpayer's right to it would otherwise mature;
5. State on its face the penalties for willful failure of the person upon whom it is served to comply with its terms; and
6. State that the Tax Office claims a lien for the entire amount of tax asserted to be due, including applicable interest and penalties.

Section 2-1-22. Surrender of property subject to levy.

Any person in possession of or obligated with respect to property or rights to property subject to levy upon which a levy has been made shall surrender the property or rights, or discharge such obligation, to the Tax Office, except for that part of the property as is, at the time of such demand, the subject of a bona fide attachment, execution, levy or other similar process.
Any person who wrongfully fails or refuses to surrender, as required by this section, any property or rights to property levied upon, upon demand by the Tax Office, is liable for a civil penalty in an amount equal to the lesser of the value of the property or rights to property not so surrendered or the amount of the taxes for the collection of which such levy has been made.
The surrender by a person in possession of or obligated with respect to property, rights to property or proceeds from the sale or other disposition of property subject to levy upon which a levy has been made discharges such obligation to the Tax Office. A surrender by a person shall be a defense against the assertion of any obligation or liability to the delinquent taxpayer or any other person with respect to such property or rights to property arising from the surrender or payment.

Section 2-1-23. Assessment lien.

If any taxpayer liable for any tax subject to this chapter neglects or refuses to pay the tax after assessment as provided in section 2-1-10, the amount of the tax, including all accrued interest and penalties, shall be a lien in favor of the District upon all property and rights to property belonging to the person and found within the District.
The lien imposed by paragraph A of this section shall arise at the time assessment has been made and shall continue until the liability for payment of the amount assessed is satisfied and the lien is released by the Tax Office.
As against any mortgagee, pledgee, purchaser, judgment creditor, lienor for value or other encumbrancer for value, the lien imposed by paragraph A of this section shall be considered to have arisen and become effective when notice of the lien has been filed by the Tax Office with the Southwest Regional Office of the Bureau of Indian Affairs.
A notice of lien shall identify the taxpayer whose liability for taxes is sought to be enforced, the date or approximate date on which the tax became due, and the amount of tax claimed to be due, and shall state that the District claims a lien for the entire amount of tax asserted to be due, including applicable interest and penalties. A copy of any notice of lien shall be served on the taxpayer affected.
Partial payment of the amount due shall reduce the amount of the lien by the amount paid. The Tax Office may release the lien when payment of the tax, plus any penalty and interest, is adequately guaranteed by other security. The Tax Office shall file a document releasing the lien, completely or partially as applicable, with the Southwest Regional Office of the Bureau of Indian Affairs.
The Tax Office may foreclose upon the property subject to a lien imposed by paragraph A of this section by filing a civil action in the District Court or other court of competent jurisdiction for that purpose. In the event of a foreclosure or surrender pursuant to section 2-1-22, the property shall be sold in a commercially reasonable manner and the proceeds applied to the expenses of the foreclosure and then to the liability for costs, penalties, interest and tax. Any remaining balance shall be remitted to the taxpayer.
In all instances where a notice of lien for taxes, penalties and interest has been filed, no foreclosure upon the property subject to the lien may be made by the Tax Office after more than three (3) years have elapsed following the date on which the lien was filed.

Section 2-1-24. Interest on deficiencies.

If a tax imposed is not paid on or before the day on which it becomes due, interest shall be paid to the Tax Office on that amount from the first day following the day on which the tax becomes due, without regard to any extension of time or installment agreement, until it is paid, except that:
1. if the amount of interest due at the time payment is made is less than one dollar ($1.00), then no interest shall be due;
2. if demand is made for payment of a tax, including accrued interest, and if the tax is paid within ten days after the date of the demand, no interest on the amount paid shall be imposed for the period after the date of the demand; and
3. when, as the result of an audit, an overpayment of a tax is credited against an underpayment of tax, interest shall accrue from the date the tax was due until the tax is deemed paid.
Interest due to the Tax Office under this section shall be at the rate of fifteen percent (15%) a year, computed on a daily basis.
Nothing in this section shall be construed to impose interest on interest or interest on the amount of any penalty.

