N.Y. Tax Law 284-E – Taxes imposed on qualified reservations
§ 284-e. Taxes imposed on qualified reservations. 1. General. (a) Notwithstanding any other provision of this article to the contrary qualified Indians may purchase motor fuel or Diesel motor fuel for such qualified Indians' own use or consumption exempt from the motor fuel tax or Diesel motor fuel tax on their nations' or tribes' qualified reservations. However, such qualified Indians purchasing motor fuel or Diesel motor fuel off their reservations or on another nation's or tribe's reservation, and non-Indians making motor fuel or Diesel motor fuel purchases on an Indian reservation shall not be exempt from paying the motor fuel tax or Diesel motor fuel tax when purchasing motor fuel or Diesel motor fuel within this state. Accordingly, all motor fuel and Diesel motor fuel sold on an Indian reservation to non-members of the nation or tribe or to non-Indians shall be taxed.
Terms Used In N.Y. Tax Law 284-E
- Diesel motor fuel: shall mean No. See N.Y. Tax Law 282
- distributor: means any person, firm, association or corporation, who or which imports or causes to be imported into the state, for use, distribution, storage or sale within the state, any motor fuel; and also any person, firm, association or corporation who or which produces, refines, manufactures or compounds motor fuel within the state. See N.Y. Tax Law 282
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- Indian nation or tribe: means one of the following New York state Indian nations or tribes: Cayuga Nation, Oneida Nation of New York, Onondaga Nation, Poospatuck or Unkechauge Nation, Saint Regis Mohawk Tribe, Seneca Nation of Indians, Shinnecock Indian Nation, Tonawanda Band of Seneca and Tuscarora Nation. See N.Y. Tax Law 282
- Motor fuel: means gasoline, benzol, reformulated blend stock for oxygenate blending, conventional blend stock for oxygenate blending, E85, fuel grade ethanol that meets the ASTM International active standards specifications D4806 or D4814 or other product which is suitable for use in operation of a motor vehicle engine. See N.Y. Tax Law 282
- Purchaser: shall include , in addition to its usual meaning, the distributor in the case of transfer of motor fuel by a distributor from his, their or its stock, into a motor vehicle, or into a container from which motor fuel is supplied by the distributor to a motor vehicle or vehicles of the distributor or of others. See N.Y. Tax Law 282
- Qualified reservation: means (a) lands held by an Indian nation or tribe that is located within the reservation of that nation or tribe in the state;
(b) lands within the state over which an Indian nation or tribe exercises governmental power and that are either (i) held by the Indian nation or tribe subject to restrictions by the United States against alienation, or (ii) held in trust by the United States for the benefit of such Indian nation or tribe;
(c) lands held by the Shinnecock Tribe or the Poospatuck (Unkechauge) Nation within their respective reservations; or
(d) any land that falls within paragraph (a) or (b) of this subdivision, and which may be sold and replaced with other land in accordance with an Indian nation's or tribe's land claims settlement agreement with the state of New York, shall nevertheless be deemed to be subject to restriction by the United States against alienation. See N.Y. Tax Law 282 - Reservation motor fuel seller: means a seller of motor fuel or Diesel motor fuel which is an Indian nation or tribe, one or more members of such tribe, or an entity wholly owned by either or both, which sells motor fuel within the boundaries of a qualified reservation. See N.Y. Tax Law 282
- Sale: shall include , in addition to its meaning under article twenty-eight of this chapter, the transfer of fuel by a distributor into a motor vehicle or into a receptacle from which fuel is supplied by him or it to his or its own or other motor vehicles. See N.Y. Tax Law 282
(b) In order to ensure an adequate quantity of motor fuel and Diesel motor fuel on Indian reservations which may be purchased by qualified Indians exempt from the motor fuel tax and Diesel motor fuel tax, the department shall provide Indian nations and tribes within this state with Indian tax exemption coupons as set forth in this section. A reservation motor fuel seller shall be able to present such Indian tax exemption coupons to a distributor licensed pursuant to this article in order to purchase motor fuel or Diesel motor fuel exempt from the imposition of the motor fuel tax or Diesel motor fuel tax. Qualified Indians may purchase motor fuel or Diesel motor fuel from a reservation motor fuel seller exempt from the motor fuel tax or Diesel motor fuel tax even though the motor fuel tax or Diesel motor fuel tax on such motor fuel or Diesel motor fuel will have been previously paid or assumed by, or passed through to such distributor.
