Chapter
19. Taxation
Legislative History.
This new chapter to the Fort McDermitt Law & Order Code was enacted
by the Tribal Council on September 13, 1988.
Sec. 1. Purpose and Applicability.
The purpose of this chapter is to promote economic growth of the Fort
McDermitt Indian Reservation; to provide increased services to residents
of the Fort McDermitt Reservation; to provide funds for tribal government
activities; and, to regulate the sales of tobacco products within Fort
McDermitt Indian Country. This chapter is applicable to all sales of
tobacco products within Fort McDermitt Indian Country.
Sec. 2. Definitions.
(a)
"Fort McDermitt Indian Country", as used in this chapter, means all
lands of the Fort McDermitt Tribe including the Oregon lands and the
lands within the state of Nevada, e.g.., Lasa Purchase, Hog John Ranch,
etc.
(b)
"Cigarettes", as used in this chapter means, all rolled tobacco or
substitutes therefore, which are wrapped in paper or any paper substitute
other than tobacco.
(c)
"Consumer", as used in this chapter means, a person who is not
a wholesale dealer or retail dealer who comes into possession of cigarettes
within Fort McDermitt Indian Country for any purpose other than offering
them for sale.
(d)
"Manager", as used in this chapter means, a member of the
Fort McDermitt tribe employed by the Tribe to manage a tribal tobacco
outlet.
(e)
"Net profits", as used in this chapter means, money remaining from
the operation of a tobacco outlet, after deduction of excise tax revenues
and of all costs of doing business, as determined by the Tribal Council
upon consultation with a manager, and including reasonable costs for
improvements and expansion.
(f)
"Person", as used in this chapter means, one or more individuals,
or any firm, association, partnership or corporation. The term shall
not include the Tribe.
(g)
"Retail selling price", as used in this chapter means, the ordinary,
customary or usual price paid by the consumer for each tobacco product,
less the excise tax levied by this chapter.
(h)
"Sale" or "sell", as used in this chapter means, to exchange,
barter, possess or traffic in; to solicit or receive an order for;
keep or expose for sale; to deliver for value; to peddle; to possess
with intent to sell; or to transfer to anyone retail sales business
selling tobacco products on land owned by the Fort McDermitt Tribe.
(i)
"Tobacco outlet", as used in this chapter means, a tribal
retail sales business selling tobacco products on lands owned by the
Fort McDermitt Tribe.
(j)
"Tobacco products", as used in this chapter means,
cigarettes, cigars, smoking tobacco, snuff, chewing tobacco, and other
kinds and forms of tobacco prepared in such manner as to be suitable
for chewing or smoking.
Sec. 3. Establishment of Tobacco Outlets.
The Tribal Council may establish one or more tobacco outlets on land
owned by the Fort McDermitt Tribe as the Tribal Council, in its sole
discretion, deems necessary to provide adequate service to consumers
of cigarettes and tobacco products. Tobacco products may not be sold
on lands of the Fort McDermitt tribe other than by a tobacco outlet
established by the Tribal Council.
Sec. 4. Nature of Outlet.
Each tobacco outlet established pursuant to this chapter shall be operated
and managed for the Tribe by a manger retained by the Tribal Council.
Sec. 5. Purchase by Tribe.
All tobacco products sold on lands of the Fort McDermitt. Tribe shall
be purchased wholesale by the Tribe and held for resale at tribal tobacco
outlets only.
Sec. 6. Excise Tax Imposed.
1. There
shall be levied and collected, as hereinafter provided, a tax imposed
upon the purchase or possession of cigarettes by a consumer on lands
of the Fort McDermitt Tribe. This tax shall be in the amount of $.20
(20 cents) per package of cigarettes containing 20 cigarettes or less.
If the package contains more than 20 cigarettes, a tax of $.20 (20
cents) shall be charged for each 20 cigarettes contained therein.
2. There
is hereby levied and there shall be collected as hereinafter provided,
a tax upon the purchase or possession of all tobacco products, other
than cigarettes, by a consumer on lands owned by the Fort McDermitt
Tribe. This tax shall be in the amount of 10 percent (10%) of the
total retail selling price.
