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dew Code Cl Amaneled Code

Sissetan-Wahneian Oyate

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Tritial Council Resolution Ne. Z F

SISSETON-WAHPETON OYATE Judicial Committee Aduption ate, el

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TAX CODE

CHAPTER 67

TABLE OF CONTENTS

PART I - GENERAL PROVISIONS

SECTION

67-01-01

67-01-02

67-01-03

67-01-04

67-01-05

67-01-06

67-01-07

TITLE

JURISDICTION

EFFECT OF HEADINGS

CONTINUITY OF LAW

CONSTRUCTION

AMENDMENTS

SEVERABILITY

PART II - TAX CATEGORIES, RATES AND OTHER PROVISIONS

67-02-01

67-02-02

67-02-03

67-02-04

67-02-05

67-02-06

67-02-07

67-02-08

67-02-09

67-02-10

67-02-11

67-02-12

67-02-13

67-02-14

67-02-15

DEFINITIONS

TANGIBLE PROPERTY

REQUIREMENT TO COMPLY WITH TRIBAL, FEDERAL AND

STATE TAX LAWS AND MANDATED EMPLOYEE BENEFITS

LAND USE TAX

ALCOHOLIC BEVERAGES

GAS, ELECTRICITY, WATER AND COMMUNICATION SERVICES

TAXABLE SERVICES

COMMERCIAL OCCUPANCY TAX

FOREIGN RETAILERS

HOTEL OCCUPANCY TAX

CONTRACTOR’S EXCISE TAX

UTILITY EXCISE TAX

MANUFACTURING EXCISE TAX

TOURISM TAX

MEALS TAX

Tribal Council Approved December 4", 2018.

Motion No. 34

Judicial Committee Submitted

PAGE

67-02-16

67-02-17

67-02-18

EXEMPTIONS

ADDITION TO TAX TO PRICE OF SALES OF CHARGE FOR

SERVICES

SEVERABILITY

PART III — USE TAX

67-03-01

67-03-02

67-03-03

67-03-04

67-03-05

67-03-06

67-03-07

DEFINITIONS

TAX IMPOSED

CONTRACTORS AND SUBCONTRACTOS TAXED ON

PROPERTY USED IN PERFORMANCE OF CONTRACT

COLLECTION AND REMITTANCE OF USE TAX

TRIBE 10% WITHHOLDING TAX

RECEIPT OF EVIDENCE

SEVERABILITY

PART IV - MOTOR VEHICLE FUEL TAX

67-04-01

67-04-02

67-04-03

67-04-04

67-04-05

67-04-06

67-04-07

67-04-08

67-04-09

67-04-10

67-04-11

DEFINITIONS

TAX IMPOSED

MONTHLY RETUN AND PAYMENT OF TAX BY DISTRIBUTORS

BUSINESS LICENSE REQUIRED

RECORDS REQUIRED FOR A PERIOD OF THREE YEARS

REFUNDS

COMPLIANCE

TAX COLLECTION ALLOWANCE

INVENTORY GAINS

DISPOSITION OF PROCEEDS OF TAX

SEVERABILITY

PART V ~- CIGARETTE AND TOBACCO PRODUCTS EXCISE TAX

67-05-01

67-05-02

67-05-03

67-05-04

DEFINITIONS

TAX IMPOSED

ADDITIONAL TAX

STAMPS OR METERING MACHINES IMPRINT USED TO

EVIDENCE TAX PAYMENT

Tribal Council Approved December 4", 2018.

Motion No. 34

Judicial Committee Submitted

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67-05-05

67-05-06

67-05-07

67-05-08

67-05-09

67-05-10

67-05-11

67-05-12

67-05-13

67-05-14

67-05-15

67-05-16

67-05-17

67-05-18

67-05-19

67-05-20

67-05-21

67-05-22

67-05-23

67-05-24

ADDITION OF TAX TO RETAIL SELLING PRICE

MANAGER RESPONSIBLE FOR COLLECTION AND REMITTANCE

OF TAX

MONTHLY RETURNS BY MANAGER

MANAGER HIRING AUTHORITY

ESTABLISHMENT OF TOBACCO OUTLETS

NATURE OF OUTLET

TOBACCO PRODUCTS FEDERALLY RESTRICTED TRIBAL

PROPERTY

STAMPS SECURED BY TRIBAL VICE-CHAIRMAN

RESALE OF STAMPS PROHIBITED

USE OR POSSESSION OF COUNTERFEIT STAMPS AS OFFENSES

USE OF APPROVED METERING MACHINES AUTHORIZED BY THE

VICE-CHAIRMAN IN LIEU OF STAMPS

AFFIXING OF STAMPS BY MANAGER OR DISTRIBUTOR

AFFIXING OF STAMPS OR IMPRINTS BY MANAGER

SALE OF UNSTAMPED CIGARETTES AND TOBACCO PRODUCTS

PROHIBITED

ENFORCEMENT POWERS OF THE TRIBAL VICE-CHAIRMAN

UNSTAMPED CIGARETTES AND TOBACCO PRODUCTS AS

CONTRABAND

FORFEITURE OF CONTRABAND CIGARETTES AND OTHER

TOBACCO PRODUCTS

TAX AGREEMENTS WITH THE STATE OF SOUTH DAKOTA

OR NORTH DAKOTA

RESTRICTED SALES TO MINORS

SEVERABILTY

PART VI—- AD VALOREM POSSESSORY INTEREST TAX

67-06-01

67-06-02

67-06-03

DEFINITION

TAX IMPOSED

EXEMPTION

Tribal Council Approved December 4", 2018.

Motion No. 34

Judicial Committee Submitted

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67-06-04 DISTRIBUION OF DECLARATION INTEREST FORM 33

67-06-05 WAIVER OF APPLICATION TO TRIBAL MEMBERS 33

67-06-06 SEVERABILITY 33

PART VIE ~ PROVISIONS APPLICABLE TO ALL TAXES IMPOSED BY THIS CODE

67-07-01 DISPOSITION OF PROCEEDS OF TAXES 34

67-07-02 SOVEREIGN IMMUNITY OF TRIBE 34

67-07-03 SUITS AGAINST THE TAX COMMISSION 35

67-07-04 CONSTITUTIONAL EXEMPTIONS FROM TAX 35

67-07-05 ADOPTION OF REGULATIONS 35

67-07-06 DETERMINATION OF TAX IN ABSENCE OF RETURN 35

67-07-07 TAX DIRECTOR’S CERTIFICATE AS PRIMA EVIDENCE OF

FAILURE TO FILE RETURN OR PAY TAX 36

67-07-08 CREDIT OR REFUND OF ERRONEOUS OVERPAYMENT 36

67-07-09 REFUNDS ESTABLISHED BY ADMINISTRATIVE OR COURT

PROCEEDINGS 36

67-07-10 RETURN AND INVESTIGATIONS CONFIDENTIAL 36

67-07-11 BUSINESS LICENSE REQUIRED 37

67-07-12 REVOCATION OF AUTHORITY TO DO BUSINESS 37

67-07-13 REINSTATEMENT OF AUTHORITY TO DO BUSINESS 37

67-07-14 PENALITY FOR CONTINUATION OF BUSINESS AFTER

REVOCATION OF AUTHORITY 38

67-07-15 PENALITY ADDED FOR DELINQUENCY IN PAYMENT

OF TAX 38

67-07-16 RECORDS REQUIRED 38

67-07-17 CIVIL ACTION 38

67-07-18 SEVERABILITY 38

PART VII TAX COMMISSION ADMINISTRATIVE APPEALS

67-08-01 CREATION OF THE TAX COMMISSION 40

67-08-02 TERM FOR COMMISSIONERS 40

Tribal Council Approved December 4", 2018.

