Chapter 12.05
SALES OR USE TAX1
Sections:
12.05.010 Imposition.
(1) There is imposed and levied and shall be collected a sales or use tax, as the case may be, upon every taxable event, as defined by TTC 12.05.050(15), occurring within the boundaries of the Tulalip Reservation (but excluding Quil Ceda Village). The tax due is computed by multiplying the total gross receipts for the taxable term by the tax rate. The tax hereby imposed shall be paid by the buyer to the seller, and each seller shall collect from the buyer the full amount of the tax payable in respect to each taxable sale in accordance with the schedule of collections adopted by the Tax and Licensing Division pursuant to the provisions of TTC 12.05.040. The tax required by this chapter, to be collected by the seller, shall be deemed to be held in trust by the seller until paid to the Tax and Licensing Division, and any seller who appropriates or converts the tax collected to his or her own use or to any use other than the payment of the tax to the extent that the money required to be collected is not available for payment on the due date as prescribed in this chapter shall be guilty of a gross misdemeanor.
(2) In case any seller fails to collect the tax herein imposed or, having collected the tax, fails to pay it to the Tax and Licensing Division in the manner prescribed by this chapter, whether such failure is the result of his or her own acts or the result of acts or conditions beyond his or her control, he or she shall, nevertheless, be personally liable to the Tulalip Tribes, unless the seller has taken from the buyer in good faith a properly executed resale certificate pursuant to TTC 12.05.050(11). The amount of tax, until paid by the buyer to the seller or to the Tax and Licensing Division, shall constitute a debt from the buyer to the seller and any seller who fails or refuses to collect the tax required with intent to violate the provisions of this chapter or to gain some advantage or benefit, either directly or indirectly, and any buyer who refuses to pay any tax due under this chapter, shall be guilty of a misdemeanor. The tax required by this chapter to be collected by the seller shall be stated separately from the selling price in any sales invoice or other instrument of sale. On all retail sales through vending machines, the tax need not be stated separately from the selling price or collected separately from the buyer. For purposes of determining the tax due from the buyer to the seller and from the seller to the Tax and Licensing Division, it shall be conclusively presumed that the selling price quoted in any price list, sales document, contract or other agreement between the parties does not include the tax imposed by this chapter, but if the seller advertises the price as including the tax or that the seller is paying the tax, the advertised price shall not be considered the selling price.
(3) Where a buyer has failed to pay to the seller the tax imposed by this chapter and the seller has not paid the amount of the tax to the Tax and Licensing Division, the Tax and Licensing Division may, in its discretion, proceed directly against the buyer for collection of the tax, in which case a penalty of 10 percent may be added to the amount of the tax for failure of the buyer to pay the same to the seller, regardless of when the tax may be collected by the Tax and Licensing Division. [Ord. 136 § 1, 9-5-2008 (Res. 2008-270)].
12.05.020 Rate of tax.
(1) Basic Tax. The rate of the tax levied and imposed by TTC 12.05.010 shall be equal to a percentage of the selling price (in the case of a sales tax) or value of the article used (in the case of a use tax).
(2) The rate of tax shall be set by separate resolution of the Board of Directors of the Tulalip Tribes. [Res. 2023-147 § (a); Res. 2019-230; Res. 2015-358; Ord. 136 § 2, 9-5-2008 (Res. 2008-270)].
12.05.030 Scope.
This chapter shall apply to all retailers located within the Tulalip Indian Reservation that are subject to the taxing jurisdiction of the Tulalip Tribes. [Ord. 136 § 3, 9-5-2008 (Res. 2008-270)].
12.05.040 Collection.
(1) The Tax and Licensing Division shall have power to adopt rules and regulations prescribing methods and schedules for the collection of the tax required to be collected by the seller from the buyer under this chapter. The methods and schedules described shall be adopted so as to eliminate the collection of fractions of one cent and so as to provide that the aggregate collections of all taxes by the seller shall, insofar as practicable, equal the amount imposed by this chapter. Such schedules may provide that no tax need be collected from the buyer upon sales below a stated sum and may be amended from time to time to accomplish the purposes set forth herein.
(2) The tax authorized by this chapter shall be deposited by the Tax and Licensing Division in the tax administration fund created under TTC 12.05.010(1). [Ord. 136 § 4, 9-5-2008 (Res. 2008-270)].
