N.Y. Tax Law § 284-e: Taxes imposed on qualified reservations

§ 284-e. Taxes imposed on qualified reservations. 1. General. (a)

Notwithstanding any other provision of this article to the contrary

qualified Indians may purchase motor fuel or Diesel motor fuel for such

qualified Indians' own use or consumption exempt from the motor fuel tax

or Diesel motor fuel tax on their nations' or tribes' qualified

reservations. However, such qualified Indians purchasing motor fuel or

Diesel motor fuel off their reservations or on another nation's or

tribe's reservation, and non-Indians making motor fuel or Diesel motor

fuel purchases on an Indian reservation shall not be exempt from paying

the motor fuel tax or Diesel motor fuel tax when purchasing motor fuel

or Diesel motor fuel within this state. Accordingly, all motor fuel and

Diesel motor fuel sold on an Indian reservation to non-members of the

nation or tribe or to non-Indians shall be taxed.

(b) In order to ensure an adequate quantity of motor fuel and Diesel

motor fuel on Indian reservations which may be purchased by qualified

Indians exempt from the motor fuel tax and Diesel motor fuel tax, the

department shall provide Indian nations and tribes within this state

with Indian tax exemption coupons as set forth in this section. A

reservation motor fuel seller shall be able to present such Indian tax

exemption coupons to a distributor licensed pursuant to this article in

order to purchase motor fuel or Diesel motor fuel exempt from the

imposition of the motor fuel tax or Diesel motor fuel tax. Qualified

Indians may purchase motor fuel or Diesel motor fuel from a reservation

motor fuel seller exempt from the motor fuel tax or Diesel motor fuel

tax even though the motor fuel tax or Diesel motor fuel tax on such

motor fuel or Diesel motor fuel will have been previously paid or

assumed by, or passed through to such distributor.

2. Indian tax exemption coupons. (a) Indian tax exemption coupons

shall be provided to the recognized governing body of each Indian nation

or tribe to ensure that each Indian nation or tribe can obtain motor

fuel and Diesel motor fuel upon which the tax shall not be collected

that is for the use or consumption by the nation or tribe or by the

members of such nation or tribe. The Indian tax exemption coupons shall

be provided to the Indian nations or tribes on a quarterly basis for

each of the four quarters beginning with the first day of December,

March, June, and September. It is intended that the Indian nations or

tribes will retain the amount of Indian tax exemption coupons they will

need each quarter to purchase motor fuel and Diesel motor fuel for

official nation or tribal use, and will distribute the remaining Indian

tax exemption coupons to reservation motor fuel sellers on such nations'

or tribes' qualified reservations. Only Indian nations or tribes or

reservation motor fuel sellers on their qualified reservations may

redeem such Indian tax exemption coupons pursuant to this section.

(b) The amount of Indian tax exemption coupons to be given to the

recognized governing body of each Indian nation or tribe shall be based

upon the probable demand of the qualified Indians on such nation's or

tribe's qualified reservation plus the amount needed for official nation

or tribal use.

(i) Probable demand shall be determined by reference to, among other

data, the United States average motor fuel and Diesel motor fuel

consumption per capita, as compiled for the most recently completed

calendar or fiscal year, multiplied by the number of qualified Indians

for each such affected Indian nation or tribe.

(ii) In making a determination of probable demand, the department

shall take into consideration any evidence submitted by such recognized

governing body relating to such probable demand (e.g., a verified record

of previous sales to qualified Indians or other statistical evidence)

and/or relating to the amount needed for such nation's or tribe's

official use.

(c) Each Indian tax exemption coupon shall consist of a retention

portion for a distributor's recordkeeping purposes and a redemption

portion for a distributor's submission to the department when claiming a

refund as set forth in paragraph (a) of subdivision four of this

section, and shall contain the following information:

(i) the identity of the Indian nation or tribe to which it is issued;

(ii) the identity and the quantity of the product for which it is

issued;

(iii) the date of issuance and the date of expiration; and

(iv) any other information as the commissioner may deem appropriate.

3. Tax exempt purchases. (a) An Indian nation or tribe may purchase

motor fuel and Diesel motor fuel for its own official use or consumption

from a distributor registered pursuant to this article without payment

of the motor fuel tax or Diesel motor fuel tax to the extent that the

Indian nation or tribe provides such distributor with Indian tax

exemption coupons entitling the Indian nation or tribe to purchase such

quantities of motor fuel and Diesel motor fuel as allowed for on each

Indian tax exemption coupon without paying the motor fuel tax or Diesel

motor fuel tax.

(b) A qualified Indian may purchase motor fuel and Diesel motor fuel

for his or her own use or consumption without payment of the motor fuel

tax or Diesel motor fuel tax, provided that the qualified Indian makes

such purchase at a qualified reservation.

(c) A reservation motor fuel seller may purchase motor fuel and Diesel

motor fuel for resale without payment of the motor fuel tax or Diesel

motor fuel tax from a distributor registered pursuant to this article:

(i) provided that such reservation motor fuel seller brings such motor

fuel or Diesel motor fuel or causes it to be delivered onto a qualified

reservation for resale on such reservation; and

(ii) to the extent that such reservation motor fuel seller provides

such distributor with Indian tax exemption coupons entitling the

reservation motor fuel seller to purchase such quantities of motor fuel

and Diesel motor fuel as allowed for on each Indian tax exemption coupon

without paying the motor fuel tax or Diesel motor fuel tax.

(d) A distributor shall not collect or pass through, as the case may

be, the motor fuel tax or Diesel motor fuel tax from any purchaser to

the extent the purchaser gives such distributor Indian tax exemption

coupons entitling the purchaser to purchase such quantities of motor

fuel or Diesel motor fuel as allowed for on each such Indian tax

exemption coupon without paying the motor fuel tax or Diesel motor fuel

tax.

4. Refunds and credits. (a) A distributor registered pursuant to this

article who has one or more Indian tax exemption coupons may file a

claim for refund or credit as provided for in section two hundred

eighty-nine-c of this article with respect to any motor fuel tax or

Diesel motor fuel tax it previously paid, assumed, or has had passed

through to it on motor fuel or Diesel motor fuel it sold without passing

through the tax because it accepted an Indian tax exemption coupon from

its purchaser.

(b) A distributor of motor fuel or Diesel motor fuel shall report

motor fuel or Diesel motor fuel sold to an Indian nation or tribe or a

reservation motor fuel seller in its monthly return of tax on motor fuel

or Diesel motor fuel and may deduct the quantity so sold in arriving at

the net taxable gallonage to the extent such fuel was sold without

passing through to such purchasers the motor fuel tax or Diesel motor

fuel tax.

5. Tax agreements with Indian nations or tribes. If an Indian nation

or tribe enters into an agreement with the state and the legislature

approves such agreement regarding the sale and distribution of motor

fuel or Diesel motor fuel on the nation's or tribe's qualified

reservation, the terms of such agreement shall take precedence over the

provisions of this article and exempt such nation from such taxes to the

extent that such taxes are specifically referred to in the agreement,

and the sale or distribution, including transportation, of any motor

fuel or Diesel motor fuel to the nation's or tribe's qualified

reservation shall be in accordance with the provisions of such

agreement.