Mation No. 34

Judicial Committee Submitied

67-08-03 APPONTMENT OF THE TAX DIRECTOR 40

67-08-04 GENERAL POWERS OF THE TAX COMMISSION 40

67-08-05 RULE MAKING AUTHORITY 4}

67-08-06 ADMINISTRATIVE APPEALS 4l

67-08-07 FINALITY OF ASSESSMENT 41

67-08-08 COLLECTION OF TAXES 41

67-08-09 SEVERABILITY 42

PART IX GAMING TAX

67-09-01 DEFINITIONS 43

67-09-02 GAMING TAX IMPOSED 43

67-09-03 WAIVER OF TAX PERMITTED 44

67-09-04 RATE OF TAX 44

67-09-05 RETURNS AND PAYMENT OF TAX 44

67-09-06 SEVERABILITY 44

PART X CALORIC SWEETENED BEVERAGE AND ENERGY DRINK TAX ORDINANCE

67-10-1 THE FOLLWING FINDINGS SUPPORT THE PASSAGE OF THE

CALORIC SWEETENED BEVERAGE AND ENERGY DRINK.

TAX ORDINANCE 45

67-10-02 FOR PURPOSES OF THIS PART 46

67-10-03 PAYMENT OF TAX 48

Tribal Council Approved December 4", 2018.

Motion No. 34

Judicial Committee Submitted

67-01-01

67-01-02

67-01-03

67-01-04

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SISSETON-WAHPETON OYATE

CHAPTER 67

TAX CODE

PARTI

GENERAL PROVISIONS

Title

It being necessary to strengthen the government of the Sisseton-Wahpeton Oyate by exercising

the specific grant of authority contained in Article VII Powers, Sections 1(g) and 1(h) of the

Sisseton-Wahpeton Oyate Constitution to levy and collect taxes, to license and regulate certain

conduct within the jurisdiction of the Tribe, to provide financing for the current expenses of the

Tribal Government, expand Tribal Government operations and services, educate members of the

Tribe, promote economic growth, support capital improvements and increase consumer services,

in order for the Tribe to efficiently and effectively exercise its confirmed inherent sovereignty and

governmental responsibilities and enhance the general well-being of members of the Tribe and

others within the jurisdiction of the Tribe, the Tribe hereby adopts this Chapter 67, the Sisseton-

Wahpeton Oyate Tax Code.

Jurisdiction

In accordance with Article I of the Sisseton-Wahpeton Oyate Constitution, the Tribal Council

hereby affirmatively declares, asserts, and extends the jurisdiction of the Tribe over all areas

within the original exterior boundaries of the Lake Traverse Indian Reservation, as described in

Article I] of the Treaty of February 19, 1867, that are held by the United States in trust for the

Tribe or any individual Indian, all other lands owned by the Tribe or any individual Indian, all

allotments covered by 18 U.S.C. § 1151(c), and all dependent Indian Communities within the

original boundaries of the Lake Traverse Indian Reservation as defined by 18 U.S.C. § 1151(b),

as well as all dependent Indian Communities otherwise deemed to be Indian Country and subject

to jurisdiction of the Sisseton-Wahpeton Oyate.

Effect of Headings

Headings contained herein shall not be deemed to govern, limit, modify, or in any manner affect

the scope, meaning, or intent of the provisions of any portion of this Tax Code.

Continuity of Law

It is hereby declared that the legislative intent of the Sisseton-Wahpeton Oyate Tribal Council

is that this Tax Code be construed as amending and revising the present tax law enacted by the

Sisseton-Wahpeton Oyate Tribal Council and that enactment of the Sisseton-Wahpeton Oyate

Page I of 48

Tax Code of 2012 shall have prospective effect only and shall not affect the validity of any

license issued, taxes collected, or tax liability accrued under such prior law.

67-01-05 Construction

This Tax Code shall be interpreted and applied in a manner consistent with all other Codes, Laws,

Ordinances, Resolutions, and Regulations of the Sisseton-Wahpeton Oyate.

67-01-06 Amendments

This Tax Code may be amended only upon an affirmative vote of a majority of the Sisseton-

Wahpeton Oyate Tribal Council.

67-01-07 Severability

If any clause, sentence, paragraph, section, or part of this Tax Code shall, for any reason be

adjudicated by any Court of competent jurisdiction, to be invalid or unconstitutional, such

judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its

operation to the clause, sentence, paragraph, section, or part thereof directly involved in the

controversy in which the judgment shall have been rendered.

Page 2 of 48

67-02-01

CHAPTER 67

TAX CODE

PART II

TAX CATEGORIES, RATES AND OTHER PROVISIONS

Definitions

Words used in this Tax Code, unless the context plainly requires otherwise, shall have the

meanings ascribed to them in Sections 67-02-01.1 through 67-02-01.18.

67-02-01.1 Alcoholic beverage shall mean any intoxicating liquor, beer, malt beverages, or

any wine.

67-02-01.2 | Casual sale shall mean:

A. — Sales of tangible property by the owner or the rendering, furnishing or

performing of a nonrecurring service by the provider, if at the time of the

sale the seller is not engaged for profit in the business of selling tangible

personal property or services, such as yard sales and craft sales are exempt;

and

B. _ The sale of all or substantially all the tangible property or services held, or

used by a retailer in the course of the retailer’s trade or business, when the

retailer sells or otherwise transfers the trade or business to another person

who shall engage in a similar trade of business.

67-02-01.3 Customer or Client means someone who pays for a product, goods or services in a

business relationship.

67-02-01.4 Gross Receipts means the amount received in money, credits, property, or other

consideration from sales at retail transacted within the jurisdiction of the Tribe,

without any deduction on account of the cost of materials used, the cost of labor or

services purchased, amounts paid for interest or discounts, or any other expenses.

67-02-01.5 Gross Taxable Services means the total amount received in money, credits,

property, or other consideration, valued in money, from services rendered,

furnished, or performed within the jurisdiction of the Tribe.

67-02-01.6 Person or Taxpayer includes any tribal member business, non-tribal member

business, individual, firm, co-partnership, joint venture, association, corporation,

municipal corporation, estate, trust, business trust, receiver, or any group or

combination acting as a unit, other than the Tribe or one of its political

Page 3 of 48

67-02-01.7

67-02-01.8

67-02-01.9

67-02-01.10

67-02-01.11

67-02-01.12

subdivisions, except where such person or taxpayer is specifically exempted by the

Tribal Council or as stated herein Chapter 67.