12.05.050 Definitions.
(1) “Business” means any person engaged in trade, commerce, manufacturing, power production, construction, or any other productive activity, whether for profit or not, wholly or in part within the boundaries of the Tulalip Reservation.
(2) “Tax and Licensing Division” means the Tax and Licensing Division established as a part of the government of the Tulalip Tribes for the administration of the taxes imposed by this chapter.
(3) “Control” means the direct or indirect power to direct the management and policies of a person, whether through ownership of voting securities, by contract, or otherwise.
(4) “Goods” means all tangible or movable personal property produced, processed, or sold within the boundaries of the Tulalip Reservation.
(5) “Gross receipts” of a business are the gross receipts of that business from the sale, either within or without the boundaries of the Tulalip Reservation, of goods or services, as those terms are defined in subsections (4) and (14) of this section.
(6) Gross Receipts of a Business.
(a) General Rule. Except as provided in subsections (6)(b) and (c) of this section, the gross receipts of a business is the amount of money plus the fair market value of property and services received by the business on the sale of goods and services.
(b) Sale Beyond the Boundaries of the Tulalip Reservation. For sales beyond the boundaries of the Tulalip Reservation, gross receipts are determined by the value of the goods and services at the time and place said goods and services are transported beyond the boundaries of the Tulalip Reservation.
(c) Sales Among Related Persons. On a sale of goods and services by a business to a related person, gross receipts are the fair market value of the goods or services sold.
(d) Estimate of Fair Market Value. When practical, fair market value is to be determined on the basis of consideration paid and comparable transactions, but if such information is not available, the estimate of fair market value will be made according to regulations.
(7) The “gross receipts of a business carrying out construction activities” shall be determined and shall be equal to the total value of the contract sum, which is provided in the award of contract pursuant to which the construction company is performing its activities and rendering its services within the Tulalip Reservation.
(8) “Person” means any individual or organization, whether it be a sole proprietorship, partnership, joint venture, trust, estate, unincorporated association, corporation, or government (other than the government of the Tulalip Tribes and any subdivision or enterprise thereof), or any part, division, or agency of any of the foregoing, and an individual or group of individuals.
(9) “Board of Directors” means the elected governing body of the Tulalip Tribes.
(10) “Related person” means two or more persons owned or controlled, directly or indirectly, by the same person and, as applied to individuals, means two or more individuals who have a legal relationship arising out of marriage, adoption, or blood, through the third degree of kinship.
(11) Resale Certificate.
(a) As used in this section, “resale certificate” means documentation provided by a buyer to a seller stating that the purchase is for resale in the regular course of business or that the buyer is exempt from retail sales tax, and containing the following information:
(i) The name and address of the buyer;
(ii) The Tribal Business License, Indian Trader’s License, or uniform business identifier or registration certificate number of the buyer, if the buyer is required to be registered;
(iii) The type of business engaged in;
(iv) The categories of items or services to be purchased for resale or that are exempt, unless the buyer is in a business classification that may present a blanket resale certificate as provided by the Tax and Licensing Division by rule;
(v) The date on which the certificate was provided;
(vi) A statement that the items or services purchased either: (A) are purchased for resale in the regular course of business; or (B) are exempt from tax pursuant to statute;
(vii) A statement that the buyer acknowledges that the buyer is solely responsible for purchasing within the categories specified on the certificate and that misuse of the resale or exemption privilege claimed on the certificate subjects the buyer to a penalty of 50 percent of the tax due, in addition to the tax, interest, and any other penalties and costs imposed by this chapter;
(viii) The name of the individual authorized to sign the certificate, printed in a legible fashion;
(ix) The signature of the authorized individual; and
(x) The name of the seller.
(b) Unless a seller has taken from the buyer a resale certificate, the burden of proving that a sale of tangible personal property, or of services, was not a sale at retail or a service within the meaning of this subsection shall be upon the person who sold the item or provided the services.
(c) If a seller does not receive a resale certificate at the time of the sale, have a resale certificate on file at the time of the sale, or obtain a resale certificate from the buyer within a reasonable time after the sale, the seller shall remain liable for the tax, unless the seller can demonstrate facts and circumstances according to rules adopted by the Tax and Licensing Division that show the sale was properly made without payment of sales tax.
