[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.]
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.
For purposes of the taxes covered by this article, the following
terms have the meanings assigned to them in this section:
Any seller of retail goods on tribal and trust lands responsible
for collecting the taxes levied under the terms of this article.
United States generally accepted accounting principles consistently
applied to tribal government operations as set out in Governmental
Accounting Standards Board statements.
Any natural person, corporation, limited liability company,
other business entity, or any government and its political subdivisions
or instrumentality.
Any person that purchases retail goods.
A tribal member whose principal place of residence is located
within the Tax Agreement Area.
The tax imposed under the terms of this article of the chapter.
A sale, lease or rental of tangible personal property for
any purpose other than for resale, sublease or subrent.
The State of Michigan.
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]
The area designated as such in Appendix A of the tax agreement,
as the same may be amended from time to time.[2]
The division of the tribal government charged with the implementation
and administration of this article.
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]
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.
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.
An individual who is an enrolled member of the 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.
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.
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.
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.
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.
In compliance with the State-Tribe Tax Agreement, the Tribe
shall share the appropriate amount of taxes with the State of Michigan.
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.
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.
For purposes of the taxes covered by this article, the following
terms have the meanings assigned to them in this section:
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 beverages that meet any one of the following conditions:
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;
Food that is either presented or sold with eating utensils provided
by the seller, including plates, knives, forks, spoons, glasses, cups,
napkins or straws;
Food that is sold in a heated state or heated by the seller;
Two or more food ingredients that are mixed or combined by the
seller for sale as a single item; or
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.
The tax described under the terms of this article.
United States generally accepted accounting principles consistently
applied to tribal government operations as set out in Governmental
Accounting Standards Board statements.
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.
Any natural person, corporation, limited liability company,
other business entity, or any government and its political subdivisions.
Any person that purchases food and beverages on tribal and
trust lands.
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]
The division of the tribal government charged with the implementation
and administration of this article.
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.
Any retail food and beverage sale on tribal or trust lands,
except for sales made to the Tribe.
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]
The Tribal Council of the Nottawaseppi Huron Band of the
Potawatomi.
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.
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.
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.
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.
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.
