TAX AGREEMENT BETWEEN THE

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SAULT STE. MARIE TRIBE OF CHIPPEWA INDIANS

AND THE STATE OF MICHIGAN

This Tax Agreement ("Agreement") is made and entered into this 20th day of December, 2002,

by and between the Sault Ste. Marie Tribe of Chippewa Indians ("Tribe") and the State of

Michigan ("State") by and through its Department of Treasury (“Department”).

Recitals

Whereas, the State of Michigan is a sovereign State of the United States of America, having been

admitted to the Union pursuant to the Act of January 26, 1837, ch. 6, 5 Stat. 144;

Whereas the Michigan Department of Treasury has been authorized by the State Legislature to

enter into this Agreement. 2002 PA 616.

Whereas, the Sault Ste. Marie Tribe of Chippewa Indians, a sovereign government, is a federally

recognized Indian Tribe located within the State of Michigan;

Whereas the State and the Tribe, acting on a government to government basis, seek to develop a

fair and workable understanding regarding the application and administration of the State taxes

that are subject to this Agreement and to provide certainty as to issues that may arise between the

Tribe and the State regarding those taxes by explicitly addressing and agreeing upon the

imposition of and exemptions from those taxes;

Whereas, the State and the Tribe, each recognizing the sovereign rights of the other, have

engaged in good faith negotiations in a spirit of cooperation, and in the interests of their

respective citizens and members, and have voluntarily reached this Agreement;

Now, therefore, the Tribe and the State by its Department of Treasury, Douglas B. Roberts, State

Treasurer, agree as follows:

GENERAL PROVISIONS

A. Purpose and Intent of this Agreement

1. Purpose and Intent of Agreement. By entering into this Agreement the State and

the Tribe indicate their intention and willingness to be bound by its terms so long

as this Agreement is in effect. While this Agreement is in effect between the Tribe

and the State it is agreed that (i) their respective rights will be determined by this

Agreement with respect to the taxes that are the subject of this Agreement, (ii)

neither party will seek additional entitlement or seek to deny entitlement on any

federal ground (including federal preemption) whether statutorily provided for or

otherwise with respect to the taxes that are the subject of this Agreement, (iii)

neither party will contest the legality of the Agreement or the legal authority of

any of its provisions, and (iv) both parties will defend this Agreement from attack

by third parties.

2. Application of State Law. References in this Agreement to “State law” or specific

tax acts shall refer to State law or the act as presently enacted and subsequently

amended. Except as modified in this Agreement, the provisions of State law

relating to the taxes that are subject of this Agreement shall apply to the Tribe,

Tribal Members, and Tribal Entities.

3. Scope. The subject matter of this Agreement is limited exclusively to the taxes

that are the subject of this Agreement. Nothing in this Agreement is intended to

be used for any other purpose or bear in any manner whatsoever on any other

subject, including jurisdiction, affecting the Tribe and the State.

B. Taxes Subject to This Agreement.

The taxes that are the subject of this Agreement are:

1. Sales Tax pursuant to the General Sales Tax Act as amended, MCL 205.51 et.

seq.;

2. Use Tax pursuant to the Use Tax Act as amended, MCL 205.91 et. seq.;

3. Motor Fuel Tax pursuant to the Motor Fuel Tax Act as amended, MCL 207.1001

et. seq. and the Motor Carrier Fuel Tax Act as amended, MCL 207.211 et. seq.;

4. Income Tax pursuant to the Income Tax Act of 1967 as amended, MCL 206.1 et.

seq.;

5. Tobacco Products Tax pursuant to the Tobacco Products Tax Act as amended,

MCL 205.421 et. seq., as amended; and

6. The Single Business Tax pursuant to the Single Business Tax Act as amended,

MCL 208.1 et. seq.

C. State Law Amendments. The State shall give notice to the Tribes of enrolled bills

that amend the taxes that are the subject of this Agreement or the Revenue Act. MCL

205.1, et. seq. Upon receipt of the notice the Tribe may request a meeting to discuss

the bill and its impact. Notice of any such meeting shall be provided to other tribes

which are signatories to an agreement with the State substantially similar to this

Agreement and their representatives shall be permitted to attend.

D. Effect of Termination of Agreement. Except as provided in § I(E)(3), § I(G)(1),

§ XII(F), § XIV(C), and § XV(C), upon termination of this Agreement, the Tribe and

the State may assert any claim or defense for any period subsequent to the date of

termination and nothing in this Agreement shall be construed as a concession, a

statement of controlling law, or an admission, nor shall anything contained in this

Agreement be used affirmatively, or as a bar or defense to any claim asserted by

either party to this Agreement for any such subsequent period.

E. Confidentiality

1. The terms and provisions of this Agreement shall be a public document.

2. All information received by the State in the administration of a tax under this

Agreement is subject to the confidentiality provisions of MCL 205.28(1)(f) and

may be disclosed only in the manner and for the purposes specified in that

provision; provided, however, that despite the provisions of MCL 205.28(1)(f)

authorizing the Treasurer to disclose such information upon the written request of

or pursuant to a reciprocal agreement with the United States Department of

Treasury or any other state, the Treasurer agrees not to make such disclosure with

respect to tax information set forth in a tax return or report received from the

Tribe or as a result of any investigation or audit of the Tribe pursuant to this

Agreement.

3. In the course of the administration and enforcement of the taxes that are the

subject of this Agreement, the State may make certain taxpayer information

relating to Tribal Members or Tribal Entities available to the Tribe. All such

information shall be retained in the strictest confidence and shall only be revealed

to persons other than the taxpayer as required for the proper administration and

enforcement of the terms of this Agreement. The Tribal obligation to keep

information received confidential shall be a continuing obligation and shall

survive the termination of this Agreement.

4. The State and the Tribe will enter into a written protocol for the exchange,

retention, and destruction of taxpayer information consistent with the terms of this

Agreement.

F. Ongoing Relationship

The Tribe and the State recognize the need to foster a continuing relationship and

maintain communication on issues as they arise.

1. Representatives of the Tribe and the State shall attend an annual summit together

with representatives of other tribes that are signatories to an agreement with the

State substantially similar to this Agreement. The purpose of this summit is to

provide a forum to discuss matters relating to this Agreement. The first summit

shall be called by the State and held in Lansing before December 31, 2003. The

State and the tribes will endeavor to give notice of agenda items in advance of the

meeting. Prior to adjourning a summit the tribes and the State shall set the time

and place for the next summit which shall be approximately one year later.

2. Prior to the summit the State may conduct a public session devoted to a

presentation by State representatives on changes in tax law that have occurred

over the last year and other matters deemed worthy of presentation by the State.

G. Sovereign Immunity

1. Tribe’s Waiver of Immunity

a. The Tribe agrees to submit to arbitration as provided in § XIV and § XV(C)

for the purpose of the administration, enforcement and resolution of disputes

arising under this Agreement.

b. The Tribe waives its sovereign immunity and consents to suit by the State in

Tribal court with respect to compelling arbitration as provided in § XIV and

§ XV(C) of this Agreement and enforcement of any award(s) made by the

arbitrators under those sections of this Agreement. If the Tribal court has not

compelled arbitration, or enforced the arbitration award(s), as the case may be,

within 14 business days of initiation of the State’s suit in Tribal court, the

Tribe agrees that the State may withdraw such suit from Tribal Court and the

Tribe hereby waives its sovereign immunity and consents to suit by the State

in State court with respect to compelling such arbitration as provided in §

XV(C) of this Agreement or enforcement of any award(s) made by the

arbitrators under those sections of this Agreement. The waiver provided for in

this § I(G)(1)(b) with respect to compelling arbitration as provided in § XIV

and § XV(C) and enforcement of any award(s) made by the arbitrator(s) under

these sections shall survive the termination of this Agreement.

c. If the Tribe elects to use Tribal Certificates of Exemption under § XII of this

Agreement, the Tribe waives its sovereign immunity and consents to suit by

the State in State court with respect to the determination and collection of

liability for sales tax and use tax and interest resulting from the use of Tribal

Certificates of Exemption as provided at § XII(F) of this Agreement. Prior to

commencing suit against the Tribe in state court, the State shall provide no

less than ten business days notice to the Tribe of its intention to bring suit.

During said ten business day period, the State shall afford the Tribe an

opportunity to meet with representatives of the State for the purpose of

resolving the matter at a place designated in the notice, which notice shall

offer the Tribe no less than two alternative meeting dates during such period.

If, however, the state fails to afford the Tribe the opportunities to meet as

described above, this consent shall be ineffective. The waiver provided for in

this § I(G)(1)(c) with respect to determination and collection of liability for

sales tax and use tax and interest resulting from the use of Tribal Certificates

of Exemption as provided in § XII(F) shall survive termination of this

Agreement.

d. The Tribe’s waivers of immunity set forth in § I(G)(1)(b) and § I(G)(1)(c) are

limited to the purposes set forth herein.

2. State’s Waiver of Immunity

The State hereby acknowledges that: (i) pursuant to 2002 PA 616 the State is

authorized to contractually bind itself to the dispute resolution provisions contained in

this Agreement, and agrees to submit to arbitration as provided in § XIV and §

XV(C) for the purposes of the administration, enforcement and resolution of disputes

arising under this Agreement, and (ii) pursuant to the legislative waiver of immunity

contained in the Court of Claims Act, MCL 600.6401, et. seq. and Section 22 of the

Revenue Act, MCL 205.22, the State has consented to suit in State court sufficient for

the purposes of the administration and enforcement of the terms of this Agreement

including compelling such arbitration as provided in § XIV and § XV(C) of this

Agreement, or enforcement of any award(s) made by the arbitrators under those

sections of this Agreement. In the absence of legislative modification, this waiver

shall survive the termination of this Agreement.

II.

GENERAL DEFINITIONS

For purposes of this Agreement, the following definitions pertain:

A. "Agreement Area" means the area designated as such in Appendix A. The

Agreement Area is negotiated exclusively for purposes of this Agreement. Neither

party makes any admissions, representations or concessions whatsoever regarding the

extent of Indian Country and either the Tribe's or State’s jurisdiction, and this

negotiated Agreement Area can serve absolutely no precedential purpose in any

administrative or judicial proceeding not directly related to the administration or

enforcement of this Agreement.

B. “Department” means the Michigan Department of Treasury.

C. “Governmental Function” means those activities or functions by the Tribe identified

in § III(A)(1)(b) of this Agreement.

D. "Indian Country" means those lands considered “Indian Country” under federal law.

E. "Non-Tribal Member" means an individual who is not an enrolled member of the

Tribe.

F. “Resident Tribal Member" means a Tribal Member whose principal place of

residence is located within the Agreement Area.

G. "State" means the State of Michigan.

H. "Tax Year" or "Taxable Year" or "Tax Period" means the calendar year, or the fiscal

year ending during such calendar year, upon the basis of which a tax subject to this

Agreement is computed.

I. "Taxable Sale" means a sale that is not exempt under State law as modified by this

Agreement.

J. "Tribe" means Sault Ste. Marie Tribe of Chippewa Indians, a sovereign, federally

recognized tribe, that is a signatory to this Agreement. The term Tribe shall include

entities wholly owned by the Tribe.

K. "Tribal and Trust Lands" means:

1. all lands held in trust by the federal government for the benefit of the Tribe which

are listed on Appendix A (K-1) and designated as Tribal and Trust Lands at the

time this Agreement is executed,

2. all fee lands owned by the Tribe which are listed on Appendix A (K-2) and

designated as Tribal and Trust Lands at the time this Agreement is executed,

3. all Tribal lands acquired after execution of this Agreement within an area

identified for automatic Tribal and Trust Land status on Appendix A (K-3) so

long as they are used for a Governmental Function,

4. all Tribal lands accepted into federal trust after execution of this Agreement

which are located within the area identified in Appendix A (K-4), regardless of

the use of such Tribal lands, and

5. all other lands acquired after execution of this Agreement by the Tribe that are

mutually agreed upon in writing by the parties to this Agreement and identified in

Appendix A (K-5).

L. "Tribal Chairperson" means the duly elected Chairperson of the Board of Directors of

the Tribe.

M. "Tribal Entity" means an entity, other than a single Resident Tribal Member or an

entity wholly owned by the Tribe, that is wholly owned by any combination of the

Tribe and its Resident Tribal Members, or is wholly owned by its Resident Tribal

Members.

N. "Tribal Member" means an individual who is an enrolled member of the Tribe.

III.

SALES TAX AND USE TAX

A. Exemptions

1. Tribe

a. Purchases by the Tribe or a Tribal Entity of tangible personal property for its

use, including but not limited to Governmental Functions identified in

§ III(A)(1)(b), below, and commercial activities are exempt from both the

sales tax and use tax if the transaction takes place and the property is used

exclusively within the Tribal and Trust Lands.

b. Purchases by the Tribe of tangible personal property that is primarily used

(95% or more) in performing one of the following Tribal Governmental

Functions is exempt from both the sales tax and use tax if the transaction takes

place within the Agreement Area regardless of where the tangible personal

property is used:

i. Public Safety and Conservation;

ii. Environmental Services;

iii. Tribal Government;

• Tribal Judiciary

• Tribal Legislature

• Tribal Executive Administrative Activity

iv. Public Welfare and Other Social Services;

v. Education;

vi. Health Services;

vii. Housing and Housing Services;

viii. Casino Gaming (limited to actual gaming activities); and

ix. Other similar functions customarily performed by State or local units of

government.

c. For the purpose of application of § III(A)(1)(b), the term “Tribe” means the

Tribe acting alone or in combination with one or more other tribes that have

entered into a tax agreement with the State that is substantially similar to this

Agreement.

d. Purchases of vans and buses by the Tribe for use in transporting passengers to

and from a Tribal gaming facility shall be exempt from both sales tax and use

tax if used exclusively within the Agreement Area or within a 25 mile radius

of a Tribal gaming facility provided that an occasional use (5% or less) for

other Governmental Functions shall not preclude entitlement to this

exemption.

2. Resident Tribal Member

a. Tangible personal property, other than motor vehicles, purchased or acquired

by a Resident Tribal Member for his or her use is exempt from both sales tax

and use tax if the transaction takes place in the Tribal and Trust Lands and the

property is used exclusively within the Tribal and Trust Lands.

b. Purchases by a Resident Tribal Member of tangible personal property for

personal use are exempt from both the sales tax and use tax if the transaction

takes place in the Agreement Area and the property is used exclusively within

the Agreement Area.

c. Resident Tribal Members are exempt from both the sales tax and use tax on

the following items regardless of where purchased or used provided they are

purchased for non-commercial, personal use and principally garaged, berthed,

or stored within the Agreement Area:

Passenger vehicles including automobiles, pick-up trucks, recreational

vehicles and motorcycles;

ii. Recreational watercraft;

iii. Snowmobiles; and

iv. Off road vehicles.

d. Resident Tribal Members are exempt from both the sales tax and use tax on

modular homes and mobile homes used as their principal residence.

e. The exemptions in § III(A)(2)(c), § III(A)(2)(d), and § III(A)(3)(b) shall

apply in full to purchases by a Resident Tribal Member even if the items are

jointly titled in the name of the Resident Tribal Member and his or her spouse.

3. Affixation to Real Estate

a. Materials that are purchased, used or acquired in the performance of a contract

entered into by the Resident Tribal Member, Tribe, or Tribal Entity for

construction, renovation or improvement of real property owned by the Tribe

or the federal government in trust for the Tribe are exempt from both sales tax

and use tax if the real property is located within the Tribal and Trust Lands

and there is no contractual entitlement for a non-Resident Tribal Member or

non-Tribal Entity to remove the improvement.

b. Materials that are purchased, used or acquired in the performance of a contract

for construction, renovation or improvement to the principal residence of a

Resident Tribal Member are exempt from both the sales tax and use tax.

4. Treaty Fishing

a. Tangible personal property purchased or acquired by a Resident Tribal

Member within the Agreement Area for use in exercising a treaty fishing right

is exempt from both the sales tax and use tax regardless of where the property

is used.

b. Tangible personal property purchased or acquired by the Tribe, a Tribal Entity

or any Tribal Member for use in exercising a commercial treaty fishing right

is exempt from both the sales tax and use tax regardless of where the property

is purchased or acquired.

5. Rental Rooms

Rental rooms owned by the Tribe that are within Tribal and Trust Lands and within a

one-quarter mile radius of a Tribal gaming facility also located within the Tribal and

Trust Lands are exempt from the lodging use tax and are not subject to tax sharing, as

provided in § III(B), below.

6. Restaurant Food and Beverage Sales

Restaurant food and beverage sales at casino operations located within the Tribal and

Trust Lands are exempt from both the sales tax and use tax and are not subject to tax

sharing as provided in § III(B), below.

7. Sale of Electricity, Natural or Artificial Gas, Home Heating Fuels, and

Telecommunications and Internet Services

Sales of electricity, natural gas or artificial gas, home heating fuels and all

transmission and distribution charges are exempt from both the sales tax and use tax

if the product is delivered to: (i) land owned by the Tribe or held in trust by the

federal government for the benefit of the Tribe, to the extent that the land is occupied

by the Tribe, a Tribal Entity or a Tribal Member and is within Tribal and Trust Lands;

(ii) land occupied by the Tribe within the Agreement Area that is primarily used (95%

or more) in performing a Governmental Function; or (iii) a Resident Tribal Member’s

principal residence located within the Agreement Area.

