Section Tax 9.08 - Cigarette tax refunds to Indian tribes(1) SCOPE. This section applies to sales of cigarettes to and by Indians and Indian retailers on the reservations of tribes who on behalf of their resident enrolled members have entered into agreements under s. 139.325, Stats., with the department for refunds of taxes on stamped cigarettes.(2) LAW. (a) Section 139.323, Stats., directs the department to refund to Indian tribal councils 70% of the cigarette taxes collected under s. 139.31(1), Stats., in respect to " . . . sales on reservations or trust lands of an Indian tribe to the tribal council of the tribe having jurisdiction over the reservation or trust land on which the sale is made if all the following conditions are fulfilled:(1) The tribal council has filed a claim for the refund with the department.(2) The tribal council has approved the retailer.(3) The land on which the sale occurred was designated a reservation or trust land on or before January 1, 1983.(4) The cigarettes were not delivered by the retailer to the buyer by means of a common carrier, a contract carrier or the U.S. postal service.(5) The retailer has not sold the cigarettes to another retailer or to a jobber."(b) Section 139.325, Stats., allows the department to "... enter into agreements with Indian tribes to provide for the refunding of the cigarette tax imposed under s. 139.31(1) on cigarettes sold on reservations to enrolled members of the tribe residing on the tribal reservation."(3) SALES TO INDIANS. (a) Except as provided in s. Tax 9.09(2) and (4), Wisconsin cigarette distributors shall sell only stamped cigarettes to federally recognized Indian tribes within Wisconsin, or to persons authorized by the Indian tribe to purchase and sell cigarettes.(b) The Indian tribal council may authorize retailers on its reservations or trust land to purchase and sell cigarettes on which the tribal government may be entitled to a tax refund by providing the department and the cigarette distributor a certified letter stating that the retailer has tribal authorization to purchase and sell cigarettes on the reservation.(c) The Wisconsin cigarette distributor shall retain, for a period of 2 years from the date of sale, records substantiating sales to federally recognized Indian tribes or their authorized retailers.(d) The Wisconsin cigarette distributor shall include with its monthly cigarette tax returns a list of all sales of cigarettes to federally recognized Indian tribes or their authorized retailers on a separate form prescribed by the department.(4) REFUNDS. (a) Upon receipt of a proper claim for refund, the department shall reimburse the Indian tribal council 70% of the amount of tax paid under s. 139.31, Stats., on all cigarettes purchased by the Indian tribal council or person authorized to purchase and sell cigarettes by the tribal council of the reservation where the purchaser's business is located.(b) Claims shall be filed upon forms prescribed and furnished by the department.(c) Claims may not be filed more than twice per month.(d)1. The Wisconsin cigarette distributor shall, upon request, furnish each purchaser with the original invoice prepared at the time of delivery, and the purchaser shall send the original invoice to the department when making a claim for refund. In this paragraph, "original invoice" means the top copy and not a duplicate original or carbon copy of the original invoice.2. The original invoice shall be printed or rubber stamped with the words "original invoice" and shall in addition contain the following information: b. Name and address of seller.c. Name and address of purchaser.d. Number of cigarettes purchased.e. Amount of Wisconsin cigarette tax paid as a separate item.3. Double-faced carbon paper shall be used between the original paper or product approved in advance by the department as affording protection equivalent to double-faced carbon paper.4. A separate original invoice shall be used for each sale and delivery and shall be legible.5. If an original invoice has been lost or destroyed, a duplicate original invoice shall be used to support a claim for refund and accompanied by an affidavit by the purchaser that the original invoice has been lost or destroyed. The distributor when issuing the duplicate original invoice, shall indicate on the face of the invoice that it is a duplicate original invoice. The duplicate invoice shall contain the same information as on the original invoice.(e) On the filing of a claim, the department shall determine the amount of refund due. The department may investigate the correctness of the facts stated in a claim and may require a claimant to submit records to substantiate the claim. When the department has approved a claim, it shall pay the claimant the reimbursement provided in this subsection, out of the monies collected under s. 139.31(1), Stats.(f) An Indian tribe that has entered into an agreement with the department under s. 139.325, Stats., shall file its claim for refund of the remaining 30% of the precollected tax on cigarettes sold on the reservation to enrolled members of the tribe residing on the tribal reservation on forms prescribed by the department.(g) The penalties provided in s. 139.44, Stats., for filing a false or fraudulent claim apply to all refund claimants.(h) The right of any tribal council to a refund under s. 139.323, Stats., is not assignable, and the application for a refund shall be made by the same tribal council who purchased or authorized the purchase of the cigarettes, and by no other person, and the proceeds or amount of the refund as determined by the department shall be paid to the tribal council whose name appears on the invoice and to no other person.(i) Refunds under ss. 139.323 and 139.325, Stats., and this section shall be of tax only and may not include interest.Wis. Admin. Code Department of Revenue Tax 9.08
Cr. Register, July, 1981, No. 307, eff. 8-1-81; emerg. r. and recr., eff. 10-1-83; r. and recr. Register, March, 1984, No. 339, eff. 4-1-84; am. (2), (3), (4) (a), (c), (d) 1. and (i), Register, August, 1996, No. 488, eff. 9-1-96.Section Tax 9.08 interpretss. 139.323 and 139.325, Stats.
See s. Tax 2.60 for combined reporting definitions relating to this section. See s. Tax 2.65 for rulesrelating to the designated agent. See s. Tax 2.66 for rulesrelating to the payment of estimated taxes by combined groups. See s. Tax 2.67 for rulesrelating to the filing of a combined return.