Section 2-1-25. Civil penalties.

In the case of failure, due to negligence or disregard of applicable ordinances and regulations, but without intent to evade or defeat a tax, to pay when due any amount of tax required to be paid or to file by the date required a return regardless of whether any tax is due, there shall be added to the amount of tax as penalty the greater of:
1. Two percent (2%) of the amount of tax due, for each month or any fraction of a month from the date the tax was due until paid, but not to exceed twenty percent (20%) of the tax due but not paid; or
2. Two percent (2%) of the amount of tax liability established in the late return, for each month or any fraction of a month from the date the return was required to be filed until filed, but not to exceed twenty percent (20%) of the tax liability established in the late return; or
3. Five Dollars ($5.00).
No penalty shall be assessed against a taxpayer if the failure to pay an amount of tax when due results from a mistake of law made in good faith and on reasonable grounds.
In the case of failure, with willful intent to evade or defeat a tax, to pay when due the amount of tax required to be paid, there shall be added to the amount fifty percent of the tax or a minimum of twenty-five dollars ($25.00), whichever is greater, as penalty.
If demand is made for payment of a tax, including penalty imposed pursuant to this section, and if the tax is paid within ten days after the date of such demand, no penalty shall be imposed for the period after the date of the demand with respect to the amount paid.
No penalty shall be imposed on tax that is deemed paid by crediting overpayments found in an audit of multiple periods.
In the case of failure to respond to a subpoena issued pursuant to section 2-1-4 or otherwise to comply with any other requirements of this title, the Tax Office shall impose a penalty of Five Hundred Dollars ($500.00). If the taxpayer still fails to comply after thirty (30) days, the Tax Office shall impose an additional penalty of up to One Thousand Dollars ($1,000.00), with the precise amount determined by the Tax Office in the Tax Office's discretion. For every thirty (30) days thereafter that the taxpayer still fails to comply, the Tax Office shall assess an additional penalty of up to Two-Thousand Five- Hundred Dollars ($2,500.00), with the precise amount determined by the Tax Office in the Tax Office's discretion.
If any payment required to be made under this title is attempted to be made by check which is not paid upon presentment, such dishonor shall be deemed proof of negligence for purposes of paragraph A of this section. The penalty shall never be less than ten dollars ($10.00) and is in addition to any other penalty imposed by law.

Section 2-1-26. Attempts to evade or defeat tax.

Any taxpayer who willfully attempts to evade or defeat any tax or the payment thereof, in addition to other penalties provided by this chapter, shall be subject to a civil penalty of not less than One Thousand Dollars ($1,000.00) nor more than Ten Thousand Dollars ($10,000.00).
The Tax Office may initiate a civil proceeding in the District Court to enforce against the taxpayer the civil penalties authorized by this section and section 2-1-25.

Section 2-1-27. Administrative reports.

The Tax Office shall prepare and submit a forecast report to the Oversight Commission and the Governing Council annually, by July 15 of the current year, projecting the amount of tax revenues anticipated to be collected for the next calendar year.
The Tax Office shall prepare and submit a quarterly report to the Oversight Commission and Governing Council, showing the amount of tax receipts collected, and such other information as is deemed necessary by the Governing Council, the Oversight Commission, or the Tax Office, including information necessary to determine the amount of money collected which is unencumbered.

Section 2-1-28. Timeliness when last day for performance falls on Saturday, Sunday or legal holiday.

When by any provision of this title the last day for performing any act falls on Saturday, Sunday or a legal holiday recognized by the District, the performance of the act shall be considered timely if it is performed on the next succeeding day which is not a Saturday, Sunday or a legal holiday.

Section 2-1-29. Successor liability.

