2006 Minnesota Code
Chapters 296 - 299 Excise and Sales Taxes
Chapter 297F Cigarettes and Tobacco Taxes
Section 297F.07 SALES TO INDIAN TRIBES.

297F.07 SALES TO INDIAN TRIBES.
Subdivision 1. Wholesalers. A wholesaler may set aside the part of the wholesaler's cigarette
and tobacco product stock necessary to make sales to the established governing body of an Indian
tribe recognized by the United States Department of Interior without paying the tax required by
this chapter. The amount of unstamped or untaxed stock that wholesalers may deliver to an
Indian reservation is limited to amounts necessary to meet the personal consumption needs of
qualified purchasers. The unstamped stock must be kept separate and apart from stamped stock.
When shipping or delivering unstamped or untaxed stock to an Indian tribal organization, the
wholesaler shall make a true duplicate invoice. The invoice must show the complete details
of the sale or delivery. The wholesaler shall send the duplicate to the commissioner not later
than the 18th day of the following calendar month. If the wholesaler fails to comply with this
section, the commissioner shall revoke the permission granted to the wholesaler to keep a stock
of unstamped goods.
Subd. 2. Retailers. Retailers who are Indian tribal organizations may keep unstamped or
untaxed stock intended for sale to qualified purchasers.
Subd. 3. Qualified purchasers. A qualified purchaser of unstamped or untaxed stock means
only an enrolled member of the Indian tribe which is offering the stock for sale.
Subd. 4. Sales to nonqualified buyers. A retailer who sells or otherwise disposes of
unstamped or untaxed stock other than to a qualified purchaser shall collect from the buyer or
transferee the tax imposed by section 297F.05, and remit the tax to the Department of Revenue at
the same time and manner as required by section 297F.09. If the retailer fails to collect the tax
from the buyer or transferee, or fails to remit the tax, the retailer is personally responsible for
the tax and the commissioner may seize any product destined to be delivered to the retailer. The
product so seized shall be considered contraband and be subject to the procedures outlined in
section 297F.21, subdivision 3. The proceeds of the sale of the stock may be applied to any tax
liability owed by the retailer after deducting all costs and expenses.
This section does not relieve the buyer or possessor of unstamped or untaxed stock from
personal liability for the tax.
History: 1997 c 106 art 1 s 7