The Tribal Council shall perform, or cause to be performed,
the following duties and obligations in accordance with the Tribal-State
Tax Agreement:
A.
Meeting to discuss possible state law amendments. Upon receipt of notification from the state of any enrolled bill(s) that amend covered taxes pursuant to § 10.1-1C of the Tribal Code (Section I.C. of the Tribal-State Tax Agreement), or notice of a meeting to discuss that matter from another tribe, the Tribal Council shall determine whether to request or participate in a meeting with the state to discuss the legislative proposal and its impact. [§ 10.1-1C; T-STA § I.C]
C.
Meeting with state concerning claims regarding tribal certificates of exemption. The Tribal Council shall determine and designate which tribal official(s), staff and/or representative(s) are to attend any meeting with state representatives pursuant to § 10.1-1G(1)(c) of the Tribal Code (Section I.G.1.c. of the Tribal-State Tax Agreement) regarding state claims against the Tribe concerning tribal certificates of exemption, and shall provide such tribal official(s), staff and/or representative(s) with appropriate instructions and authority with respect to the resolution of the matter. [§ 10.1-1G(1)(c); T-STA § I.G.I.E]
D.
Exempt motor fuels purchase policy. With respect to exempt motor
fuels purchases, the Tribal Council shall:
(1)
Elect whether the Tribe shall use the quota or reimbursement
method, and notify the state of its election;
(2)
Monitor the results of the election and determine annually,
at least 60 days prior to the end of the calendar year, whether to
change methods for the following year;
(3)
Monitor the adequacy of the quota or ceiling imposed on the
Tribe and, if appropriate, engage the state in negotiations for modification
of said quota or ceiling;
(4)
If the quota method is in effect: (a) select a single state-licensed wholesaler from which to purchase tax-free motor fuel and notify the state of that selection, and any change, as required by § 10.1-11A(2) of the Tribal Code (Section X.A.2. of the Tribal-State Tax Agreement); (b) determine which retailers within the Agreement Area will be authorized to purchase and sell tax-free motor fuel and the quantities that each retailer may acquire, and (c) establish a system whereby the Tribe shall preapprove, and clearly designate, all purchases of tax-free fuel prior to submission to the wholesaler;
(5)
If the refund method is in effect: (a) determine which retailers within the Agreement Area will be entitled to seek a refund for sales of motor fuel and divide the ceiling amount among the retailers; and (b) designate a tribal official to compile the refund requests from authorized retailers into a single request to be filed with the state and allocate the refund among retailers. [§ 10.1-10; T-STA § X]
E.
Exempt tobacco products purchase policy. With respect to exempt tobacco
products purchases, the Tribal Council shall:
(1)
Elect whether the Tribe shall use the quota or reimbursement
method, and notify the state of its election;
(2)
Monitor the results of the election and determine annually,
at least 60 days prior to the end of the calendar year, whether to
change methods for the following year;
(3)
Monitor the adequacy of the quota or ceiling imposed on the
Tribe and, if appropriate, engage the state in negotiations for modification
of said quota or ceiling;
(4)
If the quota method is in effect: (a) select a single state-licensed wholesaler from which to purchase tax-free tobacco products and notify the state of the selection, and any change, as required by § 10.1-12A(2) of the Tribal Code (Section X.A.2. of the Tribal-State Tax Agreement); (b) determine which retailers within the Agreement Area will be authorized to purchase and sell tax-free tobacco products and the quantities that each retailer may acquire, and (c) establish a system whereby the Tribe shall preapprove, and clearly designate, all purchases of tax-free tobacco products prior to submission to the wholesaler;
(5)
If the refund method is in effect: (a) determine which retailers within the Agreement Area will be entitled to seek a refund for sales of tobacco products and divide the ceiling amount among the retailers; and (b) designate a tribal official to compile the refund requests from authorized retailers into a single request to be filed with the state and allocate the refund among retailers. [§ 10.1-12; T-STA § XI]
F.
Allocation of right to purchase exempt motor fuel and tobacco products.
With respect to both motor fuels tax and tobacco products tax, establish
a program for allocating the right to purchase tax-free motor fuels
and tobacco products, in excess of tribal needs, among tribal members.
