SF 3019

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; requiring that cigarette tax 
  1.3             refunds paid to Indian reservations are based on per 
  1.4             capita amounts; amending Minnesota Statutes 1996, 
  1.5             section 270.60, subdivisions 1 and 2. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1996, section 270.60, 
  1.8   subdivision 1, is amended to read: 
  1.9      Subdivision 1.  [TAXES PAID BY INDIANS.] The commissioner 
  1.10  of revenue is authorized to enter into a tax refund agreement 
  1.11  with the governing body of any federally recognized Indian 
  1.12  reservation in Minnesota.  The agreement may provide for a 
  1.13  mutually agreed upon amount as a refund to the governing body of 
  1.14  any sales or excise tax paid by the total resident Indian 
  1.15  population on or adjacent to a reservation into the state 
  1.16  treasury, or, except in the case of an agreement relating to 
  1.17  excise taxes on cigarettes and tobacco products, for an amount 
  1.18  which measures the economic value of an agreement by the tribal 
  1.19  government to pay the equivalent of the state sales tax on items 
  1.20  included in the sales tax base but exempt on the reservation, 
  1.21  notwithstanding any other law which limits the refundment of 
  1.22  taxes.  The total resident Indian population on or adjacent to a 
  1.23  reservation shall be defined according to the United States 
  1.24  Department of the Interior, Bureau of Indian Affairs, as 
  1.25  determined and stated in its Report on Service Population and 
  2.1   Labor Force. 
  2.2      Sec. 2.  Minnesota Statutes 1996, section 270.60, 
  2.3   subdivision 2, is amended to read: 
  2.4      Subd. 2.  [SALES, USE, AND EXCISE TAXES.] (a) The 
  2.5   commissioner of revenue is authorized to enter into a tax 
  2.6   agreement with the governing body of any federally recognized 
  2.7   Indian reservation in Minnesota, that provides for the state and 
  2.8   the tribal government to share sales, use, and excise tax 
  2.9   revenues, other than revenues from excise taxes on cigarettes 
  2.10  and tobacco products, generated from on reservation activities 
  2.11  of non-Indians and off reservation activities of members of the 
  2.12  reservation.  Every agreement entered into pursuant to this 
  2.13  subdivision must require the commissioner of revenue to collect 
  2.14  all state and tribal taxes covered by the agreement.  
  2.15     (b) The commissioner of revenue is authorized to collect 
  2.16  any tribal taxes imposed pursuant to any agreement entered into 
  2.17  pursuant to this subdivision paragraph (a) and to make payments 
  2.18  authorized by the agreement to the tribal government from the 
  2.19  funds collected. 
  2.20     (c) The commissioner shall pay to the tribal government its 
  2.21  share of the taxes collected pursuant to the agreement under 
  2.22  paragraph (a), as indicated in the agreement, and grant the 
  2.23  taxpayer a credit for the taxpayer's share of the amount paid to 
  2.24  the tribal government against the taxpayer's Minnesota tax.  
  2.25     (d) An agreement between the commissioner of revenue and 
  2.26  the governing body of a reservation relating to refunds of 
  2.27  excise taxes on cigarettes and tobacco products may provide for 
  2.28  refunds in an amount that does not exceed a reasonably 
  2.29  determined estimate of the excise taxes on cigarettes and 
  2.30  tobacco products actually paid by the resident Indian population 
  2.31  on or adjacent to the reservation. 
  2.32     Sec. 3.  [EFFECTIVE DATE.] 
  2.33     Sections 1 and 2 are effective the day following final 
  2.34  enactment, and apply to all agreements that are entered into, 
  2.35  renewed, or renegotiated after that date.