{"data":{"id":"us-ok/okla.-stat.-tit.-68-68-500.63","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 68, § 68-500.63","heading":"Sale of motor fuels by Indian tribes","body":"A. The Legislature hereby finds:\n\n1. Some Indian tribes within the State of Oklahoma are engaged\n\nin the retail sales of motor fuels at locations within their\n\nsovereign territories;\n\n2. Both Indian tribes and the government of the State of\n\nOklahoma impose motor fuel taxes;\n\n3. By reason of the ruling of the United States Supreme Court\n\nin \"Oklahoma Tax Commission v. Chickasaw Nation\", 115 S.Ct. 2214\n\n(1995), the State of Oklahoma does not now collect state motor fuel\n\ntaxes on sales made by Indian tribes. The Legislature hereby\n\nacknowledges that, as a matter of federal law, the existing law of\n\nthe state may not be used to levy or enforce taxes on certain sales\n\nof motor fuel made by Indian tribes;\n\n4. It is mutually beneficial to the State of Oklahoma and the\n\nfederally recognized Indian tribes of this state, exercising their\n\nsovereign powers, to enter into contracts as set forth in subsection\n\nB of this section, for the purpose of limiting litigation on the\n\nissue of state government taxation of motor fuel sales made by\n\nIndian tribes. It is in the interest of this state to resolve\n\ndisputes between the state and federally recognized Indian tribes on\n\nthis issue by entering into contracts under which the Indian tribes\n\nare in part compensated for any tribal motor fuel tax revenues the\n\nIndian tribes might lose by reason of the adoption and enforcement\n\nof this act. Such mutually beneficial agreements allow both the\n\nState of Oklahoma and the Indian tribes to benefit from tax revenues\n\nfrom sales of motor fuel on Indian country.\n\nB. In lieu of the refund procedure provided in subsection E of\n\nSection 14 of this act for the exemption provided for sales of motor\n\nfuels by an Indian tribe to its tribal members as provided in\n\nparagraph 10 of Section 10 of this act, an Indian tribe, on its\n\nbehalf and on behalf of its members, may elect to enter into a\n\ncontract with the State of Oklahoma as provided in subsection C of\n\nthis section.\n\nC. The State of Oklahoma hereby makes the following offer to\n\nall federally recognized Indian tribes within this state which, if\n\naccepted, will constitute a contract between this state and the\n\naccepting tribe or tribes:\n\n1. The accepting tribe shall agree that it will not challenge\n\nthe constitutionality of this act or the application of this act to\n\nmotor fuel sales on Indian country in any court or tribunal and\n\nshall include all state motor fuel taxes and assessments in the\n\nprice of its motor fuel sales, including but not limited to sales to\n\ntribal members on tribal land. The accepting tribe shall agree as a\n\nmaterial term of its agreement to abide with all parts of this act\n\nin its entirety and shall agree not to procure, or attempt to\n\nprocure, motor fuel for sale in Indian country on which the tax\n\nimposed by this act has not been precollected as provided for\n\nherein;\n\n2. In consideration of this agreement by the tribe or tribes,\n\nthe State of Oklahoma, through the Oklahoma Tax Commission, shall\n\nwithhold a percentage of its motor fuel tax revenues, as specified\n\nin paragraph 3 of this subsection, which shall be apportioned\n\nquarterly to the accepting Indian tribes. The funds apportioned as\n\nprovided herein are deemed to be in lieu of tribal tax revenues that\n\nthe tribes would otherwise have collected on sales of motor fuels.\n\nThe first such apportionment shall be made not later than February\n\n1, 1997, which shall be for motor fuels taxes received by the Tax\n\nCommission during the last calendar quarter of 1996, and subsequent\n\napportionments shall be made no later than thirty (30) days after\n\nthe end of each calendar quarter thereafter. The first such\n\napportionment shall be made to all tribes which have elected and\n\naccepted the terms of the contract specified in this subsection\n\nbefore October 1, 1996. Any tribe electing and accepting the terms\n\nof the contract specified in this subsection on or after October 1,\nuent\n\napportionments shall be made no later than thirty (30) days after\n\nthe end of each calendar quarter thereafter. The first such\n\napportionment shall be made to all tribes which have elected and\n\naccepted the terms of the contract specified in this subsection\n\nbefore October 1, 1996. Any tribe electing and accepting the terms\n\nof the contract specified in this subsection on or after October 1,\n\n1996, shall be eligible to receive quarterly apportionments\n\nbeginning with the calendar quarter following such election;\n\n3. The percentage of state motor fuel tax and assessment\n\nrevenues collected pursuant to the provisions of this act which\n\nshall be withheld monthly and apportioned quarterly to accepting\n\nIndian tribes shall be as follows:\n\na. for the portion of the fiscal year beginning July 1,\n\n1996, for which this act is effective, three percent\n\n(3%),\n\nb. for the fiscal year beginning July 1, 1997, four\n\npercent (4%), and\n\nc. for the fiscal year beginning July 1, 1998, and for\n\neach fiscal year