G.
Annual notice to state. Direct the Tribal Chairman or other appropriate tribal official to prepare and deliver to the state by December 15 of each year the notice required by § 10.1-9B of the Tribal Code (Section VIII.B. of the Tribal-State Tax Agreement) identifying (i) resident tribal members, (ii) tribal, tribal member and tribal entity businesses operating within the Agreement Area, (iii) nontribal businesses operating in the Agreement Area that are authorized to sell tax-exempt motor fuel and/or tobacco products, and (iv) the tribal official(s) authorized to sign tribal certificates of exemption or refund requests on behalf of the Tribe, with such further information and detail as required by § 10.1-9B of the Tribal Code (Section VIII.B. of the Tribal-State Tax Agreement) including tax identification numbers. [§ 10.1-9B; T-STA § VIII.B]
H.
Notice to state of land acquisition. Direct the Tribal Chairman or
other appropriate tribal official to notify the state in writing of
all land acquired in fee or in federal trust by or for the Tribe after
execution of this agreement that is within the Agreement Area or claimed
as tribal and trust lands under the Tribal-State Tax Agreement. Appendix
A to this Act shall be amended by action of the Tribal Council at
the time any amendment is made to Appendix A to the Tribal-State Tax
Agreement.[1] [§ 10.1-9C; T-STA § VIII.C]
I.
Tribal use of tribal certificate. Determine whether the Tribe will use the tribal certificates of exemption for the Tribe's sales and use tax-exempt purchases, or pay the tax and claim refunds, and direct that the Tribal Chairperson or another appropriate tribal official either (i) prepare and submit an application to use tribal certificates of exemption to the state, and use such tribal certificates of exemption to make exempt purchases, or (ii) prepare and submit refund requests with required backup documentation on a monthly or quarterly basis, in accordance with the terms of the Tribal-State Tax Agreement. [§ 10.1-13B; T-STA § XII.B]
J.
Member use of tribal certificates of exemption. If the Tribal Council elects that the Tribe use the tribal certificates of exemption, it shall determine whether to allow tribal members and tribal entities to use them in accordance with the Tribal-State Tax Agreement, and if so, the Tribal Council shall designate the Tribal Chairman and/or (an)other appropriate tribal official(s) to process and approve tribal member and tribal entity applications for use of such tribal certificates of exemption in accordance with said Tribal-State Tax Agreement. [§ 10.1-13C(1); T-STA § XII.C.1]
The Tribal Court and tribal police shall perform or cause the
following duties and obligations to be performed in accordance with
the Tribal-State Tax Agreement:
A.
Petition to compel arbitration or enforce award. If the state files a petition with the Tribal Court to compel arbitration or enforce any arbitration award under the Tribal-State Tax Agreement, the Tribal Court shall issue a decision and order on such petition within 14 business days of filing. [§ 10.1-1G(1)(b); T-STA § I.G.b]
B.
Police assistance regarding enforcement action in Indian country against nonmember. Upon receipt of notice from the state that the state intends to take enforcement action against a nontribal member or entity located or doing business on the Tribe's Indian country, the tribal police may direct one or more officers to accompany the state officers, or if the tribal police determine that it is not feasible or appropriate to accompany state officers, tribal police shall inform the representative of the state of that decision. [§ 10.1-14B; T-STA § XIII.B]
C.
Tribal Court/police action on state application for search warrant.
If the state has reason to believe that tobacco or motor fuel products
may be transported or stored by the Tribe within its Indian country
contrary to the terms of the Tribal-State Tax Agreement, and the state
applies to the Tribal Court for a search warrant authorizing inspection
of such locations, the Tribal Court shall rule on the search warrant
request within 24 hours of receipt and shall issue the warrant if
the Court finds that the state has demonstrated reasonable cause that
a violation has occurred. If the state is concerned that unlawful
product may be removed during the pendency of such an application
for a warrant from the Tribal Court, the tribal police shall, upon
the request of the state, secure the location or vehicle until the
Tribal Court makes its determination. [§ 10.1-14C(4)(b)[1];
T-STA § XIII.C.4.b.i]
D.
