Chapter 8.05
FUEL TAX
Sections:
8.05.030 Settlement does not bar further litigation.
8.05.040 Cooperative framework.
8.05.060 Acquisition of fuel from licensed distributors.
8.05.070 Records maintenance requirements for fuel purchases.
8.05.080 System for restricting availability of fuel tax exemption.
8.05.090 Records maintenance requirements for fuel sales.
8.05.100 Fuel sales and purchases subject to audit.
8.05.110 Records available for auditor.
8.05.010 Purpose.
The purpose of this chapter is to more fully protect the sovereignty of the Chehalis Tribe with respect to the levy of State fuel taxes and to implement the Consent Decree resolving the lawsuit filed by the Chehalis Tribe challenging imposition of State fuel taxes on the Tribe and members of the Tribe by the State of Washington. The Consent Decree is attached to the ordinance codified in this chapter and is incorporated by reference. [Res. 2011-020; Res. 2006-76. Prior code § 5.1.1.010.]
8.05.020 Definitions.
The following terms when used in this chapter shall have the meaning set forth in this section:
“Department” means the Washington State Department of Licensing, or any successor agency, and its officials, employees, and agents acting in their official capacity.
“Distributor” has the meaning given in RCW 82.36.010(15) and 82.38.020(24), as they now exist.
“Filling station” means a place of business operated for the purpose of delivering to the general public motor vehicle fuel or special fuel into the fuel tanks of motor vehicles.
“Motor vehicle” means every self-propelled vehicle designed for operation upon land and utilizing motor vehicle fuel or special fuel as the means of propulsion.
“Motor vehicle fuel” has the meaning given in RCW 82.36.010(20), as it now exists.
“Special fuel” has the meaning given in RCW 82.38.020(23), as it now exists.
“Tribal business” means a business that is owned, in whole or in part, by the Tribe or wholly owned by an enrolled Chehalis Tribal member.
“Tribal filling station” means a filling station that is owned and operated by the Tribe or by a Tribal enterprise within the boundaries of the Chehalis Reservation or Tribal trust property over which the Tribe exercises jurisdiction. [Res. 2016-17; Res. 2011-020; Res. 2006-76. Prior code § 5.1.1.020.]
8.05.030 Settlement does not bar further litigation.
Neither the Consent Decree nor this chapter shall preclude further actions or negotiations between the parties with respect to fuel sales free from State taxation within the Tribe’s jurisdiction, based on changes to statutes or common law which occur after the date of the Consent Decree. [Res. 2016-17; Res. 2011-020; Res. 2006-76. Prior code § 5.1.1.030.]
8.05.040 Cooperative framework.
This chapter establishes a cooperative framework for taxation and regulation, by the Tribe and by the State, with regard to the distribution, sale, transfer, use, or possession of motor vehicle fuel and special fuel when such fuel is distributed, sold, used, or possessed within the Reservation or trust lands over which the Tribe exercises jurisdiction. [Res. 2011-020; Res. 2006-76. Prior code § 5.1.1.040.]
8.05.050 Role of State law.
State of Washington statutory and regulatory law for taxation of motor vehicle fuel and special fuel shall not apply to:
A. Fuel distributed or sold to the Tribe that the Tribe uses for its governmental functions and to Chehalis Tribal businesses; and
B. Fuel distributed or sold to the Tribe that the Tribe sells from Tribal filling stations to enrolled Chehalis Tribal members. [Res. 2011-020; Res. 2006-76. Prior code § 5.1.1.050.]
8.05.060 Acquisition of fuel from licensed distributors.
Tribally owned filling stations shall purchase fuel, subject to the Consent Decree with the Department of Licensing, only from persons who are properly licensed in Washington State to distribute fuel or to act as a distributor. [Res. 2011-020; Res. 2006-76. Prior code § 5.1.1.060.]
