CHAPTER 10-3
SALES TAX
10-3-1 Definitions.
(A) “Consumer” means any person who consensually receives or comes into possession of property from a retailer by means of a sale of such property or who purchases services as a final consumer.
(B) “Person” means any individual, company, partnership, corporation, commission, government agency, joint venture, association, trust, or other political or identifiable entity to which this Code can be applied.
(C) “Property” means all tangible personal property of every kind and description including without limitation, water and natural or artificial gas.
(D) “Retailer” means any person who in the ordinary course of business sells any property or services to another, whether such sale would be described as a “wholesale” or “retail” sale.
(E) “Sale” or “sales” or their derivatives means all sales, barters, trades, exchanges, or other transfer or ownership for value of property or services from a retailer to any person no matter how characterized. For the Nation’s gaming operations, “sale” or “sales” does not include property or services provided on a complimentary basis without cash payment from the consumer to the retailer.
(F) “Services” includes any activity involving:
(1) Sales of electricity, telephone, cable radio or television or mobile phone services and any utility services which are not personal property;
(2) Sales of admission to any place providing amusement, entertainment or recreation services except for admission to any tribal government activity or to historical, cultural, religious or social events of the Nation; or
(3) Sales of room rental services for a period of less than thirty (30) consecutive days.
(Amended by PBP TC No. 2008-255, November 19, 2008; amended by PBP TC No. 2012-032, February 13, 2012; amended by PBP TC No. 2016-191, June 28, 2016; amended by PBP TC No. 2024-067, March 7, 2024)
10-3-2 Tax on Sales.
There is hereby levied upon the consensual sale and purchase of property and services within the tribal jurisdiction a tax of six (6) percent of the actual sales price thereof exclusive of any rebates. If a sale is consummated by trades, barter, or exchange of anything other than money, the tax shall be computed at the fair market value of the property sold. The following sales are exempt from tribal sales tax:
(A) Sales to the Nation tribal government.
(B) Sales made by small or home-based retailers with annual sales of less than ten thousand dollars ($10,000) or with continuous operation of less than seven (7) days in duration, including but not limited to vendors at powwows or similar cultural events, school concession stands, community-based fundraisers, and local food vendors.
(C) Sales of propane for residential or agricultural purposes; and sales of propane by any entity wholly owned by the Nation to an entity wholly owned by the Nation for its own use or consumption.
(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. 2016-191, June 28, 2016; amended by PBP TC No. 2018-025, February 8, 2018; amended by PBP TC. No. 2022-277, November 3, 2022; amended by PBP TC No. 2024-067, March 7, 2024)
10-3-3 Reserved.
(Amended by PBPN Resolution No. 2000-82, May 2, 2000; amended by PBP TC No. 2016-191, June 28, 2016; amended by PBP TC No. 2024-067, March 7, 2024)
10-3-4 Impact of Tax.
(A) The impact of the taxes imposed by this chapter is declared to be on the retailer for a sale of property and services within the tribal jurisdiction but may be added to the purchase price of the property or services sold.
(B) Every retailer shall show the amount of any such taxes added to the purchase price pursuant to Section 10-3-4 (A) as a separate item on any invoices or receipts which they may issue.
(Amended by PBP TC No. 2012-032, February 13, 2012; amended by PBP TC No. 2016-191, June 28, 2016; amended by PBP TC No. 2024-067, March 7, 2024)
10-3-5 Payment of Tax.
(A) Every retailer shall submit to the Tax Commission within fourteen (14) calendar days after the end of each calendar month a report on such forms as the sales and gross amount of sales taxes collected during that calendar month.
(B) Every retailer shall pay the gross sales taxes collected during a calendar month to the Tax Commission at the time as the report for that calendar month is submitted.
(Amended by PBP TC No. 2016-191, June 28, 2016; amended by PBP TC No. 2024-067, March 7, 2024)
10-3-6 Records.
Every retailer shall maintain for not less than three (3) years complete and adequate records including invoices showing all property received and sold or otherwise disposed of and all services sold, the price at which sold, and the amount of sales taxes collected and paid.
(Amended by PBP TC No. 2016-191, June 28, 2016; amended by PBP TC No. 2024-067, March 7, 2024)
10-3-7 Sales by Retailers to the Nation and Its Members.
(A) Every retailer engaged in sales of property or services to the Nation or its members on the reservation shall have an affirmative duty to avoid the imposition of state or local taxes on the Nation and its members and to impose the tribal taxes specified by this chapter. A retailer who has knowledge that a state or local tax is being imposed on the Nation or its members for a transaction occurring within the Reservation shall immediately cease the collection of such taxes and cause the collection of any applicable tribal taxes.
(B) A retailer who collects state or local sales or use taxes for reservation transactions and who either
(1) Has actual or imputed knowledge that the imposition of such taxes is illegal or
(2) Has been notified in writing by the Prairie Band Potawatomi Tax Commission that the imposition of such taxes is illegal shall immediately cease the collection of such taxes. Any retailer failing to comply with this section shall be subject to a penalty of up to ten thousand dollars ($10,000) for each month that it continues to collect such taxes.
(C) The Tax Commission may provide tribal and enrollment information to a retailer sufficient for the retailer to verify that transactions with the Nation or members of the Nation should not be subject to state or local taxes and should be subject to tribal taxes. Any such information retained by the retailer shall be maintained as strictly confidential and shall not be disclosed to anyone without the express written consent of the Nation. All disputes or issues concerning in any way such confidential information may be adjudicated in Tribal Court. In the event of the unauthorized disclosure of such confidential information, the Tax Commission may impose a penalty of up to ten thousand dollars ($10,000) for each such disclosure.
(Amended by PBP TC No. 2006-098, May 18, 2006; amended by PBP TC No. 2012-032, February 13, 2012; amended by PBP TC No. 2016-191, June 28, 2016; amended by PBP TC No. 2024-067, March 7, 2024)
10-3-8 Effective Date of Amendments.
Amendments to this chapter shall be effective and enforceable against any retailer on the date the Tribal Council approves the amendment.
(Enacted by PBP TC No. 2024-067, March 7, 2024)