Chapter 10-9
POSSESSORY INTEREST TAX

10-9-1 Statement of Purpose.

The policy of the Prairie Band Potawatomi Nation is to provide essential governmental services to individuals residing, working, or conducting business within the Nation’s Jurisdiction and encourage economic development. Chapter 10-9 establishes a Possessory Interest Tax to fund the services provided and create an environment that fosters economic development.

(Enacted by PBP TC No. 2025-290, September 11, 2025)

10-9-2 Short Title and Application.

This Chapter 10-9 shall contain the Nation’s Possessory Interest Tax.

(Enacted by PBP TC No. 2025-290, September 11, 2025)

10-9-3 Definitions.

(A)    Assessor: means the representative of the Tax Commission responsible for determining the Fair Market Value of possessory interests.

(B)    Business: means any activity engaged in, or caused to be engaged in, with the object of gain, profit, benefit, or advantage, either direct or indirect.

(C)    Indian: means an enrolled member of any federally recognized Indian Nation.

(D)    Fair Market Value: means the value of a Possessory Interest determined on the basis of the selling prices of comparable leases, subleases, easements, or rights-of-way on land or improvements thereon (whether within or without the Nation’s Jurisdiction) that are sold by willing buyers and willing sellers or such other formula as determined by the assessor.

(E)    Nation: means the Prairie Band of Potawatomi Nation.

(F)    Nation’s Jurisdiction: means the Nation’s territory and jurisdiction as set forth in Article I of the Constitution of the Prairie Band Potawatomi Nation.

(G)    Possessory Interest: means any interest in real or personal property on trust land within the Nation’s Jurisdiction that is used for engaging in Business.

(H)    Regulations: means any written rules adopted and administered by the Tax Commission pursuant to this Chapter 10-9.

(I)    Tax or Taxes: means the Possessory Interest Tax, and any interest, penalty, or costs, assessed or imposed pursuant to this Chapter 10-9.

(J)    Tax Commission: means the Tax Commission of the Prairie Band Potawatomi Nation.

(K)    Taxable Year: means the calendar year. Payment of the tax will be prorated by the number of days within the calendar year that the Business was in existence.

(L)    Taxpayer: means person, organization, or entity engaging in Business that involves the use of a Possessory Interest.

(M)    Tribal Council: means the elected governing body of the Nation.

(N)    Trust Land: means the land within the Nation’s Jurisdiction held in trust by the United States for the Nation or its members.

(Enacted by PBP TC No. 2025-290, September 11, 2025)

10-9-4 Imposition and Rate of Tax.

The Nation imposes the Tax on each Possessory Interest of each Taxpayer within the Nation’s Jurisdiction, unless otherwise excepted pursuant to Section 10-9-5. The Tax shall be assessed at a rate approved by the Tribal Council and published by the Tax Commission.

(Enacted by PBP TC No. 2025-290, September 11, 2025)

10-9-5 Property Exempt from Taxation.

A Taxpayer may claim an exemption from the Tax. A Business claiming exemption shall submit an exemption claim on a form produced by the Tax Commission. The following shall be exempt from the Possessory Interest Tax enacted by this Chapter:

(A)    A Possessory Interest owned and used by the Nation or one of its instrumentalities, political subdivision or wholly-owned entities.

(B)    Indian arts and crafts made or maintained for sale, whether wholesale or retail, by any member of the Nation.

(C)    A Possessory Interest held by a nonprofit religious, charitable, fraternal or other organization that qualifies as a tax-exempt organization pursuant to section 501(c)(3) of the Internal Revenue Code, 26 U.S.C. § 501(c)(3).

(D)    A Possessory Interest held by a Taxpayer whose Business is as a health care provider.

(E)    Other exemptions under federal law or the Potawatomi Law and Order Code.

(Enacted by PBP TC No. 2025-290, September 11, 2025)

10-9-6 Taxpayer Reporting Requirements.

