NY Tax L § 471-E (2021)
2021 New York Laws TAX - Tax Article 20 - Tax on Cigarettes and Tobacco Products 471-E - Taxes Imposed on Qualified Reservations.

§  471-e.  Taxes  imposed  on  qualified  reservations.  1. Indian tax exemption coupon system.  (a)  Notwithstanding  any  provision  of  this article  to  the  contrary qualified Indians may purchase cigarettes for such qualified Indians' own use or consumption exempt from cigarette tax on their nations'  or  tribes'  qualified  reservations.  However,  such qualified  Indians  purchasing  cigarettes  off their reservations or on another  nation's  or  tribe's  reservation,  and   non-Indians   making cigarette  purchases  on  an Indian reservation shall not be exempt from paying the cigarette tax when purchasing cigarettes within  this  state. Accordingly, all cigarettes sold on an Indian reservation to non-members of the nation or tribe or to non-Indians shall be taxed, and evidence of such tax will be by means of an affixed cigarette tax stamp.  (b)  In  order  to ensure an adequate quantity of cigarettes on Indian reservations which may be purchased by qualified Indians exempt from the cigarette tax, the recognized governing body  of  an  Indian  nation  or tribe  may  annually  elect  to  participate in the Indian tax exemption coupon system for that year. If the  recognized  governing  body  of  an Indian  nation  or  tribe  elects  within  the  time  specified  by  the department to participate in the Indian tax exemption coupon system  for that  year, the department shall provide the Indian nation or tribe with Indian tax exemption coupons as  set  forth  in  this  section.  If  the recognized governing body of an Indian nation or tribe does not elect to participate  in  the Indian tax exemption coupon system for that year or does not make this election for that year within the time  specified  by the department, no Indian tax exemption coupons will be provided to that Indian  nation or tribe for that year. Instead, for that year, the prior approval system set forth  in  paragraph  (b)  of  subdivision  five  of section four hundred seventy-one of this article shall be used. When the recognized governing body of an Indian nation or tribe elects to use the Indian tax exemption coupon system for a year, an Indian nation or tribe and  a reservation cigarette seller shall be able to present such Indian tax exemption coupons to a wholesale dealer licensed  pursuant  to  this article  in  order  to  purchase  stamped  cigarettes  exempt  from  the imposition  of  the  cigarette  tax.  Qualified  Indians  may   purchase cigarettes from a reservation cigarette seller exempt from the cigarette tax  even  though  such  cigarettes  will  have an affixed cigarette tax stamp.   2. Indian tax exemption coupons. (a) If the recognized governing  body of  an Indian nation or tribe timely elects to participate in the Indian tax exemption coupon system for that year, Indian tax exemption  coupons shall be provided to the recognized governing body of such Indian nation or  tribe  to  ensure  that  such  Indian  nation  or  tribe  can obtain cigarettes upon which the tax will not be collected that are for the use or consumption by the nation or tribe or by the members of  such  nation or  tribe.  The  Indian  tax exemption coupons shall be provided to such Indian nations or tribes on a quarterly  basis  for  each  of  the  four quarters  beginning  with  the  first  day of December, March, June, and September of that year. It is intended that the Indian nations or tribes will retain the amount of Indian tax exemption coupons  they  will  need each  quarter  to purchase cigarettes for official nation or tribal use, and will distribute  the  remaining  Indian  tax  exemption  coupons  to reservation  cigarette  sellers  on  such  nations' or tribes' qualified reservations. Only Indian nations or  tribes  or  reservation  cigarette sellers  on  their  qualified  reservations  may  redeem such Indian tax exemption coupons pursuant to this section.  (b) The amount of Indian tax exemption coupons  to  be  given  to  the recognized  governing body of each Indian nation or tribe shall be based upon the probable demand of the qualified Indians on  such  nation's  or  tribe's qualified reservation plus the amount needed for official nation or tribal use.  (i)  Probable  demand shall be determined by reference to, among other data, the United States average cigarette  consumption  per  capita,  as compiled  for  the  most  recently  completed  calendar  or fiscal year, multiplied by the number of qualified Indians  for  each  such  affected Indian nation or tribe.  (ii)  In  making  a  determination  of probable demand, the department shall take into consideration any evidence submitted by such  recognized governing  body  relating  to  such  probable demand (e.g., a verifiable record of previous sales  to  qualified  Indians  or  other  statistical evidence)  and/or  relating  to  the  amount needed for such nation's or tribe's official use.  (c) Each Indian tax exemption coupon  shall  consist  of  a  retention portion for a wholesale dealer's recordkeeping purposes and a redemption portion  for  a  wholesale  dealer's  submission  to the department when claiming a refund as set forth in subdivision four of this section,  and shall contain the following information:  (i) the identity of the Indian nation or tribe to which it is issued;  (ii)  the  identity  and  the  quantity of the product for which it is issued;  (iii) the date of issuance and the date of expiration; and  (iv) any other information as the commissioner may deem appropriate.   3. Tax exempt purchaser. (a) An Indian nation or  tribe  may  purchase cigarettes  for  its  own  official  use or consumption from a wholesale dealer  licensed  pursuant  to  this  article  without  payment  of  the cigarette  tax  to  the  extent that the Indian nation or tribe provides such wholesale dealer with Indian tax exemption  coupons  entitling  the Indian  nation  or  tribe  to  purchase such quantities of cigarettes as allowed for on each Indian  tax  exemption  coupon  without  paying  the cigarette tax.  (b)  A qualified Indian may purchase cigarettes for his or her own use or consumption without payment of the cigarette tax, provided  that  the qualified Indian makes such purchase on a qualified reservation.  (c)  A reservation cigarette seller may purchase cigarettes for resale without payment of the cigarette tax from a  wholesale  dealer  licensed pursuant to this article:  (i)  provided  that  such  reservation  cigarette  seller  brings such cigarettes or causes them to be delivered onto a  qualified  reservation for resale on such reservation;  (ii)  to  the  extent  that such reservation cigarette seller provides such wholesale dealer with Indian tax exemption  coupons  entitling  the reservation  cigarette  seller to purchase such quantities of cigarettes as allowed for on each Indian tax exemption coupon  without  paying  the cigarette tax; and  (iii)  provided  that such cigarettes are affixed with a cigarette tax stamp.  (d) Wholesale dealers shall sell only tax-stamped cigarettes to Indian nations  and  tribes,  reservation  cigarette  sellers  and  all   other purchasers,  but  shall not collect the cigarette tax from any purchaser to the extent the purchaser  gives  such  wholesale  dealer  Indian  tax exemption coupons entitling the purchaser to purchase such quantities of cigarettes  as  allowed  for  on  each  such Indian tax exemption coupon without paying the cigarette tax.   4. Refunds. A wholesale dealer licensed pursuant to this  article  who has one or more Indian tax exemption coupons may file a claim for refund as provided for in section four hundred seventy-six of this article with respect  to  any  cigarette  tax  previously  paid on cigarettes it sold  without collecting the tax because it accepted an Indian  tax  exemption coupon from its purchaser pursuant to this section.   5.  Tax  agreements with Indian nations or tribes. If an Indian nation or tribe enters into an agreement with the  state  and  the  legislature approves   such   agreement  regarding  the  sale  and  distribution  of cigarettes on the nation's or tribe's qualified reservation,  the  terms of  such  agreement  shall  take  precedence over the provisions of this article and exempt such nation from such taxes to the extent  that  such taxes  are  specifically  referred  to in the agreement, and the sale or distribution,  including  transportation,  of  any  cigarettes  to   the nation's  or  tribe's  qualified reservation shall be in accordance with the provisions of such agreement.   6. The failure of the  department  to  establish,  issue  and  provide Indian  tax  exemption  coupons, pursuant to subdivisions one and two of this section, or to promulgate  any  rules,  regulations  or  directives necessary to implement the provisions of this section, shall not relieve wholesale  dealers of the obligation to sell only tax-stamped cigarettes to Indian nations and tribes, and to reservation cigarette sellers.