Tribal Court/police enforcement of state judgments. In any case where the state has obtained a State Court judgment or order affecting the person or property of a tribal member or tribal entity located within Indian country, the state may petition the Tribal Court to grant recognition and enforcement of the State Court order or judgment. The Tribal Court shall, within 14 business days, rule on the petition using the same standards as contained in Michigan Court Rule 2.615. If the Tribal Court grants the petition, the Tribal Court, upon request of the state, shall promptly direct one or more tribal police officers to enforce the judgment or order in the presence of and with the assistance of one or more state enforcement officers. [§ 10.1-14D(4); T-STA § XIII.D.4]
E.
Tribal Court/police action on state petition to compel audit, etc. If the state petitions the Tribal Court for an order to compel the production of books and records, to compel the appearance or testimony of an individual, or to undertake an audit affecting a tribal member or tribal entity whose person or property is located within Indian country, the Tribal Court shall conduct a hearing on the petition within 10 business days and issue a decision within 14 business days of service on the taxpayer. If the Tribal Court determines that (i) the taxpayer is a tribal member or tribal entity, (ii) the taxpayer and/or property is located within the Tribe's Indian country, (iii) the proposed state tax enforcement action pertains to one or more covered taxes, and (iv) the proposed state tax enforcement action is consistent with relevant state law and procedures and with the Tribal-State Tax Agreement, the Tribal Court shall grant the petition and order the taxpayer to comply. In the event that the tribal member or tribal entity fails or refuses to comply with the Tribal Court order, the Tribal Court shall promptly direct one or more tribal police officers to enforce the order with the assistance of one or more state enforcement officers. [§ 10.1-14D(6); T-STA § XIII.D.6]
F.
Tribal Court/police action on state petition to compel audit, etc.; Indian country in dispute. If the state petitions the Tribal Court for an order to compel the production of books and records, to compel the appearance or testimony of an individual, or to undertake an audit affecting a tribal member or tribal entity whose person or property is located within an area that the Tribe and state stipulate is in dispute as to its status as Indian country, the Tribal Court shall treat the location of the taxpayer or property as being within Indian country and shall follow the standards and procedures set forth in § 10.2-23E above. In the event that the tribal member or tribal entity fails or refuses to comply with the Tribal Court order, the Tribal Court shall promptly direct one or more tribal police officers to enforce the order with the assistance of one or more state enforcement officers. [§ 10.1-14D(7); T-STA § XIII.D.7]
G.
Police assistance concerning state property seizure/Tribal Court review. Upon receipt of notice the state intends to seize or inspect property of a tribal member or tribal entity in Indian country in accordance with state law, the tribal police shall promptly direct one or more tribal police officers to execute the enforcement action jointly with one or more state enforcement officers. The affected tribal member or tribal entity may, within seven days following the enforcement action, file a petition in Tribal Court seeking a review of the enforcement action. If the Tribal Court determines that (i) the taxpayer is a tribal member or tribal entity, (ii) the taxpayer and/or property is located within Indian country, (iii) the state tax enforcement action pertains to one or more covered taxes, and (iv) the state action is in compliance with relevant state law procedures and the Tribal-State Tax Agreement, the Tribal Court shall affirm the enforcement action. [§ 10.1-14D(9); T-STA § XIII.D.9]
H.
Police assistance concerning state property seizure; Indian country in dispute. Upon receipt of notice that the state intends to seize or inspect property of a tribal member or tribal entity in accordance with state law at a location concerning which there is disagreement between the Tribe and state regarding its status as Indian country, the tribal police shall promptly direct one or more tribal police officers to execute the enforcement action jointly with one or more state enforcement officers. [§ 10.1-14D(10)(a); T-STA § XIII.D.10.a]
I.
Tribal Court review of property seizure; Indian country in dispute. If a taxpayer petitions the Tribal Court to review a state property seizure or inspection enforcement action in an area that the Tribe and state stipulate is in dispute concerning its status as Indian country, Tribal Court shall treat the location of the person or property as being within Indian country and shall follow the standards and procedures set forth in Subsection G above. If the Tribal Court determines that the affected person or property is not located within Indian country or is not within the stipulated disputed area, the Tribal Court shall promptly dismiss the action. [§ 10.1-14D(10)(b); T-STA § XIII.D.10.b]
J.
