[HISTORY: Adopted by the Tribal Council of the Nottawaseppi Huron Band of the Potawatomi 10-26-2012 by Res. No. 10-26-12-03 (Title X, Ch. 6, of the Tribal Code). Amendments noted where applicable.]
The purpose of this chapter is to provide for the raising of additional public revenues by prescribing certain taxes to be paid to the Tribe by persons renting or occupying hotel rooms or other accommodations on the Band's Reservation and for the use of other occupancy-related services; and to appropriate the proceeds thereof; and to prescribe penalties for violations of this chapter.
Adoption. This chapter is adopted by Resolution No. 10-26-12-03.
Amendment. This chapter may be amended by the Tribal Council in accordance with the Constitution and any tribal laws governing amendment of laws of the Band.
Severability clause. If any provision of this chapter or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this chapter which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are severable.
Repeal. This chapter may be repealed in accordance with the Constitution and any laws governing repeal of laws of the Band.
As used in this chapter, the word "shall" is always mandatory and not merely advisory.
For purposes of the tax levied by this chapter, the following terms have the meaning assigned to them in this section:
- BAND or TRIBE
- The Nottawaseppi Huron Band of the Potawatomi and its political subdivisions, including the gaming enterprise and all other entities wholly owned by the Band.
- COLLECTION AGENT
- Any person responsible for collecting taxes under this chapter.
- Any provision of hotel rooms or other occupancy-related service or item at, or in connection with, the gaming enterprise at no cost to or without a cash payment from a customer, whether provided through the "Red Hot Rewards Club" or through a similar credit system.
- DEPARTMENT OF TREASURY
- The Michigan Department of Treasury.
- GAMING ENTERPRISE
- Any entity licensed under Article VI of Chapter 8.5 of the Gaming Regulatory Act and operated under the Tribe's Class III Gaming Compact with the State of Michigan.
- GROSS HOTEL RECEIPTS
- The total amount of money or the value of other consideration charged to any person for lodging and accommodations, plus any amounts charged to persons for any occupancy-related services at any hotel, lodging facility and other accommodations, excluding the taxes levied under Chapter 10.3, Retail Sales or Food and Beverage Tax.
- Any building or facility regularly used for the lodging of guests for a fee, and includes a recreational vehicle (RV) park and campground services provided by and related to a hotel for the purposes of providing overnight accommodations to guests for a fee.
- LODGING or ACCOMMODATIONS
- The provision to any person of a room or area subject to such person's control and use, which is available for use by the general public, and for which the person makes such use for any portion of a day. The term includes hotel rooms for overnight accommodations or day use, the use of spaces rented for use in connection with conventions, banquet, or business meetings, including the FireKeepers Event Center. The term does not apply to rental units for which the minimum rental term is at least thirty (30) days.
- OCCUPANCY-RELATED SERVICES
- The use or possession of audio-visual equipment, other equipment, or laundry facilities and/or hookups supplied by a hotel or other lodging or accommodations facility to a person using such lodging or accommodations.
- A natural person, firm, partnership, joint venture, association, social club, fraternal organization, public or private corporation whether organized for profit or not, company, estate, trust, receiver, syndicate, limited liability company, other business entity, and any government and its political subdivisions.
- The Pine Creek Indian Reservation and all lands now or in the future held in trust by the United States for the benefit of the Tribe.
- A person operating a hotel, RV park or other lodging house on or within tribal and trust lands.
- Any room or rooms of any kind in any part or portion of a hotel or lodging house let out for use or possession for lodging purposes.
- The State of Michigan.
- TAX DEPARTMENT
- The division of the tribal government charged with the implementation and administration of this chapter.
- TAX YEAR
- The calendar year, or the fiscal year ending during such calendar year, upon the basis of which a tax subject to this chapter is computed.
- The person liable for a tax under this chapter, including a retailer acting as a collection agent.
- 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 (K-1 through K-5) of the tax agreement, as the same may be amended from time to time.