Any person who buys substantially all of the business assets of a taxpayer that are located in the District shall withhold from the purchase price and pay to the Tax Office the amount of all unpaid taxes owed by the taxpayer at the time of the purchase.
Any purchaser who fails to withhold and pay over the taxes described in paragraph A of this section shall be personally liable for such unpaid taxes. The Tax Office is authorized to assess such taxes against the purchaser and to collect them as provided in this chapter.
In response to a written request from the taxpayer, the Tax Office will identify the amount of any unpaid taxes for which the purchaser may be liable under this section. The purchaser shall not be liable to the Tax Office for any unpaid taxes of the taxpayer in excess of the amount so identified. If the taxpayer's actual liability exceeds the amount identified by the Tax Office under this paragraph, the taxpayer shall remain liable for all taxes actually due and unpaid.

Section 2-1-30. Limited waiver of sovereign immunity.

Any challenge to the validity or application of any tax subject to this chapter may be brought only in the District Court, and only in accordance with the procedures established by this chapter. The District waives its sovereign immunity from suit solely for the purpose of filing an appeal as provided in section 2-1-16. The District does not waive its sovereign immunity from suit in the courts of any other jurisdiction for any claim arising from the administration or enforcement of any tax subject to this chapter.

Section 2-1-31. Confidentiality of returns and other information.

It is unlawful for any employee or contract personnel of the Tax Office or any former employee or contract personnel to disclose to any person any information contained in a tax return or an informational return or report required by this chapter or any other information about a taxpayer acquired as a result of his employment by or contract with the Tax Office, except:
1. to another employee or contract personnel of the Tax Office;
2. to the District Manager, a member of the Oversight Commission, or a member of the Governing Council, provided that disclosure is necessary for the recipient to carry out an official duty and the information is kept confidential by the recipient;
3. To an authorized representative of the U.S. Tax Office of the Treasury, pursuant to a reciprocal agreement for the exchange of information;
4. To an authorized representative of a tribe or a state, provided that the receiving tribe or state has entered into an agreement with the Tax Office to use the information only for tax purposes and provided that the receiving tribe or state has enacted confidentiality laws similar to this section;
5. To a court of competent jurisdiction in an action relating to taxation to which the Tax Office and the taxpayer or designated agent are parties, or in an action to enforce any tax liability of the taxpayer to which the Tax Office is a party;
6. To the taxpayer or its designated agent or other authorized representative;
7. To legal counsel of the Tax Office or the District, provided that disclosure is necessary for the recipient to carry out an official duty and the information is kept confidential by the recipient;
8. To a purchaser of a business, the amount and basis of any unpaid assessment of tax for which the purchaser's seller is liable; or
9. In such manner and form that the information revealed does not identify the particular taxpayer to which the information relates.
Nothing in this section prohibits the Tax Office from disclosing to any person: (1) whether a person is or is not registered with the Tax Office as a taxpayer; or (2) the final decision and order of the Tax Office in any protest filed under section 2- 1-15.

Section 2-1-32. Notice of Amendments.

The Tax Office shall notify taxpayers promptly of any amendments to this title adopted by the Governing Council.

Section 2-1-33. Effective date.

Except at otherwise provided in any chapter of this title, this title shall be effective on first day of the month in the first month after the date enacted by the Governing Council.

Section 2-1-34. Severability.

If any part of this title or its application to any situation or person is held invalid, the remainder of this title and its application to other situations or persons shall not be affected.

CHAPTER 2. GROSS RECEIPTS TAX

Section 2-2-1. Imposition and rate of tax.

For the privilege of engaging in business in the District, an excise tax is hereby imposed on any person engaging in business in the District equal to seven and seventy-five hundredths (7.75) percent of the person’s taxable gross receipts.
The rate established in paragraph A of this section may be adjusted by the GoverningCouncil as deemed necessary and at such times during the year to coincide with the effective dates for any amendments to the Cooperative Agreement with the Secretary of the New Mexico Taxation and Revenue Department. Any such adjustment of the rate of the District gross receipts tax shall state the effective date of the rate change.
All gross receipts are presumed to be taxable gross receipts, unless an exemption is recognized by this chapter.
The Tax Administrator may issue certificates to taxpayers documenting exemptionsallowed under section 2-2-3.

Section 2-2-2. Gross receipts tax credit.

