95-079

Response October 31, 1995

Request

October 4, 1995

Utah state Tax Commission

Fuel Tax Division

210 North 1950 West

SALT LAKE CITY UT 84134

Dear sir,

Would you please send correspondence stating the Utah State Tax Commission's official position on the new Supreme Court ruling on state Exempt Tax Free Sales by Native Americans or Native American Companies to:

XXXXX

Your attention to this matter is appreciated.

Sincerely,

XXXXX

President and Manager

October 31, 1995

XXXXX

RE: Advisory Opinion Application of motor fuel tax to sales of fuel to Native Americans or companies owned by Native Americans

Dear XXXXX

We received your request for information relating to the Utah Motor Fuels Tax in the wake of a recent U. S. Supreme Court ruling on a similar matter in Oklahoma. The Supreme Court case of Oklahoma Tax Commission v. Chickasaw Nation states that absent congressional authorization, the states may not impose a tax on fuels sold by tribal retail stores if the legal consequence of the tax falls upon the tribe or its members. Because the Oklahoma tax was imposed on the retailer, the legal consequence of the tax fell upon the tribe or its members who were retailers, and the court found the tax to be invalid.

So far, this opinion has had little impact in Utah because our motor fuel tax is imposed on the distributor, not the retailer. We do not know of any distributor accounts with Native Americans.

If you have more specific questions about the motor fuel tax, please let us know.

For the Commission,

Alice Shearer

Commissioner