In addition, telephone (intrastate and interstate), telegraph leased wire, internet, cable,

and other similar communications rendered to and paid for by the Tribe, a Tribal

Entity, or Resident Tribal Member are exempt from both the sales tax and use tax if

the service is rendered to: (i) land owned by the Tribe or held in trust by the federal

government for the benefit of the Tribe, to the extent that the land is occupied by the

Tribe, a Tribal Entity or a Tribal Member and is within the Tribal and Trust Lands;

(ii) land occupied by the Tribe within the Agreement Area that is primarily used (95%

or more) in performing a Governmental Function; or (iii) a Resident Tribal Member’s

principal residence located within the Agreement Area.

8. Sourcing of Transactions

The determination of where a transaction occurs will be made in accordance with the

Streamline Sales Tax Project sourcing rules as follows:

a. When the product is received by the purchaser at a business location of the

seller, the sale is sourced to that business location.

b. When the product is not received by the purchaser at a business location of the

seller, the sale is sourced to the location where receipt by the purchaser (or the

purchaser’s donee, designated as such by the purchaser) occurs, including the

location indicated by instructions for delivery to the purchaser (or donee),

known to the seller.

c. When a and b do not apply, the sale is sourced to the location indicated by an

address for the purchaser that is available from the business records of the

seller that are maintained in the ordinary course of the seller’s business when

use of this address does not constitute bad faith.

d. When a, b, and c do not apply, the sale is sourced to the location indicated by

an address for the purchaser obtained during the consummation of the sale,

including the address of a purchaser’s payment instrument, if no other address

is available, when use of this address does not constitute bad faith.

e. When none of the previous rules of a, b, c, or d apply, including the

circumstance where the seller is without sufficient information to apply the

previous rules, then the location will be determined by the address from which

tangible personal property was shipped, from which the digital good was first

available for transmission by the seller or from which the service was

provided (disregarding for these purposes any location that merely provided

the digital transfer of the product sold).

f. The terms "receive" and "receipt" mean:

i. taking possession of tangible personal property;

ii. making first use of services; or

iii. taking possession or making first use of digital goods whichever comes

first.

The terms "receive" and "receipt" do not include possession by a shipping

company on behalf of the purchaser.

g. It is understood that if the rules adopted are different than those set forth

above there will be further discussion on the sourcing issue by the Tribe and

the State and those further discussions may result in changes to this section, if

mutually agreed upon in writing by the parties.

B. Tax Sharing

Sales tax and use tax will be collected, remitted, and shared between the State and the

Tribe as provided in this section.

1. Outside of the Tribal and Trust Lands. Tribal, Tribal Member, and Tribal Entity

retailers shall collect the State sales tax or use tax as applicable on all sales to

Non-Tribal Members, non-Resident Tribal Members and on all other Taxable

Sales that occur within the State and outside of the Tribal and Trust Lands. All tax

collected shall be remitted to the State and shall not be subject to tax sharing as

provided in this § III(B).

2. Inside the Tribal and Trust Lands. Tribal, Tribal Member, and Tribal Entity

retailers shall collect and remit to the State the State sales tax or use tax, as

applicable, on all sales to Non-Tribal Members and non-Resident Tribal Members

and on all other Taxable Sales that occur within the Tribal and Trust Lands. The

State shall share the tax collected and remitted as follows:

a. On the first $5,000,000 of annual gross receipts from Non-Tribal Members,

non-Resident Tribal Members and all other Taxable Sales, 2/3 of the tax

collected shall be paid to the Tribe and 1/3 to the State.

b. On annual gross receipts from Non- Tribal Members, non-Resident Tribal

Members and all other Taxable Sales in excess of $5,000,000, 1/2 of the tax

collected shall be paid to the Tribe and 1/2 to the State.

3. If the Tribe enacts a sales tax on transactions occurring within its Tribal and Trust

Lands on sales made by the Tribe, Tribal Members, or Tribal Entities which (i)

utilizes a base at least as inclusive as that provided under State law, and (ii)

applies a rate at least as high as that imposed by State law, § III(B)(2) above shall

not apply. Rather, the State agrees to exempt those transactions from the State use

tax and the Tribe agrees to collect its sales tax from all Tribal, Tribal Member,

and Tribal Entity retailers engaging in Taxable Sales within the Tribal and Trust

Lands. The Tribe shall share the tax collected as follows:

a. On the first $5,000,000 of annual gross receipts from Taxable Sales, 2/3 of the

tax collected shall be retained by the Tribe and 1/3 paid to the State (but not to

exceed the amount payable to the State if the State tax rate were applied).

b. On annual gross receipts from Taxable Sales in excess of $5,000,000, 1/2 of

the tax collected shall be retained by the Tribe and 1/2 paid to the State (but

not to exceed the amount payable to the State if the State tax rate were

applied).

C. General

1. The State will impose a sales tax on all non-Tribal retailers, non-Tribal Member

retailers, and non-Tribal Entity Retailers within the Agreement Area including

Tribal and Trust Lands on all sales including those to the Tribe, Tribal Members,

or Tribal Entities unless a valid exemption certificate is presented at time of sale.

Imposition of the tax at the retail level shall not preclude the Tribe, a Resident

Tribal Member, or a Tribal Entity from obtaining the benefit of an exemption

provided in this Agreement by use of the Tax Table or other refund mechanism

provided in § XII of this Agreement.

2. Tribal, Tribal Member, and Tribal Entity retailers will not be eligible for the

vendor’s prepayment discount at MCL 205.54 and MCL 205.94f on sales that

occur within the Tribal and Trust Lands.

IV.

INDIVIDUAL INCOME TAX

A. Non Business Income

Resident Tribal Members are exempt from State income tax on all Non Business

income including but not limited to:

1. All income derived from wages are exempt whether the wages are earned within

the Agreement Area or outside of the Agreement Area;

2. All interest and passive dividends are exempt;

3. All rents and royalties derived from real property located within the Agreement

Area are exempt;

4. All rents and royalties derived from tangible personal property, to the extent the

personal property is utilized within the Agreement Area, are exempt;

5. Capital gains from the sale or exchange of real property located within the

Agreement Area are exempt;

6. Capital gains from the sale or exchange of tangible personal property which is

located within the Agreement Area at the time of sale are exempt;

7. Capital gains from the sale or exchange of intangible personal property are

exempt;

8. All pension income and benefits including, but not limited to, 401(k), IRA,

defined contribution plan, and defined benefit plan payments are exempt;

9. All per capita payments by the Tribe to Resident Tribal Members are exempt

without regard to the source of payment; and

10. All gaming winnings are exempt.

B. Business Income

Resident Tribal Members are exempt from the State income tax on business income as

follows:

Business income shall be apportioned in the manner provided in the State Income Tax

Act by application of the property, payroll and sales factors. In arriving at the portion to

be taxed, the numerators provided in those sections shall include the property, payroll or

sales in the State and shall exclude property, payroll or sales which are outside of the

State or within the Tribal and Trust Lands. The denominator shall consist of all property,

payroll or sales everywhere. Business income includes income derived from a flowthrough entity.

C. Treaty Fishing

All income derived from Treaty Fishing is exempt from the State income tax to the extent

excluded from federal income.

D. Spouses

Spouses who are not Resident Tribal Members are subject to the State income tax.

E. Withholding and Reporting

1. Tribal, Tribal Member, and Tribal Entity employers located within the Agreement

Area will withhold and remit to the State income tax from all employees who are

not Resident Tribal Members.

2. The Tribe will report to the State gaming winnings in the same manner as

reported to the federal government.

3. The Tribe’s casino operators and/or entertainment facility operators will report

gross receipts and contact information regarding each professional performer in a

manner consistent with reporting practices required by the State for non-Tribal

casino operators and/or entertainment facilities.

MOTOR FUEL TAX

A. The Tribe may purchase a quantity of tax exempt motor fuel. The exempt motor fuel

will be administered by either the quota method or the refund method. The Tribe shall

select which method it will use to acquire tax exempt motor fuel, consistent with the

provisions of this Agreement.

B. Implementation: Refund Method

1. The Tribe will prepay the State motor fuel and sales taxes on all motor fuel

purchases and seek a refund on exempt sales.

2. All motor fuel for resale shall be purchased in accordance with State law from any

State licensed wholesaler and shall be tax prepaid. All Taxable Sales of such

motor fuel shall include the tax in the retail price.

3. The Tribe shall determine which retailers within the Agreement Area will be

entitled to seek refunds on exempt sales.

4. The total amount of refunds obtainable by the Tribe or its designated retailers

shall be limited by a ceiling determined jointly by the Tribe and the State in the

same manner as a quota. The entitlement shall be prospective and shall be

reviewed periodically. There shall be no retroactive reconciliation.

5. Tribes that engage in interstate transportation activities shall be subject to the

International Fuel Tax Agreement (IFTA). No refund under this Agreement shall

be requested by the Tribe or its designated retailers and no tax exempt fuel shall

be used for interstate activities subject to IFTA.

6. The Tribe shall not engage in commercial intrastate transportation activities, other

than those associated with its casino gaming operations as provided at

§ (III)(A)(l)(d), with fuel that is not taxed.

7. All refunds shall be issued within 45 days of the receipt of the claim for refund,

after which interest shall accrue at the statutory rate.

C. Implementation: Quota Method

1. The Tribe may purchase an annual quota of motor fuel per the agreed schedule

without the imposition of the State motor fuel and sales taxes. The entitlement

shall be prospective and shall be reviewed periodically. There shall be no

retroactive reconciliation.

2. The Tribe shall acquire its tax-free quota of motor fuel from no more than two

pre-identified State licensed wholesalers.

3. All motor fuel acquired for resale in excess of the quota shall be purchased in

accordance with State law from any State licensed wholesaler with State motor

fuel taxes prepaid. All retail sales of such motor fuel shall include the tax in the

retail price.

4. The Tribe shall determine which retailers within the Agreement Area will receive

tax-free quota motor fuel.

5. All tax free diesel fuel acquired under the quota will be clear diesel fuel.

6. Tribes that engage in interstate transportation activities shall be subject to the

IFTA. No tax-free quota motor fuel shall be used for interstate activities subject to

IFTA.

7. The Tribe shall not engage in commercial intrastate transportation activities other

than those associated with its casino gaming operations as provided at

§ III(A)(l)(d), with fuel that is not taxed.

D. The Tribe shall ensure that Tribal Member and Tribal Entity retailers only purchase

motor fuel from State licensed wholesalers. The Tribe shall also ensure that Tribal

Member and Tribal Entity retailers prepay all taxes on motor fuel purchases except

for quota exempt purchases authorized by the Tribe.

E. All sales of motor fuel by the Tribe, Tribal Members, or Tribal Entities to Non-Tribal

Members shall be with all taxes paid and included in the price.

F. The Tribe, Tribal Members, and Tribal Entities shall not act as importers,

wholesalers, or suppliers of motor fuel unless licensed by the State.

VI.

TOBACCO TAX

The Tribe and the State agree that all tobacco products sold within the Agreement Area shall be

subject to the provisions of the Tobacco Products Tax Act, except as provided in this Agreement.

A. The Tribe may purchase a quantity of tax exempt tobacco products. The exempt

purchases of cigarettes and other tobacco products shall be administered by either the

quota method or the refund method set forth in this Agreement.

B. Implementation: Refund Method

1. All tobacco products for resale shall be purchased in accordance with State law

from any State licensed wholesaler and shall be tax prepaid. Taxable Sales of such

tobacco products shall include the tax in the retail price.

2. The Tribe shall determine which retailers within the Agreement Area will be

entitled to seek refunds on exempt sales.

3. The total amount of refunds obtainable by the Tribe or its designated retailers

shall be limited by a ceiling determined jointly by the Tribe and the State in the

same manner as a quota described in the quota option set forth below. The

entitlement shall be prospective and shall be reviewed periodically. There shall be

no retroactive reconciliation.

4. All refunds shall be issued within 45 days of the receipt of the claim for refund,

after which interest shall accrue at the statutory rate.

C. Implementation: Quota Method

1. The Tribe may purchase an annual quota of tobacco products without the

imposition of the State tobacco products tax. The entitlement shall be prospective

and shall be reviewed periodically. There shall be no retroactive reconciliation.

2. The Tribe shall acquire its tax-free quota of tobacco products from no more than

two pre-identified State licensed wholesalers.

3. All tobacco products acquired for resale in excess of the quota shall be purchased

in accordance with State law from any State licensed wholesaler with State

tobacco products tax prepaid. All retail sales of such tobacco products shall

include the tax in the retail price.

4. The Tribe shall determine which retailers within the Agreement Area will receive

tax-free quota tobacco products.

5. All tobacco products purchased by the Tribe shall bear the State tribal stamp.

D. The Tribe shall ensure that Tribal Member and Tribal Entity retailers only purchase

tobacco products bearing the State Tribal stamp and only purchase from State

licensed wholesalers. The Tribe shall also ensure that Tribal Member and Tribal

Entity retailers prepay all taxes on tobacco product purchases, except for quota

exempt purchases authorized by the Tribe.

E. All sales of tobacco products by the Tribe, Tribal Members, or Tribal Entities to NonTribal Members shall be with all taxes paid and included in the price.

F. The Tribe, Tribal Members, and Tribal Entities shall not act as wholesalers,

secondary wholesalers, or unclassified acquirers of tobacco products unless licensed

by the State.

VII.

SINGLE BUSINESS TAX

A. For purposes of application of the Single Business Tax section only, the following

definitions shall apply:

1. "Tribe (SBT)" means any Tribe that has entered into a tax agreement with the

State that is substantially similar to this Agreement.

2. "Expanded Tribal Agreement Area" means the lands within the combined

Agreement Areas of each Tribe (SBT).

3. "Tribal Member (SBT)" means an individual who is an enrolled member of a

Tribe (SBT).

4. "Resident Tribal Member (SBT)" means a Tribal Member (SBT) whose principal

place of residence is located within his or her Tribe’s Agreement Area.

5. "Tribal Entity (SBT)" means an entity other than a single Tribe (SBT) acting

alone or single Resident Tribal Member (SBT) acting alone, that is wholly

comprised of any combination of the Tribe (SBT) and Resident Tribal Members

(SBT), or is wholly owned by Resident Tribal Members (SBT).

B. The Single Business Tax Act (SBTA) exemptions provided by this Agreement will be

applied without regard to the law under which an entity is organized. Publicly traded

entities shall be subject to the SBTA without regard to Tribe (SBT) or Tribal Member

(SBT) ownership and without regard to the Expanded Tribal Agreement Area.

C. Entities in which the ownership interests are entirely comprised of one or more Tribes

(SBT), Tribal Members (SBT) or Tribal Entities (SBT) that engage in business

activity within the State will apportion their tax base by application of the three

statutory factors (property, payroll and sales) to determine the portion of the tax base

attributable, if any, to the State but outside the Expanded Tribal Agreement Area. The

portion of the tax base attributable to the Expanded Tribal Agreement Area will be

exempt from the SBTA.

D. Entities which are not wholly owned by any combination of Tribes (SBT), Tribal

Members (SBT) or Tribal Entities (SBT) will apportion their tax base by application

of the three statutory-factors (property, payroll and sales) to determine the portion of

the tax base attributable to the State and to the Expanded Tribal Agreement Area.

The portion of the tax base attributable to the Expanded Tribal Agreement Area

which is equal to the percentage of ownership interests held in combination of Tribes

(SBT), Tribal Members (SBT) or Tribal Entities (SBT) will be exempt. The portion

of the tax base attributable to non Tribes (SBT), non Tribal Members (SBT) or non

Tribal Entities (SBT) is subject to the SBTA for activity within the State both within

and outside of the Expanded Tribal Agreement Area. In calculating the State sales

factor of the apportionment formula the numerator shall only exclude sales that are

destined to:

1. The Tribe (SBT);

2. Resident Tribal Members (SBT); and

3. Sales shipped to destinations outside of the State.

E. To the extent a tax base or portion of a tax base is attributable to the State under this

Agreement and a tax is due, a credit against the tax may be claimed to the extent the

business is conducted in an area designated as a Renaissance Zone under State law.

See MCL 125.2681, et seq. The credit shall be determined in accordance with State

law using the payroll and property factors. The denominator of the respective factors

is calculated in accordance with State law except that payroll and property within the

Expanded Tribal Agreement Area must be excluded. The numerators of the

respective factors will be the property located within a designated Renaissance Zone

excluding property within the Expanded Tribal Agreement Area and the payroll for

services performed in a designated Renaissance Zone excluding payroll within the

Expanded Tribal Agreement Area. The credit is otherwise allowed in accordance with

State law.

VIII. ADMINISTRATION: GENERAL

A. Consistent with State law, the Tribe, Tribal Members, and Tribal Entities shall

maintain records (including retention of original receipts other than those for

purchases claimed on the Sales Tax Table Return) sufficient to substantiate claims for

exemption from tax under this Agreement.

