The Tribal-State Tax Agreement is binding on the Tribe, all tribal members and tribal entities with respect to the covered taxes. All tribal officials, tribal members and tribal entities shall comply with the terms of this Act and the Tribal-State Tax Agreement. [§
10.1-1A; T-STA § 1.1.A]
State sales tax or use tax collected and remitted to the state
by the Tribe. Tribal member and tribal entity retailers on all taxable
sales within the tribal and trust lands, in accordance with this Act
and the Tribal-State Tax Agreement, shall be shared between the Tribe
and state as follows:
A. On the first $5,000,000 of annual gross receipts from taxable sales
to nonresident tribal members, 2/3 of the tax collected shall be paid
to the Tribe and 1/3 to the state.
B. On annual gross receipts from taxable sales to nonresident tribal members in excess of $5,000,000, 1/2 of the tax collected shall be paid to the Tribe and 1/2 to the state. [§
10.1-3B; T-STA § III.B]
Resident tribal members are exempt from state income tax on (a) all nonbusiness income, and (b) on business income apportioned to tribal and trust land under §
10.1-4A(2) (T-STA § IV.B). Spouses who are not resident tribal members are subject to the state income tax. [§
10.1-4A(4); T-STA § IV.D]
Business entities which are partially or wholly owned by any combination of the Tribe, tribal members or tribal entities are exempt from single business tax, to the extent of the percentage ownership of such persons and entities, on the business entity's tax base apportioned to the Agreement Area of the Tribe and of any other tribes having an agreement with the state similar to the Tribal-State Tax Agreement. [§
10.1-7; T-STA § VII] This exemption does not apply to publicly traded business entities. [§
10.1-7B; T-STA § VII.B]
The Tribe may purchase a quantity of tax-exempt motor fuel pursuant
to the Tribal-State Tax Agreement for use by it and its tribal members
and tribal entities. [§ 10-1.5; T-STA § V] The
Tribal Council shall determine how to allocate the right to purchase
tax-free motor fuels among the Tribe, tribal members and tribal entities
in accordance with this Act.
The Tribe may purchase a quantity of tax-exempt tobacco products pursuant to the Tribal-State Tax Agreement. [§
10.1-6; T-STA § VI] The Tribal Council shall determine how to allocate the right to purchase tax-free tobacco products among the Tribe, tribal members and tribal entities in accordance with this Act.