270C.19 TAXES AND FEES; REFUND AND SHARING AGREEMENTS WITH INDIANS.
Subdivision 1. Taxes paid by Indians.
The commissioner is authorized to enter into a tax
refund agreement with the governing body of any federally recognized Indian reservation in
Minnesota. The agreement may provide for a mutually agreed upon amount as a refund to the
governing body of any sales or excise tax paid by the total resident Indian population on or
adjacent to a reservation into the state treasury, or for an amount which measures the economic
value of an agreement by the tribal government to pay the equivalent of the state sales tax on
items included in the sales tax base but exempt on the reservation, notwithstanding any other law
which limits the refundment of taxes. The total resident Indian population on or adjacent to a
reservation shall be defined according to the United States Department of the Interior, Bureau of
Indian Affairs, as determined and stated in its Report on Service Population and Labor Force.
Subd. 2. Sales, use, and excise taxes.
(a) The commissioner is authorized to enter into a tax
agreement with the governing body of any federally recognized Indian reservation in Minnesota,
that provides for the state and the tribal government to share sales, use, and excise tax revenues
generated from on-reservation activities of non-Indians and off-reservation activities of members
of the reservation. Every agreement entered into pursuant to this subdivision must require the
commissioner to collect all state and tribal taxes covered by the agreement.
(b) The commissioner is authorized to collect any tribal taxes imposed pursuant to any
agreement entered into pursuant to this subdivision and to make payments authorized by the
agreement to the tribal government from the funds collected.
(c) The commissioner shall pay to the tribal government its share of the taxes collected
pursuant to the agreement, as indicated in the agreement, and grant the taxpayer a credit for the
taxpayer's share of the amount paid to the tribal government against the taxpayer's Minnesota tax.
Subd. 3. Appropriation.
There is annually appropriated from the general fund to the
commissioner the amounts necessary to make the refunds provided in this section.
Subd. 4. Payments to counties.
(a) The commissioner shall pay to a county in which an
Indian gaming casino is located:
(1) ten percent of the state share of all taxes generated from activities on reservations and
collected under a tax agreement under this section with the tribal government for the reservation
located in the county; or
(2) five percent of excise taxes collected by the state that are determined by the department to
have been generated from activities on a reservation located in the county, the tribal government
of which does not have a tax agreement under this section and did not have a tax agreement on
June 30, 2003.
If the tribe has casinos located in more than one county, the payment must be divided equally
among the counties in which the casinos are located.
(b) The commissioner shall make the payments required under this subdivision by February
28 of the year following the year the taxes are collected.
(c) An amount sufficient to make the payments authorized by this subdivision is annually
appropriated from the general fund to the commissioner.
Subd. 5. Fees; appropriation.
(a) The commissioner may enter into an agreement with the
governing body of any federally recognized Indian reservation in Minnesota concerning fees
administered by the commissioner that are paid by the tribe, members of the tribe, or persons who
conduct business with the tribe, or otherwise imposed on on-reservation activities. The agreement
may provide for the refund or sharing of the fee. The commissioner may make any payments
required by the agreement from the fees collected.
(b) Each head of an agency, board, or other governmental entity that administers a program
that is funded by fees administered by the commissioner may sign an agreement entered into by
the commissioner under this subdivision. An agreement is not valid until signed by the head
of each agency, board, or other governmental entity that administers a program funded by the
particular fee covered in an agreement and by the commissioner.
(c) There is annually appropriated to the commissioner from the funds for which the fees are
collected the amounts necessary to make payments as provided in this subdivision.
History: 2005 c 151 art 1 s 21