N.Y. Tax Law § 471-E — Taxes imposed on qualified reservations

§ 471-e. Taxes imposed on qualified reservations. 1. Indian tax\nexemption coupon system. (a) Notwithstanding any provision of this\narticle to the contrary qualified Indians may purchase cigarettes for\nsuch qualified Indians' own use or consumption exempt from cigarette tax\non their nations' or tribes' qualified reservations. However, such\nqualified Indians purchasing cigarettes off their reservations or on\nanother nation's or tribe's reservation, and non-Indians making\ncigarette purchases on an Indian reservation shall not be exempt from\npaying the cigarette tax when purchasing cigarettes within this state.\nAccordingly, all cigarettes sold on an Indian reservation to non-members\nof the nation or tribe or to non-Indians shall be taxed, and evidence of\nsuch tax will be by means of an affixed cigarette tax stamp.\n (b) In order to ensure an adequate quantity of cigarettes on Indian\nreservations which may be purchased by qualified Indians exempt from the\ncigarette tax, the recognized governing body of an Indian nation or\ntribe may annually elect to participate in the Indian tax exemption\ncoupon system for that year. If the recognized governing body of an\nIndian nation or tribe elects within the time specified by the\ndepartment to participate in the Indian tax exemption coupon system for\nthat year, the department shall provide the Indian nation or tribe with\nIndian tax exemption coupons as set forth in this section. If the\nrecognized governing body of an Indian nation or tribe does not elect to\nparticipate in the Indian tax exemption coupon system for that year or\ndoes not make this election for that year within the time specified by\nthe department, no Indian tax exemption coupons will be provided to that\nIndian nation or tribe for that year. Instead, for that year, the prior\napproval system set forth in paragraph (b) of subdivision five of\nsection four hundred seventy-one of this article shall be used. When the\nrecognized governing body of an Indian nation or tribe elects to use the\nIndian tax exemption coupon system for a year, an Indian nation or tribe\nand a reservation cigarette seller shall be able to present such Indian\ntax exemption coupons to a wholesale dealer licensed pursuant to this\narticle in order to purchase stamped cigarettes exempt from the\nimposition of the cigarette tax. Qualified Indians may purchase\ncigarettes from a reservation cigarette seller exempt from the cigarette\ntax even though such cigarettes will have an affixed cigarette tax\nstamp.\n 2. Indian tax exemption coupons. (a) If the recognized governing body\nof an Indian nation or tribe timely elects to participate in the Indian\ntax exemption coupon system for that year, Indian tax exemption coupons\nshall be provided to the recognized governing body of such Indian nation\nor tribe to ensure that such Indian nation or tribe can obtain\ncigarettes upon which the tax will not be collected that are for the use\nor consumption by the nation or tribe or by the members of such nation\nor tribe. The Indian tax exemption coupons shall be provided to such\nIndian nations or tribes on a quarterly basis for each of the four\nquarters beginning with the first day of December, March, June, and\nSeptember of that year. It is intended that the Indian nations or tribes\nwill retain the amount of Indian tax exemption coupons they will need\neach quarter to purchase cigarettes for official nation or tribal use,\nand will distribute the remaining Indian tax exemption coupons to\nreservation cigarette sellers on such nations' or tribes' qualified\nreservations. Only Indian nations or tribes or reservation cigarette\nsellers on their qualified reservations may redeem such Indian tax\nexemption 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 cigarette consumption per capita, as\ncompiled for the most recently completed calendar or fiscal year,\nmultiplied by the number of qualified Indians for each such affected\nIndian 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 verifiable\nrecord of previous sales to qualified Indians or other statistical\nevidence) and/or relating to the amount needed for such nation's or\ntribe's official use.\n (c) Each Indian tax exemption coupon shall consist of a retention\nportion for a wholesale dealer's recordkeeping purposes and a redemption\nportion for a wholesale dealer's submission to the department when\nclaiming a refund as set forth in subdivision four of this section, and\nshall 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 purchaser. (a) An Indian nation or tribe may purchase\ncigarettes for its own official use or consumption from a wholesale\ndealer licensed pursuant to this article without payment of the\ncigarette tax to the extent that the Indian nation or tribe provides\nsuch wholesale dealer with Indian tax exemption coupons entitling the\nIndian nation or tribe to purchase such quantities of cigarettes as\nallowed for on each Indian tax exemption coupon without paying the\ncigarette tax.\n (b) A qualified Indian may purchase cigarettes for his or her own use\nor consumption without payment of the cigarette tax, provided that the\nqualified Indian makes such purchase on a qualified reservation.\n (c) A reservation cigarette seller may purchase cigarettes for resale\nwithout payment of the cigarette tax from a wholesale dealer licensed\npursuant to this article:\n (i) provided that such reservation cigarette seller brings such\ncigarettes or causes them to be delivered onto a qualified reservation\nfor resale on such reservation;\n (ii) to the extent that such reservation cigarette seller provides\nsuch wholesale dealer with Indian tax exemption coupons entitling the\nreservation cigarette seller to purchase such quantities of cigarettes\nas allowed for on each Indian tax exemption coupon without paying the\ncigarette tax; and\n (iii) provided that such cigarettes are affixed with a cigarette tax\nstamp.\n (d) Wholesale dealers shall sell only tax-stamped cigarettes to Indian\nnations and tribes, reservation cigarette sellers and all other\npurchasers, but shall not collect the cigarette tax from any purchaser\nto the extent the purchaser gives such wholesale dealer Indian tax\nexemption coupons entitling the purchaser to purchase such quantities of\ncigarettes as allowed for on each such Indian tax exemption coupon\nwithout paying the cigarette tax.\n 4. Refunds. A wholesale dealer licensed pursuant to this article who\nhas one or more Indian tax exemption coupons may file a claim for refund\nas provided for in section four hundred seventy-six of this article with\nrespect to any cigarette tax previously paid on cigarettes it sold\nwithout collecting the tax because it accepted an Indian tax exemption\ncoupon from its purchaser pursuant to this section.\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\ncigarettes on the nation's or tribe's qualified reservation, the terms\nof such agreement shall take precedence over the provisions of this\narticle and exempt such nation from such taxes to the extent that such\ntaxes are specifically referred to in the agreement, and the sale or\ndistribution, including transportation, of any cigarettes to the\nnation's or tribe's qualified reservation shall be in accordance with\nthe provisions of such agreement.\n 6. The failure of the department to establish, issue and provide\nIndian tax exemption coupons, pursuant to subdivisions one and two of\nthis section, or to promulgate any rules, regulations or directives\nnecessary to implement the provisions of this section, shall not relieve\nwholesale dealers of the obligation to sell only tax-stamped cigarettes\nto Indian nations and tribes, and to reservation cigarette sellers.\n