2010 New York Code
TAX - Tax
Article 12-A - (282 - 289-F) TAX ON GASOLINE AND SIMILAR MOTOR FUEL
284-E - Taxes imposed on qualified reservations.

§  284-e.  Taxes  imposed  on  qualified reservations. 1. General. (a)
  Notwithstanding any other provision of  this  article  to  the  contrary
  qualified  Indians may purchase motor fuel or Diesel motor fuel for such
  qualified Indians' own use or consumption exempt from the motor fuel tax
  or Diesel  motor  fuel  tax  on  their  nations'  or  tribes'  qualified
  reservations.  However,  such qualified Indians purchasing motor fuel or
  Diesel motor fuel off their  reservations  or  on  another  nation's  or
  tribe's  reservation,  and non-Indians making motor fuel or Diesel motor
  fuel purchases on an Indian reservation shall not be exempt from  paying
  the  motor  fuel tax or Diesel motor fuel tax when purchasing motor fuel
  or Diesel motor fuel within this state. Accordingly, all motor fuel  and
  Diesel  motor  fuel  sold on an Indian reservation to non-members of the
  nation or tribe or to non-Indians shall be taxed.
    (b) In order to ensure an adequate quantity of motor fuel  and  Diesel
  motor  fuel  on  Indian reservations which may be purchased by qualified
  Indians exempt from the motor fuel tax and Diesel motor  fuel  tax,  the
  department  shall  provide  Indian  nations and tribes within this state
  with Indian tax exemption coupons  as  set  forth  in  this  section.  A
  reservation  motor  fuel seller shall be able to present such Indian tax
  exemption coupons to a distributor licensed pursuant to this article  in
  order  to  purchase  motor  fuel  or  Diesel  motor fuel exempt from the
  imposition of the motor fuel tax or Diesel  motor  fuel  tax.  Qualified
  Indians  may purchase motor fuel or Diesel motor fuel from a reservation
  motor fuel seller exempt from the motor fuel tax or  Diesel  motor  fuel
  tax  even  though  the  motor  fuel tax or Diesel motor fuel tax on such
  motor fuel or Diesel motor  fuel  will  have  been  previously  paid  or
  assumed by, or passed through to such distributor.
    2.  Indian  tax  exemption  coupons.  (a) Indian tax exemption coupons
  shall be provided to the recognized governing body of each Indian nation
  or tribe to ensure that each Indian nation or  tribe  can  obtain  motor
  fuel  and  Diesel  motor  fuel upon which the tax shall not be collected
  that is for the use or consumption by the nation  or  tribe  or  by  the
  members  of such nation or tribe. The Indian tax exemption coupons shall
  be provided to the Indian nations or tribes on  a  quarterly  basis  for
  each  of  the  four  quarters  beginning with the first day of December,
  March, June, and September. It is intended that the  Indian  nations  or
  tribes  will retain the amount of Indian tax exemption coupons they will
  need each quarter to purchase motor  fuel  and  Diesel  motor  fuel  for
  official  nation or tribal use, and will distribute the remaining Indian
  tax exemption coupons to reservation motor fuel sellers on such nations'
  or tribes' qualified reservations. Only  Indian  nations  or  tribes  or
  reservation  motor  fuel  sellers  on  their  qualified reservations may
  redeem such Indian tax exemption coupons pursuant to this section.
    (b) The amount of Indian tax exemption coupons  to  be  given  to  the
  recognized  governing body of each Indian nation or tribe shall be based
  upon the probable demand of the qualified Indians on  such  nation's  or
  tribe's qualified reservation plus the amount needed for official nation
  or tribal use.
    (i)  Probable  demand shall be determined by reference to, among other
  data, the United  States  average  motor  fuel  and  Diesel  motor  fuel
  consumption  per  capita,  as  compiled  for the most recently completed
  calendar or fiscal year, multiplied by the number of  qualified  Indians
  for each such affected Indian nation or tribe.
    (ii)  In  making  a  determination  of probable demand, the department
  shall take into consideration any evidence submitted by such  recognized
  governing body relating to such probable demand (e.g., a verified record
  of  previous  sales  to qualified Indians or other statistical evidence)

