CHAPTER 10-6
MOTOR FUEL TAX

10-6-1 Purpose.

The purposes of this chapter are to:

(A)    Regulate the delivery and sale of motor fuel on the Nation’s jurisdiction.

(B)    To provide for the levy and collection of certain taxes on motor fuel sold within the Nation’s jurisdiction, which shall provide funds for essential governmental functions and provide funds for trial government operations and services; and

(C)    To protect the sovereignty of the PBPN with respect to its authority to license and regulate activity, including commercial activity within the jurisdiction to strengthen the Nation’s self-government and promote the Nation’s economic self-sufficiency.

(Enacted by PBP TC No. 2022-297, November 19, 2022)

10-6-2 Definitions.

(A)    “Business” shall mean a person, partnership, or corporation engaged in a profit-seeking commercial, manufacturing, or service enterprise. For the purposes of this chapter, a “business” includes, but is not limited to, operating a retail store, restaurant, hotel, or entertainment venue.

(B)    “Essential governmental function” has the meaning given in 26 C.F.R. §305.7871-1(d) (2000).

(C)    “Distributor” means a person who in the ordinary course of business sells motor fuel to retailers intended for resale within the Tribal Jurisdiction.

(D)    “Gallon” means the quantity of fuel that fills a standard United States gallon liquid measurement.

(E)    “Motor fuel” is defined to mean and include any refined or blended motor fuel products, including gasoline, diesel fuel, aviation fuel, oxygenated fuel, or any other fuel used for the generation of power in an internal combustion engine. As used in this section, motor fuel shall also include petroleum products such as refined oils, kerosene, and other such products derived from fossil fuels.

(F)    “Person” means any individual whether Indian or non-Indian, or any other organization, including but not limited to sole proprietorships, partnerships, joint venture, trusts, estates, unincorporated associations, or corporations, and governments, or any division, department, or agency of any of the foregoing.

(G)    “Reservation” means the Prairie Band Potawatomi Indian Reservation established in Article 4 of the Treaty with the Potawatomi Nation, dated June 17, 1846, 9 Stat. 853, including all lands, islands, waters, roads, or any interests therein, whether in trust or nontrust status and notwithstanding the issuance of any patent or right-of-way, and such other lands, islands, waters, or any interest therein hereafter added to the Reservation. As required by the Tribal Constitution, “Reservation” shall also mean all existing or future jurisdiction to which it is possible to extend the Nation’s jurisdiction or authority, including, without limitation, jurisdiction within the exterior boundaries of Indian country of the Nation or its members and all property held by the United States in trust for the Prairie Band Potawatomi Nation or in trust for a member of the Prairie Band Potawatomi Nation.

(H)    “Retailer” means and includes any person who, in the ordinary course of business, sells motor fuel to a consumer, whether such sale would be described as a wholesale, retail sale, or a trade for valuable consideration.

(I)    “Sale of motor fuel” is defined to mean and include the sale, trade, or exchange of anything of value for any motor fuel.

(J)    “Tax Commission” is the arm of the government of the Nation that, pursuant to this title, regulates the sales tax within the jurisdiction of the Nation.

(K)    “Tribal Council” is the governing body of the Prairie Band Potawatomi Nation.

(L)    “Tribal Lands or Jurisdiction” is all lands within the exterior boundaries of the Nation’s reservation, all lands held in trust by the United States for the benefit of the Nation, all of the Nation’s lands that otherwise constitute “Indian country” pursuant to 18 U.S.C. §1151, and all lands defined at Section 1-1-1.

(M)    “Nation’s Jurisdiction” means the geographical areas within and without the exterior boundaries of the Prairie Band Potawatomi Nation Reservation that are subject to the jurisdiction and authority of the Nation, to the extent not prohibited by federal law.

(N)    “Nation” means the Prairie Band Potawatomi Nation.

(O)    “Wholesaler” means any person who acquires motor vehicle fuel for resale or otherwise sells, distributes, resells, or gives away any amount of motor vehicle fuel to a retailer.

(Enacted by PBP TC No. 2022-297, November 19, 2022)

10-6-3 Taxes Levied.

(A)    The Nation reserves the right to impose a Tribal fuel tax under this Code. The tax rate shall be established by Tribal Council resolution and may be changed by Tribal Council resolution. In no event may the combined total of any state fuel tax passed on to retail customers under this Code and any Tribal fuel tax imposed on retail customers under this Code be less than the then-current state fuel tax.

(B)    There is hereby levied upon the sale of motor fuel an excise tax equal to five cents ($0.05) per gallon. Such excise tax shall be paid only once and shall be imposed on and paid by the tribal distributor which sells such motor fuel to a tribal retailer for sale to consumers within the Nation’s jurisdiction. For the privilege of distributing or retailing any amount of motor vehicle fuel within the jurisdiction of the Nation, there is levied and there shall be collected a tax at the rate set by the Tribal Council as provided in this title, but initially at the rate of five cents ($0.05)/gallon, upon each gallon of motor vehicle fuel or fraction thereof purchased by a retailer located on Tribal lands.

(C)    For purposes of this chapter, motor vehicle fuel is purchased by a retailer located on Tribal lands if:

(1)    The location of the retailer at which delivery of the motor vehicle fuel is made is located on Tribal lands; or

(2)    The location of the retailer from which such motor vehicle fuel will be or is intended to be sold or dispensed is located on Tribal lands.

(D)    Tax as Additional Tax. The tax imposed by this chapter shall be in addition to all other taxes imposed by the Nation to include but not be limited to Lust Tax, Oil Spill Tax and Biofuel Tax.