thereafter, four and one-half percent\n\n(4 1/2%);\n\n4. The funds withheld by the Oklahoma Tax Commission pursuant\n\nto paragraph 3 of this subsection shall be apportioned quarterly to\n\neach accepting Indian tribe as follows:\n\na. each accepting Indian tribe shall receive a base\n\nquarterly sum of Six Thousand Two Hundred Fifty\n\nDollars ($6,250.00). If the gross state motor fuel\n\ntax revenues collected do not exceed One Hundred\n\nMillion Dollars ($100,000,000.00) in any fiscal year,\n\nthe provisions of this subparagraph shall not be\n\napplicable,\n\nb. to those tribes who were engaged in the sales of motor\n\nfuels during the fourth calendar quarter of the\n\ncalendar year 1996:\n\n(1) for the fiscal year beginning July 1, 1996, an\n\namount equal to ten cents ($0.10) per gallon of\n\nmotor fuels sold by such tribe during the fourth\n\ncalendar quarter of 1996,\n\n(2) for the fiscal year beginning July 1, 1997, an\n\namount equal to eight cents ($0.08) per gallon of\n\nmotor fuels sold by such tribe during the fourth\n\ncalendar quarter of 1996,\n\n(3) for the fiscal year beginning July 1, 1998, an\n\namount equal to six cents ($0.06) per gallon of\n\nmotor fuels sold by such tribe during the fourth\n\ncalendar quarter of 1996,\n\n(4) for the fiscal year beginning July 1, 1999, an\n\namount equal to four cents ($0.04) per gallon of\n\nmotor fuels sold by such tribe during the fourth\n\ncalendar quarter of 1996, and\n\n(5) for the fiscal year beginning July 1, 2000, and\n\nthereafter for the duration of the contract, an\n\namount equal to two cents ($0.02) per gallon of\n\nmotor fuels sold by such tribe during the fourth\n\ncalendar quarter of 1996, and\n\nc. after determination of amounts to be apportioned\n\npursuant to subparagraphs a and b of this paragraph,\n\nthe remainder shall be apportioned according to the\n\nproportion the accepting Indian tribe's total Oklahoma\n\nresident membership bears to the total Oklahoma tribal\n\nresident membership of all accepting Indian tribes;\n\n5. The funds withheld by the Oklahoma Tax Commission and\n\napportioned quarterly pursuant to the provisions of this section\n\nshall be used by the accepting tribe exclusively for tribal\n\ngovernment programs limited to highway and bridge construction,\n\nhealth, education, corrections, and law enforcement;\n\n6. In the event, at any time during a calendar quarter, an\n\naccepting tribe selling motor fuel fails to procure, for whatever\n\nreason, motor fuel for sale in Indian country on which the tax\n\nimposed by this act has been precollected as provided in this act,\n\nor fails, for whatever reason, to include all state motor fuel taxes\n\nand assessments in the price of its motor fuels sales including, but\n\nnot limited to, sales to tribal members on Indian country, the tribe\n\nshall not be eligible to receive an apportionment under this section\n\nfor that calendar quarter. In such instances, the Tax Commission\nhis act has been precollected as provided in this act,\n\nor fails, for whatever reason, to include all state motor fuel taxes\n\nand assessments in the price of its motor fuels sales including, but\n\nnot limited to, sales to tribal members on Indian country, the tribe\n\nshall not be eligible to receive an apportionment under this section\n\nfor that calendar quarter. In such instances, the Tax Commission\n\nshall notify the tribe that its apportionment shall be withheld and\n\nthe reasons therefor. The tribe shall have six (6) months from the\n\ndate of issuance of the notice under this paragraph to file a legal\n\naction contesting the decision of the state to withhold its\n\napportionment. The amount withheld from the tribe pursuant to the\n\nprovisions of this paragraph shall not be apportioned and shall be\n\nwithheld from all tribes until the expiration of the six-month\n\nlimitation period and during the pendency of any legal action filed\n\npursuant to this paragraph.\n\n7. Each tribe shall provide to the Oklahoma Tax Commission an\n\naudit of its tribal membership or citizenship rolls certified by a\n\ncertified public accountant showing the correct number of its\n\nrespective tribal members by blood, excluding members of bands,\n\ntribal towns and other tribes or affiliates which may be included on\n\nits rolls but who are ineligible for tribal services and benefits.\n\nOnly tribal members who reside within the State of Oklahoma shall be\n\nincluded in the audit. Citizens of tribal towns, bands of Indians\n\nand tribes who are also counted in the audits as members of another\n\ntribe participating in the contract provided for in this section and\n\neligible to receive services from the tribe shall not be eligible to\n\nalso participate under this section. Any tribal member who is also\n\na member of another tribe may only be counted once for purposes of\n\ndetermining tribal membership. Those tribes who were engaged in the\n\nsales of motor fuels during the fourth calendar quarter of calendar\n\nyear 1996 shall also provide certified audited reports on or before\n\nJanuary 10, 1997, showing the quantity of motor fuels sold by them\n\nduring that period. For all tribes electing to accept the terms of\n\nthe contract specified in this subsection before October 1, 1996,\n\nthe membership audit report shall be submitted on or before October\n\n1, 1996, and not later than July 1 of each year thereafter. The\n\ninformation provided shall be the basis from which the Oklahoma Tax\n\nCommission shall calculate the distribution of the funds withheld\n\npursuant to the provisions of this section. The State of Oklahoma\n\nshall be absolved of any liability if the information submitted\n\npursuant to the provisions of this section is not correct. If such\n\ninformation is not submitted by an accepting or participating tribe\n\nby October 1, 1996, or in subsequent years by July 1, the Tax\n\nCommission shall calculate the distribution of the funds on the\n\nbasis of the information previously submitted by that tribe.