Nottawaseppi Huron Band of the Potawatomi, MI
Calhoun County
By using eCode360 you agree to be legally bound by the Terms of Use. If you do not agree to the Terms of Use, please do not use eCode360.
Table of Contents
Table of Contents
[HISTORY: Adopted by the Tribal Council of the Nottawaseppi Huron Band of the Potawatomi 7-15-2009 by Res. No. 07-15-09-04 (Title X, Ch. 2, of the Tribal Code). Amendments noted where applicable.]

§ 10.3-1 Purpose.

The purpose of this article of the Retail Sales and Food and Beverage Tax Code is to raise governmental revenues and to provide for the assessment and collection of a tax on retail sales as specified in this article. The scope of the tax levied under this article is to be broadly interpreted. The incidence of this tax falls upon the purchaser of retail goods on tribal lands, not upon the seller of those retail goods.

§ 10.3-2 Definitions.

For purposes of the taxes covered by this article, the following terms have the meanings assigned to them in this section:
COLLECTION AGENT
Any seller of retail goods on tribal and trust lands responsible for collecting the taxes levied under the terms of this article.
GAAP
United States generally accepted accounting principles consistently applied to tribal government operations as set out in Governmental Accounting Standards Board statements.
PERSON
Any natural person, corporation, limited liability company, other business entity, or any government and its political subdivisions or instrumentality.
PURCHASER
Any person that purchases retail goods.
RESIDENT TRIBAL MEMBER
A tribal member whose principal place of residence is located within the Tax Agreement Area.
RETAIL SALES TAX
The tax imposed under the terms of this article of the chapter.
SALES AT RETAIL or RETAIL SALE
A sale, lease or rental of tangible personal property for any purpose other than for resale, sublease or subrent.
STATE
The State of Michigan.
TAX AGREEMENT
The tax agreement between the Nottawaseppi Huron Band of the Potawatomi and the State of Michigan, dated December 20, 2002, as the same may be amended from time to time.[1]
TAX AGREEMENT AREA
The area designated as such in Appendix A of the tax agreement, as the same may be amended from time to time.[2]
TAX DEPARTMENT
The division of the tribal government charged with the implementation and administration of this article.
TRIBAL AND TRUST LANDS
All fee lands owned by the Tribe and lands held in trust by the federal government for the benefit of the Tribe, which are designated as tribal and trust lands in Appendix A of the tax agreement, as the same may be amended from time to time.[3]
TRIBAL ENTITY
Any entity, other than a single resident tribal member or an entity wholly owned by the Tribe, that is wholly owned by any combination of the Tribe and its resident tribal members or is wholly owned by its resident tribal members.
TRIBAL GAMING FACILITY
Any place, facility or location licensed under § 8.5-6 of the Tribal Code, and operated under the Tribe's Class III Gaming Compact with the state.
TRIBAL MEMBER
An individual who is an enrolled member of the Tribe.
TRIBE
The Nottawaseppi Huron Band of the Potawatomi. The term "Tribe" includes all divisions or subdivisions of the tribal government and business enterprises, including chartered entities or instrumentalities, that are wholly owned by the Tribe.
[1]
Editor's Note: See Ch. 10.1, Tax Agreement, of this Tribal Code.
[2]
Editor's Note: Said Appendix A is attached to Ch. 10.1, Tax Agreement, of this Tribal Code.
[3]
Editor's Note: Said Appendix A is attached to Ch. 10.1, Tax Agreement, of this Code.

§ 10.3-3 Imposition and rate of tax; tax added to selling price; exemptions and records of exempt retail sales.