Each Taxpayer is required to file a declaration of Possessory Interests for purposes of assessing the Tax due. The Tax Commission shall provide the form to be used for such purposes. The forms shall be due on December 31 and filed with the Tax Commission in a manner prescribed on the form.

(Enacted by PBP TC No. 2025-290, September 11, 2025)

10-9-7 Computation of the Tax.

The Tax Commission shall compute the Tax due by multiplying the Tax rate, as set consistent with Section 10-9-4, by the Fair Market Value. The assessed amount shall represent the total Tax assessed on Possessory Interests for the Taxable Year. The Assessor may engage a private appraisal firm to assist in valuing Possessory Interests.

(Enacted by PBP TC No. 2025-290, September 11, 2025)

10-9-8 Tax Assessments.

The Tax Commission shall send a statement to each Taxpayer notifying them of the Tax assessment. The assessment shall be presumed to be correct.

(Enacted by PBP TC No. 2025-290, September 11, 2025)

10-9-9 Tax Payments.

The Taxpayer shall have 30 days from the date on the assessment to make payment of the assessed Tax.

(Enacted by PBP TC No. 2025-290, September 11, 2025)

10-9-10 Imposition of Interest.

Any payment of Tax not received within 30 days shall start accruing interest at a rate of one percent (1%) per month until all tax, interest, and penalties, if applicable, are paid in full.

(Enacted by PBP TC No. 2025-290, September 11, 2025)

10-9-11 Penalties.

Failure to timely pay taxes under this Chapter 10-9 shall result in a further assessment of five percent (5%) of the Tax due, increasing one percent (1%) monthly thereafter.

(Enacted by PBP TC No. 2025-290, September 11, 2025)

10-9-12 Administrative Review, Appeal, and Liens.

Disputes regarding any Tax due under this Chapter 10-9, including disputes regarding the amount of Tax due by a Taxpayer, shall be subject to the administrative review, appeal, and lien process set forth in Sections 10-1-17 through 10-1-22 of Title 10.

(Enacted by PBP TC No. 2025-290, September 11, 2025)

10-9-13 Tax Declaration and Designation of Natural Person.

Taxpayer subject to the Tax may designate a representative to handle tax matters. Such designation shall include the name and address of the Taxpayer and the name and address of the representative.

(Enacted by PBP TC No. 2025-290, September 11, 2025)

10-9-14 Severability.

If any part of this chapter is invalidated, the remainder remains effective.

(Enacted by PBP TC No. 2025-290, September 11, 2025)

10-9-15 Use of Tax Proceeds.

Tax revenues shall be deposited into the Nation’s general services account and shall be used for essential governmental services or fostering economic development.

(Enacted by PBP TC No. 2025-290, September 11, 2025)

(Enacted by PBP TC No. 87-37, August 26, 1987; amended by PBP TC No. July 20, 1989; amended PBP TC No. 92-66, November 18, 1992; Title 10-6 enacted by PBP TC No. 99-1, January 11, 1999; amended by PBP TC No. 99-66, May 11, 1999; amended by PBP TC No. 2000-26, February 1, 2000; amended by PBP TC No. 2000-82, May 2, 2000; amended by PBP TC No. 2000-209, November 21, 2000; PBP TC No. 2002-149, December 5, 2002; Title 10-3 amended by PBP TC No. 2006-098, May 18, 2006 amended by PBP TC No. 2007-027, February 2, 2007; amended by PBP TC No. 2008-121, May 22, 2008; amended by PBP TC No. 2008-255, November 19, 2008; amended by PBP TC No. 2010-111, May 20, 2010: amended by PBP TC No. 2012-032, February 13, 2012; amended by PBPN Resolution No. 2012-054, February 24, 2012; amended by PBP TC No. 2013-130, June 12, 2013; amended by PBP TC No. 2013-147, July 15, 2013; amended by PBP TC No. 2016-191, June 28, 2016.)