Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Sales and Use Tax Annotations


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I

305.0000 INDIANS

Annotation 305.0028.600

305.0028.600 Purchase of a Vehicle—Use Tax Collection Responsibility.
When an off-reservation vehicle dealer, using its own facilities, delivers a vehicle on a reservation to an Indian purchaser who does not reside on a reservation, the dealer is obligated to collect use tax from the Indian purchaser and remit the tax to the Board of Equalization (Board). The obligation of the vehicle dealer to collect and remit use tax also applies when, using its own facilities, an off-reservation dealer delivers a commercial vehicle (e.g., a semi-trailer truck which cannot reasonably be used on a reservation more than it is used off the reservation during the 12 months after delivery to the purchaser) on a reservation to an Indian purchaser who resides on a reservation. In both of these instances, if the Indian purchaser can subsequently establish that he or she used the vehicle on a reservation one-half or more of the time during the first 12 months following delivery, he or she may apply to the Board for a refund of the use tax.

However, when an off-reservation dealer, using its own facilities, delivers a vehicle to be used for personal purposes to an Indian purchaser who resides on a reservation, the dealer is not obligated to collect and remit use tax. In this situation, if the Indian purchaser uses the vehicle off the reservation more than one half the time during the first 12 months after delivery, it is the responsibility of the Indian purchaser to remit use tax to the Board. 2/16/05. (2006–1).