Political subdivision means any agency, department or instrumentality created by,

or pursuant to, Tribal law for the purpose of discharging some function of Tribal

Government, including, but not limited to, districts, school districts, housing

authorities or any instrumentality thereof performing functions which are not in

competition with the commercial sector; the term excludes tribal businesses and

any other business or vendor service that provides a service or product to the

public.

Property used in processing means any tangible property which is intended to

become an integral part of other tangible property to be sold ultimately at retail, by

means of fabrication, compounding, manufacturing, or germination.

Retailer includes every person engaged in the business of selling tangible property,

taxable services, motor vehicle fuel, alcoholic beverages, cigarettes or tobacco

products at retail, or the furnishing of gas, electricity, water and communication

service sold at retail with the object of the gain, benefit or advantage, either direct

or indirect; provided, however, that when in the opinion of the Vice-Chairman it is

necessary for the efficient administration of this Tax Code to regard any

salespersons, representatives, truckers, peddlers, or canvassers acting as agents of

the dealers, distributors, supervisors, employers, or persons under whom they

operate or from which they obtain the tangible property sold by them, irrespective

of whether they are making sales on their own behalf or on behalf of such dealers,

distributors, supervisors, employers, or persons, shall be treated as retailers for the

purpose of this Tax Code.

Retailer maintaining a place of business within the jurisdiction of the Tribe shall

mean and include any retailer, required to obtain a Tribal business license, having

or maintaining within the jurisdiction of the Tribe, directly or by a subsidiary, an

office, distribution house, sales house, warehouse, or other place of business, or

any agent operating within the jurisdiction of the Tribe under the authority of the

retailer or its subsidiary, irrespective of whether such place of business or agent is

located here permanently or temporarily.

Sale means any transfer, exchange, or barter, conditional or otherwise, in any

manner whatsoever, for “consideration”.

Sale at retail or retail sale means the sale of tangible property or services to a

consumer or to any person for any purpose, or for resale of tangible property used

in connection with the performance of a service. “Sale at retail” or “retail sale”

shall mean and include, but is not limited to: sales of building materials, supplies

and equipment to owners, contractors, subcontractors or builders, for the erection

Page 4 of 48

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of buildings or the alteration, repair or improvement of real property, in whatever

quantity sold.

67-02-01.13 Services means all acts or services rendered, furnished, or performed, except

services performed on tangible property delivered outside the jurisdiction of the

Tribe, services used in processing tangible property for use in taxable retail sales or

services, or services for an employer for a valuable consideration. The tax shall be

due and collectable when the service is rendered, furnished, or preformed for the

ultimate user thereof and is paid for by the customer.

67-02-01.14 Resale of tangible property used in connection with the performance of a service

means the reconditioning or repairing of tangible property of the type normally sold

in the regular course of the retailer’s business and which is held for sale.

67-02-01.15 User means the immediate recipient of the services who is entitled to exercise a

right of power over the product of such services.

67-02-01.16 Vice-Chairman means the elected Vice-Chairman of the Sisseton Wahpeton Oyate

or his or her delegated representative employed for the administration or

enforcement of this Tax Code.

67-02-01.17 Within the jurisdiction of the Tribe shall mean and include all areas within the

original exterior boundaries of the Lake Traverse Indian Reservation that are held

by the United States in trust for the Tribe or any individual Indian, all other lands

owned by the Tribe or any individual Indian, all allotments covered by 18 U.S.C.

§1151(c), and all dependent Indian communities within the original boundaries of

the Lake Traverse Indian Reservation as defined by 18 U.S.C. §1151(b).

67-02-01.18 Tax Office means the Tribal Tax Director or his or her delegated representative who

shall carry out the day-to-day administration of this Chapter, and shall report

directly to the Vice-Chairman.

67-02-02 Tangible Property

There is imposed a minimum of a 5.5% tax or a higher rate as determined by resolution of the

Tribal Council upon the gross receipts from all sales of tangible property, consisting of goods,

wares, merchandise, propane, building materials and equipment, except as otherwise provided in

Part II, sold at retail to consumers within the jurisdiction of the Tribe.

Tangible property includes, but is not limited to, gross receipts from:

A. The operation or ownership of beverage dispensing machines or any other type of

dispensing machine that sells a product to the public such as: soda machines, gum ball

machines and candy machines.

Page 5 of 48

67-02-03

67-02-04

B. The operation or ownership of coin operated mechanical or electronic amusement devices,

whether it dispenses prizes or not, including but not limited to: jukeboxes, video games,

pinball machines, any type of pool table or game table and any type of game arcade

machine.

Requirement to Comply with Tribal, Federal and State Tax Laws and Mandated Employee

Benefits

Taxpayers, contractors, and Districts are required to comply with all applicable tribal, federal and

state tax laws related to employee benefits and maintaining required employee benefits (such as,

FICA, Medicare, federal income tax reporting and withholding, and unemployment insurance).

Tribal member contractors are liable for all applicable laws. Failure to comply may result in:

A. Contract termination; and/or

B. Extradition to proper authorities; and/or

C. Tribal Court fines of $100.00 per day per incident.

Land use tax

A. The following definitions apply to this section:

67-02-04.1 Trust Lands means all lands within the original boundaries of the Lake Traverse

Reservation that are (a) owned by or held in trust for the Sisseton Wahpeton

Oyate; and/or (b) allotments held in trust by the United States for an individual

Indian or Indians or owned by an individual Indian or Indians and subject to

restriction upon alienation imposed by the United States.

67-02-04.2 Agriculture use means all lands used for grazing, haying or farming or any

related activity.

67-02-04.3 Farming means any ground that a crop can be planted in to include hay crops.

67-02-04.4 Hayland means any ground that a Native hay crop can be harvested from.

67-02-04.5 Pasture means any land that has been designated as usable pasture.

67-02-04.6 Lakeshore Frontage means any land that has a boundary of lakeshore frontage

and where the land is used for cabin or recreational use.

67-02-04.7 Lessee means the person or persons who have obtained any possessory interest

in trust lands or Indian land and the assignees and successors in interest of such a

Page 6 of 48

person or persons. This term does not apply to a sub-lessee where the lessee

retains an interest in the leasehold.

67-02-04.8 Taxes assessed means the taxes imposed by this Section shall be as follows:

1. Crop = $0.50 per acre

2. Hayland = $0.25 per acre

3. Pastureland = $0.25 per acre

4. Lakeshore Frontage = $ 10.00 per front foot

B. The taxes imposed by this land use tax section are due in advance, on or before November |

of each year or on or before March 1 of each year; as billed by the Tax Office, provided,

that no interest or penalty shall be charged when payments are received by the Tax Office

within thirty days after the due date. Failure of the lessee to receive a bill from the Tax

Office shall in no way relieve the lessee of his or her duty to pay the taxes imposed by this

Section.

C. Lessor Not Obligated to Pay Tax

The incidence of the taxes imposed by this Section shall be upon the Lessee, and the Lessor

and his or her interest in such Indian lands shall in no respect be liable for payment of the

taxes.

D. Payment of Taxes by Sublessees and Others

1. Any sublessee or other person interested in any possessory interest upon which the

taxes imposed by this Section are due and unpaid may file a return and pay on behalf

of the lessee any taxes due in order to protect his rights in such possessory interest.

