NY Tax L § 284-E (2021)
2021 New York Laws TAX - Tax Article 12-A - Tax on Gasoline and Similar Motor Fuel 284-E - Taxes Imposed on Qualified Reservations.

§  284-e.  Taxes  imposed  on  qualified reservations. 1. General. (a) Notwithstanding any other provision of  this  article  to  the  contrary qualified  Indians may purchase motor fuel or Diesel motor fuel for such qualified Indians' own use or consumption exempt from the motor fuel tax or Diesel  motor  fuel  tax  on  their  nations'  or  tribes'  qualified reservations.  However,  such qualified Indians purchasing motor fuel or Diesel motor fuel off their  reservations  or  on  another  nation's  or tribe's  reservation,  and non-Indians making motor fuel or Diesel motor fuel purchases on an Indian reservation shall not be exempt from  paying the  motor  fuel tax or Diesel motor fuel tax when purchasing motor fuel or Diesel motor fuel within this state. Accordingly, all motor fuel  and Diesel  motor  fuel  sold on an Indian reservation to non-members of the nation or tribe or to non-Indians shall be taxed.  (b) In order to ensure an adequate quantity of motor fuel  and  Diesel motor  fuel  on  Indian reservations which may be purchased by qualified Indians exempt from the motor fuel tax and Diesel motor  fuel  tax,  the department  shall  provide  Indian  nations and tribes within this state with Indian tax exemption coupons  as  set  forth  in  this  section.  A reservation  motor  fuel seller shall be able to present such Indian tax exemption coupons to a distributor licensed pursuant to this article  in order  to  purchase  motor  fuel  or  Diesel  motor fuel exempt from the imposition of the motor fuel tax or Diesel  motor  fuel  tax.  Qualified Indians  may purchase motor fuel or Diesel motor fuel from a reservation motor fuel seller exempt from the motor fuel tax or  Diesel  motor  fuel tax  even  though  the  motor  fuel tax or Diesel motor fuel tax on such motor fuel or Diesel motor  fuel  will  have  been  previously  paid  or assumed by, or passed through to such distributor.   2.  Indian  tax  exemption  coupons.  (a) Indian tax exemption coupons shall be provided to the recognized governing body of each Indian nation or tribe to ensure that each Indian nation or  tribe  can  obtain  motor fuel  and  Diesel  motor  fuel upon which the tax shall not be collected that is 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 the 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. 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 motor  fuel  and  Diesel  motor  fuel  for official  nation or tribal use, and will distribute the remaining Indian tax exemption coupons to reservation motor fuel sellers on such nations' or tribes' qualified reservations. Only  Indian  nations  or  tribes  or reservation  motor  fuel  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  motor  fuel  and  Diesel  motor  fuel 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 verified 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 distributor's  recordkeeping  purposes  and  a  redemption portion for a distributor's submission to the department when claiming a refund  as  set  forth  in  paragraph  (a)  of  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  purchases. (a) An Indian nation or tribe may purchase motor fuel and Diesel motor fuel for its own official use or consumption from a distributor registered pursuant to this article  without  payment of  the  motor  fuel tax or Diesel motor fuel tax to the extent that the Indian nation  or  tribe  provides  such  distributor  with  Indian  tax exemption  coupons entitling the Indian nation or tribe to purchase such quantities of motor fuel and Diesel motor fuel as allowed  for  on  each Indian  tax exemption coupon without paying the motor fuel tax or Diesel motor fuel tax.  (b) A qualified Indian may purchase motor fuel and Diesel  motor  fuel for  his or her own use or consumption without payment of the motor fuel tax or Diesel motor fuel tax, provided that the qualified  Indian  makes such purchase at a qualified reservation.  (c) A reservation motor fuel seller may purchase motor fuel and Diesel motor  fuel  for  resale without payment of the motor fuel tax or Diesel motor fuel tax from a distributor registered pursuant to this article:  (i) provided that such reservation motor fuel seller brings such motor fuel or Diesel motor fuel or causes it to be delivered onto a  qualified reservation for resale on such reservation; and  (ii)  to  the  extent that such reservation motor fuel seller provides such  distributor  with  Indian  tax  exemption  coupons  entitling  the reservation  motor fuel seller to purchase such quantities of motor fuel and Diesel motor fuel as allowed for on each Indian tax exemption coupon without paying the motor fuel tax or Diesel motor fuel tax.  (d) A distributor shall not collect or pass through, as the  case  may be,  the  motor  fuel tax or Diesel motor fuel tax from any purchaser to the extent the purchaser gives such  distributor  Indian  tax  exemption coupons  entitling  the  purchaser  to purchase such quantities of motor fuel or Diesel motor fuel  as  allowed  for  on  each  such  Indian  tax exemption  coupon without paying the motor fuel tax or Diesel motor fuel tax.   4. Refunds and credits. (a) A distributor registered pursuant to  this article  who  has  one  or  more Indian tax exemption coupons may file a claim for refund or credit  as  provided  for  in  section  two  hundred eighty-nine-c  of  this  article  with  respect to any motor fuel tax or Diesel motor fuel tax it previously paid, assumed,  or  has  had  passed through to it on motor fuel or Diesel motor fuel it sold without passing through  the tax because it accepted an Indian tax exemption coupon from its purchaser.  (b) A distributor of motor fuel or  Diesel  motor  fuel  shall  report motor  fuel  or Diesel motor fuel sold to an Indian nation or tribe or a reservation motor fuel seller in its monthly return of tax on motor fuel or Diesel motor fuel and may deduct the quantity so sold in arriving  at the  net  taxable  gallonage  to  the  extent such fuel was sold without passing through to such purchasers the motor fuel tax  or  Diesel  motor fuel tax.    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 motor fuel  or  Diesel  motor  fuel  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 motor fuel  or  Diesel  motor  fuel  to  the  nation's  or  tribe's  qualified reservation   shall  be  in  accordance  with  the  provisions  of  such agreement.