(d) Resale certificates shall be valid for a period of four years from the date the certificate is provided to the seller.
(e) The Tax and Licensing Division may provide by rule for suggested forms for resale certificates or equivalent documents containing the information that will be accepted as resale certificates. The Tax and Licensing Division shall provide by rule the categories of items or services that must be specified on resale certificates and the business classifications that may use a blanket resale certificate.
(12) Retail Sale. For purposes of this chapter:
(a) A retail sale consisting solely of the sale of tangible personal property shall be deemed to have occurred at the retail outlet at or from which delivery is made to the consumer;
(b) A retail sale consisting essentially of the performance of personal, business, or professional services shall be deemed to have occurred at the place at which such services were primarily performed;
(c) A retail sale consisting of the rental of tangible personal property shall be deemed to have occurred (i) in the case of rental involving periodical rental payments, at the place of primary use by the lessee during the period covered by each payment, or (ii) in all other cases, at the place of first use by the lessee;
(d) A retail sale consisting of the providing to a consumer of telephone service, other than a sale of tangible personal property under subsection (12)(a) of this section or a rental of tangible personal property under subsection (12)(c) of this section or a sale of mobile telecommunications services, shall be deemed to have occurred at the situs of the telephone or other instrument through which the telephone service is rendered.
(13) Sale. For the purposes of this chapter:
(a) General Rule. A sale consists of a transfer of ownership between buyer and seller for a consideration.
(b) A sale also consists of the delivery of goods or services by a business located within the boundaries of the Tulalip Reservation, for the use or benefit of any person of which the business is a part.
(14) “Services” are all services performed within the boundaries of the Tulalip Reservation.
(15) “Taxable event” means any retail sale or any use, upon which a sales or use tax is imposed pursuant to this chapter.
(16) “Taxes” means the tax, and any interest, penalty, or costs, imposed or assessed pursuant to this chapter. The term embraces all impositions by the Tulalip Tribes on the person, property, privileges, occupations, and enjoyment of the people, and includes duties, imposts, and excises.
(17) “Tribal Court” means the Tribal Court of the Tulalip Tribes of the Tulalip Indian Reservation.
(18) “Tax and Licensing Division” means the Tax and Licensing Division established as a part of the government of the Tulalip Tribes for the administration of the taxes imposed by this chapter. [Ord. 136 § 5, 9-5-2008 (Res. 2008-270)].
12.05.060 Filing of return.
(1) Except as provided in subsection (2) of this section, each business must file a return of gross receipts and the tax due for the period by the fifteenth day of the second month after the end of each calendar quarter. Returns are due on May 15th, August 15th, November 15th and February 15th of each calendar year.
(2) The Tax and Licensing Division may by formal regulation require that other information and relevant documents which it deems necessary for the proper and efficient administration of the tax be included with a return, and that the return be signed by specified persons.
(3) No return need be filed by a business for any period in which gross receipts are less than $1,000. This exception does not apply if a business had annual gross receipts of $5,000 or more in any of the three years preceding the period.
(4) If a business is an association, joint venture, or partnership, or a party thereof, the Tax and Licensing Division may require that each associate, participant, or partner, whether general or limited, file a separate return in accordance with regulations.
(5) The Tax and Licensing Division may by formal regulation require information of returns to be filed by any person that it deems necessary for the proper and efficient administration of the tax. [Ord. 136 § 6, 9-5-2008 (Res. 2008-270)].
12.05.070 Administration.
The provision of this chapter shall be administered and enforced by the Tax and Licensing Division of the Tulalip Tribes, or by such other persons as designated by the Tulalip Board of Directors. [Ord. 136 § 6, 9-5-2008 (Res. 2008-270)].
12.05.080 Credit.
Retail businesses subject to collecting and remitting taxes under this chapter shall receive a credit in an amount equal to the retail taxes collected and paid to the State of Washington where such taxes are subject to a tribal-state tax sharing compact in which the Tribes and the state have agreed to apportion taxes to avoid dual taxation of business, and the Tribes has agreed to the state collecting and remitting the Tribes’ portion of the applicable taxes to the Tribes in conformity with the compact. [Res. 2021-513].
Implementation of this chapter shall be limited to Tribal government businesses. Full implementation of this chapter to all businesses shall require a subsequent resolution.