2. Upon payment of such taxes, the payor shall be entitled to recover from the lessee the

amount of such payment with interest thereon at the rate of 12% per annum, plus any

applicable penalties.

3. If the lessee shall make payment of the taxes due after they have been paid by some

other person, the person making such payment on behalf of the lessee shall be entitled

to a refund of the amount paid.

E. Delinquency as Grounds for Cancellation of Lease

Delinquency in the payment of any taxes imposed by this Section or any interest or

penalties imposed for a period of six months shall be ground for cancellation of the lessee’s

lease. Such cancellation shall not relieve the lessee or his or her obligation to pay any taxes,

penalties, or interest, not shall it relieve the lessee of any of his duties or obligations to the

lessor.

Page 7 of 48

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F. All persons, except tribal members of the Sisseton Wahpeton Oyate, shall pay taxes for the

privilege of leasing land on the Lake Traverse Reservation through leasing or permitting of

Indian lands.

G. The actual number of acreage subject to tax shall be determined by the Tribal Realty

Department for each lease. The determination shall be based on the actual number of acres

that are suitable for crop, hayland or pasture land use.

67-02-05 Alcoholic Beverages

There is imposed a minimum of a 20% tax or a higher rate as determined by resolution of the

Tribal Council upon the gross receipts of all sales of alcoholic beverages sold by a retailer or

tribal casino licensed by the Tribe to sell authorized alcoholic beverages, at retail within the

jurisdiction of the Tribe.

67-02-06 Gas, Electricity, Water and Communication Services

There is imposed a minimum of a 5% tax or a higher rate as determined by resolution of the

Tribal Council upon the gross receipts from the sale, furnishing or service of gas/fuels, electricity,

water and communication, and new energy markets services, when sold at retail to consumers or

users within the jurisdiction of the Tribe.

If the Tribe has entered into a tax agreement with either the State of South Dakota or North

Dakota with respect to gas, electricity, water and communication services, the tax imposed by this

section shall be superseded by terms of the agreements, as applicable and designated by the Tribal

Council.

67-02-07 Taxable Services

There is imposed a minimum of a 5.5% tax or a higher rate as determined by resolution of the

Tribal Council upon “gross taxable services” from enumerated services rendered, furnished, or

performed within the jurisdiction of the Tribe including, but not limited to-

Accounting, check cashing & other cash vendors Massage salons

Alteration and garment repair Motor repair

Architect and engineering Motorcycle, scooter, and bicycle repair

Armored car Office and business machine repair

Automobile repair Oilers and lubricators

Barber and beauty Painting, papering, and interior decorating

Battery, tire and allied Pipe fitting and plumbing

Boat repair Parking facilities

Cable television Pressing, dyeing, and laundering

Campgrounds Private employment agencies, excluding services

Car wash and wax for placing a person in employment where the

Page 8 of 48

Code LY Repealed Code O

67-02-08

Carpentry

Carpet and upholstery cleaning

Collection agencies

Consultants

Dry cleaning

Electrical and electronic repair and installation

Excavating and grading

Farm implement repair of all kinds

Flying services

Fur storage and repair

Furniture, rug upholstery repair and cleaning

Garbage removal

Golf and country clubs & all commercial recreation,

except gaming activities Gun and camera repair

House and building moving

Household appliance, television, and radio repair

Investment counseling

Janitorial and building maintenance or cleaning

Jewelry and watch repair

Lawn care, landscaping, tree trimming & removal

Limousine service

Machine operators

Machine repair of all kinds

Commercia] Occupancy Tax

principal place of employment of that person

is to be located outside the jurisdiction of the Tribe

Rental of tangible property, except mobile homes

which are not tangible personal property

Roof, shingle, and glass repair

Security and detective services

Service charges of all financial institutions

Shoe repair and shoeshine

Storage warehousing of raw agricultural products

Tanning beds or salons

Telephone answering service

Termite, bug, roach, and pest eradicators

Test laboratories, except tests on humans

Tin and sheet metal repair

Tour bus service

Tour guides, fishing guides, hunting guides and

outfitters, and trail rides

Water conditioners and softening

Weighing, welding, well drilling

Wood preparation

Wrapping, packing and packaging of merchandise

other than processed meat, fish fowl, & vegetables

Wrecker and towing

There is imposed for the privilege of occupancy a Commercial Occupancy Tax upon every lease

of real property, which is used for commercial purposes within the jurisdiction of the Tribe, at a

minimum of a 3% tax or a higher rate as determined by resolution of the Tribal Council of the

monthly rent charged for such occupancy.

A. The following terms when used in this Section shall mean:

1. Tenant includes any person operating as a lessee, sub-lessee, licensee or

concessionaire in occupancy, within the jurisdiction of the Tribe.

2. Landlord includes any person operating as a lessor or sub-lessor with the tenant or

sub-tenant in occupancy.

3. Rent includes the amount paid by any tenant for the right or permission to occupy the

premises for commercial purposes, and shall include: any amount paid based on a

share of profits; payments made by the tenant on behalf of the landlord for property

Page 9 of 48

67-02-09

taxes; water or sewer rents; charges for building services that the tenant could not

personally provide independently of the landlord; building services provided pursuant

to a lease; and business services; provided, that rent shall not include charges for

utility services nor payments made by a tenant for leasehold improvements, repairs or

maintenance performed as part of the lease of rental agreement.

4. Commercial purpose includes the carrying on or exercising of any trade, business,

profession, vocation, or the business of leasing or renting for a consideration.

The tax is computed on the monthly rent paid for the use or occupancy of land by a tenant

or subtenant for commercial purposes.

Whenever the tenant is also a sub-lessor of the premises, and the sub-tenant occupies or uses

the premises for commercial purposes, the tenant’s taxable rent is reduced by the amount

received from the sub-tenant, with the subtenant responsible for the tax on the amount of

rent paid to the sub-lessor.

On or before the close of each calendar quarter, every landlord shall file a return with the

Tax Office, on a form and in accordance with the rules prescribed by the Tax Commission;

showing the monthly rent paid during the calendar quarter, which return shall be

accompanied by payment of the tax due for the period covered by the return.

The leasing of renting of dwelling units, lodging facilities and trailer or mobile home

spaces, which are intended primarily for leasing or renting to persons who reside in such

units, facilities or spaces, as their principal or permanent places of residence, are not subject

to the Commercial Occupancy Tax. Principal or permanent place of residence means a unit,

facility or space leased or rented to a single tenant thirty (30) or more consecutive days,

other than a hotel, motel, dude ranch, resort or campground.

Upon resolution by the Tribal Council, the application of the Commercial Occupancy Tax to

tenants who are members of the Tribe may be waived; provided, that a tribal member who is

a landlord shall collect any tax due, in the manner provided above.