B. By December 15 of each year the Tribe shall provide to the State a current list of:

1. Resident Tribal Members with their addresses and Tribal identification number;

2. Tribal, Tribal Member, and Tribal Entity businesses operating within the

Agreement Area. The list shall state the business name, the business address, the

business(es)’ federal tax identification number (if available), and the name(s) of

the business owners. The list shall also identify:

a. Businesses that are engaged in the sale or storage of motor fuel with a

statement as to the location of the storage tanks;

b. Businesses that are engaged in the sale or storage of tobacco products

identifying the facilities operated by the Tribe. Provided, however, that in

identifying a facility owned, leased, or operated by the Tribe, the Tribe may

designate the specific rooms in the facility where tobacco products are

authorized to be stored or offered for sale under this Agreement. If such a

designation is made, the State’s authority to conduct inspections referenced at

§ XIII(C)(4)(a) without a Tribal Court order shall be limited to the whole of

the rooms designated and all rooms which are directly accessible from those

rooms as well as all areas through which tobacco products are transported. In

the absence of a designation of rooms, the State shall be permitted to inspect

the entire facility designated;

c. Businesses that are authorized by the Tribe to sell tax exempt motor fuel; and

d. Businesses that are authorized by the Tribe to sell tax exempt tobacco

products.

3. Non-Tribal businesses operating within the Tribal Agreement Area that are

authorized by the Tribe to sell tax exempt motor fuel;

4. Non-Tribal businesses within the Agreement Area that are authorized by the Tribe

to sell tax exempt tobacco products; and

5. The Tribal official(s) authorized to sign Tribal Certificates of Exemption on

behalf of the Tribe as provided at § XII(B)(1)(a), or refund requests under

§ XII(B)(2) of this Agreement.

C. The Tribe shall notify the State in writing of all lands, title to which is acquired in the

name of the Tribe or in federal trust for the Tribe after execution of this Agreement,

which are within the Agreement Area or claimed as Tribal and Trust Lands under

§ II(K) of this Agreement. If the parties agree, the Appendix A setting forth the

Tribal and Trust Lands shall be amended to reflect all of the lands that are Tribal and

Trust Lands under this Agreement.

IX.

ADMINISTRATION: INCOME AND SINGLE BUSINESS TAXES

A. Income Tax

All Resident Tribal Members shall file a State tax return if they owe a Michigan Income

Tax, are due a refund, or their federal adjusted gross income exceeds their exemption

allowance. (See MCL 206.30 (2) and (3)). In addition a Resident Tribal Member shall

file a return in all instances where a federal return is required in order to eliminate

unnecessary correspondence with the Department. A taxpayer who is entitled to

exemption based on this Agreement shall complete a Schedule in accordance with its

instructions whereat the subtractions will be taken. These subtractions shall then be

carried over to the MI 1040.

B. Withholding

Withholding is to be done in accordance with regulations/instructions applicable to all

persons required to withhold.

C. Single Business Tax

A taxpayer claiming entitlement to exemptions provided in this Agreement shall prepare

and file the SBT annual return form C-8000. The C-8000 shall have a box on its face

indicating that the taxpayer is claiming exemptions under this Agreement. A taxpayer

who checks that box will be directed to complete a separate schedule which will guide

the taxpayer through the special apportionment calculations to arrive at the non-exempt

property, payroll and sales numbers which will then be carried over to the C-8000H for

use in completing the return.

ADMINISTRATION: MOTOR FUEL TAX

The Tribe shall utilize either a quota system or a refund system to acquire motor fuel for exempt

Tribal and Tribal Member use as determined by the quota or refund ceiling. The election to use

a refund or quota system shall be effective for an entire calendar year. The Tribe may change

from one system to the other upon at least 60 days written notice to the State. The change shall

be effective on the first day of the next calendar year.

A. Quota System

1. The quota amount shall be determined by negotiation and will be reviewed, and

may be adjusted by mutual consent of the parties, on request of either party but

not more frequently than semi-annually (in May and November) during the first

two years of this Agreement. Thereafter, the quota amount will be reviewed at

the request of either party, and may be adjusted by mutual consent of the parties,

but not more frequently than annually. A separate quota shall be established for

gasoline and diesel. The quota will be calculated on a twelve month basis. In any

given month the total amount of tax free quota motor fuel delivered to the Tribe

and those authorized by the Tribe to store or sell tax free motor fuel shall not

exceed 15% of the total quota amount calculated on a twelve month basis.

2. The Tribe shall purchase all of its tax free quota motor fuel from no more than

two wholesalers licensed by the State. The Tribe shall notify the State in writing

of the wholesaler(s) it will use prior to making any purchase of tax free quota

motor fuel. The State shall contact the wholesaler(s) and authorize the quantity of

tax free quota motor fuel to be sold to the Tribe. The designated wholesaler(s)

may be changed by written notice to the State providing the name of the new

wholesaler(s) and providing at least 14 days advance notice of the date that the

change will be effective. The notice from the Tribe to the State shall also state the

total number of gallons purchased from the old wholesaler(s) and the number of

gallons remaining to be purchased under the quota. The State shall then advise

the new supplier(s) that it is authorized to make sales of tax free quota motor fuel

to the Tribe and the amount remaining under the quota.

3. The Tribe shall determine which retailers within the Agreement Area will be

authorized to purchase and sell tax free motor fuel and the quantities that each

retailer may acquire. The Tribe shall establish a system whereby the Tribe shall

pre-approve, and clearly designate, all purchases of tax free fuel prior to

submission to the wholesaler. In addition to maintaining the books and records

required by State law, all authorized retailers (including the Tribe itself) shall

maintain a log of their purchases of tax free quota motor fuel showing the delivery

date and the type (gasoline or diesel) and quantity of fuel purchased.

4. The Tribe shall maintain a record of its use of tax free motor fuel acquired under

the quota. This record shall indicate the vehicle(s) in which motor fuel is used,

the number of gallons used by each vehicle (or each category of vehicles), and a

general description of the use of the vehicles.

B. Refund System

1. A refund ceiling shall be negotiated and will be reviewed, and may be adjusted by

mutual consent of the parties, upon written request of either party but not more

frequently than semi-annually (in May and November) during the first two years

of this Agreement. Thereafter, the refund ceiling amount will be reviewed at the

request of either party, and may be adjusted by mutual consent of the parties, but

not more frequently than annually. Separate refund ceilings shall be established

for both gasoline and diesel for which a refund will be sought. The refund

ceilings shall be calculated on a twelve month basis.

2. The Tribe shall determine which retailers located within the Agreement Area will

be entitled to seek a refund for sales of motor fuel. The Tribe shall be responsible

for devising a means for dividing the refund ceiling(s) among the retailers

authorized by the Tribe to receive refunds and the Tribe itself. The retailers

authorized by the Tribe to receive refunds shall submit their claims to the Tribe

which will compile them as a single request to be filed with the State on a

monthly or quarterly basis. The State will then issue a single refund check to the

Tribe. The State will not make additional refunds for the period covered under

the refund ceiling once the refund ceiling amount has been reached.

3. In addition to maintaining the books and records required by State law, all

authorized retailers (including the Tribe itself) shall maintain a log of their sales

of tax free motor fuel showing the date, the purchaser’s name, the purchaser’s

Tribal identification number, the purchaser’s signature, and the amount and type

(gasoline or diesel) of fuel purchased. The purchaser’s signature shall not be

required if a swipe card system, acceptable to both the Tribe and the State, is

utilized.

4. Upon receipt of a refund request from the Tribe, the State shall verify that the

refund ceiling has not been exceeded and then process the request. Interest will

be paid at the statutory rate if the refund is not paid within 45 days of receipt by

the Department.

5. The Tribe shall maintain a record of its use of tax free motor fuel acquired under

the refund ceiling. This record shall indicate the vehicle(s) in which motor fuel is

used, the number of gallons used by each vehicle (or each category of vehicles),

and a general description of the use of the vehicles.

XI.

ADMINISTRATION: TOBACCO PRODUCTS TAX

The Tribe shall utilize either a quota system or a refund system to acquire tobacco products for

Tribal and Tribal Member use as determined by the quota or refund ceiling. The election to use

a refund or quota system shall be effective for an entire calendar year. The Tribe may change

from one system to the other upon at least 60 days written notice to the State. The change shall

be effective on the first day of the next calendar year.

A. Quota System

1. The quota amount shall be determined by negotiation and will be reviewed, and

may be adjusted by mutual consent of the parties, on request of either party but

not more frequently than semi-annually (in May and November) during the first

two years of this Agreement. Thereafter, the quota amount will be reviewed at

the request of either party, and may be adjusted by mutual consent of the parties,

but not more frequently than annually. A separate quota shall be established for

cigarettes and other tobacco products. The quota shall be calculated on a twelve

month basis. In any given month the total amount of tax free quota tobacco

products delivered to the Tribe and those authorized by the Tribe to store or sell

tax free tobacco products shall not exceed 15% of the total quota amount

calculated on a twelve month basis.

2. The Tribe shall purchase all of its tax free quota tobacco products from no more

than two wholesalers licensed by the State. The Tribe shall notify the State in

writing of the wholesaler(s) it will use prior to making any purchase of tax free

quota tobacco products. The State shall contact the wholesaler(s) and authorize

the quantity of tax free quota tobacco products to be sold to the Tribe. The

designated wholesaler(s) may be changed by written notice to the State providing

the name of the new wholesaler(s) and providing at least 14 days advance notice

of the date that the change will be effective. The notice from the Tribe to the

State shall also state the total number of cigarette sticks and quantity of other

tobacco products purchased from the old wholesaler(s) and the number of

cigarette sticks and quantity of other tobacco products remaining to be purchased

under the quota. The State shall then advise the new supplier(s) that it is

authorized to make sales of tax free quota tobacco products to the Tribe and the

amount remaining under the quota.

3. All cigarettes sold to retailers authorized to sell tax free cigarettes shall bear the

State tribal stamp.

4. The Tribe shall determine which retailers within the Agreement Area will be

authorized to purchase and sell tax free tobacco products and the quantities that

each retailer may acquire. The Tribe shall establish a system whereby the Tribe

shall pre-approve, and clearly designate, all purchases of tax free product prior to

submission to the wholesaler. In addition to maintaining the books and records

required by State law, all authorized retailers (including the Tribe itself) shall

maintain a log of their purchases of tax free quota tobacco products showing the

date, type (cigarettes, cigar, chew, etc.), quantity, and brand.

B. Refund System

1. A refund ceiling shall be negotiated and will be reviewed, and may be adjusted by

mutual consent of the parties, upon written request of either party but not more

frequently than semi-annually (in May and November) during the first two years

of this Agreement. Thereafter, the refund ceiling amount will be reviewed at the

request of either party, and may be adjusted by mutual consent of the parties, but

not more frequently than annually. A separate refund ceiling shall be established

for cigarettes and other tobacco products for which a refund will be sought. The

refund ceiling shall be calculated on a twelve month basis.

2. The Tribe shall determine which retailers located within the Agreement Area will

be entitled to seek a refund for sales of tobacco products. The Tribe shall be

responsible for devising a means for dividing the refund ceiling(s) among the

retailers authorized by the Tribe to receive refunds and the Tribe itself. The

retailers authorized by the Tribe to receive refunds shall submit their claims to the

Tribe which will compile them as a single request to be filed with the State on a

monthly or quarterly basis. The State will then issue a single refund check to the

Tribe. The State will not make additional refunds for the period covered under

the refund ceiling(s) once the refund ceiling(s) amount has been reached.

3. In addition to maintaining the books and records required by State law, all

authorized retailers (including the Tribe itself) shall maintain a log of their sales

of tax free tobacco products showing the date, type, quantity, and brand of

product sold with the name, Tribal identification number, and signature of the

purchaser. The purchaser’s signature shall not be required if a swipe card system,

acceptable to both the Tribe and the State, is utilized.

4. Upon receipt of a refund request from the Tribe, the State shall verify that the

refund ceiling has not been exceeded and then process the request. Interest will

be paid at the statutory rate if the refund is not paid within 45 days of receipt by

the Department.

XII.

ADMINISTRATION: SALES TAX AND USE TAX

A. General

1. A Tribal, Tribal Member, or Tribal Entity retailer making a sale within the

Agreement Area to the Tribe, a Resident Tribal Member, or a Tribal Entity which

is exempt under the terms of this Agreement, need not collect sales tax or use tax

on such a sale. No refund requests will be honored for a purchase from a retail

establishment owned by the Tribe, a Tribal Member, or a Tribal Entity located

with the Agreement Area.

2. To obtain the benefit of statutory exemptions other than those specifically

identified in § III(A)(1), § III(A)(2), § III(A)(3), or § III(A)(4), of this

Agreement, the Tribe, Tribal Member or Tribal Entity shall use the standard

procedures and forms used by all taxpayers claiming exemption. See Revenue

Administrative Bulletin 2002-15.

B. Tribal Purchases

The Tribe shall have the option of using a Tribal Certificate of Exemption or seeking a

refund of sales tax and use tax paid for those transactions that are exempt under the terms

of this Agreement.

1. Tribal Certificate of Exemption Option

a. Application for Tribal Certificate of Exemption

The Tribe may apply for a Tribal Certificate of Exemption by filing a written

request with the Department stating the name and business address of the

Tribe, and the names and titles of the Tribal officials that are authorized by the

Tribe to sign Tribal Certificate of Exemption on behalf of the Tribe. Upon

receipt of the Tribe’s request signifying its election to use the Tribal

Certificate of Exemption, the Department shall issue to the Tribe a Letter of

Authorization indicating that it may begin using the Tribal Certificate of

Exemption as provided in this § XII.

b. Use of Tribal Certificate of Exemption

To obtain the benefit of an exemption under § III(A)(1), § III(A)(3) and

§ III(A)(4) of this Agreement, the Tribe shall present to the vendor or

contractor a signed Tribal Certificate of Exemption with a copy of the Letter

of Authorization attached. In the case of affixation to real property by a

contractor, the contractor shall submit the Tribal Certificate of Exemption

together with the contractor’s Sales and Use Tax Certificate of Exemption to

the supplier at the time of purchase.

c. The Tribe shall not use or authorize the use of any Tribal Certificate of

Exemption after the termination of this Agreement.

2. Refund Option

a. General

If the Tribe does not choose to use a Tribal Certificate of Exemption, it may

instead seek a refund under § III(A)(1), § III(A)(3), and § III(A)(4) of sales

tax and use tax on a monthly or quarterly basis using a Tribal Sales Tax and

Use Tax Refund form prescribed by the Department. The refund request shall

be signed by a designated official of the Tribe.

b. Taxes Paid by Contractor

The Tribe may seek reimbursement from the State of sales tax and use tax

paid by a contractor under § III(A)(3). Refund claims shall be filed on the

Tribal Sales Tax and Use Tax Refund form and accompanied by a signed

statement from the contractor stating the location at which materials were

affixed to real estate, the date that the work was done, the amount paid for

materials, and the sales tax and use tax paid on the purchases of the materials.

C. Resident Tribal Member and Tribal Entity Purchases

1. Tribal Certificate of Exemption Option

If the Tribe has elected to use a Tribal Certificate of Exemption under § XII(B)(1),

the Tribe may elect to authorize Resident Tribal Members or Tribal Entities to use a

Tribal Certificate of Exemption for the purchases described in this § XII(C)(1)(a) or

§ XII(C)(1)(c) below. If the Tribe so elects and notifies the State of such election,

Resident Tribal Members and Tribal Entities shall use a Tribal Certificate of

Exemption and may not seek refunds of taxes paid for purchases described in §

XII(C)(1)(a) or § XII(C)(1)(c) below.

a. Resident Tribal Member purchases where a Tribal Certificate of Exemption

must be used:

§ III(A)(2)(a) (only for the purchase and affixation by the Resident Tribal

Member of materials for construction, renovation, or improvement of real

property owned by the Tribe or the federal government in trust for the

Tribe which is located within Tribal and Trust Lands);

ii. § III(A)(2)(b) (only for the purchase and affixation by the Resident

Tribal Member of materials for construction, renovation, or improvement

of his or her principal residence within the Agreement Area);

iii. § III(A)(2)(c) and § III(A)(2)(d);

iv. § III(A)(3); and

v. § III(A)(4).

b. Resident Tribal Member purchases where a Tribal Certificate of Exemption

may not be used:

A Resident Tribal Member may only obtain the benefit of an exemption under

§ III(A)(2)(a) (except for purchases of materials for construction, renovation or

improvement of real property owned by the Tribe or the federal government in

trust for the Tribe which is located in Tribal and Trust Lands) by filing a refund

using the Resident Tribal Member/Tribal Entity Sales Tax and Use Tax Refund

Request form.

c. Tribal Entity purchases where a Tribal Certificate of Exemption must be used:

§ III(A)(1)(a) (only for the purchase and affixation by a Tribal Entity of

materials or construction, renovation, or improvement of real property

owned by the Tribe or the federal government in trust for the Tribe which

is located within Tribal and Trust Lands);

ii. § III(A)(3)(a);

iii. § III(A)(4)(b).

d. Tribal Entity Purchases where a Tribal Certificate of Exemption may not be

used:

A Tribal Entity may only obtain the benefit of an exemption under § III(A)(1)(a)

(except for purchases of materials for construction, renovation or improvement of

real property owned by the Tribe or the federal government in trust for the Tribe

which is located in Tribal and Trust Lands) by filing a refund using the Resident

Tribal Member/Tribal Entity Sales Tax and Use Tax Refund Request form.

e. Issuance of Tribal Certificate of Exemption

A Resident Tribal Member or Tribal Entity shall submit to the Tribe a signed

Resident Tribal Member/Tribal Entity Claim indicating the requester’s name,

address, items to be purchased (including identification numbers for vehicles and

mobile homes) and, in the case of a Resident Tribal Member, his or her

identification number and a certification that the Resident Tribal Member resides

within the Agreement Area. In those instances where the claim is made under

§ III(A)(3), a signed statement from the contractor stating the location at which

materials will be affixed to real estate, the date that the work is to be done, and an

estimate as to the amount to be paid for materials shall also be submitted to the

Tribe by the Resident Tribal Member of Tribal Entity seeking authorization. Upon

verifying the information provided in the claim and determining that the claim is

consistent with the terms of this Agreement, an authorized Tribal representative

shall complete and sign a Tribal Certificate of Exemption authorizing the Resident

Tribal Member’s or Tribal Entity’s exempt purchase. The certificate shall indicate

the name of the requester, the items to be purchased including identification

numbers for vehicles and mobile homes and, for Resident Tribal Members, the

Resident Tribal Member’s identification number.

f. Use of Tribal Certificate of Exemption

If a Tribal Certificate of Exemption is issued to a Resident Tribal Member or

Tribal Entity, the Resident Tribal Member or Tribal Entity shall present the

Certificate (together with the Letter of Authorization) to the vendor or contractor

at the point of purchase. In those instances where the claim is made for purchase

of material affixed to real property by a contractor under § III(A)(3), the Resident

Tribal Member or Tribal Entity shall also submit a signed statement from the

contractor stating the location at which materials will be affixed to real property,

the date that the work is to be done, and an estimate as to the amount to be paid

for materials.