If a gross receipts, sales or similar tax has been levied by the State of New Mexico or apolitical subdivision thereof on a taxable transaction taking place in the District, the amount of the state tax may be credited against any gross receipts tax due the District in the amount equal to the lesser of twenty-five (25) percent of the District gross receipts tax or twenty-five (25) percent of tax revenue produced by the sum of the rate of tax imposed under the New Mexico 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 transaction; provided that the New Mexico Gross Receipts and Compensating Tax Act allows a credit of the lesser of seventy-five (75) percent of the tax imposed in the District on the receipts from the transaction or seventy-five (75) percent of the tax revenue produced by the sum of the rate of tax imposed pursuant to the Gross Receipts andCompensating Tax Act and the total of the rates of local option gross receipts taxes imposed on the receipts from the same transaction.
The Tax Office may enter into a cooperative agreement with the Secretary of the NewMexico Taxation and Revenue Department to carry out the provisions of this chapter, provided that the agreement shall be valid only if approved by resolution of the GoverningCouncil. An approved cooperative agreement shall be signed by the District Manager or such other official designated by the Governing Council.

Section 2-2-3. Exemptions.

The following receipts are exempt from the tax imposed by this chapter:

Receipts of:
1. a Pueblo government entity; or
2. the United States, the State of New Mexico, or any political subdivision of the United States or the State of New Mexico.
  1. This exemption does not apply to the receipts of a Pueblo-owned business or any other business entity owned by any such governmental entity or entities.
  2. This exemption does not apply to the receipts from the refuse collection or refuse disposal or both; sewage services; or the sale of water by a utility owned or operated by a county, municipality or other political subdivision of the State.
Receipts from the sale or lease of tangible personal property to the District, provided this exemption does not apply to the sale of construction materials.
Receipts of an entity recognized by the Internal Revenue Service as a charitable organization under Internal Revenue Code § 501(c)(3); provided that this exemption does not apply to receipts from transactions that generate unrelated business income under the Internal Revenue Code and applicable regulations.
Receipts from the sale of tangible personal property to an entity recognized by the Internal Revenue Service as a charitable organization under Internal Revenue Code § 501(c)(3); provided that this exemption does not apply to receipts from the sale of construction materials.
Receipts of an employee from his employer as compensation for performing services pursuant to any written or unwritten employment agreement.
Receipts from the sale of tangible personal property at wholesale for later resale in the regular course of the buyer’s business.
Receipts of a retail food store from the sale of food or food products for home consumption; provided that this exemption does not apply to receipts from the sale of prepared food in a restaurant or other facility.
Receipts from the performance of medical and dental services.
Receipts from the sale of gasoline and diesel fuel.
Receipts from the isolated or occasional sale or lease of tangible personal property or the performance of a service by a person who is not regularly engaged in the business of selling or leasing the same or similar property or performing the same or similar service.
Receipts from the sale of construction services or construction materials to a person engaged in construction within the District, for incorporation in the construction project located in the District.
Insurance premiums received by an insurance company.
Receipts from the sale of cigarettes.
Receipts of an itinerant vendor.

Section 2-2-4. Installment sales.

In the case of installment sales of tangible personal property, the vendor shall collect and remit the tax imposed by this chapter upon the principal amount of each installment of the purchase price at the time the installment is paid.

Section 2-2-5. Tax return; payment of tax; records.

