History of the Navajo Tax Commission

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, and David Cole.

1974-1978

The Navajo Tax Commission studied the viability of Navajo taxes.

1978

The Navajo Tribal Council approved the Possessory Interest Tax (Resolution No. CJA-13-78) and the Business Activity Tax (Resolution No. CAP-36-78). Various coal companies sued the Navajo Tribe claiming the tribe had no authority to impose its taxes.

1978-1985

The Navajo Tribe litigated the lawsuits Kerr-McGee Corp. vs. Navajo Tribe and Southland Royalty Company vs. Navajo Tribe.

1985

On April 16, the United States Supreme Court in Kerr-McGee Corp. vs. Navajo Tribe affirmed the Navajo Nation's ability to tax. The Navajo Tribal Council approved the Oil and Gas Severance Tax (Resolution No. CO-79-85).

1987-1988

Navajo Tax Commission discussed implementing a General Property Tax and adopting a general Navajo Tax Policy. Multiple resolutions were passed including the Navajo Economic Development Tax Credit Act and tribal tax policy development.

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.

1995

The Navajo Nation Council approved multiple significant measures: the Uniform Tax Administration Statute (CJY-52-94), the Fuel Distributor's Licensing Act (CO-105-95), and the Navajo Nation Tobacco Products Tax (CO-107-95). The Office entered into an intergovernmental Tax Agreement with Arizona for tobacco tax revenue collection.

1999

The Navajo Nation Council approved the Navajo Nation Fuel Excise Tax (CAU-85-99). The Office of the Navajo Tax Commission established Intergovernmental Tax Agreements with both New Mexico and Arizona for Fuel Excise Tax enforcement.

2000

The Office established new Intergovernmental Tax Agreements with Arizona (for Business Activity Tax and Hotel Occupancy Tax) and Texas (for Fuel Excise Tax). The Council approved amendments to the Possessory Interest Tax to make the Nation's tax environment more business-friendly.

2001

A landmark year with multiple achievements: Intergovernmental agreements with California and Utah, significant legislation in New Mexico addressing dual taxation of Navajo coal, amendments to the Business Activity Tax, and the approval of the Navajo Nation Sales Tax (effective April 1, 2002).

2002

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

2005

The Office of the Navajo Tax Commission implemented new electronic filing systems for major taxes, modernizing tax collection processes and improving efficiency for taxpayers.

2010

The Navajo Nation Council approved amendments to the Uniform Tax Administration Statute to strengthen enforcement capabilities and clarify administrative procedures.

2015

Major updates to the Business Activity Tax were implemented to better align with modern business practices and strengthen the Nation's economic development initiatives.

2020

The Office adapted to pandemic challenges by implementing remote filing options and providing temporary tax relief measures to support businesses during COVID-19.

Monthly History

Informative History of the Office of the Navajo Tax Commission

January

30th Anniversary of 1st Navajo Nation Tax

January 26, 2008 marks the 30th Anniversary of the Navajo Nation Council's approval of the 1st Navajo Nation tax, the Possessory Interest Tax.

February

April

Navajo Nation Sovereignty Day

Celebrated on the Fourth Monday in April, this holiday recognizes the 1985 U.S. Supreme Court decision in Kerr-McGee v. Navajo Tribe of Indians. The Court confirmed that the Navajo Nation has the right to impose its own taxes, separate from and in addition to any possible state and federal taxes.