Foreign Retailers

There is imposed a minimum of a 5% tax or a higher rate as determined by resolution of the

Tribal Council upon the gross receipts of all retailers not maintaining a place of business within

the jurisdiction of the Tribe from all sales of tangible personal property sold at retail to consumers

within the jurisdiction of the Tribe that meet any of the following criteria:

Solicit retail sales of tangible property by mail or otherwise, if the solicitations are

continuous, regular, or systematic and if the retailer benefits from any banking, financing,

debt collection, telecommunications, or marking activities occurring or benefits from the

Page 10 of 48

67-02-10

67-02-11

location of authorized installation, servicing, or repairs facilities, within the jurisdiction of

the Tribe;

B. Are owned or controlled by the same interests, that own or control a retail business engaged

in the same or similar line of business within the jurisdiction of the Tribe; or

C. Maintain or have a franchise or license operating under the retailer’s trade name within the

jurisdiction of the Tribe, if the franchisee or licensee is required to collect the tax imposed

by Part II.

Hotel Occupancy Tax

There is imposed a minimum of a 8% tax or a higher rate as determined by resolution of the

Tribal Council tax upon every charge for occupancy of a room or suite of rooms in a hotel

located within the jurisdiction of the Tribe, which is regularly used and kept open as such for the

lodging of guests, including a motel, apartment hotel, resort, or club.

Contractor’s Excise Tax

A.

There is imposed a Contractor’s Excise Tax upon the gross receipts of all prime contractors

and/or subcontractors engaged in realty improvement contracts, a minimum of a 2% tax or a

higher rate as determined by resolution of the Tribal Council including contractors and/or

subcontractors furnishing electricity, heat, power, water, natural or artificial gas, or

distributing the same for public use by means of transmission lines, gas lines or water

pipelines and communications.

Subcontractor’s gross receipts are not subject to the tax if they are furnished a valid prime

contractor’s exemption certificate by the prime contractor for each specific job performed.

1. The Tax Office shall issue a certificate of taxes received by the prime contractors.

2. The certificate shall indicate the prime contractor’s valid contractors’ business license

number and contract number.

3. Any subcontractor who fails to retain a certificate and a record of project designations

is considered a prime contractor and is subject to tax under this Section.

Homeowners working on their own homes are not subject to this tax and land developers

are subject to the tax.

The Contractor’s Excise Tax applies to the total contract price including all labor and

materials. Materials include those purchased by the contractor and those purchased by the

person who let the contractor or his/her agent use such materials in the building construction.

Page 11 of 48

E. All contractors and subcontractors shall report and pay the Contractor’s Excise Tax

measured by gross receipts on a cash basis that is, payment shall be made within ten (10)

business days of issuance of a construction progress payment or other similar payment to

the prime contractor.

F. The following terms when used in this section shall mean:

1. Prime contractor means a person(s) [including persons and business entities

contracting as a prime contractor or a sub-contractor with the Tribe or a Tribal

program whether or not pursuant to a P.L. 93-638 contract], entering into a realty

improvement contract or a contract for construction services as enumerated in

Division C of the Standard Industrial Classification Manual, 1987, as prepared by the

Statistical Policy Division of the Office of Management and Budget, Office of the

President.

A person, tribal program or tribal business who is not primarily in the business of

making realty improvements and regularly employs persons for the purpose of

repairing, maintaining or making realty improvements for his own individual use and

who repairs, maintains or make a realty improvement for his own individual use with

his regular employees is not a prime contractor and is not liable for the tax herein.

2. Subcontractor means a person(s) contracting with a prime contractor to perform all

or part of a realty improvement the prime contractor as contracted to perform within

the jurisdiction of the Tribe.

3. Gross receipts means the amount directly received in money, without any deduction

on account of the cost of property sold, the cost of materials used, the cost of services

or labor purchased, amounts paid for interest or discounts or any other expense

whatsoever, nor may any deduction be allowed for losses.

a. Gross receipts include those materials furnished to the prime contractor or

subcontractor by the owner or the lessee of the realty improvement.

b. For the purposes of measuring the contractor’s excise tax, gross receipts include

the greater of the cost or fair market value of materials used by a contractor or

subcontractor in the performance of a contract, regardless of whether the

contractor or subcontractor owns or furnishes the materials.

67-02-12 Utility Excise Tax

A. There is imposed on each public utility and all telecommunications companies a tax of a

minimum of .0015 or two hundred and fifty dollars ($250.00) tax or a higher rate as

determined by resolution of the Tribal Council whichever is greater, upon the annual gross

Page 12 of 48

67-02-13

receipts derived by the public utility or telecommunications company from its customers

within the jurisdiction of the Tribe during the preceding calendar year.

B. On June first of each year, each company shall remit the utility excise tax and file with the

Tax Office, on forms prescribed by the Tax Commission, the amount of its gross receipts

derived from the company’s customers within the jurisdiction of the Tribe during the

preceding calendar year.

C. The following terms when used in this section shall mean:

1. Public utility means any person operating, maintaining, or controlling equipment or

facilities for the purpose of providing gas or electric to or for the public in whole or in

part, within the jurisdiction of the Tribe; or

2. Communications company means any person, trustee, lessee or receiver owning,

operating, managing or controlling in whole or in part, any communications line,

satellite television services, and cable television providers system or exchange within

the jurisdiction of the Tribe, directly or indirectly, for public use.

Manufacturing Excise Tax

For the privilege of engaging in business, an excise tax is imposed on any person(s) and or entity

engaged in manufacturing within the jurisdiction of the Tribe, and is imposed in addition to all

other taxes imposed by this Tax Code. The rate of tax imposed on gross receipts of the

manufacturing business shall be as determined by resolution of the Tribal Council.

A. The following terms when used in this Section shall mean:

1. Manufacturing means combining or processing components or materials to increase

their value for sale in the ordinary course of business, but does not include

construction.

2. Gross receipts means the total consideration received for all goods manufactured

within the jurisdiction of the Tribe, regardless of the location of the purchaser, without

any deduction on account of the cost of materials used, the cost of labor or services

purchased, amounts paid for interest or discounts, or any other expenses whatsoever,

nor shall any deductions be allowed for losses.

B. The payment of tax imposed by this subsection shall be due and payable in monthly

installments on or before the 15" day of the month next succeeding the month in which the

tax accrued. On or before the 15" day of each month, every person on whom the tax

imposed by this subsection is imposed shall file a return with the Tax Office, which shall

include the amount of gross receipts subject to the tax and a calculation of tax due for the

preceding month, in accordance with the forms and rules prescribed by the Tax Commission

and as may be necessary for the proper administration and enforcement of this Tax Code.

Page 13 of 48

67-02-14

Tourism Tax

A. The following terms when used in this Section shall mean:

67-02-14.1 Campground means but is not limited to any property or premise kept, used,

maintained, advertised, or held out to the public to be a place where sites are

available for placing of tents, campers, trailers, mobile homes, or other mobile

accommodations to transient guest. The following constitute campgrounds:

campgrounds, camping cabins, camping resorts, commercial picnic grounds,

organizational camps, park units, recreational vehicle parks, trailer parks, and

youth camps.

67-02-14.2 Recreational Service means but is not limited to any for profit business

establishment that provides leisure or recreational experiences or excursions. The

following constitute recreational services: hotel lodging, use of capital

improvements, hiking or tour guides, day camps, fishing guides, hunting guides

and outfitters, trail rides, and youth camps.

67-02-14.3 Visitor intensive business means but is not limited to any antique shop, book store,

candy store, flea market, gift shop, indigenous arts and crafts shop, jewelry,

lapidary shop, leather goods shop, marina, novelty shop, pottery shop, rock shop,

or souvenir shop.

