59-12-104.2 - Exemption for accommodations and services taxed by the Navajo Nation.
59-12-104.2. Exemption for accommodations and services taxed by the NavajoNation.
(1) As used in this section "tribal taxing area" means the geographical area that:
(a) is subject to the taxing authority of the Navajo Nation; and
(b) consists of:
(i) notwithstanding the issuance of a patent, all land:
(A) within the limits of an Indian reservation under the jurisdiction of the federal government;and
(B) including any rights-of-way running through the reservation; and
(ii) all Indian allotments the Indian titles to which have not been extinguished, including anyrights-of-way running through an Indian allotment.
(2) (a) Beginning July 1, 2001, amounts paid by or charged to a purchaser foraccommodations and services described in Subsection 59-12-103(1)(i) are exempt from the taximposed by Subsection 59-12-103(2)(a)(i)(A) or (2)(d)(i)(A)(I) to the extent permitted underSubsection (2)(b) if:
(i) the accommodations and services described in Subsection 59-12-103(1)(i) are providedwithin:
(A) the state; and
(B) a tribal taxing area;
(ii) the Navajo Nation imposes and collects a tax on the amounts paid by or charged to thepurchaser for the accommodations and services described in Subsection 59-12-103(1)(i);
(iii) the Navajo Nation imposes the tax described in Subsection (2)(a)(ii) without regard towhether or not the purchaser that pays or is charged for the accommodations and services is anenrolled member of the Navajo Nation; and
(iv) the requirements of Subsection (4) are met.
(b) If but for Subsection (2)(a) the amounts paid by or charged to a purchaser foraccommodations and services described in Subsection (2)(a) are subject to a tax imposed bySubsection 59-12-103(2)(a)(i)(A) or (2)(d)(i)(A)(I):
(i) the seller shall collect and pay to the state the difference described in Subsection (3) if thatdifference is greater than $0; and
(ii) a person may not require the state to provide a refund, a credit, or similar tax relief if thedifference described in Subsection (3) is equal to or less than $0.
(3) The difference described in Subsection (2)(b) is equal to the difference between:
(a) the amount of tax imposed by Subsection 59-12-103(2)(a)(i)(A) or (2)(d)(i)(A)(I) on theamounts paid by or charged to a purchaser for accommodations and services described in Subsection59-12-103(1)(i); less
(b) the tax imposed and collected by the Navajo Nation on the amounts paid by or charged toa purchaser for the accommodations and services described in Subsection 59-12-103(1)(i).
(4) (a) If, on or after July 1, 2001, the Navajo Nation changes the tax rate of a tax imposed onamounts paid by or charged to a purchaser for accommodations and services described in Subsection59-12-103(1)(i), any change in the amount of the exemption under Subsection (2) as a result of thechange in the tax rate is not effective until the first day of the calendar quarter after a 90-day periodbeginning on the date the commission receives notice meeting the requirements of Subsection (4)(b)
from the Navajo Nation.
(b) The notice described in Subsection (4)(a) shall state:
(i) that the Navajo Nation has changed or will change the tax rate of a tax imposed on amountspaid by or charged to a purchaser for accommodations and services described in Subsection59-12-103(1)(i);
(ii) the effective date of the rate change on the tax described in Subsection (4)(b)(i); and
(iii) the new rate of the tax described in Subsection (4)(b)(i).
(5) Beginning with the 2006 interim, the Revenue and Taxation Interim Committee:
(a) shall review the exemption provided for in this section one or more times every five years;
(b) shall determine on or before the November interim meeting of the year in which theRevenue and Taxation Interim Committee reviews the exemption provided for in this section whetherthe exemption should be:
(i) continued;
(ii) modified; or
(iii) repealed; and
(c) may review any other issue related to the exemption provided for in this section asdetermined by the Revenue and Taxation Interim Committee.
Amended by Chapter 203, 2009 General Session