History

Of the Navajo Tax Commission

and the

Office of the Navajo Tax Commission

In 1974, The Navajo Tribal Council by Resolution No. CJA-6-74 established a three-member Navajo Tax Commission to study sources of wealth and income within the Navajo Nation and sources of taxation.  The first three commissioners were appointed:

Robert Shorty

Glenn George

David Cole

From 1974 to 1978, the Navajo Tax Commission studied the viability of Navajo taxes.

In 1978, the Navajo Tribal Council by Resolution No. CJA-13-78 approved the Possessory Interest Tax, which is a type of ad valorem tax.

In 1978, the Navajo Tribal Council by Resolution No. CAP-36-78 approved the Business Activity Tax, which is a type of modified gross receipt tax..

In 1978, various coal companies that extracted coal within the Navajo Tribe sued the Navajo Tribe claiming the tribe had no authority to impose its taxes. 

From 1978 to 1985, the Navajo Tribe litigated the lawsuits Kerr-McGee Corp. vs. Navajo Tribe and Southland Royalty Company vs. Navajo Tribe.

1980's

(Continuation of Kerr-McGee and Southland Royalty Company lawsuits)

On April 16, 1985, the United States Supreme Court in Kerr-McGee Corp. vs. Navajo Tribe affirmed the Navajo Nation's ability to tax.

In 1985, the Navajo Tribal Council by Resolution No. CO-79-85 approved the Oil and Gas Severance Tax, which is a tax upon the severance of oil and natural gas within the Navajo Nation.

Around 1987 to 1988, Navajo Tax Commission discussed implementing a General Property Tax and adopting a general Navajo Tax Policy.

On August 13, 1987, the Navajo Tribal Council by Resolution No. CAU-44-87 directed the development of tribal tax policy trough cooperative study by responsible parties and refinement of the proposed Navajo Economic Development Tax Credit Act.

On November 18, 1987, the Navajo Tribal Council by Resolution No. CN-56-87 enacted the Navajo Economic Development Tax Credit Act to the tax statutes.

On October 28, 1988, the Navajo Tribal Council by Resolution No. CO-51-88 received a report on the formulation of a tribal tax policy through cooperative study.

1990's

In 1992, the Navajo Nation Council by Resolution No. CJY-27-92 approved the Hotel Occupancy Tax, which imposed a tax upon a person renting a room within the Navajo Nation.

In 1995, the Navajo Nation Council by Resolution No. CJY-52-94 approved the Uniform Tax Administration Statute, which consolidated all administrative Navajo tax covering interests and penalties, request for rulings, etc. 

In 1995, the Navajo Nation Council by Resolution No. CO-105-95 approved the Fuel Distributor's Licensing Act, which imposed a licensing requirement upon any person distributing fuel within the Navajo Nation.

In 1995, the Navajo Nation Council by Resolution No. CO-107-95 approved the Navajo Nation Tobacco Products Tax, which imposed a tax upon tobacco products, and the Office of the Navajo Tax Commission entered into an intergovernmental Tax Agreement with the State of Arizona related to tobacco tax revenue collection and enforcement.

In 1999, The Navajo Nation Council by Resolution No. CAU-85-99 approved the Navajo Nation Fuel Excise Tax, which imposed a tax upon the distribution of fuel within the Navajo Nation, and rescinded the Fuel Distributor's Licensing Act.

In 1999, the Office of the Navajo Tax Commission entered into an Intergovernmental Tax Agreement with the State of New Mexico related to the enforcement of the Fuel Excise Tax.

In 1999, the Office of the Navajo Tax Commission entered in an Intergovernmental Tax Agreement with the State of Arizona related to the enforcement of the Fuel Excise Tax.

2000 and beyond

In 2000, the Office of the Navajo Tax Commission entered into an Intergovernmental Tax Agreement with the State of Arizona related to the enforcement of the Business Activity Tax and Hotel Occupancy Tax.

In 2000, the Office of the Navajo Tax Commission entered into an Intergovernmental Tax Agreement with the State of Texas related to the enforcement of the Fuel Excise Tax.

In 2000, the Navajo Nation Council approved amendments to the Possessory Interest Tax that developed tax classification of property interests within the Navajo Nation.  The amendments were done with a purpose to make the Navajo Nation's tax environment more business friendly.

In January 2001, the Navajo Tax Commission entered into an Intergovernmental Tax Agreements with the State of California related to the enforcement of the Fuel Excise Tax.

In 2001, the Office of the Navajo Tax Commission worked with New Mexico legislators and industry representative on state bill, which attempts to reduce the effects of "dual taxation" upon Navajo coal extracted with the New Mexico portion of the Navajo Nation. 

In 2001, the New Mexico legislators approved the New Mexico Governor Gary Johnson signed H.R. 293 - "An Act Relating to Taxation; Providing a Gross Receipts Tax Credit for a Portion of Navajo Nation Taxes Paid on Receipts from Selling Coal; Enacting an Intergovernmental Tax Credit for the Severance of Coal on Tribal Land; Authorizing the Secretary of Taxation and Revenue to Enter into Cooperative Agreements with the Navajo Nation; Enacting Sections of the NMSA 1978."  This Act, coupled with amendments to the Navajo Business Activity Tax, attempts to resolve "dual taxation" of Navajo coal and allows the coal and the related power plants to be competitive within the forthcoming electricity deregulated market.

In 2001, the Navajo Nation Council approved amendments to the Navajo Nation Business Activity Tax that provided tax credits for reciprocal state tax credits for the coal extracted from the Navajo Nation.

In 2001, the Office of the Navajo Tax Commission worked with Utah Legislators on a state bill that attempts to reduce the effects of "dual taxation"  upon the Fuel Excise Tax and the Hotel Occupancy Tax within the Utah portion of the Navajo Nation. 

In 2001 the Utah legislators approved and Governor Mike Leavitt signed two bills that resolved dual taxation of fuel and hotel occupancy. 

In 2001, the Office of the Navajo Tax Commission also entered into an Intergovernmental Tax Agreement with the State of Utah related to the enforcement of the fuel excise tax.

On October 18, 2001, the Navajo Nation Council approved the Navajo Nation Sales Tax, which went into effect on April 1, 2002.

On April 1, 2002, the Navajo Nation Sales Tax went into effect.