Except as provided in paragraph F of this section, every person who has taxable gross receipts during a calendar month shall, on or before the 25th day of the month following the end of the month in which the taxable receipts are received, file with the Tax Office a return setting forth the amount of gross receipts from engaging in business within the District, the amount of exempt gross receipts, the amount of taxable gross receipts, the amount of gross receipts tax due thereon, and such other information as the Tax Office may require. The taxpayer shall sign the return and shall affirm the accuracy of the information in the return. A person who has no taxable gross receipts during a calendar month shall not be required to file any gross receipts tax report as to that month.
The return shall report the total taxable receipts received during the reporting month less any amounts refunded to the purchaser upon cancellation of a sale. Taxable gross receipts shall exclude any gross receipts taxes imposed by the State of New Mexico for which a reciprocal exclusion has been granted by the state.
Except as provided in paragraph F of this section, every person with taxable gross receipts shall pay the gross receipts tax due on or before the 25th day of the month following the end of the month in which the taxable receipts are received, and such payment shall accompany the return for that reporting period.
Each person engaging in any taxable transaction under this chapter shall:
1. keep and preserve for five (5) years, records of all taxable transactions and receipts and other books or accounts necessary to determine the amount of tax due under this chapter; and
2. open all such records for examination at any time by the Tax Office or its duly authorized representative or agent.
The Tax Office is authorized to establish alternative procedures for the collection and distribution of taxes that are subject to the tax credit specified in section 2-2-2 of this chapter.
The Tax Office may authorize a taxpayer to file tax returns and pay taxes on a quarterly or semi-annual basis, upon written request of the taxpayer, if the taxpayer’s monthly taxable gross receipts are less than one thousand dollars ($1,000.00).

Section 2-2-6. Location of Taxable Transactions.

A sale of tangible personal property takes place in the District if the seller delivers possession of the property to the buyer in the District, without regard to the location of the seller's permanent or principal place of business.
Construction services take place in the District if they are performed in the District, without regard to the location of any office or other business activity of the taxpayer.
A sale of electricity, natural gas, propane, water, telephone service, cable television service, or internet access service takes place in the District if the physical location of the customer’s premises or other place to which the utility’s product or service is delivered to the customer is in the District.
A lease of tangible personal property takes place in the District if the property being leased is located in the District.
Services performed in the District take place in the District whether or not the person performing the service has an office or regular business location in the District.

CHAPTER 3. CIGARETTE TAX

Section 2-3-1. Imposition of tax on cigarettes; rate.

For the privilege of engaging in the business of selling cigarettes within the District, there is levied an excise tax, known as the cigarette tax, at the rate of $ 1.09 per pack, regardless of the number of cigarettes in the pack.

Section 2-3-2. Exemptions.

Cigarettes sold within the District for resale at a location outside the District and within the territory of an Indian tribe, pueblo or nation in New Mexico are exempt from the cigarette tax, provided that (A) the sale must be to a person licensed by that Indian tribe, pueblo or nation to sell cigarettes within its territory, and (B) the sale of the cigarettes on the land of that Indian tribe, pueblo or nation must be subject to a qualifying tribal cigarette tax, as defined by § 7-12-2(K) NMSA 1978 as amended by Laws of New Mexico, 2010, 2nd Special Session, Chapter 5, imposed by that Indian tribe, pueblo or nation.

Section 2-3-3. License required; conditions of license.

A.Each person engaged in the business of selling cigarettes within the District, whether in wholesale transactions or at retail, shall obtain a license for that business, issued by the Tax Administrator, authorizing that person to engage in the business of selling cigarettes within the District.
The license to sell cigarettes within the District is conditioned on the licensee's compliance with the following restrictions:
1. The licensee shall not sell cigarettes to anyone under eighteen (18) years of age.This prohibition also includes all forms of tobacco products, electronic cigarettes, smoking devices, and other products containing or delivering nicotine that can be used by a person to simulate smoking, and includes all component parts of such product or device, whether or not sold separately.
2. The licensee shall pay all taxes due to the District on its cigarette sales.(3)The licensee shall sell cigarettes that bear a New Mexico Tax Credit Stamp only for:
  1. use or resale within the District,
  2. use or resale within the territory of an Indian tribe, pueblo or nation located in New Mexico, or
  3. use but not resale at a location in New Mexico outside of the territory of anyIndian tribe.

Section 2-3-4. Tax return; payment of tax; records; assessment.