Appeal of state assessment to Tribal Court. A tribal member or tribal entity may appeal the assessment or denial of refund of a covered tax imposed upon income, business activity, transactions, or privileges which the tribal member or tribal entity assert were realized, occurred, or exercised wholly within Indian country, to Tribal Court, within 35 days of the issuance of the final assessment or denial of refund, on the grounds that it is unlawful under (i) state law, including any modification to state law made under the Tribal-State Tax Agreement, or (ii) the Michigan Constitution, the U.S. Constitution, or federal law, provided that such claims shall be limited to those that are not predicated on Indian tribal membership. If the Tribal Court determines that any of the taxes assessed or refunds denied were for a tax upon income, business activity, transactions, or privileges which were realized, occurred, or exercised within the state but outside of either Indian country or any stipulated disputed area, the Tribal Court shall promptly dismiss the action. Otherwise, the Tribal Court shall retain jurisdiction of the appeal and follow state law relative to the practices and procedures of a case in the Michigan Court of Claims; provided, however, that the taxpayer shall not be required to prepay the contested portion of the tax, penalty, or interest prior to filing the appeal. The Tribal Court shall make its ruling within one year of the filing of the appeal. [§ 10.1-14D(11) and (12); T-STA § XIII.D.11 and 12]
Tribal officials shall perform or cause the following duties
and obligations to be performed with respect to matters over which
they have responsibility and authority in accordance with the Tribal-State
Tax Agreement:
A.
Confidentiality. In the course of the administration and enforcement of covered taxes, the state may make certain taxpayer information relating to tribal members or tribal entities available to tribal officials. All such information shall be retained in the strictest confidence and shall only be revealed to persons other than the taxpayer as required for the proper administration and enforcement of the terms of the Tribal-State Tax Agreement. The obligation of tribal officials to keep information received confidential shall be a continuing obligation and shall survive the termination of the Tribal-State Tax Agreement. [§ 10.1-1E(3); T-STA § I.E.3]
B.
Tribal enterprise collection and remittance of sales tax on taxable sales. Tribal official(s) with supervisory authority over a tribal enterprise retailer shall cause it to collect and remit the state sales or use tax on all sales that are not exempt under the Tribal-State Tax Agreement in accordance with state procedures generally applicable to retail sellers. [§§ 10.1-3B and 10.1-13A(1) and D; T-STA §§ III.B. and XII.A.1. and D]
C.
Tribal Treasurer tax sharing oversight. The Tribal Treasurer or his or her designee shall monitor and confirm state compliance with the sales tax sharing provisions pursuant to the Tribal-State Tax Agreement, and shall promptly report any apparent noncompliance to the Tribal Council. [§ 10.1-3B(2); T-STA § III.B.2]
D.
Income tax withholding and reporting. The appropriate tribal official(s)
shall ensure that:
(1)
Tribal and tribal enterprise units and operations withhold and
remit to the state income tax from all employees who are not resident
tribal members in accordance with regulations/instructions generally
applicable;
(2)
The Tribe or its casino operator will report to the state gaming
winnings in the same manner as reported to the federal government;
and
(3)
The Tribe or its casino operator and/or entertainment facility operator will report gross receipts and contact information regarding each professional performer in a manner consistent with reporting practices required by the state for nontribal casino operators and/or entertainment facilities. [§ 10.1-4C; T-STA § IV.E]
E.
Maintenance of records to support exemption claims. The appropriate tribal official(s) shall cause the Tribe, consistent with state law, to maintain records sufficient to substantiate claims for exemption from tax under the Tribal-State Tax Agreement T-STA § VIII.A (§ 10.1-9A). Records shall be separately maintained for items that are claimed exempt on the basis that the purchase occurred in, and the use is exclusively in, the tribal and trust lands. [§ 10.1-13E(1)(a); T-STA § XII.E.1.a]
F.