A. 
Imposition and rate of tax. A retail sales tax, equal to 6% of the selling price of any retail sale on tribal and trust lands, will be levied and collected. The retail sales tax will be paid by the purchaser of the retail goods, who shall bear the burden of the tax; collected by the collection agent; and delivered to the tax authority referenced under the terms of this article.
B. 
Tax added to selling price. Every collection agent will add the amount of the retail sales tax to the total selling price of the retail sale. The retail sales tax will be stated separately on any sales receipts or slips, charge tickets, invoices, statements of account, or other tangible evidence of sale.
C. 
Exemptions. The following sales of tangible personal property are exempt from application of the tax imposed under this article:
(1) 
Retail sales of tangible personal property provided on a complimentary basis;
(2) 
Retail sales to the Tribe of tangible personal property, if the transaction takes place and the property is used exclusively within tribal and trust land;
(3) 
Retail sales to the Tribe of tangible personal property that is primarily used (95% or more) in performing a tribal governmental function if the transaction takes place within the Agreement Area, regardless of where the tangible personal property is used. Tribal government functions under the tax agreement include public safety and conservation, environmental services, Tribal Judiciary, Tribal Legislature, Tribal Executive administrative activity, public welfare and other social services, education, health services, housing and housing services, casino gaming, and other similar functions customarily performed by state and local units of government;
(4) 
Retail sales of tangible personal property to a resident tribal member or resident tribal member's business or tribal entity for a business purpose on tribal or trust lands, provided that the resident tribal member or entity certifies that the item(s) purchased will be used or consumed entirely at its business location on tribal and trust lands;
(5) 
Retail sales of tangible personal property, other than gasoline, diesel fuel, cigarettes and other tobacco products, to a resident tribal member for his/her personal use within the Tax Agreement Area;
(6) 
Retail sales of passenger vehicles, including automobiles, pickup trucks, recreational vehicles, motorcycles, recreational watercraft, snowmobiles and off-road vehicles to a resident tribal member;
(7) 
Retail sales of modular or mobile homes to resident tribal members for use as their principal residence;
(8) 
Retail sales of construction materials to a resident tribal member that are purchased, used or acquired in the performance of a contract for construction of, or improvement to, his/her principal residence on tribal and trust lands;
(9) 
Retail sales of vans and buses to the Tribe or tribal entity for use in transporting passengers to and from any location within a twenty-five-mile radius of any tribal gaming facility;
(10) 
Retail sales of cigarettes and other tobacco products to a resident tribal member, to the extent those sales are of product that has been purchased without imposition of state tobacco products taxes;
(11) 
Retail sales of gasoline and diesel fuel to the Tribe or a resident tribal member, to the extent those sales are of product that has been purchased without imposition of motor fuels taxes;
(12) 
Retail sales of construction materials to a tribal entity that are purchased, used or acquired in the performance of a contract for construction, renovation or improvement of tribal and trust lands, if there is no contractual entitlement for a nonresident tribal member or nontribal entity to remove the improvement(s);
(13) 
Retail sales of electricity, natural gas, artificial gas, home heating fuels and all transmission and distribution charges, if the product is delivered to:
(a) 
Land owned by the Tribe or held in trust by the federal government for the benefit of the Tribe, a tribal entity or tribal member and is within tribal and trust lands;
(b) 
Land occupied by the Tribe within the Agreement Area that is primarily used (95% or more) in performing a governmental function; or
(c) 
A resident tribal member's principal residence located within the Tax Agreement Area.
(14) 
Retail sales of telephone (interstate or intrastate), telegraph leased wire, Internet, cable and other similar communication rendered to and paid for by the Tribe, a tribal entity or resident tribal member, if the service is rendered to:
(a) 
Land owned by the Tribe or held in trust by the federal government for the benefit of the Tribe, to the extent that the land is occupied by the Tribe, a tribal entity or a tribal member and is within the tribal and trust lands;
(b) 
Land occupied by the Tribe within the Tax Agreement Area that is primarily used (95% or more) in performing a governmental function; or
(c) 
A resident tribal member's principal residence located within the Tax Agreement Area.
(15) 
Retail sales to governmental entities and qualified nonprofit organizations that are exempt from Michigan state sales and use taxes, provided the person making the purchase provides the form used by the state for claiming an exemption under one of the provision of the General Sales Tax Act; and
(16) 
Retail sales made at tribal cultural events, including pow-wows, bazaars and fairs.
D. 
Records of exempt sales by retailers. All licensed retailers, including the Tribe, any tribal member or any tribal entity, will maintain a record of sales exempted from application of the retail sales tax. These records must include the date of the retail sale, the name and, if applicable, tribal identification number of the purchaser, the value of the retail sale and, except for sales of motor fuels and any individual item valued at more than $50 or sale of more than one item valued at greater than $200 in the aggregate, a general identification of the items purchased.