There is hereby imposed a tourism tax of a minimum of four a percent (4%) or a higher rate

as determined by resolution of the Tribal Council on the gross receipts of:

1. Any business engaged in providing a campground facility to the public;

2. Any recreational service; and/or

3. A visitor intensive business.

There is hereby imposed a 4% tourism tax or a higher rate as determined by resolution of

the Tribal Council on the gross receipts from all hunting and fishing license fees received by

the SWO Natural Resources Department.

Section 67-02-14 C. taxes shall be collected by the SWO Natural Resources Department on

hunting and fishing license fees, shall be due and payable in monthly installments on or

before the 15 day of the month next succeeding the month in which the tax accrued. On or

before the 15" day of each month, a return shall be filed with the SWO Tax Office which

shall include the amount of gross receipts subject to the tax and a calculation of tax due for

the preceding month, in accordance with the forms and rules prescribed by the Tax

Commission and as may be necessary for the proper administration and enforcement of this

Tax Code.

Page 14 of 48

E. SWO tribal members are exempt from all tourism taxes set forth in this Section 67-02-14

pursuant to Tribal Council Motion No. 55 passed on September 12, 2012 and further

implemented by Tribal Council Resolution No. SWO-12-080.

F. The payment of tax, with the exception of the hunting and fishing license fee tax, imposed

by this subsection shall be due and payable in monthly installments on or before the 15" day

of the month next succeeding the month in which the tax accrued. On or before the 15" day

of each month, a return shall be filed with the tax remittance to the Tax Office, which shall

include the amount of gross receipts subject to the tax and a calculation of tax due for the

preceding month, in accordance with the forms and rules prescribed by the Tax Commission

and as may be necessary for the proper administration and enforcement of this Tax Code.

67-02-15 Meals Tax

A. The following terms when used in this Section shall mean:

67-02-15.1

67-02-15.2

67-02-15.3

Complimentary food or beverages means any food and/or beverage(s) provided at

no cost to a customer by a business entity, including any food and/or beverage(s)

purchased with points or reward value.

Taxable meal means any prepared food and/or beverages furnished within the

jurisdiction of the Tribe by a business and sold to the public. A taxable meal may

include prepared items for consumption on or off the premises. The following

businesses are subject to the meal tax, including; but, not limited to:

Bwhs

Dakota Magic Casino deli bar, restaurant and buffet;

Dakota Sioux Casino deli bar, restaurant and buffet;

Dakota Connection Casino deli bar and restaurant; and

Agency Village C-store restaurant and delicatessen.

Taxable meal shall not include the following food or beverages:

1.

Fruits, vegetables, candy and similar grocery items sold self-serve for take-out

or at farmers market stands;

Any food and/or beverages that is a grocery-type item furnished for take-out

such as: pies or cakes, bread; milk, whole uncooked pizzas and fully prepared

ready to eat sandwiches and other similar items that are pre-packaged for quick

sale by a food distributor company;

. Any food and/or beverages sold by a nonprofit corporation for the purpose of

raising funds for use by the nonprofit for the nonprofit charitable purposes;

Page 15 of 48

67-02-16

4. Any food and/or beverages served or furnished by a food stand at a powwow

or other public event;

5. Any food and/or beverages served or furnished by or on the premises of a

school;

6. Any food and/or beverages provided to the elderly by a tribal elderly program;

and

7. Any alcohol beverages that are subject to the tax set forth in Section 67-02-05

Alcoholic Beverages.

There is hereby levied upon all businesses subject to the meals tax a minimum of a 5% tax

on the gross receipts or a higher rate as determined by resolution of the Tribal Council.

Computation of Gross Receipts. In computing the amount of food and beverages tax

levied under this subsection, a taxpayer may exclude from the amount of gross receipts:

1. Amounts paid as a gratuity or tip and distributed to the employees of such business;

2. Food and beverage sales to the Tribe, any other Tribal government, local government,

state government or the U.S. government;

3. Meal items sold to Sisseton Wahpeton Oyate tribal members. A current tribal LD.

documenting their membership must be shown to the business at the time of the sale.

A point of sale listing for all sale transactions documenting the amount of tax exempt

gross receipts is to be kept by the business; and

4. Complimentary food or beverages.

The payment of tax imposed by this subsection shall be due and payable in monthly

installments on or before the 15" day of the month next succeeding the month in which the

tax accrued. A tax remittance form shall be filed with the tax remittance to the Tax Office,

which shall include the amount of gross receipts subject to the tax and a calculation of tax

due for the preceding month, in accordance with the forms and rules prescribed by the Tax

Commission.

Exemptions

There is hereby specifically exempted from the provisions of Part II and from computation of the

amount of tax imposed by it the following:

A. The gross receipts from sales at retail to the Tribe, or one of its political subdivisions, to the

United States, or to any other Indian Tribe; and/or,

Page 16 of 48

67-02-17

67-02-18

B. The gross receipts from casual sales.

Addition of Tax to Price of Sale of Charge for Services

Every retailer shali add the tax imposed by Sections 67-02-02 through 67-02-11 to the sale price,

service charge or rent, and every customer has the legal incidence and responsibility to pay the

tax.

The taxes collected pursuant to Sections 67-02-02 through 67-02-11 by the retailer shall be due

and payable in monthly installments on or before the 15" day of the month next succeeding the

month in which the tax accrued. On or before the 15" day of each month, a return with the SWO

Tax Office shall be filed which shall include the amount of gross receipts subject to the tax and a

calculation of tax due for the preceding month, in accordance with the forms and rules prescribed

by the Tax Commission and as may be necessary for the proper administration and enforcement

of this Tax Code.

Severability

If any clause, sentence, paragraph, section, or part of this Tax Code shall, for any reason be

adjudicated by any Court of competent jurisdiction, to be invalid or unconstitutional, such

judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its

operation to the clause, sentence, paragraph, section, or part thereof directly involved in the

controversy in which the judgment shall have been rendered.

Page 17 of 48

67-03-01

67-03-02

67-03-03

67-03-04

67-03-05

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CHAPTER 67

TAX CODE

PART IIE

USE TAX

Definitions

All the other definitions previously provided apply in this Part III with two additional definitions:

67-03-01.1 Use means the value of the materials used in the construction project, including the

delivery cost.

67-03-01.2 Purchase price means the amount of money exchanged for a transfer of property

ownership.

Tax Imposed

A minimum of 5.5% or a higher rate as determined by resolution of the Tribal Council on the

purchase price of the tangible personal property for the purpose of using, storing, distributing, or

consuming goods and services within the jurisdiction of he Tribe. Liability for payment of the

use tax is not extinguished until the tax has been paid directly to the Tax Office.

Contractors and Subcontractors Taxed on Property Used In Performance of Contract

The contractor or subcontractor shall pay a tax at the rate prescribed in Section 67-03-02, unless

such property has been previously subjected to a sales tax by the Tribe and the tax thereon has

been paid.

