Wis. Admin. Code § Tax 9.09 — Cigarette sales to and by Indians on reservations of tribes that have not entered into a refund agreement with the department

Tax 9.09(1) (1) Scope. This section applies to sales of cigarettes to and by Indians and Indian retailers on the reservations of tribes who have not entered into agreements under s. 139.325 , Stats., with the department for refunds of precollected taxes on stamped cigarettes.

Tax 9.09(2) (2) Sales to Indians for sale to resident tribal members.

Tax 9.09(2)(a) (a) A Wisconsin cigarette distributor permittee may sell untaxed cigarettes to an Indian retailer if the untaxed cigarettes are to be sold to resident tribal members on the reservation. If this occurs:

Tax 9.09(2)(a)1. 1. The cigarettes shall be delivered by the distributor to the purchaser on the reservation.

Tax 9.09(2)(a)2. 2. The Wisconsin cigarette distributor shall retain, for a period of 2 years from the date of sale, proof that all of the sales were to a qualified Indian retailer. Either of the following types of proof shall be retained:

Tax 9.09(2)(a)2.a. a. A purchase order issued by an Indian tribal council on its letterhead.

Tax 9.09(2)(a)2.b. b. A photocopy of the written authorization to traffic in cigarettes issued to the Indian retailer by the tribal council of the reservation to which the cigarettes are to be delivered.

Tax 9.09(2)(a)3. 3. The Wisconsin cigarette distributor shall list all sales of untaxed cigarettes to Indian purchasers on form CT-103 as “Out-of-State Sales.”

Tax 9.09(2)(b) (b) The Wisconsin cigarette distributor may not sell untaxed cigarettes to an Indian retailer if the department has notified the distributor that the untaxed cigarettes are being sold to persons other than resident tribal members.

Tax 9.09(3) (3) Sales to Indians for sale to persons other than resident tribal members. A Wisconsin cigarette distributor shall sell only stamped cigarettes to an Indian retailer if the cigarettes are to be sold to persons other than resident tribal members.

Tax 9.09(4) (4) Sales by Indians to resident tribal members. An Indian retailer may sell untaxed cigarettes to resident tribal members on the reservation.

Tax 9.09(5) (5) Sales by Indians to persons other than resident tribal members. An Indian retailer shall sell only stamped cigarettes to persons other than resident tribal members.

Tax 9.09(6) (6) Records for sales by Indians. The Indian retailer shall keep detailed records of both taxable and nontaxable transactions and shall record the number and dollar amounts of taxable sales to nonmembers of the tribe. With respect to nontaxable sales, the retailer shall record and retain for state inspection the names of all Indian purchasers, their tribal affiliations, the Indian reservation within which sales are made, and the number, dollar amounts and dates of sales. In addition, unless the Indian purchaser is personally known to the retailer, he or she shall present a tribal identification card.

Tax 9.09(7) (7) Refunds. If all the statutory requirements of s. 139.323 , Stats., are fulfilled in accordance with s. Tax 9.08 (2) , (3) and (4) , the department shall refund 70% of the tax collected under s. 139.31 (1) , Stats., to the tribal council.