2. Refund Method (without Tribal Certificate of Exemption authorization)

If the Tribe has not elected to use Tribal Certificates of Exemption as provided at

§ XII(B)(1), or has elected to use the Tribal Certificate of Exemption at § XII(B)(1)

but has not authorized its Resident Tribal Members and Tribal Entities to use Tribal

Certificates of Exemption, Resident Tribal Members and Tribal Entities shall pay

sales tax and use tax on all purchases, except those that would be exempt under State

law in the absence of this Agreement or those made from a Tribal, Tribal Member or

Tribal Entity retailer where the retailer is not required to collect tax as described in §

XII(A)(1). Refund requests for sales tax and use tax shall be made on the Resident

Tribal Member/Tribal Entity Sales Tax and Use Tax Refund Request form as follows:

a. A Resident Tribal Member may seek a refund of sales tax and use tax paid on

transactions exempted under § III(A)(2)(a), § III(A)(2)(b) (only for the

purchase and affixation by the Resident Tribal Member of materials for

construction, renovation, or improvement of his or her principal residence

within the Agreement Area), § III(A)(2)(c), § III(A)(2)(d), § III(A)(3) and

§ III(A)(4) of this Agreement.

b. A Resident Tribal Member may seek a refund of sales tax and use tax paid by

a contractor under § III(A)(3) as follows:

Within Tribal and Trust Lands. The Resident Tribal Member shall use the

Resident Tribal Member/Tribal Entity Sales Tax and Use Tax Refund

Request and shall also file a signed statement from the contractor stating

the location at which materials were affixed to real estate, the date the

work was done, the amount paid for materials, and the sales tax and use

tax paid on the purchases of the materials. If the claim is for an affixation

to a Resident Tribal Member’s principal residence, the Resident Tribal

Member shall attest to that fact.

ii. Personal Residence Within Agreement Area. The Resident Tribal

Member shall use the Resident Tribal Member/Tribal Entity Sales Tax

and Use Tax Refund Request, and shall also file a signed statement from

the contractor stating the location at which materials were affixed to real

estate, the date the work was done, the amount paid for materials, and the

sales tax and use tax paid on the purchases of the materials. If the claim is

for an affixation to a Resident Tribal Member’s principal residence, the

Resident Tribal Member shall attest to that fact.

c. Tribal Entities may seek refunds for taxes paid on transactions exempted

under § III(A)(1)(a), § III(A)(3)(a) and § III(A)(4)(b) of this Agreement.

d. Tribal Entities may seek a refund of sales tax and use tax paid by a contractor

under § III(A)(3)(a). The Tribal Entity shall file a signed statement from the

contractor stating the location at which materials were affixed to real estate,

the date the work was done, the amount paid for materials, and the sales tax

and use tax paid on the purchases of the materials.

e. Refund Request Form – Content

The Resident Tribal Member/Tribal Entity Sales Tax and Use Tax Refund Request

form shall require the following information and attachments:

The name of the purchaser with Tribal affiliation, member number,

resident address;

ii. The date of the purchase;

iii. The name and address of the vendor;

iv. A description of the item(s) purchased;

v. For items claimed exempt under § III(A)(2)(c) and § III(A)(2)(d), the

sales tax account number of the vendor;

vi. The original receipt;

vii. For a passenger vehicle, pick up truck, recreational vehicle, motorcycle,

recreational watercraft, snowmobile, or off road vehicle (ORV), the

vehicle identification number and a statement as to where the items will

be principally garaged, berthed, or stored;

viii. For a vehicle required to be registered with the Secretary of State, a RD

108 form;

ix. For a modular or mobile home, the unit serial number and a statement

that the purchase is for use exclusively within the Tribal and Trust Lands

or as a principal residence within the Agreement Area;

x. For a purchase or acquisition of tangible personal property for use in

exercising of a treaty fishing right, a statement that the property will be

used in the exercise of the right.

f. Filing and Payment of Refund Requests. Resident Tribal Member/Tribal

Entity Sales Tax and Use Tax Refund Request forms may be filed with the

State in April, July, October, and January. The State shall pay refunds and

interest on late payments in accordance with State law.

3. Refund Table – Resident Tribal Members

A Resident Tribal Member shall be entitled to an annual refund representing sales

tax and use tax paid on tangible personal property acquired under § III(A)(2)(b)

(except for the purchase and affixation by the Resident Tribal Member of

materials for construction, renovation, or improvement of his or her principal

residence within the Agreement Area). This refund shall apply under both the

Tribal Certificate of Exemption method described in § XII(C)(1), above and

Refund Method described in § XII(C)(2) above. This refund shall be determined

by use of the following table:

Resident Tribal Member’s federal Adjusted Gross Income modified to

include Social Security benefits, Social Security disability benefits,

Railroad Retirement benefits, unemployment benefits, fishing income

under section 7873 of the Internal Revenue Code, and disability

income to the extent they are specifically exempt from or excluded

from the computation of federal Adjusted Gross Income (but not to

exceed $80,000) x 15% x 6%

The Table shall be reviewed upon the written request of either party with notice to

all other tribes that have agreements that are substantially similar to this

Agreement but not more frequently than once every three years. It is the intent of

the parties that any revision to the Table shall be uniformly applied to all tribes

that have agreements that are substantially similar to this Agreement.

D. Collection, Remittance and Sharing of Sales and Use Taxes

1. Outside of Tribal and Trust Lands

Except as provided at § XII(A)(1), the Tribe, Tribal Members and Tribal Entities

operating as retailers anywhere in the State outside of Tribal and Trust Lands

shall collect and remit sales tax and use tax to the State in accordance with State

procedures generally applicable to retail sellers.

2. Inside Tribal and Trust Lands

a. In those instances where the Tribe has not enacted its own sales tax on

transactions occurring within Tribal and Trust Lands, the Tribe, Tribal

Members, and Tribal Entities operating as retailers within Tribal and Trust

Lands shall collect and remit State sales tax or use tax, as applicable, in

accordance with State procedures generally applicable to retail sellers on a

special form prescribed by the State. The Department shall not later than 45

days after the close of the calendar quarter or the receipt of all of the

prescribed returns, whichever is later, review the information received and

send a check to the Tribe together with a schedule showing the calculation of

the amount paid to the Tribe pursuant to § III(B)(2) of this Agreement. The

State shall pay interest at the statutory rate applicable for refunds not paid as

of the 45th day following the later of the end of the calendar quarter or the

receipt of all of the prescribed returns.

b. In those instances where the Tribe has enacted its sales tax on transactions

occurring within Tribal and Trust Lands which is subject to sharing under the

terms of the Agreement, the Tribe shall collect the taxes due and shall not

later than 45 days after the close of each quarter compile the information

received during the quarter and send a check to the State together with a

schedule showing the calculation of the amount paid to the Tribe pursuant to

§ III(B)(3) of this Agreement. The Tribe shall pay interest at the statutory

rate provided under State law for refunds not paid as of the 45th day following

the end of the calendar quarter.

E. Record Retention

1. General.

a. Records shall be separately maintained for items that are claimed exempt on

the basis that the transaction occurred in, and the use is exclusively in Tribal

and Trust Lands.

b. Tribal, Tribal Member and Tribal Entity retailers shall maintain records

regarding sales that are not Taxable Sales under this Agreement.

c. With respect to sales on which no tax was collected as provided in

§ XII(A)(1), Tribal, Tribal Member and Tribal Entity retailers shall maintain a

record of such sales including the date, the name and Tribal identification

number of the purchaser, the amount, and for any item of more than $50.00 or

sales of more than $200.00 in the aggregate, the identification of the items

purchased and any other data sufficient to document the exemption. This

§ XII(E)(1)(c) shall not apply to sales of motor fuel.

2. Tribes

a. For each item claimed exempt under § III(A)(1)(b) that is not used

exclusively for a Governmental Function, the Tribe shall maintain a log

setting forth all uses of the item and the amount of each use. In establishing

the percentage of each type of use, the Tribe shall consistently use the same

measure for each class of item. For example, a vehicle use log would

typically be maintained on the basis of miles driven. A copy machine log

would typically be maintained on the basis of number of copies made for each

respective use. A log for a piece of heavy equipment, such as a snowplow,

may be maintained on the basis of hours of actual use excluding storage time

or on the basis of miles plowed.

b. If the Tribe is authorized under this Agreement to use the Tribal Certificate of

Exemption, the Tribe shall separately maintain a copy of all exemption

certificates used.

3. Resident Tribal Members and Tribal Entities

If the Tribe is authorized under this Agreement to use the Tribal Certificate of

Exemption and the Tribe authorizes a Resident Tribal Member or Tribal Entity to use

such a certificate, the Resident Tribal Member or Tribal Entity shall maintain a copy

of all certificates used. For items not covered by the Table, information and

documentation must also be retained to substantiate where the transaction took place.

This information shall include shipping documents showing the manner and means by

which the item was delivered, e.g., common carrier, seller’s truck, purchaser’s truck,

postal service, etc.

F. Tribal Responsibility for Tribal, Tribal Member, or Tribal Entity Use of the Tribal

Certificates of Exemption.

The Tribe shall be responsible for and agrees to pay to the State any sales tax or use tax,

including interest, resulting from the use of Tribal Certificate of Exemption in the

following situations:

1. Tribal Use

a. Arbitration Awards: Where there has been a final award under § XIV or

§ XV(C ) of this Agreement.

b. Use Prior to Termination: Where the State, after termination of this

Agreement, discovers a certificate that was used prior to termination of this

Agreement, and asserts that the transaction is not exempt under this

Agreement.

c. Use After Termination: Where the Tribe uses a Tribal Certificate of

Exemption after termination of this Agreement.

2. Tribal Member and Tribal Entity Use

a. Use Prior to Termination Whenever Discovered: Where there is a final

determination of liability against a Tribal Member or Tribal Entity which

remains unpaid for 60 days following the final determination of the liability.

b. Use After Termination: Where the State has issued a Final Assessment with

respect to the use of a Tribal Certificate of Exemption by a Tribal Member or

Tribal Entity after termination of this Agreement and the assessment remains

unpaid for 60 days after its issuance.

c. Prior to holding the Tribe responsible as provided in this § XII(F) for the

wrongful use of a Tribal Certificate of Exemption by a Tribal Member or

Tribal Entity, the State shall give the Tribe notice of such use including the

name of the Tribal Member or Tribal Entity using the certificate, the date of

the occurrence and of a copy of the Tribal Certificate of Exemption alleged to

have been wrongfully used. The Tribe agrees to pay the sales tax or use tax

together with interest within 60 days of receiving the notice. The obligations

contained in this § XII(F) shall survive the termination of this Agreement.

3. Contractor Exemption – Use After Termination

Notwithstanding the provisions of § XII(F)(1) and § XII(F)(2) above, a Tribal

Certificate of Exemption provided by a Tribe, Resident Tribal Member or Tribal

Entity to a contractor for the purpose of construction, improvement, or renovation

of real property as permitted in § III(A)(3) shall remain effective after the

termination of this Agreement by the State until the contract is completed, but not

to exceed a period of 12 months, provided, however, that such contract may not

be expanded or extended after the State provides notice of its intent to terminate

the Agreement; provided further that the use and benefit of such certificates shall

not be extended beyond the termination of the Agreement where the Agreement is

terminated by the State for cause or is voluntarily terminated by the Tribe.

G. Utilities

The Tribe shall provide the State with a list of utility, telecommunications, cable, and

internet providers serving the Agreement Area. The State shall advise the providers of the

terms of this Agreement and that sales to named individuals and businesses shall be made

without the imposition of sales tax or use tax.

H. Rental Rooms

Except as otherwise provided by this Agreement, the Tribe, Resident Tribal Members and

Tribal Entities shall remit, in accordance with regular State law procedures, use tax on

rooms subject to tax under State law.

XIII. ENFORCEMENT

A. General

Consistent with the purposes of this Agreement, the determination of the tax liability

owed to the State by the Tribe, Tribal Members, and Tribal Entities pursuant to this

Agreement, and the enforcement of the payment of any such liability, shall be made in

accordance with State law, except as modified by the terms of this Agreement. State law,

including judicial decisions interpreting State law, prescribing the scope and entitlement

to exemptions or deductions other than those recognized in this Agreement shall govern

the determination of tax liability. To the extent that the provisions of this Agreement

differ from those of the otherwise applicable State law, this Agreement shall control.

B. Enforcement Action Against Non-Tribal Members in Indian Country

The State may exercise its tax enforcement authority under State law with respect to a

Non-Tribal Member or non-Tribal Entity located or doing business within Indian Country

provided, however, that where the Non-Tribal Member or non–Tribal Entity is located or

doing business on trust lands, the State shall, before taking any enforcement action that

requires entry upon such lands, provide notice of the proposed enforcement action to the

Tribal police or public safety department. Upon receipt of such notice, the Tribal police

or public safety department may direct one or more officers to accompany the State

officers during the enforcement activity. If the Tribal police or public safety department

is unable or unwilling to promptly assign a Tribal officer to accompany the State officers

the State officers may, nonetheless, carry out the proposed enforcement action against the

Non-Tribal Member or non-Tribal Entity without the participation of a Tribal officer.

C. Enforcement Action Against the Tribe

1. Criminal Penalties. The Tribe and its officers, officials, employees, and agents

acting within the scope of their authority are not subject to the criminal penalty

provisions imposed by State law with respect to taxes that are the subject of this

Agreement. This provision shall not be construed to limit the State’s ability to

collect interest on past due taxes as authorized by State law.

2. Notice of Audit. The State shall have the authority to conduct routine audits of

the Tribe with respect to taxes that are the subject of this Agreement for all

periods or partial periods commencing after the effective date of this Agreement

and until this Agreement has been terminated. Prior to conducting any such audit,

the State shall provide the Tribe with at least 30 days advance written notice. The

notice shall include a statement of the business to be audited, the tax(es) involved

in the audit, and the taxable period(s) at issue.

3. Seizure for Tax Liabilities. Tribal assets, wherever situated, are not subject to

seizure nor the filing of notices of State tax liens to enforce a tax liability owed to

the State under this Agreement. In lieu of such seizures and the filing of notices

of State tax liens, dispute resolution or termination as provided in this Agreement

shall be used to resolve issues.

4. Inspections and Seizures Within Indian Country. Notwithstanding § XIII(C)(3),

for purposes of enforcing the provisions of the Tobacco Products Tax Act, the

Motor Fuel Tax Act, or the Motor Carrier Fuel Tax Act, as those acts are

modified by this Agreement, the Tribe grants to the State the authority to take the

following actions within the Tribe’s Indian Country:

a. The State may conduct inspections (including unannounced inspections) of

Tribal facilities that have been identified by the Tribe to the State as facilities

where tobacco (see § VIII(B)(2)(b)) or motor fuel (see § VIII(B)(2)(a))

products are sold or stored under this Agreement as well as the vehicles used

to transport these products. If the inspection reveals any tobacco or motor fuel

products held in violation of the Tobacco Products Tax Act, the Motor Fuel

Tax Act, or the Motor Carrier Fuel Tax Act as those acts are modified by this

Agreement, the State may seize any such tobacco or motor fuel and any

vehicle (including trailers) in which such product is found together with

associated books and records.

b. If a State officer is lawfully at a location within a Tribally owned facility and

discovers in plain view any tobacco or motor fuel products held in violation of

the Tobacco Products Tax Act, the Motor Fuel Tax Act, or the Motor Carrier

Fuel Tax Act as those acts are modified by this Agreement, the State officer

may seize such product. The authority described in this § XIII(C)(4)(b) is not

intended to authorize any State officer to enter into areas not otherwise open

to the public or open to inspection by the State under the terms of this

Agreement.

