N.Y. Tax Law § 284-E — Taxes imposed on qualified reservations

§ 284-e. Taxes imposed on qualified reservations. 1. General. (a)\nNotwithstanding any other provision of this article to the contrary\nqualified Indians may purchase motor fuel or Diesel motor fuel for such\nqualified Indians' own use or consumption exempt from the motor fuel tax\nor Diesel motor fuel tax on their nations' or tribes' qualified\nreservations. However, such qualified Indians purchasing motor fuel or\nDiesel motor fuel off their reservations or on another nation's or\ntribe's reservation, and non-Indians making motor fuel or Diesel motor\nfuel purchases on an Indian reservation shall not be exempt from paying\nthe motor fuel tax or Diesel motor fuel tax when purchasing motor fuel\nor Diesel motor fuel within this state. Accordingly, all motor fuel and\nDiesel motor fuel sold on an Indian reservation to non-members of the\nnation or tribe or to non-Indians shall be taxed.\n (b) In order to ensure an adequate quantity of motor fuel and Diesel\nmotor fuel on Indian reservations which may be purchased by qualified\nIndians exempt from the motor fuel tax and Diesel motor fuel tax, the\ndepartment shall provide Indian nations and tribes within this state\nwith Indian tax exemption coupons as set forth in this section. A\nreservation motor fuel seller shall be able to present such Indian tax\nexemption coupons to a distributor licensed pursuant to this article in\norder to purchase motor fuel or Diesel motor fuel exempt from the\nimposition of the motor fuel tax or Diesel motor fuel tax. Qualified\nIndians may purchase motor fuel or Diesel motor fuel from a reservation\nmotor fuel seller exempt from the motor fuel tax or Diesel motor fuel\ntax even though the motor fuel tax or Diesel motor fuel tax on such\nmotor fuel or Diesel motor fuel will have been previously paid or\nassumed by, or passed through to such distributor.\n 2. Indian tax exemption coupons. (a) Indian tax exemption coupons\nshall be provided to the recognized governing body of each Indian nation\nor tribe to ensure that each Indian nation or tribe can obtain motor\nfuel and Diesel motor fuel upon which the tax shall not be collected\nthat is for the use or consumption by the nation or tribe or by the\nmembers of such nation or tribe. The Indian tax exemption coupons shall\nbe provided to the Indian nations or tribes on a quarterly basis for\neach of the four quarters beginning with the first day of December,\nMarch, June, and September. It is intended that the Indian nations or\ntribes will retain the amount of Indian tax exemption coupons they will\nneed each quarter to purchase motor fuel and Diesel motor fuel for\nofficial nation or tribal use, and will distribute the remaining Indian\ntax exemption coupons to reservation motor fuel sellers on such nations'\nor tribes' qualified reservations. Only Indian nations or tribes or\nreservation motor fuel sellers on their qualified reservations may\nredeem such Indian tax exemption coupons pursuant to this section.\n (b) The amount of Indian tax exemption coupons to be given to the\nrecognized governing body of each Indian nation or tribe shall be based\nupon the probable demand of the qualified Indians on such nation's or\ntribe's qualified reservation plus the amount needed for official nation\nor tribal use.\n (i) Probable demand shall be determined by reference to, among other\ndata, the United States average motor fuel and Diesel motor fuel\nconsumption per capita, as compiled for the most recently completed\ncalendar or fiscal year, multiplied by the number of qualified Indians\nfor each such affected Indian nation or tribe.\n (ii) In making a determination of probable demand, the department\nshall take into consideration any evidence submitted by such recognized\ngoverning body relating to such probable demand (e.g., a verified record\nof previous sales to qualified Indians or other statistical evidence)\nand/or relating to the amount needed for such nation's or tribe's\nofficial use.\n (c) Each Indian tax exemption coupon shall consist of a retention\nportion for a distributor's recordkeeping purposes and a redemption\nportion for a distributor's submission to the department when claiming a\nrefund as set forth in paragraph (a) of subdivision four of this\nsection, and shall contain the following information:\n (i) the identity of the Indian nation or tribe to which it is issued;\n (ii) the identity and the quantity of the product for which it is\nissued;\n (iii) the date of issuance and the date of expiration; and\n (iv) any other information as the commissioner may deem appropriate.\n 3. Tax exempt purchases. (a) An Indian nation or tribe may purchase\nmotor fuel and Diesel motor fuel for its own official use or consumption\nfrom a distributor registered pursuant to this article without payment\nof the motor fuel tax or Diesel motor fuel tax to the extent that the\nIndian nation or tribe provides such distributor with Indian tax\nexemption coupons entitling the Indian nation or tribe to purchase such\nquantities of motor fuel and Diesel motor fuel as allowed for on each\nIndian tax exemption coupon without paying the motor fuel tax or Diesel\nmotor fuel tax.\n (b) A qualified Indian may purchase motor fuel and Diesel motor fuel\nfor his or her own use or consumption without payment of the motor fuel\ntax or Diesel motor fuel tax, provided that the qualified Indian makes\nsuch purchase at a qualified reservation.\n (c) A reservation motor fuel seller may purchase motor fuel and Diesel\nmotor fuel for resale without payment of the motor fuel tax or Diesel\nmotor fuel tax from a distributor registered pursuant to this article:\n (i) provided that such reservation motor fuel seller brings such motor\nfuel or Diesel motor fuel or causes it to be delivered onto a qualified\nreservation for resale on such reservation; and\n (ii) to the extent that such reservation motor fuel seller provides\nsuch distributor with Indian tax exemption coupons entitling the\nreservation motor fuel seller to purchase such quantities of motor fuel\nand Diesel motor fuel as allowed for on each Indian tax exemption coupon\nwithout paying the motor fuel tax or Diesel motor fuel tax.\n (d) A distributor shall not collect or pass through, as the case may\nbe, the motor fuel tax or Diesel motor fuel tax from any purchaser to\nthe extent the purchaser gives such distributor Indian tax exemption\ncoupons entitling the purchaser to purchase such quantities of motor\nfuel or Diesel motor fuel as allowed for on each such Indian tax\nexemption coupon without paying the motor fuel tax or Diesel motor fuel\ntax.\n 4. Refunds and credits. (a) A distributor registered pursuant to this\narticle who has one or more Indian tax exemption coupons may file a\nclaim for refund or credit as provided for in section two hundred\neighty-nine-c of this article with respect to any motor fuel tax or\nDiesel motor fuel tax it previously paid, assumed, or has had passed\nthrough to it on motor fuel or Diesel motor fuel it sold without passing\nthrough the tax because it accepted an Indian tax exemption coupon from\nits purchaser.\n (b) A distributor of motor fuel or Diesel motor fuel shall report\nmotor fuel or Diesel motor fuel sold to an Indian nation or tribe or a\nreservation motor fuel seller in its monthly return of tax on motor fuel\nor Diesel motor fuel and may deduct the quantity so sold in arriving at\nthe net taxable gallonage to the extent such fuel was sold without\npassing through to such purchasers the motor fuel tax or Diesel motor\nfuel tax.\n 5. Tax agreements with Indian nations or tribes. If an Indian nation\nor tribe enters into an agreement with the state and the legislature\napproves such agreement regarding the sale and distribution of motor\nfuel or Diesel motor fuel on the nation's or tribe's qualified\nreservation, the terms of such agreement shall take precedence over the\nprovisions of this article and exempt such nation from such taxes to the\nextent that such taxes are specifically referred to in the agreement,\nand the sale or distribution, including transportation, of any motor\nfuel or Diesel motor fuel to the nation's or tribe's qualified\nreservation shall be in accordance with the provisions of such\nagreement.\n