Tax-free motor fuels quota purchases. If the Tribe elects the quota method for its tax-free motor fuels purchases, (A) the appropriate tribal official(s) shall ensure that in each month the total amount of tax-free quota motor fuel delivered to the Tribe and those authorized by the Tribe to store or sell tax-free motor fuel shall not exceed 15% of the total quota amount calculated on a twelve-month basis, and (B) in addition to maintaining the books and records required by state law, the appropriate tribal official(s) shall cause any tribal enterprise retailer to maintain a log of their purchases of tax-free quota motor fuel showing the delivery date and the type (gasoline or diesel) and quantity of fuel purchased. [§ 10.1-11A; T-STA § X.A]
G.
Tax-refundable motor fuels purchases/refundable fuel sales records. If the Tribe elects to use the refund system for tax-free motor fuels sales, (A) the Tribe shall purchase all motor fuel for use or resale in accordance with state law from any licensed wholesaler, tax prepaid, and taxable sales will include tax in the price, and (B) in addition to maintaining the books and records required by state law, the appropriate tribal official(s) shall cause any tribal enterprise retailer to maintain a log of their sales of tax-free motor fuel showing the date, the purchaser's name, the purchaser's tribal identification number, the purchaser's signature (or an approved swipe-card record), and the amount and type (gasoline or diesel) of fuel purchased. [§ 10.1-5B(1) and (2) and 10.1-11B(3); T-STA §§ VI.B.1. and 2. and X.B.3]
H.
Tribal use of tax-free motor fuel. The appropriate tribal official(s) shall maintain a record of the Tribe's tax-free motor fuel acquired under the quota or refund method; this record shall indicate the vehicle(s) in which motor fuel is used, the number of gallons used by each vehicle (or each category of vehicles), and a general description of the use of the vehicles. [§ 10.1-11A(4) and B(5); T-STA § X.A.4 and B.5]
I.
Tax-free tobacco product quota purchases. If the Tribe elects the quota method for its tax-free tobacco products purchases, (A) the appropriate tribal official(s) shall ensure that in each month the total amount of tax-free quota tobacco products delivered to the Tribe and those authorized by the Tribe to store or sell tax-free tobacco products shall not exceed 15% of the total quota amount calculated on a twelve-month basis, and (B) in addition to maintaining the books and records required by state law, the appropriate tribal official(s) shall cause each tribal enterprise retailer to maintain a log of their purchases of tax-free quota tobacco products showing the delivery date and the type (cigarette, cigar, chew, etc.), quantity and brand. [§ 10.1-12A; T-STA § XI.A]
J.
Tax-refundable tobacco products purchases/refundable tobacco sales records. If the Tribe elects to use the refund system for tax-free tobacco products sales, (A) the Tribe shall purchase all tobacco products for resale in accordance with state law from any licensed wholesaler, tax prepaid, and taxable sales will include tax in the price, and (B) in addition to maintaining the books and records required by state law, the appropriate tribal official(s) shall cause any tribal enterprise retailer to maintain a log of their sales of tax-free showing the date, the purchaser's name, the purchaser's tribal identification number, the purchaser's signature (or approved swipe-card record). [§§ 10.1-6B(2) and 10.1-12B(3); T-STA §§ VB.2 and XI.B.3]
K.
Use of state sales tax exemption certificates for non-T-STA exemption claims. To obtain the benefit of statutory sales and use tax exemptions other than those specifically identified in the Tribal-State Tax Agreement, the appropriate tribal official(s) shall cause the Tribe and tribal enterprises to use the standard procedures and forms used by all taxpayers claiming exemption. See Revenue Administrative Bulletin 2002-15. [§ 10.1-13A(2); T-STA § XII.A.2]
L.
Tribal enterprise retailer records regarding sales-tax-exempt sales. The appropriate tribal official(s) shall cause: (i) tribal enterprise retailers to maintain records regarding sales that are not taxable sales under the Tribal-State Tax Agreement, and (ii) with respect to sales within the Agreement Area to the Tribe, tribal members and tribal entities on which no tax was collected, tribal enterprise retailers to maintain a record of such sales, including the date, the name and tribal identification number of the purchaser, the amount, and for any item of more than $50 or sales of more than $200 in the aggregate, the identification of the items purchased and any other data sufficient to document the exemption. [§ 10.1-13E(1); T-STA § XII.E.1]
M.