Editor's Note: Said Appendix A is attached to Ch. 10.1, Tax Agreement, of this Code.
Editor's Note: See Ch. 8.5, Gaming, Art. VI, Licensing of Gaming Establishments, of this Code; federal Indian Gaming Regulation is at 25 U.S.C. § 2701 et seq.
Editor's Note: Said Appendix A is attached to Ch. 10.1, Tax Agreement, of this Code.
Imposition; rate of tax.
For the privilege of use and occupancy of a room in a hotel or other lodging facilities, including designated RV/camp sites, located on tribal and trust lands, a tax is hereby levied upon every person for the use and occupancy of any room(s) or lodging facilities as well as any occupancy-related services used by such person at a rate of 6% of the gross hotel receipts for such services.
The tax shall be imposed upon the person to whom the room, goods or services are provided, and collected by the retailer providing the room, lodging facilities or related services.
Exemptions from lodging and occupancy tax. The tax levied by this section shall not apply to:
Lodging or accommodations located at the gaming enterprise which are provided on a complimentary basis.
Lodging or accommodations for which the Tribe, any other tribal government(s), a local government, state government or the United States government, including any department or subdivision of those governments, makes payment.
Lodging or accommodations located at tribal pow-wows or other cultural activities defined by regulation are not subject to the tax imposed by this chapter.
Lodging or accommodations paid for by a nonprofit school, nonprofit hospital or nonprofit home for the care and maintenance of children or aged persons operated by an entity of government, a regularly organized church, religious or fraternal organization, a veterans organization or a corporation incorporated under the laws of this state, if the income or benefit from the operation does not inure, in whole or in part, to an individual or private shareholder, directly or indirectly, and if the activities of the entity or agency are carried on exclusively for the benefit of the public at large and are not limited to the advantage, interests and benefits of its members or any restricted group.
Records of provision of exempt lodging or accommodations. Any person offering lodging or accommodations subject to the tax imposed by this chapter shall maintain a record of lodging or accommodations provided on which no tax was collected. Such records shall include the date the lodging or accommodations were provided, the identity of the entity paying for such lodging or accommodations and the tax identification number of the entity.
Returns. Any person subject to the tax imposed by this chapter shall, on or before the 20th day following the end of each calendar quarter, complete a return for the preceding quarter on a form prescribed by the Tax Department, showing the amount of gross hotel receipts for the previous quarter, the allowable deductions, and the amount of tax for which such person is liable. The taxpayer shall be responsible for maintaining records sufficient to permit the Tax Department to verify the amount of tax due in accordance with the requirements of § 10.7-5.
Payment. The taxpayer shall transmit the return, together with a remittance for the amount of tax collected, to the Tax Department on or before the 20th day of that month following the end of each calendar quarter. The quarterly return shall be signed by the taxpayer or his duly authorized agent and, if applicable, the person and/or firm preparing the return.
Change in return/payment schedule. The Tax Department may, when necessary to ensure payment of the tax or to provide a more efficient administration of this chapter, after notice and comment, adopt regulations requiring the filing of returns and payment of the tax for other than quarterly periods.
Lodging and occupancy tax revenues; distribution.
The Tax Department shall deposit all proceeds from the lodging and occupancy tax to the general fund.
Use of revenues. The revenues from the lodging and occupancy tax shall be utilized for the purposes of offsetting the costs of administering this tax, to promote economic development, enforcement of food safety building codes at tribal enterprises, and other tribal government needs as determined during the annual budget process.
Any lodging and occupancy tax revenues subject to the tax-sharing formula of the tax agreement shall be distributed as provided in § 10.1-3B(3) of Chapter 10.1, Tax Agreement, of this Code.
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.
Recordkeeping. Every collection Agent will maintain financial records relating to transactions subject to the lodging and accommodations use 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 chapter, 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 chapter.
Assessment. If a collection agent fails to maintain or preserve proper records as prescribed by this chapter 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 chapter, and the burden of refuting the assessment is upon the collection agent.