Collection and Remittance of Use Tax

Any contractor or subcontractor who uses, stores, or otherwise consumes any property subject to

tax hereunder shall remit and pay to the Tax Office the total tax herein imposed upon all such

property on or before the fifteenth (15") of the month following the month in which the

contractor or subcontractor uses the property in the construction process. The Use Tax is due on

the purchase price, including delivery charges.

Tribe 10% Withholding Tax

Whenever the Tribe, any political subdivision, program or agency of the Tribe, delivering

services or programs within the jurisdiction of the Tribe for the benefit of the Tribe or tribal

members enters into a contract or subcontract with any person, contractor, or subcontractor, the

Page 18 of 48

“yf

67-03-06

67-03-07

Tribe or such entity of the Tribe, shall withhold from the person, contractor or subcontractor ten

percent (10%) of the purchase price or overall contract amount.

A. The sums withheld from the person, contractor or subcontractor shall only be released and

paid upon written certification of the Vice-Chairman that all taxes due under Part III have

been paid.

B. In the event that all taxes due under Part III have not been paid, the Vice-Chairman shall

collect the taxes due from the sums withheld under this section and shall certify that such

sums that may remain after such collections of taxes may be paid to the person, contractor

or subcontractor.

C, When collection of taxes occurs pursuant to the provisions of Part IT], a person, contractor

or subcontractor shall have no legal or contract claim to receive from any entity the full

amount of ten percent (10%) withheld and shall only have a claim to receive such sums as

may remain after levy or deduction of taxes due, penalties, fees or fines, change orders,

and/or collection of liquidated damages due.

Receipt as Evidence

A tax receipt from a retailer given to the purchaser which indicates the sales tax imposed by Part

If has been paid in the form of a notation on the sales slip or receipt for the purchase price

relieves the purchaser of liability for the use tax.

Severability

If any clause, sentence, paragraph, section, or part of this Tax Code shall, for any reason be

adjudicated by any Court of competent jurisdiction, to be invalid or unconstitutional, such

judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its

operation to the clause, sentence, paragraph, section, or part thereof directly involved in the

controversy in which the judgment shall have been rendered.

Page 19 of 48

67-04-01

Definitions

CHAPTER 67

TAX CODE

PART IV

MOTOR VEHICLE FUEL TAX

The definitions contained in Part II shall apply to provisions of Part IV according to their content,

except the following words, terms, and phrases when used in Part IV shall have the meanings

ascribed to them in Sections 67-04-01.1 through 67-04-01.5,

67-04-01.1

67-04-01.2

67-04-01.3

Consumer means any person purchasing motor vehicle fuel within the jurisdiction

of the Tribe for use in a motor vehicle licensed for operation upon public roads or

highways.

Distributor or Wholesale Distributor means a person other than a retailer, who

acquires motor vehicle fuel from a supplier for subsequent wholesale distribution

in bulk or transport load by truck, railcar, or in a barrel, drum or other receptacle to

another wholesale distributor or retail dealer; provided, that a person may bring

into the jurisdiction of the Tribe an amount not to exceed thirty gallons of motor

vehicle fuel in the supply tank or another container directly connected to the motor

vehicle without becoming a distributor.

Motor vehicle fuel means the following:

A.

All products commonly or commercially known or sold as gasoline, ethyl

alcohol, methyl alcohol, and all gasoline blends. These products may include

in some quantity casinghead, absorption, natural gasoline, benzol, benzene,

naphtha, except that flashing above one hundred degrees Fahrenheit, and

Tagliabue closed cup test, which is sold and used only as cleaner's or

painter's solvent; and

Any liquid prepared, advertised, offered for sale, or sold for use as

commonly and commercially used as a fuel in internal combustion engines,

which when subjected to distillation in accordance with the standard method

of test for distillation of gasoline, naphtha, kerosene, and similar petroleum

products (American Society of Testing Material Designation D-86) shows

not less than ten percent distilled (recovered) below three hundred fortyseven degrees Fahrenheit and not less than ninety-five percent distilled

(recovered) below four hundred sixty-four degrees Fahrenheit.

Page 20 of 48

67-04-02

67-04-03

C. The term does not include liquefied gases which would not exist as liquids at

a temperature of sixty degrees Fahrenheit and a pressure of fourteen and

seven-tenths pounds per square inch absolute.

67-04-01.4 Blends means one or more petroleum products, mixed with or without another

product, regardless of the original character of the product blended, if the product

obtained by the blending is suitable for the generation of power in an internal

combustion engine or motor.

67-04-01.5 Public road or highways means every street, road, drive, highway, or thoroughfare

of any kind open to the public and intended or used for its enjoyment and for the

passage of motor vehicles.

Tax Imposed

The rate of tax imposed on motor vehicle fuel shall be as determined by resolution of the Tribal

Council.

If the Tribe has entered into an agreement with either the State of South Dakota or North Dakota

with respect to motor vehicle fuel taxation, the tax imposed by this section shall be superseded by

the terms of the agreement, where applicable.

The distributor shall collect and remit the tax imposed by this Part IV on the wholesale

distribution of motor vehicle fuel to a retailer, and on direct sales of motor vehicle fuel to

consumers or shall collect and remit the tax pursuant to any agreement or compact with either the

State of South Dakota or North Dakota, where such agreement has been executed pursuant to a

Tribal Council resolution.

The tax imposed by this section does not apply on sale by a distributor to another distributor, on

an export, or on a sale to an exempt consumer.

The person required to remit the tax imposed by this Part IV shall pass the tax on to the retailer

and to the consumer. A retailer who paid the tax to the distributor shall pass the tax on to the

consumer or shall collect and remit the tax pursuant to any agreement or compact with either the

State of South Dakota or North Dakota.

All taxes, penalties and interest collected pursuant to this Part IV shall be deposited in a special

fund designated for construction, reconstruction, repair and maintenance of tribal roads and

cleanup of pollution from petroleum spills from underground storage tanks.

A fixed percentage of the taxes collected pursuant to this Part [V may be transferred to a state

government pursuant to tribal-state tax agreement.

Monthly Return and Payment of Tax by Distributors

Page 21 of 48

The tax shall be paid in the first instance by the distributor upon the invoiced gallonage of all

motor vehicle fuel placed into any tank or other container for use, sale, or delivery, excluding

transportation, to a retailer or consumer within the jurisdiction of the tribe. The distributor shall

pass the tax on to the retailer and the retailer shall pass the tax on to the consumer or shall collect

and remit the tax pursuant to any agreement or compact with either the State of South Dakota or

North Dakota, where such agreement has been executed pursuant to a Tribal Council resolution.

The applicable fuel tax rate (s) and terms of the applicable tax agreement or compact shall takes

precedence over any related terms in Chapter 67, where such agreement has been executed

pursuant to a Tribal Council resolution.

All sales or transfers of motor vehicle fuel made by a distributor to retailers or consumers within

the jurisdiction of the Tribe shall be accompanied by a transportation bill of lading or a sales

invoice which shall be given to the retailer or consumer upon delivery of fuel.

Each distributor shall file a monthly report with the Tax Office no later than the thirtieth G0")

day of each calendar month covering motor vehicle fuel sold during the preceding calendar

month. The submitted report form(s) shall show the amount of the fuel tax to be remitted to the

Tribe.

