2023 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.