If the State has reason to believe that tobacco or motor fuel products may

be transported or stored by the Tribe within its Indian Country contrary to

the terms of this Agreement, the State may apply to the Tribal Court for a

search warrant authorizing inspection of such locations. The Tribal Court

shall rule on the search warrant request within twenty-four hours of

receiving the application and shall issue the warrant if the Court finds that

the State has reasonable cause to believe that tobacco or motor fuel may

be stored at the location(s) set forth in the request. If the State is

concerned that unlawful product may be removed during the pendency of

such an application, the Tribal police shall, upon the request of the State,

secure the location or vehicle until the Tribal Court makes its

determination.

ii. If the State seizes tobacco or motor fuel products under this § XIII(C)(4)

the State shall, before removing the property, leave a written statement on

the premises describing the factual circumstances and statutory and/or

regulatory basis for the seizure. This statement shall be in addition to any

notification required by State law.

5. State Enforcement Actions Outside of Indian Country. Except as otherwise

provided in this Agreement, nothing in this § XIII(C) shall preclude the State

from exercising its enforcement authority outside of Indian Country as permitted

under applicable law.

D. Enforcement Action Against Tribal Members and Tribal Entities

1. General. The parties recognize that (i) tax enforcement actions, and (ii) the

process of audit, assessment and appeals of tax assessments, under this

Agreement may be affected by jurisdictional issues where a Tribal Member or

Tribal Entity or property is located within the Tribe's Indian Country. The parties

intend to avoid such effects by providing in certain instances identified in this

Agreement for Tribal enforcement or joint Tribal/State enforcement. For

purposes of this § XIII of this Agreement, the terms "tax enforcement action" or

"enforcement action" shall refer to the power of the State Treasurer or the

Commissioner of Revenue, (including his or her successor by law or pursuant to

executive or administrative order) as set forth in the Revenue Act, to effectuate

subpoenas, execute levies upon tangible personal property, real property or rights

in such property, and to execute jeopardy tax assessments/warrants. In addition,

these terms shall include the right to inspect tobacco products, to seize contraband

tobacco products and related books and records held in violation of the Tobacco

Products Tax Act. These terms shall also refer to the enforcement/inspection

provisions of the Motor Fuel Tax Act.

2. Notice of Audit. The State, consistent with State law, shall have the authority to

conduct audits of Tribal Members residing within Indian Country and Tribal

Entities whose principal place of business is located within Indian Country with

respect to taxes that are the subject of this Agreement. Prior to conducting any

such audit, the State shall provide the Tribal Member or Tribal Entity with at least

30 days advance written notice. The notice shall include a statement of the

business or entity to be audited, the tax(es) involved in the audit, and the taxable

period(s) at issue. Audits of Tribal Members who reside outside of Indian Country

and Tribal Entities whose principal place of business is located outside of Indian

Country shall be conducted in accordance with State law.

3. Enforcement of State Judicial Orders Outside of Indian Country. The State may

exercise its enforcement authority under State law with respect to the property of

a Tribal Member or Tribal Entity where the property is located outside of Indian

Country. Further, the State may exercise its enforcement authority under State

law with respect to a Tribal Member or Tribal Entity whose person is located

outside of Indian Country.

4. Enforcement of State Judicial Orders Within Indian Country. In any case where

the State has obtained a State Court judgment or order affecting the person or

property of a Tribal Member or Tribal Entity located within Indian Country, the

State may petition the Tribal Court to grant recognition and enforcement of the

State court order or judgment. The Tribal Court shall within 14 business days

rule on the petition using the same standards as contained in Michigan Court Rule

2.615. If the Tribal Court grants the petition, the Tribe, upon request of the State,

shall promptly direct one or more Tribal police or public safety officers to enforce

the judgment or order in the presence of and with the assistance of one or more

State enforcement officers.

5. State Exercise of Non Judicial Enforcement Actions Outside of Indian Country.

The State may exercise its tax enforcement authority under State law, with respect

to the property of a Tribal Member or Tribal Entity where the property is located

outside of Indian Country. Further, the State may exercise its tax enforcement

authority under State law with respect to a Tribal Member or Tribal Entity located

outside of Indian Country.

6. State Exercise of Non Judicial Enforcement Actions Within Indian Country. In

any case where the State is authorized by State law to compel the production of

books and records, to compel the appearance or testimony of an individual, or to

undertake an audit where the enforcement action affects a Tribal Member or

Tribal Entity whose person or property is located within Indian Country, and the

taxpayer has failed or refused to comply with the requested State enforcement

action, the State may petition the Tribal Court for an order compelling compliance

with that enforcement action. The Tribal Court shall conduct a hearing on the

petition within 10 business days following service by the State on the taxpayer,

and shall issue its decision within 14 business days of such service on the

taxpayer. If the Tribal Court determines that (i) the taxpayer is a Tribal Member

or Tribal Entity, (ii) the taxpayer and/or property is located within the Tribe’s

Indian Country, (iii) the proposed State tax enforcement action pertains to one or

more of the taxes that is the subject of this Agreement, and (iv) the proposed State

tax enforcement action is consistent with relevant State law and procedures and

with this Agreement, the Tribal Court shall grant the petition and shall order the

taxpayer to comply. In the event that the Tribal Member or Tribal Entity fails or

refuses to comply with the Tribal Court order, the Tribe shall promptly direct one

or more Tribal police or public safety officers to enforce the order with the

assistance of one or more State enforcement officers.

7. State Exercise of Non Judicial Enforcement Actions Where the Location of Indian

Country is in Dispute. In any case where the State is authorized by State law to

compel the production of books and records, to compel the appearance or

testimony of an individual, or to undertake an audit where the enforcement action

affects the person or property of a Tribal Member or Tribal Entity and there is

disagreement between the Tribe and the State regarding whether the taxpayer or

property is located within Indian Country, the State may elect to proceed based

upon the assumption that the taxpayer or property is within its enforcement

authority under State law. If the taxpayer fails or refuses to comply with the

requested State enforcement action, and the taxpayer asserts that the taxpayer or

property is located within Indian Country and the State and the Tribe stipulate that

there is a dispute regarding whether the taxpayer or property is located within

Indian Country, the State may petition the Tribal Court for an order compelling

compliance with the enforcement action. The Tribal Court, for purposes of this

Agreement only, and for no other precedential purpose, shall treat the location of

the taxpayer or property as being within Indian Country and shall follow the

standards and procedures set forth in § XIII(D)(6) above. In the event that the

Tribal Member or Tribal Entity fails or refuses to comply with the Tribal Court

order, the Tribe shall promptly direct one or more Tribal police or public safety

officers to enforce the order with the assistance of one or more State enforcement

officers.

8. State Tax Enforcement Actions Outside of Indian Country Prior to a Hearing.

The State may exercise its authority under State law to seize or inspect property

without a prior order or hearing, where the taxpayer is a Tribal Member or Tribal

Entity whose affected property is located outside of Indian Country.

9. State Tax Enforcement Actions Within Indian Country Prior to a Hearing.

a. Notwithstanding § XIII(D)(6) above, in any case where the State is authorized

by the Revenue Act, the Tobacco Products Act, or the Motor Fuel Tax Act, to

seize real or tangible personal property or inspect such property without a

prior order or hearing, and where the taxpayer is a Tribal Member or Tribal

Entity and the property is located within Indian Country, the Tribe and the

State shall jointly execute such action. In such cases, the enforcement action

shall be taken without first filing a petition in Tribal Court provided that the

State gives notice of the need for the proposed action by the Tribal police or

public safety department. Such notice shall specify the grounds for the

enforcement action, and the appropriate statutory or regulatory authority for

such action. Upon receipt of such notice, the Tribal police or public safety

department shall promptly direct one or more Tribal police or public safety

officers to execute the enforcement action jointly with one or more State

enforcement officers. The affected Tribal Member or Tribal Entity may,

within seven days following the enforcement action, file a petition in Tribal

Court seeking a review of the enforcement action under the standard described

in this § XIII(D)(9)(a). If the Tribal Court determines that (i) the taxpayer is

a Tribal Member or Tribal Entity, (ii) the taxpayer and/or property is located

within Indian Country, (iii) the State tax enforcement action pertains to one or

more of the taxes that is the subject of this Agreement, and (iv) the State

action is in compliance with relevant State law procedures and this

Agreement, the Tribal Court shall affirm the enforcement action.

b. The administrative enforcement actions authorized under this § XIII(D)(9)

are:

•

Actions in furtherance of a jeopardy assessment. [MCL

205.26]

•

Inspection of vending machines or places where tobacco

products are sold or stored. [MCL 205.426a]

•

Seizure of contraband consistent with the Tobacco Products

Tax Act. [MCL 205.429]

•

Inspections or seizures consistent with this Agreement

authorized under the Motor Fuel Tax Act or the Motor Carrier

Fuel Tax Act.

10. Jurisdiction: State Tax Enforcement Actions Prior to a Hearing Where the

Location of Indian Country Is In Dispute.

a. In any case where the State proposes to take any authorized enforcement

action described in § XIII(D)(9)(b) above that may affect the person or

property of a Tribal Member or Tribal Entity and there is disagreement

between the Tribe and the State regarding whether the affected person or

property is located within or without of Indian Country, the State may elect to

proceed based upon the assumption that the person or property is within its

enforcement authority under State law. If the State knows, prior to taking the

proposed enforcement action, that (i) the taxpayer is a Tribal Member or

Tribal Entity, and (ii) there is a dispute between the State and the Tribe as to

whether the site of the proposed action is within Indian Country, the State

shall give notice of the proposed action to the Tribal police or public safety

department. Such notice shall specify the grounds for the enforcement action,

and the appropriate statutory or regulatory authority for such action. Upon

receipt of such notice, the Tribal police or public safety department shall

promptly direct one or more Tribal police or public safety officers to execute

the enforcement action jointly with one or more State enforcement officers.

b. If the taxpayer wishes to challenge the State enforcement action on the

grounds that it is unlawful under State law including any modification to State

law made under this Agreement, and the taxpayer asserts that the taxpayer or

property is located within Indian Country, and the State and the Tribe stipulate

to the Tribal Court that there is a dispute regarding whether the person or

property is located within Indian Country, the taxpayer may petition the Tribal

Court to review the propriety of the enforcement action applying State law

including any modification to State law made under this Agreement. The

Tribal Court, for purposes of this Agreement only, and for no other

precedential purpose, shall treat the location of the person or property as being

within Indian Country and shall follow the standards and procedures set forth

in § XIII(D)(9) above. If the Tribal Court determines that the affected person

or property is not located within Indian Country or is not within the stipulated

disputed area, the Tribal Court shall promptly dismiss the action.

11. Jurisdiction: Final Tax Assessment Issued or Refund Denied to a Tribal Member

Residing or a Tribal Entity Operating Wholly Within Indian Country. In any case

where the State has issued a final tax assessment or denied a tax refund to a Tribal

Member residing within Indian Country, or to a Tribal Entity doing business

wholly within Indian Country, for a tax imposed upon income, business activity,

transactions, or privileges which were realized, occurred, or exercised wholly

within Indian Country, and the Tribal Member or Tribal Entity wishes to appeal

the assessment or denial of refund on the grounds that it is unlawful under (i)

State law including any modification to State law made under this Agreement, or

(ii) the Michigan Constitution, the U.S. Constitution, or federal law, provided that

such claims shall be limited to those that are not predicated on Indian Tribal

membership, the Tribal Member or Tribal Entity may appeal the final assessment

or denial of refund to Tribal Court within 35 days of the issuance of the final

assessment or denial of refund. The Tribal Court shall follow State law relative to

the practices and procedures of a case in the Michigan Court of Claims; provided

however, that the taxpayer shall not be required to prepay the contested portion of

the tax, penalty, or interest prior to filing the appeal. The uncontested portion of

the tax, penalty, or interest shall be paid prior to filing the appeal. The Tribal

Court shall make its ruling within one year of the filing of the appeal.

12. Jurisdiction: Final Tax Assessment Issued to a Tribal Member or a Tribal Entity

or Denial of Refund Where the Location of Indian Country Is In Dispute.

a. In any case where the State has issued a final tax assessment or denied a tax

refund to a Tribal Member or to a Tribal Entity for a tax which the member or

entity asserts is imposed upon income, business activity, transactions, or

privileges which were realized, occurred, or exercised wholly within Indian

Country, and the Tribal Member or Tribal Entity wishes to appeal the

assessment or denial of refund on the grounds that it is unlawful under (i)

State law including any modification to State law made under this Agreement,

or (ii) the Michigan Constitution, the U.S. Constitution, or federal law,

provided that such claims shall be limited to those that are not predicated on

Indian Tribal membership, the Tribal Member or Tribal Entity may appeal the

final assessment or denial of refund to Tribal Court within 35 days of the

issuance of the final assessment or denial of the refund. If the Tribal Court

determines all of the income, business activity, transaction, or privilege being

taxed was realized, occurred, or was exercised wholly within Indian Country

or the stipulated disputed area, the Tribal Court shall, for purposes of this

Agreement only and for no other precedential purpose, treat the location of the

income, business activity, transaction or privilege as being within Indian

Country and shall follow the standards and procedures set forth in

§ XIII(D)(11) above.

b. If the Tribal Court determines that any of the taxes assessed or refunds denied

were for a tax upon income, business activity, transactions, or privileges

which were realized, occurred, or exercised within the State but outside of

either Indian Country or the stipulated disputed area, the Tribal Court shall

promptly dismiss the action. Once such a dismissal is entered, the Tribal

Member or Tribal Entity may, consistent with State law, file a petition with

the Michigan Tax Tribunal within 35 days, or a Complaint with the Michigan

Court of Claims within 90 days, of the final Tribal Court order of dismissal.

13. Jurisdiction: Final Tax Assessment or Denial of Tax Refund to a Resident Tribal

Member or a Tribal Entity Where Any Portion of the Activity Occurs Outside of

Indian Country and Outside of a Disputed Area. State courts or tribunals will be

used for the appeal of any final tax assessment or denial of tax refund to a

Resident Tribal Member or Tribal Entity in those instances where any portion of

the income, business activity, transaction, or privilege being taxed was realized,

occurred, or was exercised within the State but outside of either Indian Country or

any area where the Tribe and the State have a disagreement as to what constitutes

Indian Country.

14. Application of State Law as Modified by this Agreement. The Tribe and the State

agree that State law, as modified by this Agreement, will apply to the

determination of tax liability or tax refund in any appeal of an assessment or

denial of a tax refund filed in any State or Tribal quasi-judicial or judicial forum

under this § XIII.

E. Licensure and Registration

1. Tribal Registration. The Tribe shall comply with State licensure and registration

provisions for the taxes that are the subject of this Agreement. With respect to

activity occurring solely within Tribal and Trust Lands, such licensure and

registration shall serve only to identify Tribal operations that are subject to this

Agreement. The Tribe shall not be subject to disciplinary action or penalty as a

licensee or be subject to the revocation provisions applicable to any licensee

under any of the taxes that are the subject of this Agreement, except for violations

of the Motor Carrier Fuel Tax Act or the International Fuel Tax Agreement, to the

extent not altered by this Agreement. Rather, alleged violations shall be

addressed in the dispute resolution process or through termination of the

Agreement.

2. Licensure and Registration of Tribal Members and Tribal Entities Outside of

Indian Country. Tribal Members or Tribal Entities operating to any extent outside

of Indian Country shall comply with all State licensure provisions for the taxes

that are the subject of this Agreement.

3. Licensure and Registration of Tribal Members and Tribal Entities Operating

Wholly Within Indian Country. With respect to Tribal Members and Tribal

Entities operating wholly within Indian Country, the Tribe shall either:

a. Require such Tribal Members and Tribal Entities to register with the State and

obtain such licenses and registrations as would be required under State law if

such Tribal Members or Tribal Entities were operating outside of Indian

Country; or

b. Establish its own licensing and registration requirements (which shall parallel

State law) for all activities authorized under this Agreement requiring a State

registration or license under State law applicable to the taxes that are the

subject of this Agreement, in which case the Tribe shall forward the

information to the State in a format mutually agreeable to the State and the

Tribe.

F. Motor Carrier Fuel Tax and International Fuel Tax Agreement.

The Tribe, Tribal Members, and Tribal Entities engaging in activity that is covered by the

Motor Carrier Fuel Tax Act or the International Fuel Tax Agreement shall fully comply

with all of the provisions of that Act or Agreement including registration and licensing

requirements and other obligations imposed by that Act and Agreement.

G. Responsibilities of the Tribe Regarding Tribal Members and Tribal Entities.

1. The Tribe shall inform Tribal Members and Tribal Entities of the terms of this

Agreement including its administrative and enforcement provisions. To the extent

that this Agreement imposes duties or obligations upon Tribal Members or Tribal

Entities, the Tribe shall take appropriate steps under Tribal law to require Tribal

Members and Tribal Entities to perform those duties or obligations.

2. The Tribe agrees to assist the State in ascertaining that Tribal Members and Tribal

Entities are fully complying with the terms of this Agreement. Upon request of

the State, the Tribe shall assist the State in the assessment and collection of taxes

owed under the terms of this Agreement. In those instances where a question of

jurisdiction arises between the State and a Tribal Member or Tribal Entity, and the

Tribe agrees with the State's position, the Tribe shall assist the court or tribunal

hearing the matter by providing affidavits and/or testimony.