Each taxpayer shall, on or before the 25th day of the month following the end of the monthin which the cigarettes are sold, file with the Tax Office a return setting forth:
1. the amount of cigarettes sold within the District,
2. the amount of cigarettes sold within the District for which an exemption exists under section 2-4-2, including the name and address of the purchaser and proof that the purchaser is licensed to sell cigarettes by the applicable Indian tribe, pueblo or nation,
3. the amount of cigarette tax due to the District, and
4. such other information relevant to the administration of this chapter as the Tax Office may require.
The taxpayer shall sign the return and shall affirm the accuracy of the information in the return.
Each taxpayer shall pay all cigarette tax due on or before the 25th day of the month following the end of the month in which the cigarettes are sold, and such payment shall accompany the return for that reporting period.
Each taxpayer shall:
1. keep and preserve for five years records of all taxable sales and other books or accounts necessary to determine the amount of tax due under this chapter; and
2. open all such records for examination at any time by the Tax Office or its duly authorized representative or agent.
The Tax Office is authorized to issue a tax assessment in the amount of any cigarette tax, interest or penalty that is due but unpaid by a taxpayer.

CHAPTER 4. LODGERS TAX

Section 2-4-1. Tax on lodging services; rate.

For the privilege of engaging in the business of providing lodging services within theDistrict, there is levied an excise tax at the rate of 8% of gross taxable rent.
The rate established in this section shall be adjusted automatically to correspond to the total of the rates of the occupancy tax, the hospitality fee, and the tourism advertising and marketing fee imposed by the City of Albuquerque. Any such adjustment of the rate of the District lodgers tax shall be effective on the effective date of the change in the combined rate of the City of Albuquerque occupancy tax, hospitality fee, and tourism advertising and marketing fee.

Section 2-4-2. Exemptions.

The tax imposed by this chapter shall not apply:

A.If the person receiving lodging services (1) has been a permanent resident of the taxable premises for a period of at least thirty consecutive days; or (2) enters into or has entered into a written agreement for lodgings at the taxable premises for a period of at least 30consecutive days;
If the rent paid by the person receiving lodging services is less than $5 a day;
To lodging services provided by the United States, the State of New Mexico, or any political subdivision thereof, or by a non-profit corporation recognized by the InternalRevenue Service as a charitable organization;
To lodging services provided by clinics, hospitals or other medical facilities;
To lodging services provided by convalescent homes or homes for the aged, infirm, indigent or chronically ill.

Section 2-4-3. Taxpayer return; payment of tax.

Every vendor of lodging services within the District shall file lodgers tax returns in the form prescribed by the Tax Office on or before the 25th day of the month following the month in which it receives gross taxable rent.
The return shall report the amount of gross taxable rent, the amount of all claimed exemptions, the amount of lodgers tax due, and any other information required by the TaxOffice.
The return shall be accompanied by payment of the amount of lodgers tax due.

Section 2-4-4. Taxpayer records.

Each vendor of lodging services shall maintain adequate records of facilities subject to the lodgers tax and of all consideration received for the use thereof. The records to be maintained shall include but are not limited to: federal income tax returns, financial statements, general and subsidiary ledgers, sales journals, charts of accounts, daily summaries and reports, monthly summaries, guest registration cards, bank statements, and year-end adjusting entries. The records shall be maintained within the District and shall be open to inspection by the Tax Office during reasonable hours and shall be retained for five years.

Section 2-4-5. Lien.

All delinquent lodgers taxes, interest and penalties shall constitute a lien in favor of the District on the personal and real property of the vendor providing lodging services in the District. The lien may be enforced as provided in Section 2-1-23. FINAL

CHAPTER 5. GASOLINE TAX

Section 2-5-1. Definitions.

For purposes of this Chapter:

Distributor means a person, business, corporation or other enterprise that receives gasoline within the District for the purpose of resale within the District. A distributor shall also be construed so that a person or business simultaneously may be both a distributor and a retailer.
Gasoline means fuel used primarily for motor vehicles, motor boats, or aircraft, but does not include diesel, engine fuel, kerosene, liquefied petroleum gas, compressed or liquefied natural gas and airplane or jet fuel.
Gasoline Tax or Tax means the tax imposed by this Chapter.
Invoiced gallons means the gallons of gasoline actually billed on an invoice, bill or statement to a distributor or retailer.
Received means gasoline is “received” at the time and place it is delivered for resale to aDistributor within the District.
Retailer means a person who sells gasoline generally in quantities of thirty-five gallons or less and delivers such gasoline into the fuel supply tanks of motor vehicles. A retailer shall also be construed so that a person or business simultaneously may be both a retailer and a distributor.
Taxpayer means a person or business required to pay the District’s gasoline tax.