The requirement to file a monthly report and pay the tribal tax is met where the Tribe has entered

into a tax agreement or compact with either the State of South Dakota or North Dakota and a

monthly reporting form and the Tribal tax is paid as directed by the Tribal Council.

When the thirtieth (30) day of the calendar month falls on a Saturday, Sunday, or legal holiday,

the due date is the first working day after the Saturday, Sunday or legal holiday. When the report

is field by mail, the report is timely if the envelope containing the report is postmarked by the

United States postal service or other postal carrier before midnight of the due date.

The distributor must file the return in accordance with the forms and rules prescribed by the Tax

Commission. The return must contain the information as required by the Tax Commission

including:

A. A detailed schedule of motor vehicle fuel purchased, imported and exported;

B. A detailed schedule of motor vehicle fuel sold to any person, tribal program or other

government agency eligible to purchase motor vehicle fuel without the tax imposed by the

Part IV;

C. A detailed schedule of motor vehicle fuel sold for resale, including a list of persons who

purchased such fuel;

D. The total number of gallons of motor vehicle fuel sold subject to the tax imposed by this

Part IV; and

Page 22 of 48

67-04-04

67-04-05

67-04-06

E.

The return must be signed by the distributor to be valid and must contain a written

declaration that it is made and subscribed under penalties of perjury.

Each distributor shall pay the tax due at the same time as the filing due date of the tax return.

Business License Required

It shall be unlawful for any person to act as a distributor within the jurisdiction of the Tribe,

unless such distributor obtains a Tribal Business License issued by the Vice-Chairman.

Records Required for a Period of Three Years

Each retailer selling motor vehicle fuel at retail within the jurisdiction of the Tribe shall maintain

and keep for a period of three years, records of all transactions together with invoices, delivery

tickets, bills of lading, and such other records reasonably required by the Vice-Chairman. The

records are open to inspection by the Tax Commission, Vice-Chairman or Tribal Executives

during normal business hours.

Refunds

A.

The SWO Tax Office shall collect all necessary data and documentation from the tribal

programs and submit the necessary forms to obtain a refund from the Internal Revenue

Service for federal fuel tax paid for fuel that is purchased by the Tribe and put into tribal

vehicles.

A retailer who has lost motor vehicle fuel due to a casualty loss or theft exceeding one

hundred gallons, on which the fuel tax imposed by this Part IV has been paid, shall be

refunded the amount of tax on the lost gallons, based on proof of loss as required by the

Vice-Chairman. The claim for refund must be filed within thirty (30) days after the loss is

discovered, unless the Vice-Chairman grants an extension of time for cause.

A distributor may apply for and obtain a refund for taxes paid the Tribe on any gallons of

motor vehicle fuel sold to a party who fails to pay the distributor for the product and the

taxes owed to the Tribe. Application for this refund shall be made within sixty (60) days of

the occurrence of the delinquency. Upon application, all unpaid taxes of the delinquent

party become due and owing. The application for refund may include all taxes credited to

the delinquent party since the occurrence of the delinquency. To qualify for a refund, the

distributor shall supply the Vice-Chairman sufficient evidence and testimony to enforce any

tax collection action by the Vice-Chairman. Upon application of this refund, the Vice-

Chairman may make an assessment and take collection action against the purchaser of the

fuel in accordance with the provisions of Part VII. The distributor is only eligible for a

refund for the taxes not paid by a customer once every three (3) years. The distributor is

Page 23 of 48

67-04-07

67-04-08

responsible for the tax on all sales to a delinquent purchaser that take place after the

application for a refund is made and is not eligible for further refunds.

D. Any person who buys and uses motor vehicle fuel for a qualifying purpose other than use in

motor vehicles or motorboats, and who paid the tax directly or indirectly through the

amount of the tax being included in the price of the motor vehicle fuel, or otherwise, may

obtain a refund of the tax paid upon filing with the Tax Office a claim for refund in the form

and manner prescribed by the Tax Commission, and containing the information the Tax

Commission shall require. By signing any such claim which is false or fraudulent, the

applicant shall be subject to the penalties provided in this Chapter 67 for knowingly making

a false claim. The claim shall set forth the total amount of motor vehicle fuel so purchased

and used by the applicant other than in motor vehicles or motor boats, and shall state when

and for what purpose it was used. When a claim contains an error in computation or

preparation, the Tax Office is authorized to adjust the claim in accordance with the evidence

shown on the claim or other information available to the Tax Office. The Tax Office, on

being satisfied that the claimant is entitled to the payments, shall transmit it to the Vice-

Chairman for approval.

E. Motor vehicle fuel bought and used for a “qualifying purpose” means motor vehicle fuel

used in carrying on a trade or business, used on a farm or ranch situated within the

jurisdiction of the Tribe, and used for an agricultural purpose. Motor vehicle fuel shall be

treated as used for agricultural purposes only if used by the applicant in connection with

cultivating the soil, or in connection with raising or harvesting any agricultural or

horticultural commodity, including, but not limited to, the raising, shearing, feeding, caring

for, training, and management of livestock, bees, poultry, and fur-bearing animals and

wildlife, on a farm or ranch of which the applicant is the owner, tenant, or operator.

Compliance

Program managers shall be responsible for submitting the fuel receipts and fuel logs on a monthly

basis. The receipts and logs are due in the SWO Tax Office before the end of the month for the

previous month’s purchase transactions by tribal programs for fuel put into tribal vehicles.

Failure to comply with this section shall result in progressive disciplinary action.

Tax Collection Allowance

Any distributor who properly remits tax under this Part IV shall be entitled to deduct and

withhold from the amount of tax which would otherwise be due one and one-half percent to

reimburse the distributor for the expense incurred on behalf of the Tribe in collecting and

remitting motor vehicle fuel taxes, and for loss from evaporation, handling, spillage and

shrinkage. This provision does not apply to additional tax assessed during an audit. This

allowance is permitted contingent and only if the distributor files all required fuel tax reports and

remits the taxes due before the due date for the report and taxes.

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67-04-09

67-04-10

67-04-11

Inventory Gains

The Vice-Chairman may allow a tax credit to a distributor for actual inventory losses due to a

casualty loss or theft exceeding one hundred gallons, based on proof of loss as required by the

Vice-Chairman. The distributor must notify the Vice-Chairman in writing of the loss within

thirty (30) days after the loss is discovered or the claim for credit is barred, unless the Vice-

Chairman grants an extension of time for cause.

Disposition of Proceeds of Tax

The money received by the Tax Office from the motor vehicle fuel taxes imposed by Part IV,

after deducting the cost of administration and collection authorized by the Tribal Council

appropriation only, shall be credited to a motor vehicle fuel tax fund and used solely for snow

removal and the construction, improvement, maintenance and repair of roads, bridges and

highways, and subject to such other provisions and restrictions as provided by Tribal Law.

Severability

If any clause, sentence, paragraph, section, or part of this Tax Code shall, for any reason be

adjudicated by any Court of competent jurisdiction, to be invalid or unconstitutional, such

judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its

operation to the clause, sentence, paragraph, section, or part thereof directly involved in the

controversy in which the judgment shall have been rendered.

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This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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