(E)    Tax Included in Price. The tax imposed by this chapter shall be included in the selling price of the motor vehicle fuel. No retailer shall state the tax imposed by this chapter separately from the selling price on any receipt, invoice or other instruments of sale.

(F)    The collected motor fuel tax revenue will one hundred (100) percent exclusively be used for essential government functions for the roads, including construction, reconstruction, improvement, repair, maintenance, operation and use highways, parking lots and streets within the jurisdiction.

(Enacted by PBP TC No. 2022-297, November 19, 2022; amended by PBP TC. No. 2022-297A, February 2, 2023)

10-6-4 Wholesale Exception.

(A)    The tax imposed by this chapter shall not apply to sales to wholesalers who intend to sell the product outside the tribal jurisdiction.

(Enacted by PBP TC No. 2022-297, November 19, 2022)

10-6-5 Incidence of Tax.

(A)    The incidence of the tax levied imposed by Section 10-6-3 is declared and understood to be on the tribal distributor.

(Enacted by PBP TC No. 2022-297, November 19, 2022)

10-6-6 Payment of Tax.

(A)    Every tribal distributor is required to pay all applicable excise taxes at the applicable rate described in Section 10-6-3 to the Nation or its designee within fourteen (14) calendar days after the end of each calendar month.

(B)    Every retailer shall account for and pay all taxes imposed by this chapter based on the amount of motor vehicle fuel purchased by it. The tax imposed by this chapter shall constitute a debt of the retailer owed to the Nation and collectible by the Nation as such.

(Enacted by PBP TC No. 2022-297, November 19, 2022)

10-6-7 Records.

(A)    All tribal distributors and tribal retailers shall maintain for not less than three (3) years complete and adequate records specified by the Tax Commission, including invoices, of all motor fuel products, bills of lading, and any other records as determined by the Tax Commission. The Tax Commission may inspect said records at any time to determine whether sufficient excise fees have been paid.

(Enacted by PBP TC No. 2022-297, November 19, 2022; amended by PBP TC. No. 2022-297A, February 2, 2023)

10-6-8 Reports.

(A)    Every tribal distributor or tribal retailer of motor fuel shall submit monthly reports to the Tax Commission on forms prescribed and furnished by the Tax Commission disclosing such information as may be required by the Tax Commission, including but not limited to the opening and closing inventories of motor fuel received and sold; tribal excise fees paid; bills of lading for motor fuel delivered to the Nation’s jurisdiction; and such other information pertinent to their business done within the tribal jurisdiction as the Tax Commission shall require. Reports are due within ten (10) calendar days after the end of each calendar month.

(B)    A transporter of motor fuel, upon request of the Tax Commission, shall provide a detailed report of all fuel deliveries made within the tribal jurisdiction. In the event of the failure or refusal to provide such a report, the transporter shall be liable for a one hundred dollar ($100.00) civil penalty for each day for which there is a refusal or failure.

(Enacted by PBP TC No. 2022-297, November 19, 2022)

10-6-9 Tribal Fuel Distributor Licensing.

(A)    Every tribal distributor doing business within the Nation’s jurisdiction must apply for and receive from the Tax Commission a “tribal fuel distributor license.” Forms for such application and license shall be provided by the Tax Commission. Each application shall include the tribal distributor’s valid consent to the civil regulatory, taxation, and adjudicatory jurisdiction of the Nation. With respect to sales within the Nation’s jurisdiction, a tribal distributor shall only be permitted to sell fuel within the Nation’s jurisdiction to tribal retailers with a valid tribal fuel retailer license issued by the Nation or to other tribal distributors within the Nation’s jurisdiction with a valid tribal fuel distributor license issued by the Nation.

(Enacted by PBP TC No. 2022-297, November 19, 2022)

10-6-10 Tribal Fuel Distributor License.

(A)    The tribal fuel distributor license shall be valid for one (1) calendar year from the date of issue and shall be nontransferable and nonassignable. If a tribal distributor establishes one (1) or more places of business, warehouses, or wholesale outlets at one (1) or more locations within the tribal jurisdiction, a separate license shall be required for each such separate location. The license shall be conspicuously posted in a public area in each such place of business, warehouse, or wholesale outlet. A license fee of one hundred dollars ($100.00) shall be paid for each new or renewal license issued.

(Enacted by PBP TC No. 2022-297, November 19, 2022)

10-6-11 Failure to Comply with Licensing Requirements – Penalty.

(A)    Any tribal distributor or tribal retailer who fails to comply with any requirement as set forth in this chapter, including any requirement lawfully imposed by the Tax Commission, may be subject to license suspension or revocation by the Tax Commission.

(Enacted by PBP TC No. 2022-297, November 19, 2022)

10-6-12 Inspections.

(A)    The premises, inventory, books, and records of each tribal retailer and each tribal distributor shall be subject to inspection by the Tax Commission, its agents, or employees at any time. The Tax Commission, its agents or employees shall have free and unrestricted access to all areas of such premises; provided, however, that the Tax Commission shall consult and coordinate with the Prairie Band Potawatomi Tax Commission prior to conducting any inspection of premises under the PBPN’s jurisdiction.

(Enacted by PBP TC No. 2022-297, November 19, 2022)

10-6-13 Effective Date.

(A)    This chapter applies to all sales of motor fuel within the Nation’s jurisdiction, effective as of January 1, 2023.

(Enacted by PBP TC No. 2022-297, November 19, 2022)