§ 10.3-4 Licensing of retailers located within tribal and trust lands.

A. 
Retailers wholly owned by the tribe and/or tribal members. Any retailer owned by the Tribe, tribal members or some combination of the Tribe and tribal members, located within tribal and trust lands, is required to obtain a retailer tax license from the Tribe on the form prescribed by the Tax Department.
B. 
Nonmember retailers. Any retailer on tribal and trust lands that is owned entirely, or in part, by one or more nontribal members is required to obtain a retailer tax license from the Tribe on the form prescribed by the Tax Department.
C. 
Nontribal and trust land sales. Any retailers owned by the Tribe, tribal members or some combination of the Tribe and tribal members, engaging in retail sales outside of tribal and trust lands, are required to obtain any license, permit or registration required under applicable provisions of state law.
D. 
Tax Department publication of license forms and procedures. The Tax Department will develop necessary application forms and procedures for issuing the licenses and permits required under this article. Until the Tax Department develops the required forms and procedures, it will utilize the forms issued by the Michigan Department of Treasury entitled "Registration for Michigan Taxes."
E. 
Transmission of application forms to the state. The Tax Department will issue a retailer tax license to each applicant who is verified as a retailer and will transmit the application form to the state.
F. 
Information required for licensing. A person applying for a retailer tax license will provide the Tax Department with the following information:
(1) 
Legal name of the business, including any assumed name(s), that the business operates under;
(2) 
Legal address, mailing address (if different) and physical address or location(s) from which the business makes retail sales subject to this article;
(3) 
Type of business ownership or organization (i.e., sole proprietorship, corporation, limited liability company, partnership);
(4) 
Jurisdiction under whose laws the business entity is organized, if applicable;
(5) 
If the business qualifies as a tribal entity, copies of the business' charter, articles of incorporation or organization, and other information (including, if applicable, stock certificates) verifying the ownership of the business by the Tribe or tribal members;
(6) 
The name, title, address and telephone and facsimile number of the business entity's registered agent or agent for service of process; and
(7) 
A description of the goods and services sold by the business, including whether the business intends to sell tobacco products or motor fuels.
G. 
License renewal. Retailers licensed under this article are required to renew their retailer tax license, including any updated or new information, annually on a form prescribed by the Tax Department.
H. 
Suspension or termination of business. Each retailer must inform the Tax Department, in the manner prescribed by the Department, of any suspension or termination of the retailer's business no later than the 15th day of the month succeeding the month in which the suspension or termination occurs. Upon receipt of a suspension or termination notice, the Tax Department will terminate the retail license and/or registration and advise the state of the license's termination.
I. 
Incidental retailers. Persons engaged in sales made at tribal cultural events, including but not exclusive of bazaars, pow-wows and tribal fairs, shall be exempt from the licensing requirements.

§ 10.3-5 Collection; remittance; returns; appropriation.

A. 
Collection. The retail sales tax will be collected as follows:
(1) 
Every retail establishment engaging in a retail sale within the meaning of this article must collect the tribal retail sales tax from the purchaser.
(2) 
The retail sales tax must be collected from purchasers contemporaneously with payment of the purchase consideration for the retail sale. Each collection agent must add the tax levied in this article to the selling price or charge of each retail sale.
B. 
Remittance and returns. On or before the 20th day following the end of each calendar quarter, each collection agent shall report and remit the retail sales tax due to the Tribal Tax Department on the schedule and in accordance with any reporting forms and procedures established by the Tax Department.
C. 
Appropriation. The Tribal Council may appropriate the funds collected under the terms of this article for any governmental purpose.

§ 10.3-6 Financial standards; record keeping.