3. If the State notifies the Tribe that one of the offenses listed below has occurred

within the Tribe’s jurisdiction, the Tribe shall, within 10 business days after

notice by the State of the violation, take the following action: for a first offense,

give a written warning to the offending party that further noncompliance will

result in termination of any Tribally issued license or authorization to operate; for

any subsequent offense, commence proceedings to terminate any Tribally issued

license or authorization to operate. The offenses that may trigger the above

actions are:

a. Possession or sale by a Tribal Member or Tribal Entity (other than those in

which the Tribe has an ownership interest) of cigarettes or other tobacco

products which do not bear the appropriate State stamp.

b. Sale by a Tribal Member or Tribal Entity (other than those in which the Tribe

has an ownership interest) of cigarettes or other tobacco products to NonTribal Members where all taxes are not fully included in the price.

c. Possession or sale by a Tribal Member or Tribal Entity (other than those in

which the Tribe has an ownership interest) of motor fuel not acquired or

possessed as provided in this Agreement.

4. In addition to assisting the State, the Tribe shall enforce this Agreement

independently. Such independent enforcement shall include:

a. Seizure from Tribal Members and Tribal Entities of tobacco products and

motor fuel not acquired or possessed in accordance with the terms of this

Agreement, and the transfer of the seized product to the State, consistent with

applicable provisions of State law. In the event that the product seized and

transferred to the State is sold in accordance with State law, the State shall

treat the Tribe as a “local unit of government” for the purpose of sharing the

proceeds of the sale as provided at MCL 205.429 or MCL 207.1130.

b. Establishment of Tribal mechanisms to monitor and enforce Tribal Member

and Tribal Entity compliance with the terms of this Agreement; and

c. Notification to the State of any violations of this Agreement that the Tribe

may discover.

H. Tribal Verification of State Compliance.

Upon request by the Tribe, the State shall, consistent with State law pertaining to

confidentiality, provide access to sufficient information to allow the Tribe to verify that

the State has paid all amounts required by this Agreement. Tribal access to such books,

records and personnel shall be preceded by reasonable notice.

I. Payment of Liabilities.

In the event of a disagreement over an amount owed by either party to the other, the

determination of liability shall be made pursuant to the dispute resolution process in this

Agreement and not in any State or Tribal tribunal. Each party shall pay all undisputed

amounts before invoking the dispute resolution process. Once the amount of liability is

determined by the dispute resolution process, each party agrees to voluntarily pay that

amount.

XIV. DISPUTE RESOLUTION

A. Consistent with the government-to-government relationship between the Tribe and

the State, the parties shall make their best efforts to resolve disputes by good faith

negotiations whenever possible. The provisions of this § XIV are applicable to

disputes between the Tribe and the State and shall not be utilized for resolution of

disputes between the State and Tribal Members or Tribal Entities.

B. At any time this Agreement is in force, the Tribe or the State may file a notice with

the other party seeking dispute resolution of any matter arising between the Tribe and

the State under this Agreement.

1. The party seeking dispute resolution shall give written notice to the other party

stating:

a. The nature of the issue including reference to specific provisions of the

Agreement;

b. The amount of money, if any, that is in contest as a result of the issue;

c. A statement of position as to how the issue should be resolved;

d. Any additional information or documentation deemed pertinent or helpful in

the resolution of the issue; and

e. At least three proposed dates for a meeting not less than 10 business days nor

more than 20 business days from the date of the notice. If the Tribe is the

party filing the notice, the meeting shall be at a location designated by the

State. If the State is the party filing the notice, the meeting shall be at a

location designated by the Tribe.

2. The party receiving the notice shall, within 10 business days of receipt, file a

written response indicating which date is acceptable for a meeting and the precise

location at which the meeting will be held.

3. At the meeting the parties shall attempt to resolve the matter in full to their mutual

satisfaction. If the parties are not able to resolve the matter in full, the parties may

schedule additional meetings, agree to fact finding, or take any other mutually

agreed to action in an attempt to resolve the matter. Any agreement for further

efforts to resolve the dispute shall be in writing and shall provide a date following

which either party may seek resolution of the matter by arbitration as provided in

this § XIV(C) below.

C. If the matter in dispute is not resolved at the meeting and no method for further

efforts to resolve the matter is mutually agreed to, or following the date specified in

any written agreement for further dispute resolution efforts, either party may invoke

arbitration as follows:

1. A party shall send notice to the opposing party of its intention to have the matter

resolved by arbitration. The notice shall name one or more arbitrators who have

agreed to act to resolve the dispute. The notice shall also indicate which arbitrator

the party giving notice would use if none of those listed are acceptable to the

other party if acting alone. The party receiving notice shall within 10 business

days of receipt indicate which arbitrator, if any, named by the party giving notice

is acceptable to act alone. If none of the named arbitrators acting alone are

acceptable to the party receiving notice then that party shall name a single

arbitrator who has agreed to act to serve on a panel consisting of that person, the

arbitrator named by the party giving notice, and a third arbitrator named by the

other two arbitrators. The two named arbitrators shall act within 10 business days

of the naming of the second to name a third arbitrator.

2. The party requesting arbitration shall send copies of any notices of arbitration to

all other tribes that have signed agreements that are substantially similar to this

Agreement, in addition to the notice sent to the opposing party. Any tribe

receiving such notice may thereafter elect to participate as a party in the

arbitration as set forth below.

3. Within five business days of the naming of the arbitrator or the establishment of

the arbitration panel, each original party shall submit to the arbitrator or panel, as

well as to all other tribes that have signed agreements that are substantially similar

to this Agreement, a list of the issues that are being submitted for resolution. The

list shall designate those issues that, in the party’s view, are likely to require

interpretation of the terms of the Agreement including reference to specific

provisions of the Agreement. Following these submissions, all parties, including

all intervening tribes, shall have seven business days to comment on the issues

proposed for submission. Within 14 business days after the time allowed for

comment, the arbitrator or the panel shall advise all parties of the issues to be

addressed and establish a timetable to resolve those issues within 90 days

thereafter. The arbitrator or panel shall designate which issues are likely to require

interpretation of the terms of the Agreement, including reference to specific

provisions of the Agreement. The timetable shall provide for discovery,

submission of written argument and other materials, and if requested by either

party for oral presentation including presentation of witnesses. Following

submission of the materials and argument the arbitrator or panel shall, consistent

with this Agreement, determine and award taxes due, refunds owed or such other

matters as the circumstances warrant.

4. Each party shall bear its own costs incurred in the dispute resolution. The costs

and fees charged by an arbitrator or arbitration panel shall be borne one-half by

the State and one-half by the Tribe(s).

5. Matters of State law that are properly before the arbitrator or panel shall be

resolved by applying State law.

6. The award of the arbitrator or panel shall set forth the factual findings, legal

conclusions, and conclusions as to the interpretation of the terms of the

Agreement on which it is based. The award shall be dated and shall be final and

binding on the parties with regard to the dispute that it resolves. In addition, the

award shall survive termination of this Agreement.

7. The decision of the arbitrator or panel shall designate which issues require

interpretation of the terms of this Agreement. The decision of the arbitrator or

panel regarding such issues shall be binding precedent in all future disputes

regarding this Agreement and all agreements with other Tribes that are

substantially similar to this Agreement. Conclusions as to State law shall not be

precedent and future arbitrators or panels shall determine such matters based on

applicable State law. Matters resolved by settlement or consent agreement shall be

binding only on the parties to the settlement or consent agreement.

8. In order to serve as an arbitrator under this Agreement for the purposes of

resolving a dispute under this § XIV, a candidate must be admitted to practice law

in the court of highest jurisdiction in any state of the United States or the District

of Columbia, shall be a member in good standing of the bar of admission, and

shall have experience in taxation or federal Indian law.

9. Except as otherwise provided in this § XIV or mutually agreed by the parties, the

arbitration shall proceed in accordance with the policies and procedures of the

Commercial Rules of Arbitration of the American Arbitration Association;

provided, that the arbitration itself shall not be administered by or proceed before

the American Arbitration Association.

D. Engaging in the dispute resolution process does not preclude either party from

seeking termination of this Agreement as provided at § XV.

XV.

TERM AND TERMINATION

This Agreement shall be for an indefinite term and shall remain in force and effect until

terminated as provided in this § XV.

A. Termination Without Cause

The Tribe or the State, acting through its Treasurer or his or her designee, may

terminate this Agreement by giving written notice to the other party of its intention to

terminate. The notice shall state a termination date which shall not be sooner than 90

days from the date of the notice and except as provided in § XV(B) shall not take

effect sooner than two years from the effective date of this Agreement. The notice of

intent to terminate shall indicate at least three proposed dates for a meeting to take

place within 30 days commencing with the date of the notice, to discuss the reasons

for the termination. If the Tribe is the party giving the notice, the meeting shall be at

a location designated by the State. If the State is the party giving the notice, the

meeting shall be at a location designated by the Tribe. Within five business days of

receipt of the notice, the party receiving the notice shall notify the party seeking

termination as to which date is acceptable for the meeting and the precise location at

which it is to be held.

B. Termination For Cause

1. Notwithstanding the provisions of § XV(A), the following violations of this

Agreement shall constitute sufficient cause for termination of this Agreement at

any time:

a. Possession or sale by the Tribe, or any entity in which the Tribe has any

ownership interest, of cigarettes or other tobacco products which do not bear

the appropriate State stamp;

b. Sale by the Tribe, or any entity in which the Tribe has any ownership interest,

of cigarettes or other tobacco products to Non-Tribal Members where all taxes

are not fully included in the price;

c. Possession or sale by the Tribe, or any entity in which the Tribe has any

ownership interest, of motor fuel not acquired or possessed as provided in this

Agreement;

d. Failure of the Tribe to seek licenses or registration as required under this

Agreement within 10 business days following notice and request to do so;

e. Failure of a party to maintain necessary books and records, to comply with a

request for review of books and records, or to permit inspections as provided

in this Agreement;

f. Failure of the Tribe to promptly commence or authorize enforcement action

requested by the State as provided by this Agreement;

g. Failure of the Tribal Court to render a decision on an enforcement action

under § XIII(C)(4)(b)(i) within the time frame specified in this Agreement;

h. Interference by a party with enforcement actions authorized by this

Agreement, or failure of a party to follow procedures for enforcement actions

authorized by this Agreement;

i. Failure of a party to pay amounts determined to be due under this Agreement

within 45 days of such obligation becoming final.

2. In the event that a party determines that one or more of the events listed in

§ XV(B) has occurred, that party shall request a meeting to be held within five

business days of the notice for the purpose of discussing the matter. If the Tribe is

the party requesting the meeting it shall be at a location designated by the State.

If the State is the party requesting the meeting it shall be at a location designated

by the Tribe. The request for the meeting shall provide a statement as to the

nature of the alleged violation. At the meeting the parties shall discuss the

incident(s) giving rise to the meeting. Following the meeting the party requesting

the meeting may:

a. Terminate this Agreement by giving notice of termination for cause;

b. Defer determination as to whether to seek termination for cause for a period of

time pending such further investigation or consultation as the party requesting

the meeting shall determine appropriate; or

c. Waive the breach.

The party requesting the meeting shall notify the alleged offending party of its

determination.

3. In cases where a notice of termination for cause is based on a violation of

§ XV(B)(1)(a), § XV(B)(1)(b), § XV(B)(1)(c), § XV(B)(1)(f), § XV(B)(1)(g),

§ XV(B)(1)(h), or § XV(B)(1)(i), the party requesting the meeting may terminate

this Agreement immediately following the meeting subject to retroactive

reinstatement in the event the arbitrator or panel determines that the violation did

not occur. All other alleged violations shall, if confirmed by the arbitrator or

panel, result in termination as of the date of the arbitration determination.

Pending such determination this Agreement shall remain in full force and effect.

4. The party alleged to have violated this Agreement may within five business days

of any notice of termination seek review of that action in accordance with the

following process:

a. The party seeking to invoke the process shall within five business days of the

notice of termination send a notice of intent to contest the termination to the

other party and shall name one or more arbitrators who have agreed to act to

resolve the dispute. The notice shall also indicate which arbitrator the party

giving notice would use if none of those listed are acceptable to the other

party if acting alone. The party receiving notice shall within five business

days of receipt indicate which arbitrator, if any, named by the party giving

notice is acceptable to act alone. If none of the arbitrators acting alone are

acceptable to the party receiving notice then that party shall name a single

arbitrator who has agreed to serve on a panel to consist of that person, the

arbitrator named by the party giving notice, and a third arbitrator named by

the other two arbitrators. The two named arbitrators shall act within 10

business days of the naming of the second to name a third arbitrator.

b. Within 14 business days of the arbitrator being named or upon the

establishment of a panel, the arbitrator or panel shall establish a timetable to

resolve the matter which shall not exceed 45 days from the date the arbitrator

is named or the panel established. The timetable shall provide for discovery,

submission of written argument and other materials, and, if requested by

either party, for oral presentation including presentation of witnesses.

Following submission of the materials and argument the arbitrator or panel

shall make a single factual finding of whether the act alleged to give rise to a

termination for cause has occurred. The determination of the arbitrator or the

panel shall be final and binding on the parties.

c. Each party shall bear their own costs incurred in the dispute resolution. The

costs and fees charged by an arbitrator or arbitration panel shall be borne

equally by the parties.

d. In order to serve as an arbitrator under this Agreement for purposes of

determining if there is a violation sufficient to justify a termination for cause,

candidates must be admitted to practice law in the court of highest jurisdiction

in any state of the United States or the District of Columbia and shall be a

member in good standing of the bar of admission.

e. Except as otherwise provided in this § XV or mutually agreed by the parties,

the arbitration shall proceed in accordance with the policies and procedures of

the Commercial Rules of Arbitration of the American Arbitration Association;

provided, that the arbitration itself shall not be administered by or proceed

before the American Arbitration Association.

5. If the alleged offending party does not seek review of the termination within five

business days of the notice, the termination shall be effective as of the date of the

notice.

C. Final Accounting Following Termination

1. The State and the Tribe agree to pay amounts owed one to the other under the

provisions of this Agreement accrued through the termination date. Within 10

business days following the termination date, a final accounting shall commence

to determine the liabilities of the Tribe and the State one to the other. The State

and the Tribe agree to cooperate in the exchange of information sufficient to

determine their respective liabilities. If the parties cannot agree on the amount

owed, then either party may by written notice to the other advise of its intent to

submit the dispute to arbitration as provided in this § XV(C).

2. The notice of arbitration shall name one or more arbitrators who have agreed to

act to resolve the dispute. The notice shall also indicate which arbitrator the party

giving notice would use if none of those listed are acceptable to the other party if

acting alone. The party receiving notice shall within 10 business days of receipt,

indicate which arbitrator, if any, named by the party giving notice is acceptable to

act alone. If none of the arbitrators named are acceptable to the party receiving

notice then that party shall name a single arbitrator who has agreed to act to serve

on a panel to consist of that person, the arbitrator named by the party giving

notice, and a third arbitrator named by the other two arbitrators. The two named

arbitrators shall act within 10 business days of the naming of the second to name a

third arbitrator.

3. Within five business days of the naming of the arbitrator or the establishment of

the arbitration panel, the parties shall submit to the arbitrator or panel a list of the

issues that are being submitted for resolution. Following these submissions, the

parties shall have seven business days to comment on the issues proposed for

submission. Within 14 business days of being named the arbitrator or the

establishment of the arbitration panel, the arbitrator or the panel shall establish a

timetable to resolve the matter which shall not exceed 90 days. The timetable

shall provide for discovery, submission of written argument and other materials,

and if requested by either party for oral presentation including presentation of

witnesses. Following submission of the materials and argument the arbitrator or

panel shall, consistent with this Agreement, determine and award taxes due or

refunds owed as the circumstances warrant. The award of the arbitrator or panel

shall set forth the factual findings, legal conclusions, and conclusions as to the

interpretation of the terms of this Agreement on which it is based. The monetary

award of the arbitrator or panel shall be dated and shall be final and binding and

shall survive termination of this Agreement.

4. Each party shall bear their own costs incurred in the dispute resolution. The costs

and fees charged by an arbitrator or arbitration panel shall be borne equally by the

parties.

5. In order to serve as an arbitrator under this Agreement for the purpose of making

a final accounting following termination, candidates must be admitted to practice

law in the court of highest jurisdiction in any state of the United States or the

District of Columbia, shall be a member in good standing of the bar of admission,

and shall have experience in taxation or federal Indian law.

6. Except as otherwise provided in this § XV(C) or mutually agreed by the parties,

the arbitration shall proceed in accordance with the policies and procedures of the

Commercial Rules of Arbitration of the American Arbitration Association;

provided, that the arbitration itself shall not be administered by or proceed before

the American Arbitration Association.

XVI. NO THIRD PARTY RIGHTS CREATED

Nothing in this Agreement shall be construed to create any rights in third parties who are not

parties to this Agreement, or constitute a basis for any third-party challenge or appeal, except as

provided in § XIV(C)(2) with respect to other Tribes not parties to this Agreement who

intervene in Dispute Resolution under this Agreement.

XVII. NOTICE

A. General

1. Except as otherwise expressly provided in this Agreement, notice regarding tax

matters arising between the State and Tribal Members or the State and Tribal

Entities shall be directed to the member or entity in accordance with State law.

