Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2017
Sales and Use Tax Annotations
305.0360 Use Tax—Exemption. Regulation 1616 sets forth the conditions under which the use of property, including vehicles, vessels, and aircraft, purchased by an Indian from an off reservation retailer and delivered to the purchaser on the reservation is exempt from use tax. The test for "use" is a "principal use" test covering the first 12 months following delivery. Thus, if a vehicle is used on the reservation more than it is used off the reservation during that first 12-month period, the principal use is considered to be on the reservation. When not in functional use, the vehicle would be "garaged" (stored or used) on the reservation. 6/2/89.