1.1                          A bill for an act 
  1.2             relating to taxation; providing for the determination 
  1.3             of the amount of tax refunds to be paid to Indian 
  1.4             tribal governments; amending Minnesota Statutes 1994, 
  1.5             sections 270.60, subdivision 1; and 297.03, 
  1.6             subdivision 4; repealing Minnesota Statutes 1994, 
  1.7             section 270.60, subdivision 2. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1994, section 270.60, 
  1.10  subdivision 1, is amended to read: 
  1.11     Subdivision 1.  [TAXES PAID BY INDIANS.] The commissioner 
  1.12  of revenue is authorized to enter into a tax refund agreement 
  1.13  with the governing body of any federally recognized Indian 
  1.14  reservation in Minnesota.  The agreement may provide for a 
  1.15  mutually agreed upon amount as a refund to the governing body of 
  1.16  any sales or excise tax paid by the total resident Indian 
  1.17  population on or adjacent to a reservation into the state 
  1.18  treasury, or for an amount which measures the economic value of 
  1.19  an agreement by the tribal government to pay the equivalent of 
  1.20  the state sales tax on items included in the sales tax base but 
  1.21  exempt on the reservation, notwithstanding any other law which 
  1.22  limits the refundment of taxes.  The total resident Indian 
  1.23  population on or adjacent to a reservation shall be defined 
  1.24  according to the United States Department of the Interior, 
  1.25  Bureau of Indian Affairs, as determined and stated in its Report 
  1.26  on Service Population and Labor Force.  The amount of the tax 
  2.1   estimated to have been paid must be based on a reasonable 
  2.2   estimate of per capita expenditures or consumption. 
  2.3      Sec. 2.  Minnesota Statutes 1994, section 297.03, 
  2.4   subdivision 4, is amended to read: 
  2.5      Subd. 4.  [STAMPS; DESIGN, PRINTING.] The commissioner 
  2.6   shall adopt the design of two stamps.  One stamp shall be 
  2.7   designed for application to cigarette packages destined for 
  2.8   retail sale on an Indian reservation which is a party to an 
  2.9   agreement pursuant to section 270.60, subdivision 2, and only to 
  2.10  those packages.  A second stamp shall be designed for all other 
  2.11  cigarette packages subject to the provisions of this chapter.  
  2.12  The commissioner shall arrange for the printing thereof in such 
  2.13  amounts and denominations as the commissioner deems necessary. 
  2.14     Sec 3.  [REPEALER.] 
  2.15     Minnesota Statutes 1994, section 270.60, subdivision 2, is 
  2.16  repealed. 
  2.17     Sec. 4.  [EFFECTIVE DATE.] 
  2.18     Sections 1 to 3 are effective for all agreements entered 
  2.19  into after June 30, 1995.