2. Where this Agreement provides that a matter is to be resolved in a State or Tribal

court or tribunal, the rules and procedures of the designed court or tribunal shall

control all matters of notice except as otherwise expressly provided in this

Agreement.

3. Where this Agreement provides that a specified form be filed with the State for

the purpose of (i) making a remittance to the State of taxes or fees, or (ii) seeking

a refund from the State, then the form, remittance, or refund request shall be filed

and sent in accordance with its instructions.

4. Where a notice is to be given under the terms of this Agreement, the notice shall

be made by personal delivery, overnight courier, or first class, certified or

registered mail unless otherwise specified in this § XVII.

5. Where under the terms of this Agreement notice is required to be given to or a

request is to be made of the Tribal police or public safety department such notice

or request shall be given by personal delivery to or by first class mail to Sault

Tribe Law Enforcement at 2175 Shunk Road, Sault Ste. Marie, MI 49783.

B. Specific Notices

All notices and communication between the State and the Tribe with respect to the

following matters shall be sent to:

For the Tribe:

Bernard Bouschor, Chairman

Sault Ste. Marie Tribe of Chippewa Indians

523 Ashmun Street

Sault Ste. Marie, MI 49783

with copy to Tribal General Counsel

Sault Ste Marie Tribe of Chippewa Indians

523 Ashmun Street

Sault Ste. Marie, MI 49783

For the State:

State Treasurer

Michigan Department of Treasury

Attention: Tribal Liaison

430 West Allegan Street

Lansing, MI 48922

§ I(C) –

§ I(E)(4) –

§ I(F)

§ I(G)

–

§ II(K) –

§ VIII –

§X

§ XI

§ XII

–

§ XIII

–

§ XIV

–

§ XV

–

State Law Amendments

Protocol for exchange, retention, and destruction of taxpayer

information

Annual Summit

Sovereign Immunity, all matters. All notices provided for under

§ I(G) shall be by registered or certified mail with return receipt.

Relating to status of lands as TTL

General Administration; all lists to be sent to State by December 15 of

each year

Administration: Motor Fuel; all matters except refund requests

Administration: Tobacco Products; all matters except refund requests

Administration: Sales Tax and Use Tax; all matters except refund

requests

Enforcement; all matters except notice to Tribal police or public

safety, written statements under § XIII(C)(4)(b)(ii), and notice of

audit to Tribal Members or Tribal Entities

Dispute Resolution, all matters. All notices provided for under § XIV

shall be by registered or certified mail with return receipt.

Termination, all matters. All notices provided for under § XV shall be

by registered or certified mail with return receipt.

C. Where Notice Not Specified

In those instances where a party to this Agreement desires to send a written notice or

other written communications to the other party and the person or office is not

otherwise specified under this Agreement, the notice or communication shall be

directed to:

Tribe: Tribal Chair and General Counsel

State: State Treasurer attention: Tribal Liaison

D. Change of Person or Office That is to Receive Notice

A party to this Agreement may change the person or office to whom a notice is to be

sent under this Agreement by directing a notice to that effect by registered or certified

mail with return receipt clearly stating that a change in person or office to be notified

under the terms of this Agreement is intended, providing a reference to the particular

notice provision to be changed, and stating the person or office to whom the notice is

to be sent commencing as of a specific date not less than 14 days after the notice of

the change. A party receiving notice of such a change shall confirm by sending an

acknowledgment of the change to the other party by certified or registered mail return

receipt requested.

XVIII. AMENDMENT

The terms of this Agreement may be amended, to the extent permitted by law, only upon a

mutual, written agreement executed by an authorized representative of each party.

XIX. EFFECTIVE DATE AND IMPLEMENTATION DATE

A. Effective Date

This Agreement shall become binding upon the parties on the date on which the last

of the following actions occurs:

1. State legislation taking effect that authorizes the Department to enter into the

Agreement on behalf of the State;

2. Signature by the State Treasurer or his or her designee as authorized by the State

legislation;

3. Signature by a representative of the Tribe; and

4. Certification by the Tribe’s legal counsel that the signatory acting on behalf of the

Tribe has the necessary authority to enter into this Agreement and to bind the

Tribe to this Agreement.

B. Implementation Date

The terms of this Agreement shall be implemented commencing upon a date agreed

to by the Department and the Tribe following receipt by the Department of

certification by the Tribe's legal counsel that the Tribe has taken all necessaiy steps to

bind Tribal Members and Tribal Entities to the terms of this Agreement.

STATE OF MICHIGAN

SAULT STE. MARIE TRIBE OF

CHIPPEWA INDIANS

"'~d~~

ENGLER, Goven r

G rge W. Romney, Z1 Floor

P.O. Box 30013

Lansing, MI 48909

BERNARD BOSCHOR, Chairman

523 Ashmun Street

Sault Ste. Marie, MI 49783

By:._("""--'--1,Sff}___,_,,_QA----'--______,._______

DOUGLAS B. ROBERTS

Michigan State Treasurer

First Floor, Treasmy Building

Lansing, MI 48922

380940-039000

383583.1

Appendix A

Agreement between the State of Michigan

and the Sault Ste. Marie Tribe of Chippewa Indians

I. Agreement Area per § II(A)

•

Chippewa County: Sugar Island; those portions of T47N, R1W and T47N, R1E that are

on the mainland portion of the Upper Peninsula; and the south one-half of T45N, R1W;

•

Mackinac County: T42N, R1W; T41N, R1W; the southwest quarter of T42N, R1E; the

southeast quarter of T41N, R4W; those portions of the southwest quarter of T41N, R3W

on the mainland portion of the Upper Peninsula; those portions of T40N, R4W on the

mainland portion of the Upper Peninsula; and those portions of the northwest quarter of

T40N, R3W on the mainland portion of the Upper Peninsula;

•

Schoolcraft County: those portions of the east half of T41N, R16W on the mainland of

the Upper Peninsula; the south one-half of T42N, R15W; those portions of T41N, R15W

on the mainland of the Upper Peninsula;

•

Luce County: the southeast quarter of T46N, R10W; and the northwest quarter of T45N,

R9W;

•

Alger County: those portions of the northeast quarter of T46N, R19W on the mainland of

the Upper Peninsula; and those portions of T47N, R19W on the mainland of the Upper

Peninsula;

•

Marquette County: those portions of T48N, R25W on the mainland of the Upper

Peninsula; and a parcel of land referred to as “Sawyer Village” containing 125 acres

located in Forsyth Township, West Branch Township, and Sands Township, County of

Marquette in Section 31, T46N, R24W; Section 6, T45N, R24W; Sections 35 and 36 in

T46N, R25W as more fully described in Liber 436 Pages 681-689 of Marquette County

Records.

•

Delta County: survey sections 6, 7, 18, 19, 29, 30, and 31 in T39N, R22W; survey

sections 6 and 7 in T38N, R22W; survey sections 1, 12, 13, 24, 25, and 36 in T39N,

R23W; and survey sections 1 and 12 in T38N, R22W.

II. Tribal and Trust Lands per § II(K)

K-1.

Per § II(K)(1) list of lands currently held in federal trust for the benefit of the Tribe

that have TTL and AA status regardless of how the lands are used:

A parcel of land identified on the Trust Land Log maintained by the Bureau of

Indian Affairs, referred to as the “Hoornstra –Medical Center” parcel, containing

Appendix A to Agreement between the State of Michigan and the Sault Ste Marie Tribe of Chippewa Indians as originally signed on

December 20, 2002 or subsequently amended per the terms of the Agreement.

69.82 acres and located in Section 18, Town 47 North, Range 1 East, which is

more fully described in a deed recorded at Liber 469, Page 53, Chippewa County

Records.

A parcel of land identified on the Trust Land Log maintained by the Bureau of

Indian Affairs, referred to as the “J.K. Lumsden –School” parcel, containing 1.25

acres and located in Section 8, Town 47 North, Range 1 East, which is more fully

described in a deed recorded at Liber 662, Page 374, Chippewa County Records.

A parcel of land identified on the Trust Land Log maintained by the Bureau of

Indian Affairs, referred to as the “Newberry –Wesleyan” parcel containing 12

acres and located in Section 18, Town 45 North, Range 9 West, which is more

fully described in a deed recorded at Liber 93, Page 483, Luce County Records.

A parcel of land identified on the Trust Land Log maintained by the Bureau of

Indian Affairs, referred to as the “Kinross –Housing” parcel containing 70 acres

and located in Section 49, Town 45 North, Range 1 West, which is more fully

described in a deed recorded at Liber 665, Pages 612 – 617, Chippewa County

Records.

A parcel of land identified on the Trust Land Log maintained by the Bureau of

Indian Affairs, referred to as the “Murray –Sugar Island” parcel containing 39

acres and located in Section 19, Town 47 North, Range 2 East, which is more

fully described in a deed recorded at Liber 671, Page 256, Chippewa County

Records.

A parcel of land identified on the Trust Land Log maintained by the Bureau of

Indian Affairs, referred to as the “Nunns Creek” parcel containing 10 acres and

located in Section 16, Town 42 North, Range 2 West, which is more fully

described in a deed recorded at Liber 469, Page 61, Mackinac County Records.

A parcel of land identified on the Trust Land Log maintained by the Bureau of

Indian Affairs, referred to as the “McKeon –A/B” parcels containing 39.02 acres

and 2.47 acres, located in Section 3, Town 41 North, Range 15 West, which is

more fully described in a deed recorded at Liber 149, Pages 589-590, Schoolcraft

County Records.

A parcel of land identified on the Trust Land Log maintained by the Bureau of

Indian Affairs, referred to as the “COTFMA –Big Abe Bldg” parcel containing 10

acres and located in Section 19, Town 47 North, Range 1 West, which is more

fully described in a deed recorded at Liber 661, page 446, Chippewa County

Records.

A parcel of land identified on the Trust Land Log maintained by the Bureau of

Indian Affairs, referred to as the “COTFMA –Dutcher Access” parcel containing

Appendix A to Agreement between the State of Michigan and the Sault Ste Marie Tribe of Chippewa Indians as originally signed on

December 20, 2002 or subsequently amended per the terms of the Agreement.

.35 acres and located in Section 24, Town 42 North, Range 1 West, which is more

fully described in a deed recorded at Liber 391, Page 88, Mackinac County

Records.

10.

A parcel of land identified on the Trust Land Log maintained by the Bureau of

Indian Affairs, referred to as the “St. Ignace Gas Station” parcel containing 4

acres and located in Section 24, Town 41 North, Range 4 West, which is more

fully described in a deed recorded at Liber 343, Page 626, Mackinac County

Records.

11.

A parcel of land identified on the Trust Land Log maintained by the Bureau of

Indian Affairs, referred to as the “Manistique –Casino” parcel containing 1 acre

and located in Section 3, Town 41 North, Range 15 West, which is more fully

described in a deed recorded at Liber 112, Page 533 –534, Schoolcraft County

Records.

12.

A parcel of land identified on the Trust Land Log maintained by the Bureau of

Indian Affairs, referred to as the “Munising –Housing A/B” parcels containing

19.5 acres and 10 acres, located in Section 13, Town 46 North, Range 19 West,

which is more fully described in a deed recorded at Liber 110, Pages 106 –107,

Alger County Records.

13.

A parcel of land identified on the Trust Land Log maintained by the Bureau of

Indian Affairs, referred to as the “Christmas –Casino” parcel containing 31 acres

and located in Section 29, Town 47 North, Range 19 West, which is more fully

described in a deed recorded at Liber 114, Page 302, Alger County Records.

14.

A parcel of land identified on the Trust Land Log maintained by the Bureau of

Indian Affairs, referred to as the “Marquette –Housing” parcel containing 4.5

acres and located in Section 27, Town 48 North, Range 25 West, which is more

fully described in a deed recorded at Liber 371, Page 598, Marquette County

Records.

15.

A parcel of land identified on the Trust Land Log maintained by the Bureau of

Indian Affairs, referred to as the “Escanaba –Housing” parcel containing 20 acres

and located in Section 36, Town 39 North, Range 23 West, which is more fully

described in a deed recorded at Liber 333, Page 307, Delta County Records.

16.

A parcel of land identified on the Trust Land Log maintained by the Bureau of

Indian Affairs, referred to as the “Manistique –Housing” parcel containing 35.6

acres and located in Section 33, Town 42 North, Range 15 West, which is more

fully described in a deed recorded at Liber 102, Page 714, Schoolcraft County

Records.

Appendix A to Agreement between the State of Michigan and the Sault Ste Marie Tribe of Chippewa Indians as originally signed on

December 20, 2002 or subsequently amended per the terms of the Agreement.

17.

Parcels of land identified on the Trust Land Log maintained by the Bureau of

Indian affairs, referred to as the “Lounds (4)” parcels containing 84.8 acres in

total and located in Section 16, Town 47 North, Range 1 East, which are more

fully described in deeds recorded all at Liber 371, Pages 159, 161, 163 and 165,

Chippewa County Records.

18.

A parcel of land identified on the Trust Land Log maintained by the Bureau of

Indian Affairs, referred to as the “Casino –Elderly Tribal Center” parcel

containing 40 acres and located in Section 17, Town 47 North, Range 1 East,

which is more fully described in a deed recorded at Liber 456, Page 410,

Chippewa County Records.

19.

A parcel of land identified on the Trust Land Log maintained by the Bureau of

Indian Affairs, referred to as the “Perry’s 2nd Addition” parcel containing 3.61

acres and described Lots 1 – 15 inclusive of Blocks 1 & 2 of Perry’s 2nd Addition

to the City of Sault Ste. Marie, more fully described in a deed recorded at Liber

456, page 408, Chippewa County Records.

20.

A parcel of land identified on the Trust Land Log maintained by the Bureau of

Indian Affairs, referred to as the “JK Lumsden –Housing (A)” parcel containing

10 acres and located in Section 16, Town 47 North, Range 1 West, which is more

fully described in a deed recorded at Liber 469, Page 239, Chippewa County

Records.

21.

A parcel of land identified on the Trust Land Log maintained by the Bureau of

Indian Affairs, referred to as the “JK Lumsden –Housing (B)” parcel containing

1.5 acres and located in Section 16, Town 47 North, Range 1 West, which is more

fully described in a deed recorded at Liber 676, Page 4, Chippewa County

Records.

22.

A parcel of land identified on the Trust Land Log maintained by the Bureau of

Indian Affairs, referred to as the “Sugar Island” parcel containing 40 acres and

located in Section 7, Town 47 North, Range 2 East, which is more fully described

in a deed recorded at Liber 338, Page 393, Chippewa County Records.

23.

A parcel of land identified on the Trust Land Log maintained by the Bureau of

Indian Affairs, referred to as the “Hessel” parcel containing 40 acres and located

in Section 9, Town 42 North, Range 1 West, which is more fully described in a

deed recorded at Liber 266, page 228, Chippewa County Records.

24.

A parcel of land identified on the Trust Land Log maintained by the Bureau of

Indian Affairs, referred to as the “St. Ignace –Housing/Casino” parcel containing

65 acres and located in Section 19, Town 41 North, Range 3 West, which is more

fully described in a deed recorded at Liber 469, Page 10, Mackinac County

Records.

Appendix A to Agreement between the State of Michigan and the Sault Ste Marie Tribe of Chippewa Indians as originally signed on

December 20, 2002 or subsequently amended per the terms of the Agreement.

25.

A parcel of land identified on the Trust Land Log maintained by the Bureau of

Indian Affairs, referred to as the “Adams –Courthouse/Police Bldg” parcel

containing 1.8 acres and located in Section 17, Town 47 North, Range 1 East,

which is more fully described in a deed recorded at Liber 763, Page 1, Chippewa

County Records.

26.

A parcel of land identified on the Trust Land Log maintained by the Bureau of

Indian Affairs, referred to as the “Cooper –Tribal Skill Center” parcel containing

1.24 acres and described as Lots 20 –30 inclusive in Block 10 of AB Wilgus

Addition to the City of Sault Ste. Marie, which is more fully described in a deed

recorded at Liber 763, Page 3, Chippewa County Records.

27.

A parcel of land identified on the Trust Land Log maintained by the Bureau of

Indian Affairs, referred to as the “Brinks” parcel containing 298 acres and located

in Section 20, Town 47 North, Range 1 East, which is more fully described in a

deed recorded at Liber 673, Page 276, Chippewa County Records.

28.

A parcel of land identified on the Trust Land Log maintained by the Bureau of

Indian Affairs, referred to as the “Moyer” parcel containing 20 acres and located

in Section 17, Town 47 North, Range 1 East, which is more fully described in a

deed recorded at Liber 665, Page 405, Chippewa County Records.

29.

A parcel of land identified on the Trust Land Log maintained by the Bureau of

Indian Affairs, referred to as the “Marelli” parcel containing 10 acres and located

in Section 18, Town 47 North, Range 1 East, which is more fully described in a

deed recorded at Liber 587, Page 540, Chippewa County Records.

30.

A parcel of land identified on the Trust Land Log maintained by the Bureau of

Indian Affairs, referred to as the “Boyer 2” parcel containing 4.34 acres and

described as Lots 1, 2 & 3, of Block 10, and Lots 1 –28 inclusive of Block 11, of

the A.B. Wilgus 2nd Addition to the City of Sault Ste. Marie, which is more fully

described in a deed recorded at Liber 542, page 641, Chippewa County Records.