Tribal records regarding governmental function purchases. For each item claimed exempt as governmental function purchases under Section III(a)(1)(b) of the Tribal-State Tax Agreement [§ 10.1-3A(1)(b)] that is not used exclusively for a governmental function, the appropriate tribal official(s) shall cause the Tribe to maintain a log setting forth all uses of the item and the amount of each use. [§ 10.1-13E(2)(a); T-STA § XII.E.2.a]
N.
Maintain copies of tribal certificate of exemption. If the Tribe elects to use tribal certificates of exemption for its sales-tax-exempt purchases, the appropriate tribal official(s) shall cause the Tribe to separately maintain a copy of all tribal certificates of exemption used. [§ 10.1-13E(2)(b); T-STA § XII.E.2.b]
O.
Utilities provider list. The appropriate tribal official(s) shall provide the state with a list of utility, telecommunications, cable, and Internet providers serving the Agreement Area, so that the state may advise the providers that sales to named individuals and businesses shall be made without the imposition of sales tax or use tax. [§ 10.1-13G; T-STA § XII.G]
P.
Tribal enterprise collection of room tax on nonexempt rentals. Except as described at § 10.2-3A(9) of this chapter, the appropriate tribal official(s) shall cause any tribal enterprise operating a hotel or motel to remit, in accordance with regular state law procedures, use tax on rooms subject to tax under state law. [§ 10.1-13G; T-STA § XII.H]
Q.
Cooperation with state audit. The Tribal Treasurer and any other appropriate tribal official shall cooperate with any properly noticed state audit of tribal records regarding covered taxes. [§ 10.1-14C(2); T-STA § XIII.C.2]
R.
Cooperation with state inspection. The appropriate tribal official(s)
and tribal police shall cooperate with any properly conducted state
inspection of tribal facilities regarding compliance with motor fuels
and tobacco products taxes, as modified by the Tribal-State Tax Agreement.
[T-STA]
S.
Tribal compliance with state licensure requirements. The appropriate tribal official(s) shall cause the Tribe to comply with state licensure and registration requirements for covered taxes. [§ 10.1-14E(1); T-STA § XIII.E.1]
T.
Tribal assistance to state regarding tribal member and tribal entity compliance. The appropriate tribal officials shall assist the state in ascertaining that tribal members and tribal entities are fully complying with the terms of the Tribal-State Tax Agreement. Upon request of the state, the appropriate tribal officials shall assist the state in the assessment and collection of taxes owed under the terms of the Tribal-State Tax Agreement. In those instances where a question of jurisdiction arises between the state and a tribal member or tribal entity, and the appropriate tribal official(s) agree with the state's position, such tribal official(s) shall assist the Court or tribunal hearing the matter by providing affidavits and/or testimony. [§ 10.1-14G(2); T-STA § XIII.G.2]
U.
Tribal response to notice of motor fuels or tobacco products offenses. If the state notifies the Tribe that one of the motor fuels and tobacco products offenses listed at Section XIII.G.3 of the Tribal-State Tax Agreement [§ 10.1-14G(3)] has occurred within the Tribe's jurisdiction, the appropriate tribal official(s) shall, within 10 business days after notice by the state of the violation, take the following action: for a first offense, give a written warning to the offending party that further noncompliance will result in termination of any tribally issued license or authorization to operate; for any subsequent offense, commence proceedings to terminate any tribally issued license or authorization to operate. [§ 10.1-14G(3); T-STA § XIII.G.3]
V.
Tribal enforcement activity. In addition to assisting the state,
the appropriate tribal official(s) shall enforce the Tribal-State
Tax Agreement independently through:
(1)
Seizure from tribal members and tribal entities of tobacco products
and motor fuel not acquired or possessed in accordance with the terms
of the Tribal-State Tax Agreement, and transfer of the seized product
to the state, consistent with applicable provisions of state law;
(2)
Establishment of tribal mechanisms to monitor and enforce tribal
member and tribal entity compliance with the terms of this agreement;
and
(3)
Notification to the state of any violations of this agreement that a tribal official may discover. [§ 10.1-14G(4); T-STA § XIII.G.4]