Section 2-5-2. Imposition of tax on gasoline; rate of tax.

For the privilege of engaging in the business of selling gasoline within the District, there is levied a gasoline tax on each gallon of gasoline received by a Distributor within the District at the rate of seventeen cents ($0.17) per gallon, or an amount equal to that currently imposed by the State of New Mexico, pursuant to the New Mexico Gasoline Tax Act, NMSA 7-13-1 et. seq.

Section 2-5-3. Incidence of the Tax; Calculation of Tax.

The incidence of the gasoline tax imposed by this Chapter shall be upon the distributor of the gasoline within the District. The gasoline tax shall be calculated on the amount of gasoline that a Distributor receives during the previous month. The amount of gasoline shall be measured by invoiced gallons received within the District.FINAL

Section 2-5-4. Deductions.

In computing the gasoline tax due, the gasoline delivered into the fuel supply tank of any vehicle licensed as a government vehicle of a Participating Pueblo, the United States, or the State of New Mexico, or any agency or instrumentality thereof, may be deducted from the total amount of gasoline received within the District during the tax period, provided satisfactory proof thereof is furnished to the Tax Office.

Section 2-5-5. Tax Return Forms and Payment of Tax

Each taxpayer shall, on or before the 25th day of the month following the end of the month in which the gasoline is received within the District, file with the Tax Office a return setting forth:
1. the amount of gallons of gasoline received within the District;
2. the amount of gallons sold within the District for which a deduction is allowed from the total amount of gasoline received within the District during the tax period;
3. the amount of gasoline tax due on gasoline due to the District;
4. any such other information relevant to the administration of this Chapter as the Tax Office may require.
The taxpayer shall electronically file the return with the Tax Office and shall affirm the accuracy of the information in the return.
Each taxpayer shall pay all gasoline tax due on or before the 25th day of the month following the end of the month in which the gasoline is received, and such payment shall accompany the return for the reporting period.
Each taxpayer shall make the gasoline tax payment via ACH payment, followed by an email notice to the Tax Office that such payment has been made.
Each taxpayer shall:
1. keep and preserve for five years records of all taxable sales and other books or accounts necessary to determine the amount of tax due under this Chapter; and
2. open all such records for examination at any time by the Tax office or its duly authorized representative or agent.
The Tax Office is authorized to issue a tax assessment in the amount of any gasoline tax, interest or penalty that is due but unpaid by a taxpayer.

Section 2-5-6. Exemption from Gross Receipts Tax

Taxpayers who pay the gasoline tax imposed by this Chapter are exempt from the amount of the District Gross Receipts Tax that would imposed on the value of the gasoline received in the District. FINAL

Section 2-5-7. Registration of Distributor Required

Each person engaged in the business of selling gasoline within the District shall obtain a license for that business, issued by the Tax Administrator, authorizing that person to engage in the business of selling gasoline within the District.

Section 2-5-8. Purpose of Tax.

The Gasoline Tax is enacted to:

generate revenues to support the District’s infrastructure needs and potentially fund Participating Pueblos’ infrastructure funding requests; and
generate revenues for distribution to each of the Participating Pueblos.

Section 2-5-9. Effective Date

The effective date of the Gasoline Tax shall be August 1, 2015.

Section 2-5-10. Allocation of Gasoline Tax Revenues

All revenues from Gasoline tax, interest and penalties shall be allocated to the AISD Reserve Fund pending direction pursuant to subsection B below.
By March 1, 2016, the AISD Oversight Commission and staff shall evaluate the performance of the gasoline tax and shall make a recommendation to the Governing Council on the allocation of the gasoline tax revenues based on the performance of the gasoline tax and other related issues.