8.05.070 Records maintenance requirements for fuel purchases.
The Tribe, or any Tribal business operating one or more filling stations within the Tribe’s jurisdiction, shall maintain records of all purchases of motor vehicle fuel and special fuel, including the following information:
A. The identity of the distributor from whom the fuel was purchased;
B. Whether the fuel involved is motor vehicle fuel or special fuel;
C. The number of gallons involved;
D. The price paid to the distributor; and
E. The amount of fuel taxes paid. [Res. 2016-17; Res. 2011-020; Res. 2006-76. Prior code § 5.1.1.070.]
8.05.080 System for restricting availability of fuel tax exemption.
The Tribe shall maintain a “card system” or other similar system that restricts the availability of the tax exemption provided in the Consent Decree to fuel purchased specifically by enrolled members of the Chehalis Tribe 16 years of age or older, Chehalis Tribal businesses, or for use in Chehalis Tribal government vehicles or other Federally owned vehicles operated by the Tribe. The Tribe shall maintain records for such system that include:
A. Records of cards issued by the Tribe;
B. The number of cards issued;
C. A record of to whom the card was issued and, if such card was issued to a Chehalis Tribal member for personal use, a record of the address and enrollment number of the Tribal member.
The tax exemption shall only be available for transactions where valid cards are used. [Res. 2016-17; Res. 2011-020; Res. 2006-76. Prior code § 5.1.1.080.]
8.05.090 Records maintenance requirements for fuel sales.
The Tribe, or any Tribal business operating one or more filling stations within the Tribe’s jurisdiction, shall maintain records of all sales of motor vehicle fuel and special fuel to enrolled Chehalis Tribal members, Chehalis Tribal businesses, Chehalis Tribal government vehicles, and Federally owned vehicles operated by the Tribe. Records shall also be kept of sales to enrolled Chehalis Tribal members, Chehalis Tribal businesses, and government vehicles that have cards but do not present them at the time of fuel purchase. Records of sales of fuel purchases using a card issued by the Chehalis Tribe that provides any form of tax exemption shall identify the specific card used in the transaction. All sales of motor vehicle fuel or special fuel by the Tribe, or any Tribal business operating one or more filling stations within the Tribe’s jurisdiction, shall include the following information for each transaction:
A. Whether the fuel involved is motor vehicle fuel or special fuel;
B. The number of gallons involved;
C. The price; and
D. The tax status of the purchaser. [Res. 2016-17; Res. 2011-020; Res. 2006-76. Prior code § 5.1.1.090.]
8.05.100 Fuel sales and purchases subject to audit.
Fuel sales and purchases by any filling station within the boundaries of the Chehalis Reservation or on trust land that is owned by the Chehalis Tribe or a Chehalis Tribal business shall be subject to audit in accordance with the Consent Decree for the purpose of verifying compliance with the Consent Decree. The auditor shall be retained by both the Tribe and the Department and shall be an independent third party and a certified public accountant, in good standing and licensed by the State of Washington. [Res. 2016-17; Res. 2011-020; Res. 2006-76. Prior code § 5.1.1.100.]
8.05.110 Records available for auditor.
The auditor shall have access during regular business hours to the records identified in CTC 8.05.070, 8.05.080, and 8.05.090, but shall not make copies of the records. [Res. 2011-020; Res. 2006-76. Prior code § 5.1.1.110.]
8.05.120 Auditor’s report.
The audit shall be conducted according to the requirements set forth in Section 4.4(c) of the Consent Decree. The auditor shall examine, among other things, all fuel purchase invoices and procedures and controls relating to the issuance and use of tax-exempt cards. In addition, the auditor shall reconcile the refund claim gallonage quantity with summary records of sales to enrolled Chehalis Tribal members, Chehalis Tribal businesses, and vehicles owned or operated by the Tribe. Refund claims reflecting undocumented tax-exempt fuel sales, fuel sales without a card, and fuel sales to persons not authorized to purchase tax exempt fuel shall be deducted from the gallonage claimed for refund. [Res. 2011-020; Res. 2006-76. Prior code § 5.1.1.120.]
8.05.130 License required for any business operating filling station within the Tribe’s jurisdiction.
Any Tribal business seeking to operate a filling station within the boundaries of the Reservation or on trust lands over which the Chehalis Tribe exercises jurisdiction must obtain a license from the Tribe prior to initiating operations. Compliance with all laws of the Chehalis Tribe, including those governing purchase and sale of motor vehicle fuel and special fuel, shall be a condition for operation of the business. [Res. 2016-17; Res. 2011-020; Res. 2006-76. Prior code § 5.1.1.130.]