31.

A parcel of land identified on the Trust Land Log maintained by the Bureau of

Indian Affairs, referred to as the “Atkins” parcel containing .57 acres and

described as Lots 1- 4 inclusive, Block C, of Everett and Eveland Subdivision to

the City of Sault Ste. Marie, which is more fully described in a deed recorded at

Liber 678, Page 477, Chippewa County Records.

32.

A parcel of land identified on the Trust Land Log maintained by the Bureau of

Indian Affairs, referred to as the “Boyer 1” parcel containing 3.21 acres and

described as Lots 1 – 4 inclusive, Block 8 of the A.B. Wilgus 2nd Addition to the

City of Sault Ste. Marie, which is more fully described in a deed recorded at Liber

575, Page 679, Chippewa County Records.

Appendix A to Agreement between the State of Michigan and the Sault Ste Marie Tribe of Chippewa Indians as originally signed on

December 20, 2002 or subsequently amended per the terms of the Agreement.

33.

A parcel of land identified on the Trust Land Log maintained by the Bureau of

Indian Affairs, referred to as the “Clement” parcel containing .72 acres and

described as Lots 4, 5, 6, 7, 8 & 9, Block 10, of the A.B. Wilgus’ 2nd Addition to

the City of Sault Ste. Marie, which is more fully described in a deed recorded at

Liber 658, Page 391, Chippewa County Records.

34.

A parcel of land identified on the Trust Land Log maintained by the Bureau of

Indian Affairs, referred to as the “Payment” parcel containing 30 acres and

located in Section 17, Town 47 North, Range 1 East, which is more fully

described in a deed recorded at Liber 668, Page 558, Chippewa County Records.

35.

A parcel of land identified on the Trust Land Log maintained by the Bureau of

Indian Affairs, referred to as the “Jones” parcel containing 1.5 acres and located

in Section 29, Town 47 North, Range 19 West, which is more fully described in a

deed recorded at Liber 165, Page 222, Alger County Records.

36.

A parcel of land identified on the Trust Land Log maintained by the Bureau of

Indian Affairs, referred to as the “Maleport 2” parcel containing 2.48 acres and

located in Section 17, Town 47 North, Range 1 East, which is more fully

described in a deed recorded in Liber 665, Page 505, Chippewa County Records.

37.

A parcel of land identified on the Trust Land Log maintained by the Bureau of

Indian Affairs, referred to as the “Savard” parcel containing 40 acres and located

in Section 6, Town 40 North, Range 3 West, which is more fully described in a

deed recorded in Liber 377, Page 106, Mackinac County Records.

38.

A parcel of land identified on the Trust Land Log maintained by the Bureau of

Indian Affairs, referred to as the “Eitrem” parcel containing 3.66 acres and

located in Section 18, Town 47 North, Range 1 East, which is more fully

described in a deed recorded in Liber 678, Page 475, Chippewa County Records.

39.

A parcel of land identified on the Trust Land Log maintained by the Bureau of

Indian Affairs, referred to as the “Olson/Carr” parcel containing 1.19 acres and

located in Section 29, Town 47 North, Range 19 West, which is more fully

described in a deed recorded at Liber 166, Page 646, Alger County Records.

40.

A parcel of land identified on the Trust Land Log maintained by the Bureau of

Indian Affairs, referred to as the “Lot 45” parcel containing 1.8 acres and located

in Section 29, Town 47 North, Range 19 West, which is more fully described in a

deed recorded at Liber 152, Page 356, Alger County Records.

41.

A parcel of land identified on the Trust Land Log maintained by the Bureau of

Indian Affairs, referred to as the “Brown” parcel containing 77 acres and located

Appendix A to Agreement between the State of Michigan and the Sault Ste Marie Tribe of Chippewa Indians as originally signed on

December 20, 2002 or subsequently amended per the terms of the Agreement.

in Section 19, Town 41 North, Range 3 West, which is more fully described in a

deed recorded at Liber 469, Page 530, Mackinac County Records.

42.

A parcel of land identified on the Trust Land Log maintained by the Bureau of

Indian Affairs, referred to as the “Franklin” parcel containing 1.1 acres and

located in Section 17, Town 47 North, Range 1 East, which is more fully

described in a deed recorded at Liber 802, Page 490, Chippewa County Records.

43.

A parcel of land identified on the Trust Land Log maintained by the Bureau of

Indian Affairs, referred to as the “King” parcel containing .93 acres and located in

Section 29, Town 43 North, Range 9 West, which is more fully described in a

deed recorded in Liber 463, Page 348, Mackinac County Records.

44.

A parcel of land identified on the Trust Land Log maintained by the Bureau of

Indian Affairs, referred to as the “Munising –Tribal Center” parcel containing

3.31 acres and located in Section 17, Town 46 North, Range 18 West, which is

more fully described in a deed recorded at Liber 169, Page 345, Alger County

Records.

45.

A parcel of land identified on the Trust Land Log maintained by the Bureau of

Indian Affairs, referred to as the “Pickelman” parcel containing 1.5 acres and

described as Lots 241, 242, 243, 244, 252, 253, 254, 264, 265, 266, 270 and 272

of Evergreen Shores Subdivision No. 1 to the City of St. Ignace, which is more

fully described in a deed recorded at Liber 418, Page 242, Mackinac County

Records.

46.

A parcel of land identified on the Trust Land Log maintained by the Bureau of

Indian Affairs, referred to as the “Benson” parcel containing .5 acres and

described as Lots 278, 279, 284, 285, 286, 287 and 288 of Evergreen Shores

Subdivision No. 1 to the City of St. Ignace, which is more fully described in a

deed recorded at Liber 417, Page 294, Mackinac County Records.

47.

A parcel of land identified on the Trust Land Log maintained by the Bureau of

Indian Affairs, referred to as the “Lounds A/B” parcels containing 30 acres and

located in Section 16, Town 47 North, Range 1 East, which is more fully

described in a deed recorded at Liber 840, Page 686, Chippewa County Records.

48.

A parcel of land identified on the Trust Land Log maintained by the Bureau of

Indian Affairs, referred to as the “Methodist Mission (Big Bear)” parcel

containing 234.54 acres and located in Sections 9 and 16, Town 47 North, Range

1 East, which is more fully described in a deed recorded at Liber 870, Page 261,

Chippewa County Records.

49.

A parcel of land identified on the Trust Land Log maintained by the Bureau of

Indian Affairs, referred to as the “Russell” parcel containing 3.67 acres and

Appendix A to Agreement between the State of Michigan and the Sault Ste Marie Tribe of Chippewa Indians as originally signed on

December 20, 2002 or subsequently amended per the terms of the Agreement.

located in Section 16, Town 47 North, Range 1 East, which is more fully

described in a deed recorded at Liber 840, Page 688, Chippewa County Records.

K-2.

Per§ II(K)(2) list of fee lands currently owned by the Tribe that have TTL and AA

status regardless of how the lands are used:

Grand Marais Dock: A parcel ofland described as Township of Burt, County of

Alger, State of Michigan. This parcel contains .73 acres. More fully described in

Liber 145, Page 123 Alger County.

Lincoln School situated in City of Munising, County of Alger, State of Michigan.

This parcel contains 1.80 acres. More fully described in Liber 153 Page 340-341.

KnottyPine: [movedtoK-4;effective II -7-17 J

USDA: A parcel ofland located at 3601 Mackinac Trail, Sault Ste. Marie, MI.

T47 N, Rl W Section 24.

This parcel contains 1.25 acres and is more fully described in Liber 713 Page 497

Chippewa County.

AB. Wilgus: A parcel ofland located in the City of Sault Ste. Marie, Chippewa

County, MI. This parcel contains .23 acres and is more fully described in Liber

464 Page 545 Chippewa County records.

A. B. Wilgus Boyer: A parcel of land located in the City of Sault Ste. Marie,

Chippewa County, MI. This parcel contains 1.71 acres and is more fully

described in Liber 465 Page 296 Chippewa County records.

Greenough: A parcel ofland located at 206 Greenough, Sault Ste. Marie,

Chippewa County, MI. This parcel contains .52 acres and is more fully described

in Liber 678 Page 474 of Chippewa Coutny records.

Chi Chuk: A parcel ofland located at 3375 M-129, Sault Ste. Marie, MI, T47N,

RlE Section 19. This parcel contains 8.48 acres more or less and is more fully

described in Liber 597 Page 653 in Chippewa County records.

Rand: A parcel of land containing 165 acres more or less within in the City of

Sault Ste. Marie. T47N, RlE Section 17. This parcel is more fully described in

Liber 909 Page 252 Chippewa County records.

10.

Walleye Ponds: A parcel ofland located in the Township of Pickford T44N,

RlE, Section 15 containing 142.5 acres. More fully described in Liber 590 Page

304 Chippewa County records.

Appendix A to Agreement between the State of Michigan and the Sault Ste Marie Tribe of Chippewa Indians as originally signed on

December 20, 2002 or subsequently amended per the terms of the Agreement.

11.

J. C. Penney: A parcel of land located at 523 Ashmun St., Sault Ste. Marie,

Chippewa County, MI. This parcel contains .22 acres and is more fully described

in Liber 626 Page 715 Chippewa County records.

12.

McKechnie: A parcel of land located on Shunk Rd., in Sault Ste. Marie, MI

T47N, R1E, Section 8. This parcel contains 1.98 acres and is more fully

described in Liber 628 Page 218 Chippewa County records.

13.

Housing: A parcel of land located at 1904 Shunk Rd., Sault Ste. Marie, MI. This

parcel contains 0.50 acres and is more fully described in Liber 631 Page 452 of

Chippewa County records.

14.

Woolworth Building: A parcel of land located at 531 Ashmun St., Sault Ste.

Marie, MI. This parcel contains 0.50 acres and is more fully described in Liber

658 Page 734 of Chippewa County records.

15.

Somes: A parcel of land located at 1022 Portage Ave., Sault Ste. Marie, MI. This

parcel contains 1 acre and is more fully described in Liber 645 Page 356 in

Chippewa County records.

16.

Care Clinic: A parcel of land located in Township of Kinross, County of

Chippewa, MI. This parcel contains 0.50 acres and is more fully described in

Liber 696 Page 169 of Chippewa County records.

17.

Macarthers: A parcel of land located at 1998 Shunk Rd., Sault Ste. Marie, MI.

This parcel contains 0.50 acres and is more fully described in Liber 699 Page 232

of Chippewa County records.

18.

Armstrong Fish Pond: This property contains 360 acres located in the Township

of Bruce, County of Chippewa T45N, R1E, Section 20 and Section 29. This

parcel is more fully described in the following manner:

Liber 285 Page 89-90, Liber 287 Page 577, Liber 371 Page 149, Liber 586 Page

273 and Liber 639 Page 304.

19.

Roy: [moved to K-6; effective 9/22/2008]

20.

A. B. Wilgus 2nd lots 16-30, Blk 5: A parcel of land containing 0.50 acres located

in the City of Sault Ste. Marie, Chippewa County, MI. This property was

purchased through a DNR sale deed is recorded in Ingham County Liber 402 Page

76.

21.

A. B. Wilgus 2nd lots 24-30, Blk 9: A parcel of land containing 0.50 acres located

in the City of Sault Ste. Marie, Chippewa County, MI. This property was

Appendix A to Agreement between the State of Michigan and the Sault Ste Marie Tribe of Chippewa Indians as originally signed on

December 20, 2002 or subsequently amended per the terms of the Agreement.

purchased through a DNR sale deed is recorded in Ingham County Liber 402 Page

76.

22.

A. B. Wilgus lot 25, Blk 4: A parcel ofland containing 0.50 acres located in the

City of Sault Ste. Marie, Chippewa County, MI. This property was purchased

through a DNR sale deed is recorded in Ingham County Liber 402 Page 76.

23.

Boat Dock: A parcel ofland located in Fmrport Township, Delta County, MI

containing 2.4 acres. This property is located in T37N, R19 Wt Section 9 as more

fully described in Liber 595 Page 999.

24.

State Auction Land: A parcel ofland located in Mackinac County, T41N, R3W,

Section 30 containing 20 acres more or less. This parcel is more fully described

in Liber 351 Page 513 Mackinac County records.

25.

McCann: [moved to K-6; effective i I - 7- I 7 ]

26.

Adams/Bones: A parcel of land located in the City of Sault Ste. Marie, County of

Chippewa, Ml. This parcel contains 0.50 acres and is more fully described in

Liber 615 Page 653 of Chippewa County records.

27.

A&W: [moved to K-6; effective

28.

Brown: A parcel ofland containing 40 acres more or less described as Township

of St. Ignace, County of Mackinac, State of Michigan. That parcel of property

situated in the State of Michigan, County of Mackinac, Township of St. Ignace,

Section 30, Town 41 North, Range 3 West, the Northwest¼ of the Northwest¼.

K-3.

II - 7 - I l

Governmental Specified Area per § Il(K)(3) [area where all Tribal lands acquired

after execution of this Agreement have TTL and AA status so long as the lands are

used for a Governmental Function]:

•

Chippewa County: survey townships T46N, R2W; T46N, RI W; T45N, R2W; T45N,

Rl W; T45N, RlE; T44N, R2W; T44N, Rl W; and those portions of survey

townships T47N, R2W; T47N, Rl W; T47N, RlE; T46N, RlE; T46N, R2E; T45N,

R2E; T44N, R2E on the mainland portion of the Upper Peninsula; Sugar Island,

Neebish Island and Drummond Island;

•

Mackinac County: survey townships T43N, R3W; T43N, R2W; T43N, Rl W; T42N,

R5W; T42N, R4W; and those portions of survey townships T42N, R3W; T42N,

R2W; T42N, RlW; T42N, RlE; T41N, R5W; T41N, R4W; T41N, R3W; T41N,

R2W; T41N, RlW; T41N, RlE; T40N, R4W; and T40N, R3W on the mainland of

the Upper Peninsula; and Mackinac Island;

Appendix A to Agreement between the State of Michigan and the Sault Ste Marie Tribe of Chippewa Indians as originally signed on

December 20, 2002 or subsequently amended per the terms of the Agreement.

•

Schoolcraft County: survey townships T42N, R16W; T42N, R15W; and T42N,

R14W; and those portions of survey townships T41N, R16W; T41N, R15W; and

T41N, R14W on the mainland of the Upper Peninsula;

•

Luce County: survey townships T46N, R10W; T45, R10W; T46, R9W; and T45N,

R9W;

•

Alger County: survey townships T46N, R20W; T46N, R19W; T46N, R18W; and

those portions of survey townships T47N, R20W; T47N, R19W; T47N, R18W on the

mainland of the Upper Peninsula;

•

Marquette County: survey townships T48N, R26W; T47N, R26W; T46N, R26W;

T45N, R26W; T47N, R25W; T46N, R25W; T45N, R25W; T46N, R24W; T45N,

R24W; T46N, R23W; T45N, R23W; and those portions of T49N, R26W; T49N,

R25W; T48N, R25W; T48N, R23W; T47N, R24W; T47N, R23W on the mainland

of the Upper Peninsula;

•

Delta County: survey townships T40N, R23W; and T39N, R23W; those portions of

survey townships T40N, R22W; T39N, R22W; T38N, R23W; and T38N, R22W west

of Little Bay de Noc; and those portions of survey townships T40N, R18W; T39N,

R18W; T39N, R19W; T38N, R20W; T38N, R19W; T38N, R18W; and T37N, R19W

east of Big Bay de Noc.

List of Tribal lands acquired after execution of this Agreement that are within the

Governmental specified area described above.

Reserved

K-4.

Commercial Designated Area per § II(K)(4) [area where all Tribal lands accepted into

federal trust after execution of this Agreement have TTL and AA status regardless of

how the lands are used]:

•

Chippewa County: survey sections 20-21, 27-29, 32-34 in T47N, R1E; those

portions of survey sections 19, 30, and 31 in T47N, R1E east of M-129; and those

portions of survey sections 9, 15-16, 22-23, 26, and 35 in T47N, R1E on the mainland

of the Upper Peninsula; and the south ½ of T45N, R1W

•

Mackinac County: survey sections 1-18 in T42N, R1W; survey sections 22-27 and

34-36 in T41N, R4W; and those portions of survey sections 19, 30, and 31 in T41N,

R3W on the mainland of the Upper Peninsula;

•

Schoolcraft County: survey section 33 in T42N, R15W; survey section 3 in T41N,

R15W; and

Appendix A to Agreement between the State of Michigan and the Sault Ste Marie Tribe of Chippewa Indians as originally signed on

December 20, 2002 or subsequently amended per the terms of the Agreement.

•

Alger County: those portions of survey sections 20 and 29 in T47N, Rl9W on the

mainland of the Upper Peninsula.

List of Tribal lands accepted into federal trust after execution ohhis Agreement which

are located within the Commercial Designated Area described above. ·

1. Land situated in the Township of Clark, County of Mackinac, Michigan:

The West 1/2 of the Northeast 1/4, Section 9 Township 42 North, Range 1 West,

Except the North 330 feet of the West 66 feet thereof.

2. Knotty Pine: A parcel ofland located in Township of AuTrain containing 2.58

acres T47 N, Rl9W Section 29 as more fully described in Liber 163 Page 581

Alger County Records. [moved from K-2; effective /I - 1-

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