A. 
Financial standards. All collection agents will maintain financial records in accordance with GAAP, unless otherwise permitted by the Tax Department. All taxes will be computed in accordance with GAAP, unless otherwise permitted by the Tax Department.
B. 
Recordkeeping. Every collection agent will maintain financial records relating to retail sales taxes for a period of at least four (4) years from the date that a return is filed. If an exemption for tax is claimed for any transaction under any of the exemptions allowed under this article, a record shall be kept of the name and address of the person to whom the sale is made, the date of the sale, the amount of the sale, the type of exemption claimed, and any documentation required by this article.
C. 
Assessment. If a collection agent fails to maintain or preserve proper records as prescribed by this article or the Tax Department, or if the Tax Department has reason to believe that any records maintained are inaccurate or incomplete and that additional taxes are due, the Tax Department may assess the amount of the tax due from the collection agent based on information that is available or that may become available to the Tax Department. The assessment is considered prima facie correct for the purpose of this article and the burden of refuting the assessment is upon the collection agent.

§ 10.3-7 Tax sharing.

In compliance with the State-Tribe Tax Agreement, the Tribe shall share the appropriate amount of taxes with the State of Michigan.

§ 10.3-8 Severability.

If any provision of this article or its application to any person or circumstances is held invalid, the invalidity does not affect other provisions or applications that can be given effect without the invalid provision or application.

§ 10.3-9 Purpose.

The purpose of this article of the Retail Sales and Food and Beverage Tax Code is to raise governmental revenues and to provide for the assessment and collection of a tax on food and beverage sales as specified in this article. The scope of the tax levied under this article is to be broadly interpreted. The incidence of this tax falls upon the purchaser of food and beverages at any retail establishment on tribal lands, not upon the seller of those food and beverages.

§ 10.3-10 Definitions.

For purposes of the taxes covered by this article, the following terms have the meanings assigned to them in this section:
COLLECTION AGENT
Any seller of food and beverages on tribal and trust lands responsible for collecting the taxes levied under the terms of this article.
FOOD AND BEVERAGE
Food and beverages that meet any one of the following conditions:
A. 
Any substance, whether in liquid, concentrated, solid, frozen, dried or dehydrated form, that is sold for ingestion or chewing by humans and is consumed for its taste or nutritional value;
B. 
Food that is either presented or sold with eating utensils provided by the seller, including plates, knives, forks, spoons, glasses, cups, napkins or straws;
C. 
Food that is sold in a heated state or heated by the seller;
D. 
Two or more food ingredients that are mixed or combined by the seller for sale as a single item; or
E. 
Any alcoholic or nonalcoholic beverage, including nonalcoholic beverages that contain natural or artificial sweeteners, milk or milk products, soy, rice or similar milk substitutes, fruit or vegetable juice, coffee, including any beverage derived from coffee, and tea, including any beverage derived from tea.
FOOD AND BEVERAGE TAX
The tax described under the terms of this article.
GAAP
United States generally accepted accounting principles consistently applied to tribal government operations as set out in Governmental Accounting Standards Board statements.
GAMING FACILITY
Any place, facility or location licensed under § 8.5-6 of the Tribal Code, and operated under the Tribe's Class III Gaming Compact with the State of Michigan.
PERSON
Any natural person, corporation, limited liability company, other business entity, or any government and its political subdivisions.
PURCHASER
Any person that purchases food and beverages on tribal and trust lands.
TAX AGREEMENT
The "Tax Agreement between the Nottawaseppi Huron Band of the Potawatomi and the State of Michigan," dated December 20, 2002, as the same may be amended from time to time.[1]
TAX DEPARTMENT
The division of the tribal government charged with the implementation and administration of this article.
TAX YEAR
The calendar year, or the fiscal year ending during a calendar year, which serves as the basis for computing a tax subject to this article.
TAXABLE SALE
Any retail food and beverage sale on tribal or trust lands, except for sales made to the Tribe.
TRIBAL AND TRUST LANDS
All fee lands owned by the Tribe and lands held in trust by the federal government for the benefit of the Tribe, which are designated as tribal and trust lands in Appendix A of the tax agreement, as the same may be amended from time to time.[2]
TRIBAL COUNCIL
The Tribal Council of the Nottawaseppi Huron Band of the Potawatomi.
TRIBE
The Nottawaseppi Huron Band of the Potawatomi. The term "Tribe" includes all divisions or subdivisions of the tribal government and business enterprises, including chartered entities that are wholly owned by the Tribe.
[1]
Editor's Note: See Ch. 10.1, Tax Agreement, of this Code.
[2]
Editor's Note: Said Appendix A is attached to Ch. 10.1, Tax Agreement, of this Code.

