59-14-204.5.   Application of excise tax on tribal lands.
     (1) (a) Cigarettes sold to or received by members of a federally recognized Indian tribe that are purchased or received on the tribal lands are not subject to the tax imposed by Section 59-14-204.
     (b) Cigarettes exempt from tax under 26 U.S.C. Sec. 5701 and distributed in accordance with federal regulations are not subject to the tax imposed by Section 59-14-204.
     (2) (a) (i) The tax applicable to cigarettes sold to or received by nontribal members on tribal lands is equal to the state tax imposed by Section 59-14-204, minus any tribal tax actually paid.
     (ii) For purposes of this section, nontribal members includes any person who is not a member of the Indian tribe that is selling the cigarettes.
     (b) If the application of the tax offset for tribal taxes permitted in Subsection (2)(a) results in a negative balance, the taxes owed to the state are zero.
     (c) (i) Cigarettes taxed pursuant to this Subsection (2) shall bear a tax stamp as required by Section 59-14-205 in an amount equal to the tax imposed by Section 59-14-204.
     (ii) The commission shall at least semi-annually rebate to an Indian tribal entity that is in compliance with this chapter the lesser of:
     (A) an amount equal to the tribal tax imposed on sales under this Subsection (2); or
     (B) the face value of the tax stamps affixed to cigarettes sold under this Subsection (2).

Enacted by Chapter 217, 2004 General Session
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Last revised: Thursday, May 28, 2009