N.M. taking applications for veterans' tax refund

Claims are rolling in for a New Mexico tax refund that is being offered to the state's Native American veterans.

The state has started the process of refunding any state personal income tax that may have been withheld from the military paychecks of Native Americans who legally resided on tribal lands within the state while they served in the military.

A federal mandate prohibits states from collecting income tax on the military pay of Native Americans residing on reservations.

Since the state began accepting claims last month, the New Mexico Department of Veterans' Services has been receiving applications, said Alan Martinez, deputy secretary for the department.

"We actually processed close to 400 applications already," he said.

The veterans' services department is receiving individual claims and verifying the applicant's veteran status before forwarding the claim to the New Mexico Department of Taxation and Revenue.

Claim forms can be found on the DVS Web site or at selected veterans' services department offices. A copy of the veteran's DD-214 form or other official Department of Defense form that proves military separation must be attached to the completed claim form.

All claims must be mailed. No claims will be accepted by fax or by e-mail. Claims can be submitted to: New Mexico Department of Veterans' Services, Alan Martinez/Deputy Secretary, P.O. Box 2324, Santa Fe, NM 87504-2324.

Once the form is mailed, it will take up to 90 days for processing to be completed.

If the veteran is deceased, the spouse or surviving dependents can file a claim. In this case, a death certificate or other proof of death must accompany the claim form in addition to the other documents required.

Veterans who have moved from New Mexico can still file a claim as long as their place of residence was on Indian lands at the time of their service, Martinez said.

"We've identified about 9,000 veterans in the state," he said. "As for how many are impacted, we won't know until all claims are processed."

The department has been doing its part to inform veterans about this refund opportunity, Martinez said.

So far, the department has hosted information sessions about the refund at the Shiprock Chapter House and in Zuni. Martinez is also working with the veterans group in Crownpoint to schedule a workshop.

Veterans can file their tax refund claim at these sessions, provided they bring along their discharge documents.

"They're happy we are coming to them and we are not waiting for them to come to us," Martinez said about comments the department has received from veterans.

Paul George veterans' service officer for the Shiprock Agency, said the agency office can download claim forms at the veteran's request, but any specific questions about filing claims are referred to DVS.

"I do encourage veterans to go ahead and apply for it," George said.

The New Mexico Department of Taxation and Revenue will issue the refunds and $1 million has been set aside from the state's general fund.

State Sen. Lynda Lovejoy, D-Crownpoint, sponsored the legislation to appropriate the money and it was approved 39-0 last year. New Mexico Gov. Bill Richardson signed the bill in April.

The refunds are on a first-come, first-served basis and will continue until the appropriation is exhausted or until no more claims are received. The set-aside expires Jan. 1, 2013.

Information: 866-433-8387 or www.dvs.state.nm.us.

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