2. Indian tax exemption coupons. (a) Indian tax exemption coupons shall be provided to the recognized governing body of each Indian nation or tribe to ensure that each Indian nation or tribe can obtain motor fuel and Diesel motor fuel upon which the tax shall not be collected that is for the use or consumption by the nation or tribe or by the members of such nation or tribe. The Indian tax exemption coupons shall be provided to the Indian nations or tribes on a quarterly basis for each of the four quarters beginning with the first day of December, March, June, and September. It is intended that the Indian nations or tribes will retain the amount of Indian tax exemption coupons they will need each quarter to purchase motor fuel and Diesel motor fuel for official nation or tribal use, and will distribute the remaining Indian tax exemption coupons to reservation motor fuel sellers on such nations' or tribes' qualified reservations. Only Indian nations or tribes or reservation motor fuel sellers on their qualified reservations may redeem such Indian tax exemption coupons pursuant to this section.
(b) The amount of Indian tax exemption coupons to be given to the recognized governing body of each Indian nation or tribe shall be based upon the probable demand of the qualified Indians on such nation's or tribe's qualified reservation plus the amount needed for official nation or tribal use.
(i) Probable demand shall be determined by reference to, among other data, the United States average motor fuel and Diesel motor fuel consumption per capita, as compiled for the most recently completed calendar or fiscal year, multiplied by the number of qualified Indians for each such affected Indian nation or tribe.
(ii) In making a determination of probable demand, the department shall take into consideration any evidence submitted by such recognized governing body relating to such probable demand (e.g., a verified record of previous sales to qualified Indians or other statistical evidence) and/or relating to the amount needed for such nation's or tribe's official use.
(c) Each Indian tax exemption coupon shall consist of a retention portion for a distributor's recordkeeping purposes and a redemption portion for a distributor's submission to the department when claiming a refund as set forth in paragraph (a) of subdivision four of this section, and shall contain the following information:
(i) the identity of the Indian nation or tribe to which it is issued;
(ii) the identity and the quantity of the product for which it is issued;
(iii) the date of issuance and the date of expiration; and
(iv) any other information as the commissioner may deem appropriate.
3. Tax exempt purchases. (a) An Indian nation or tribe may purchase motor fuel and Diesel motor fuel for its own official use or consumption from a distributor registered pursuant to this article without payment of the motor fuel tax or Diesel motor fuel tax to the extent that the Indian nation or tribe provides such distributor with Indian tax exemption coupons entitling the Indian nation or tribe to purchase such quantities of motor fuel and Diesel motor fuel as allowed for on each Indian tax exemption coupon without paying the motor fuel tax or Diesel motor fuel tax.
(b) A qualified Indian may purchase motor fuel and Diesel motor fuel for his or her own use or consumption without payment of the motor fuel tax or Diesel motor fuel tax, provided that the qualified Indian makes such purchase at a qualified reservation.
(c) A reservation motor fuel seller may purchase motor fuel and Diesel motor fuel for resale without payment of the motor fuel tax or Diesel motor fuel tax from a distributor registered pursuant to this article:
(i) provided that such reservation motor fuel seller brings such motor fuel or Diesel motor fuel or causes it to be delivered onto a qualified reservation for resale on such reservation; and
(ii) to the extent that such reservation motor fuel seller provides such distributor with Indian tax exemption coupons entitling the reservation motor fuel seller to purchase such quantities of motor fuel and Diesel motor fuel as allowed for on each Indian tax exemption coupon without paying the motor fuel tax or Diesel motor fuel tax.
(d) A distributor shall not collect or pass through, as the case may be, the motor fuel tax or Diesel motor fuel tax from any purchaser to the extent the purchaser gives such distributor Indian tax exemption coupons entitling the purchaser to purchase such quantities of motor fuel or Diesel motor fuel as allowed for on each such Indian tax exemption coupon without paying the motor fuel tax or Diesel motor fuel tax.
4. Refunds and credits. (a) A distributor registered pursuant to this article who has one or more Indian tax exemption coupons may file a claim for refund or credit as provided for in section two hundred eighty-nine-c of this article with respect to any motor fuel tax or Diesel motor fuel tax it previously paid, assumed, or has had passed through to it on motor fuel or Diesel motor fuel it sold without passing through the tax because it accepted an Indian tax exemption coupon from its purchaser.
(b) A distributor of motor fuel or Diesel motor fuel shall report motor fuel or Diesel motor fuel sold to an Indian nation or tribe or a reservation motor fuel seller in its monthly return of tax on motor fuel or Diesel motor fuel and may deduct the quantity so sold in arriving at the net taxable gallonage to the extent such fuel was sold without passing through to such purchasers the motor fuel tax or Diesel motor fuel tax.
5. Tax agreements with Indian nations or tribes. If an Indian nation or tribe enters into an agreement with the state and the legislature approves such agreement regarding the sale and distribution of motor fuel or Diesel motor fuel on the nation's or tribe's qualified reservation, the terms of such agreement shall take precedence over the provisions of this article and exempt such nation from such taxes to the extent that such taxes are specifically referred to in the agreement, and the sale or distribution, including transportation, of any motor fuel or Diesel motor fuel to the nation's or tribe's qualified reservation shall be in accordance with the provisions of such agreement.