and/or relating to the  amount  needed  for  such  nation's  or  tribe's
  official use.
    (c)  Each  Indian  tax  exemption  coupon shall consist of a retention
  portion for a distributor's  recordkeeping  purposes  and  a  redemption
  portion for a distributor's submission to the department when claiming a
  refund  as  set  forth  in  paragraph  (a)  of  subdivision four of this
  section, and shall contain the following information:
    (i) the identity of the Indian nation or tribe to which it is issued;
    (ii) the identity and the quantity of the  product  for  which  it  is
  issued;
    (iii) the date of issuance and the date of expiration; and
    (iv) any other information as the commissioner may deem appropriate.
    3.  Tax  exempt  purchases. (a) An Indian nation or tribe may purchase
  motor fuel and Diesel motor fuel for its own official use or consumption
  from a distributor registered pursuant to this article  without  payment
  of  the  motor  fuel tax or Diesel motor fuel tax to the extent that the
  Indian nation  or  tribe  provides  such  distributor  with  Indian  tax
  exemption  coupons entitling the Indian nation or tribe to purchase such
  quantities of motor fuel and Diesel motor fuel as allowed  for  on  each
  Indian  tax exemption coupon without paying the motor fuel tax or Diesel
  motor fuel tax.
    (b) A qualified Indian may purchase motor fuel and Diesel  motor  fuel
  for  his or her own use or consumption without payment of the motor fuel
  tax or Diesel motor fuel tax, provided that the qualified  Indian  makes
  such purchase at a qualified reservation.
    (c) A reservation motor fuel seller may purchase motor fuel and Diesel
  motor  fuel  for  resale without payment of the motor fuel tax or Diesel
  motor fuel tax from a distributor registered pursuant to this article:
    (i) provided that such reservation motor fuel seller brings such motor
  fuel or Diesel motor fuel or causes it to be delivered onto a  qualified
  reservation for resale on such reservation; and
    (ii)  to  the  extent that such reservation motor fuel seller provides
  such  distributor  with  Indian  tax  exemption  coupons  entitling  the
  reservation  motor fuel seller to purchase such quantities of motor fuel
  and Diesel motor fuel as allowed for on each Indian tax exemption coupon
  without paying the motor fuel tax or Diesel motor fuel tax.
    (d) A distributor shall not collect or pass through, as the  case  may
  be,  the  motor  fuel tax or Diesel motor fuel tax from any purchaser to
  the extent the purchaser gives such  distributor  Indian  tax  exemption
  coupons  entitling  the  purchaser  to purchase such quantities of motor
  fuel or Diesel motor fuel  as  allowed  for  on  each  such  Indian  tax
  exemption  coupon without paying the motor fuel tax or Diesel motor fuel
  tax.
    4. Refunds and credits. (a) A distributor registered pursuant to  this
  article  who  has  one  or  more Indian tax exemption coupons may file a
  claim for refund or credit  as  provided  for  in  section  two  hundred
  eighty-nine-c  of  this  article  with  respect to any motor fuel tax or
  Diesel motor fuel tax it previously paid, assumed,  or  has  had  passed
  through to it on motor fuel or Diesel motor fuel it sold without passing
  through  the tax because it accepted an Indian tax exemption coupon from
  its purchaser.
    (b) A distributor of motor fuel or  Diesel  motor  fuel  shall  report
  motor  fuel  or Diesel motor fuel sold to an Indian nation or tribe or a
  reservation motor fuel seller in its monthly return of tax on motor fuel
  or Diesel motor fuel and may deduct the quantity so sold in arriving  at
  the  net  taxable  gallonage  to  the  extent such fuel was sold without
  passing through to such purchasers the motor fuel tax  or  Diesel  motor
  fuel tax.

5.  Tax  agreements with Indian nations or tribes. If an Indian nation
  or tribe enters into an agreement with the  state  and  the  legislature
  approves  such  agreement  regarding  the sale and distribution of motor
  fuel  or  Diesel  motor  fuel  on  the  nation's  or  tribe's  qualified
  reservation,  the terms of such agreement shall take precedence over the
  provisions of this article and exempt such nation from such taxes to the
  extent that such taxes are specifically referred to  in  the  agreement,
  and  the  sale  or  distribution, including transportation, of any motor
  fuel  or  Diesel  motor  fuel  to  the  nation's  or  tribe's  qualified
  reservation   shall  be  in  accordance  with  the  provisions  of  such
  agreement.