3. The
Tribal Council may change the amount of the tax upon the purchase,
use, consumption, and handling, possession, or distribution of cigarettes
and other tobacco products as it deems desirable.
4. The
excise tax levied hereunder shall be added to the retail selling price
of tobacco products sold to the consumer.
Sec. 7. Responsibility for Collection of the Cigarette Excise
Tax.
It shall
be the responsibility of every manager of a tobacco outlet to collect
the tobacco excise tax from every purchaser of tobacco products.
Sec. 8. Remittance of Taxes to the Tribal Council.
The taxes
collected pursuant to this chapter shall be remitted to the Tribal Council
according to a schedule which shall be established by the Tribal Council.
Sec. 9. Required Records.
Every manager
shall keep written records of the following:
1. The
number of packages of cigarettes or other tobacco products he received
from the Tribe.
2. The
number of packages of cigarettes or other tobacco products sold to
the consumers; and,
3. The
amount of excise taxes collected.
Sec. 10. Audit.
All records required to be kept by this chapter shall be open to inspection
and audit by a representative of the Tribal Council, at reasonable times
and places, to ensure compliance with this chapter.
Sec. 11. Use of Net Profits and Excise Tax Revenues.
1. All
net profits derived from the operation of a tobacco outlet shall be
the property of the Tribe. These profits, as well as the excise tax
revenues collected pursuant to this chapter, shall be sued for the
benefit of the reservation and tribal members.
2. All
excise tax revenues shall be appropriated to provide tribal governmental
services, including, but not limited to: police and fire protection;
the tribal court; tribal road construction, repair and maintenance;
water, sewage and garbage disposal; education; public health; development
of tribal enterprises which employ tribal members; recreation; and,
other essential tribal services.
3. Net
profits may be appropriated by the Tribal Council for governmental
services or for any other purpose consistent with the promotion of
the Tribe's interests, such as investment purposes.
Sec. 12. Duties and Responsibilities of Tobacco Outlet.
1. The
manager shall be directly responsible to the Tribal Council for the
efficient and profitable operation of a tobacco outlet.
2. Subject
to the final approval of the Tribal Council, a manager shall have
authority to employ such persons as he deems necessary to efficiently
operate a tobacco outlet. Persons hired by a manager shall be members
of the Fort McDermitt Tribe.
3. Without
the express written consent of the Tribal Council, a manager shall
not be authorized to waive the sovereign immunity of the Fort McDermitt
Tribe, nor shall such manager be authorized to create any liability
on behalf of the Tribe or to utilize tribal credit. Any such written
consent by the Tribal Council shall specify in detail the scope of
a manager's authority. Any such authority shall be limited in duration
and in scope to the maximum possible extent. Any action taken by a
manager pursuant to authority derived under this section shall be
in writing, shall be an express term of the transaction at hand, and
shall be limited to that transaction. Whenever possible, the Tribal
Council shall approve in final form the language of any such provision.
4. As
renumeration for operating and managing a tobacco outlet, a manager
shall be entitled to a reasonable salary as fixed by the Tribal Council.
5. A
manager shall maintain liability insurance upon the premises of the
tribal outlet in the sum of at least $10,000.
Sec. 13. Restricted Sales to Minors.
A manager
may not sell any tobacco products to any person under the age of 18
years.
Sec. 14. Civil Action.
The Tribe
may bring a civil action against any manager or other person to enforce
compliance with this chapter. Such action shall be brought in accordance
with the procedures of the Tribal Court. The Tribal Court shall have
exclusive jurisdiction over any action arising from the sale of tobacco
products or payment of the excise tax imposed by section 6.
Sec. 15. Power to Adopt Regulations.
The Tribal
Council shall have the power to adopt any regulations which are necessary
to the efficient administration of the tobacco excise tax laws and tobacco
outlets, as long as such regulations are not in conflict with the provisions
of this chapter, the Constitution of the Fort McDermitt Tribe or the
Tribal Operations Manual.
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