§ 10.3-11 Imposition and rate of tax; tax added to selling price, exemptions.

A. 
Imposition and rate of tax. A food and beverage tax, equal to 6% of the selling price on retail sales of food and beverages on tribal and trust lands, will be levied and collected. The tax will be paid by the purchaser of the food and beverages, who shall bear the burden of the tax; collected by the collection agent; and delivered to the tax authority referenced under the terms of this article.
B. 
Tax added to selling price. Every collection agent will add the amount of the food and beverage tax to the total selling price of the food and beverages and must be accounted for by every collection agent. The food and beverage tax may be included in the total sale price shown on any sales receipts or slips, charge tickets, invoices, statements of account, or other tangible evidence of sale (collectively, "sales receipts") or it may, at the option of the collection agent, be stated separately on sales receipts.
C. 
Exemptions. The following sales are exempt from application of the tax imposed under this article:
(1) 
Food and beverage sales at tribal cultural and community events, including but not exclusive of pow-wows, bazaars, fairs and charity events.
(2) 
Sales of prepackaged food and food products at any tribally owned businesses.
(3) 
Food and beverage provided on a complimentary basis.
(4) 
Sales of food and beverage to the Tribe, any other tribal government, local government, state government or the United States government, including any department or subdivision of those governments.
(5) 
Sales of food and beverage to a nonprofit school, nonprofit hospital, or nonprofit corporation incorporated under the laws of the State of Michigan or the laws of the Tribe.

§ 10.3-12 Collection; remittance and returns; appropriations.

A. 
Collection. The food and beverage tax will be collected as follows:
(1) 
Every retail establishment engaging in taxable sales must collect the tribal food and beverage tax from the purchaser.
(2) 
The food and beverage tax must be collected from a purchaser contemporaneously with the payment of the purchase consideration for the taxable sale. Each collection agent must add the tax levied in this article to the selling price or charge of each taxable sale.
B. 
Remittance and returns. On or before the 20th day following the end of each calendar quarter, each collection agent shall report and remit the food and beverage tax due to the Tribal Tax Department on the schedule and in accordance with any reporting forms and procedures established by the Tax Department.
C. 
Appropriation. The Tribal Council may appropriate the funds collected under the terms of this article for any governmental purpose.

§ 10.3-13 Financial standards; recordkeeping.

A. 
Financial standards. All collection agents will maintain financial records in accordance with GAAP, unless otherwise permitted by the Tax Department. All taxes will be computed in accordance with GAAP, unless otherwise permitted by the Tax Department.
B. 
Recordkeeping. Every collection agent will maintain financial records relating to food and beverage taxes for a period of at least four (4) years from the date that a return is filed. If an exemption for tax is claimed for any transaction under any of the exemptions allowed under this article, a record shall be kept of the name and address of the person to whom the sale is made, the date of the sale, the amount of the sale, the type of exemption claimed, and any documentation required by this article.
C. 
Assessment. If a collection agent fails to maintain or preserve proper records as prescribed by this article or the Tax Department, or if the Tax Department has reason to believe that any records maintained are inaccurate or incomplete and that additional taxes are due, the Tax Department may assess the amount of the tax due from the collection agent based on information that is available or that may become available to the Tax Department. The assessment is considered prima facie correct for purposes of this article, and the burden of refuting the assessment is upon the collection agent.

§ 10.3-14 Severability.

If any provision of this article or its application to any person or circumstances is held invalid, the invalidity does not affect other provisions or applications that can be given effect without the invalid provision or application.