00-023

Response August 11, 2000

REQUEST LETTER

May 31, 2000

Dear Mr. Chapman,

As you are aware, at least I hope you are aware, the state of Utah and the TRIBE Indian Tribe have worked out an agreement that discontinues the sales tax exemption for purchases made within CITY City that enrolled TRIBE Tribal members have enjoyed for the past five years. Hopefully, the business operators understood your recent bulletin instructing them to commence collecting sales tax on all purchases as of July 1, 2000.

Another group of Indians claiming to be of the TRIBE Tribe are now confusing the local merchants by stating your recent ruling does not apply to them. The implication is that they are still exempt from paying sales tax. I do not know the status of the TRIBE Tribe, nor do I know where their reservation is.

It would be beneficial to the city of CITY and it's merchants for the Tax Commission to render an advisory opinion regarding the so-called TRIBE Tribe and clearly state the merchants responsibility regarding the collection of sales tax for other tribal members.

Thank you for your action regarding these issues. If you need to communicate, please contact me.

Sincerely,

MANAGER

RESPONSE LETTER

August 11, 2000

RE: State Taxation of Persons Alleging to be Members of the TRIBE Tribe

Dear NAME,

You have asked for guidance regarding the application of sale tax on purchases made by persons who allege to be members of the TRIBE Tribe. The TRIBE Tribe is not a federally recognized tribe. Accordingly, no person asserting tax immunity because of membership in the TRIBE Tribe has ever been or is now entitled to immunity from state and local taxation. Instead, these persons are considered citizens of the State of Utah who are subject to the same taxation as any other citizen, including the sales tax. Thus, all Utah merchants should apply sales tax on purchases made by a person alleging membership in the TRIBE Tribe, unless that person qualifies for an exemption that is available under Utah law.

As to the contract between the TRIBE Indian Tribe and the State of Utah, this contract provides that two conditions must be present before any sale to a TRIBE tribal member is exempt from sales tax. First, the purchaser must be an enrolled member of the TRIBE Tribe who lives on the reservation. Second, the transaction must take place on the reservation.

Please contact us if you have any other questions.

For the Commission,

Marc B. Johnson

Commissioner