\n\nNotwithstanding the provisions of Section 205 of Title 68 of the\n\nOklahoma Statutes, copies of the audits and reports shall be made\n\navailable to any requesting participating tribes;\n\n8. Acceptance of the offer contained in this section shall be\n\nmade in writing to the Oklahoma Tax Commission, signed by the chief\n\nexecutive officer of the tribal government, stating that the tribe\n\naccepts, without condition, the terms of this section, and for the\n\nsole purpose of resolving disputes arising out of a contract entered\n\ninto pursuant to the provisions of this section, the tribe waives\n\nits immunity from suit and liability in state and federal court. In\n\naddition, proof of adoption of an ordinance or resolution by the\n\ngoverning body of the tribe accepting without condition the terms of\n\nthis section, and an effective waiver of its immunity, as specified\n\nherein, shall be required. Notwithstanding the enactment of any\npursuant to the provisions of this section, the tribe waives\n\nits immunity from suit and liability in state and federal court. In\n\naddition, proof of adoption of an ordinance or resolution by the\n\ngoverning body of the tribe accepting without condition the terms of\n\nthis section, and an effective waiver of its immunity, as specified\n\nherein, shall be required. Notwithstanding the enactment of any\n\nfuture legislation on this topic, the term of the contract created\n\nby the acceptance of this offer shall extend through and include\n\nfiscal year 2016 and shall be renewed for successive ten-year terms\n\nunless a tribe notifies the State of Oklahoma of its intention not\n\nto participate further or the State of Oklahoma notifies the tribe\n\nof its intent not to participate further. Notification by the tribe\n\nshall be made in the same manner as required by this paragraph for\n\nacceptance of the offer to participate in the contract.\n\nNotification by the state shall be made by the Governor in writing\n\nto the tribe, and such notification shall be filed with the\n\nSecretary of State;\n\n9. The State of Oklahoma hereby waives its immunities from suit\n\ngranted by the Eleventh Amendment to the Constitution of the United\n\nStates for the sole purpose of resolving disputes arising out of a\n\ncontract entered into pursuant to the provisions of this section;\n\n10. Both the State of Oklahoma and the accepting Indian tribe\n\nrecognize, respect and accept the fact that under applicable laws\n\neach is a sovereign with dominion over their respective territories\n\nand governments. By entering into this proposed intergovernmental\n\ncontractual relationship, neither the state nor the tribe has, in\n\nany way, caused the other's sovereignty to be diminished;\n\n11. Members of accepting tribes shall not be individually\n\neligible for the exemption provided in paragraph 10 of Section 10 of\n\nthis act. Apportionment of funds to accepting tribes pursuant to\n\nthe provisions of paragraph 4 of this subsection are in part in lieu\n\nof the refunds to individual tribal members as provided in paragraph\n\n10 of Section 10 of this act. Indian tribes shall continue to be\n\neligible for the tribal government exemption provided in paragraph 7\n\nof Section 10 of this act;\n\n12. A tribe accepting the offer contained in this section\n\nagrees to hold the state harmless from suit by its individual tribal\n\nmembers and further agrees that, if a final judgment is rendered\n\nagainst the state pursuant to such a suit, that the tribe will\n\nreimburse the state for the amount of any such judgment paid and any\n\ncosts incurred by the state pursuant to such suit. If a tribe fails\n\nto make such reimbursement within ninety (90) days of demand by the\n\nOklahoma Tax Commission, the state shall withhold such amount from\n\nthe apportionment of funds to the tribe pursuant to the provisions\n\nof paragraph 4 of this subsection; and\n\n13. A tribe accepting the offer contained in this section\n\nagrees not to license or otherwise authorize an individual tribal\n\nmember or other person or entity to make sales of motor fuel in\n\nviolation of the terms of the contract.","path":["OK Code","Title 68"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os68.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"ee2c6aded094ba7c66b4f8c964e1246ccd2f5ad389186061714e9ddc082806bc","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-68-68-500.62","next":"us-ok/okla.-stat.-tit.-68-68-500.64"},"notice":"GroundRules: Original legal text. Not legal advice."}