[HISTORY: Adopted by the Tribal Council of the Nottawaseppi Huron Band of the Potawatomi 12-17-2009 by Res. No. 12-17-09-03 (Title X, Ch. 4, of the Tribal Code); amended in its entirety 7-20-2017 by Res. No. 07-20-17-06. Subsequent amendments noted where applicable.]
The purpose of this article is to provide a framework for ensuring that the purchases of motor fuels exempt from Michigan motor fuels tax from authorized retailers are understood, undertaken in compliance with legal obligations under the tax agreement between the Nottawaseppi Huron Band of the Potawatomi and the State of Michigan, and to ensure uniformity of procedures.
The effective date of this article is January 1, 2010.
For purposes of this article, the following terms have the meanings assigned to them in this section:
- AUTHORIZED RETAIL LOCATION
- A retail seller of diesel or gasoline whose location has been designated by resolution of the Tribal Council and authorized to make sales at retail of gasoline and diesel from a location within tribal and trust lands.
- Any liquid other than gasoline that is capable of use as a fuel or a component of a fuel in a motor vehicle that is propelled by a diesel-powered engine or in a diesel-powered train.
- MOTOR FUEL
- Gasoline, diesel fuel, a mixture of gasoline or any other substance that is capable of use as a fuel or a component of fuel in a motor vehicle for use on the public roads or highways in the State of Michigan.
- Any person that purchases tax-exempt motor fuels at retail.
- 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.
- 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.
- 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.
- 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.
- TRIBAL MEMBER
- 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.
Purchases subject to Michigan motor fuel tax. Unless exempted by this article, all purchases of motor fuel products by tribal members shall be subject to the imposition and collection of the Michigan motor fuel products tax, which shall be added to the price.
Authorized retail locations at which tax-exempt purchases may be made.
Motor fuel products may be purchased by tribal members or authorized tribal employees without payment of the Michigan motor fuel products tax at authorized retail locations designated by the Tribal Council.
In order to maintain eligibility to purchase tax-exempt motor fuel products at designated retail locations, tribal members must register their vehicles with the Tax Department on forms prescribed by the Department. Tribal members who fail to register their vehicle(s), or who purchase tax-exempt motor fuels for a vehicle which is not registered with the Tax Department may be required to reimburse the Tribe for the amount of the tax exemption received for any unregistered vehicle and may have his/her ability to purchase tax-exempt motor fuel suspended for up to one year.
Procedure for making purchases of tax-exempt motor fuels. Retail locations authorized to sell tax-exempt motor fuels must implement measures intended to ensure that purchase of tax-exempt motor fuels by tribal members are documented by requiring one of the following:
The tribal member must present his/her tribal identification card to the clerk at an authorized retail location.
The tribal member may use a swipe-at-the-pump discount card. Authorized retailers utilizing the swipe-at-the-pump discount card system may use this method as the exclusive method for making tax-exempt motor fuel purchases.
Limits on purchases of tax-exempt motor fuel products by tribal members.
Tribal members may purchase motor fuel products from the authorized retail locations listed in Subsection B without payment of motor fuel tax, provided the purchase is solely for personal use and not for resale.
Except as provided in Subsection E(3), tribal members are eligible to purchase up to 150 gallons of tax-exempt motor fuels per calendar month.
Monthly purchase limits may be adjusted quarterly based on the number of gallons of tax-exempt motor fuels remaining on the annual ceiling established by the Tribe and the state. Any changes in the monthly purchase limits will be posted at each authorized retail location on the first day of each quarter.
Tribal members are responsible for monitoring their own purchases of tax-exempt motor fuels and staying within the monthly purchase limit.
Tribal members shall be prohibited from purchasing more than the allotted number of gallons of tax-exempt gasoline or diesel fuel during any calendar month. The authorized retail locations shall be directed to include the full amount of Michigan motor fuel tax in the price of all motor fuel products sold to tribal members in excess of the allotted gallon limit during any calendar month.
All sales of motor fuel products to tribal members in excess of the total annual ceiling for tax-exempt motor fuel product sales agreed to by the Tribe and the State of Michigan under the tax agreement shall include the full amount of the Michigan motor fuel tax.
The Tax Department shall audit the records of authorized retail locations to enforce the limits prescribed in this article. Tribal members who purchase tax-exempt gallons above the monthly limits established in these regulations will be responsible for paying the motor fuel tax on excess purchases. Penalty will be assessed on excess purchases.
Any person who violates § 10.5-4E(1) of this article by purchasing tax-exempt motor fuels for commercial use or for use by a person who is not a tribal member shall be guilty of a civil infraction and shall be subject to a civil penalty of $100. Each transaction by which a person violates § 10.5-4E(1) shall be treated as a separate offense.
Any person who violates § 10.5-4C, or E(1) or (5) of this article shall be guilty of a civil infraction and shall be subject to a civil penalty of $50. Each transaction by which a person violates any of the above sections shall be treated as a separate offense.
The civil penalties provided for in this section are not intended to be exclusive, but shall be in addition to and independent of:
Assessment for the tribal member of the amount of Michigan motor fuels taxes exempted on purchases by the tribal member which are made in violation of this article;
Suspension of a tribal member's privilege to purchase tax-free motor fuels for up to one year; or
Prosecution or other enforcement action under tribal, federal or state law.
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.