Rural chapters get tax boon

By Karen Francis
Diné Bureau

WINDOW ROCK — The Navajo Nation Council approved the Navajo Nation Sales Tax Fairness in Distribution Act 51-28 Thursday. The change in law will distribute taxes in a fairer manner, said sponsor Johnny Naize, Tselani-Cottonwood/Nazlini.

“The current LGA law gives those certified chapters to retain all their sales tax from the businesses that are located in their chapter boundary or their chapter area,” he said.

“Some of the rural chapters are unable to sustain business, and we do our business within a large community — in my case, Chinle chapter,” Naize said.

“Now there’s questions that are asked. Certified chapters — that’s the whole reason behind getting chapter certified. Collecting tax is not the only one. That’s not the only item a certified chapter acquires,” he said.

Naize added in his presenting remarks that rural chapters often don’t have community income.

“We don’t have schools. We don’t have clinics. We don’t have hospitals. We don’t have tribal offices. We don’t have federal or state offices. We don’t have large housing division that will sustain even one business in our community,” he said. “The other factor is unemployment is so high in our little community — over 50 percent.”

He also said that the 50-50 funding formula that is often used in making appropriations is how the taxes will be distributed to chapters.

“Although we have certified chapters throughout Navajo, and then we also have large communities on Navajo, we have to be realistic members of the Navajo Nation Council,” Orlanda Smith Hodge, Cornfields/Greasewood Springs/Klagetoh/Wide Ruins, said. “Some of our communities that are small still utilize services at the bigger chapters, yet they don’t receive any revenues.”

Her fellow delegate who represents the same chapters, Omer Begay, said that it was a Navajo Nation issue, not a chapter issue or an agency issue.

The amendments to Title 24 of the Navajo Nation Code deleted language that allocated 75 percent of the revenue collected to the chapter where the sale was made if the chapter is governance certified. The amended language on the allocation of revenue states that 75 percent of revenue collected from retail establishments within the Navajo Nation will be deposited into a trust fund and 25 percent of revenue to the judicial/public safety facilities fund.