18-125-325 Me. Code R. § 03

Current through 2024-51, December 18, 2024

Section 125-325-03 - Qualification of tribal entities

A business entity that believes it is entitled to the tax exemption for tribal entities under 36 M.R.S. §1760(114) may submit an application (Qualified Tribal Entity Application -APP-170) to Maine Revenue Services for a certificate of qualification. The certificate of qualification identifies to retailers that the tribal entity meets the definition of "tribal entity" as found in 36 M.R.S. §111(8). The applicant must provide the information and any required documentation specified on the application form (Qualified Tribal Entity Application - APP-170).

A.Business entities wholly owned by tribes, tribal members, or combination thereof. For purposes of determining the ownership of a business entity, a married couple, of which at least one spouse is a tribal member, is treated as one tribal member, regardless of which spouse owns the entity.

A business entity that is wholly owned by a tribe, tribal members, or a combination thereof would need to provide documentation that would demonstrate how the entity is organized, including such documentation as articles of incorporation, a constitution, by-laws, or Tribal Council certified resolution.

For a business entity to qualify as a "tribal entity," no persons may hold an ownership interest other than tribes or tribal members. "Tribal member" includes a married couple where at least one spouse is a tribal member, regardless of which spouse owns the entity.

B.Business entity ownership interests held in aggregate by the tribes. To qualify as a "tribal entity," a business entity in which at least 75% of the ownership interest is held in aggregate by a tribe or tribes, must be controlled and managed by a tribe or tribes:

1. Consistent with the requirements of 13 C.F.R. § 124.109(c)(4) (2022);

2. As determined by the SBA or the Assessor as consistent with 13 C.F.R. § 124.109(c)(4)(i)(A) (2022); or

3. As determined by the SBA as consistent with 13 C.F.R. § 124.109(c)(4)(i)(B) (2022).

In addition to documentation that would demonstrate how the business entity is organized and managed, the business entity would also need to provide Maine Revenue Services, along with their exemption application (Qualified Tribal Entity Application - APP-170), a copy of the business entity's determination of control and/or management as made by the SBA, or a written management development plan, if applicable.

Upon determination that the business entity meets the definition of "tribal entity" as found in 36 M.R.S. §111(8), Maine Revenue Services will issue a certificate of qualification to the tribal entity.

18-125 C.M.R. ch. 325, § 03