Chapter 12.10
CIGARETTE TAX
Sections:
12.10.030 Cigarette Tax Commission.
12.10.040 Tribal retailers – License required.
12.10.050 Cigarette tax – Levy.
12.10.060 Tulalip cigarette tax stamp required.
12.10.070 Wholesaler requirements.
12.10.080 Cigarette tax – Payment.
12.10.090 Retail sales tax on cigarettes – Payment.
12.10.100 Cigarette tax exemption.
12.10.110 Records maintenance, intergovernmental agreement compliance and audit.
12.10.120 Sales to minors prohibited.
12.10.130 Cigarette tax revenues.
12.10.140 Civil penalties – License revocation.
12.10.010 Purpose.
The Tulalip Board of Directors finds that the generation of tax revenue is essential to provide government services for the safety, health and welfare of the Tulalip Tribes, its people, and all those who reside, work or visit the Tulalip Reservation. The Tulalip Tribes therefore enacts this chapter for the purpose of imposing a tax on the sale of cigarettes to provide revenue for essential governmental operations and services on the Tulalip Reservation. [Res. 2022-478; Ord. 36A § 1.1, 4-12-2002 (Res. 2002-112)].
12.10.020 Definitions.
(1) “Carton” or “carton of cigarettes” means, unless otherwise indicated, a carton of 200 cigarettes.
(2) “Cigarette” means any roll for smoking made wholly or in part of tobacco, irrespective of size or shape and irrespective of the tobacco being favored, adulterated, or mixed with any other ingredient, where such roll has a wrapper or cover made of paper or any material, except where such wrapper is wholly or in the greater part made of natural leaf tobacco in its natural state.
(3) “Commission” means the Tulalip Cigarette Tax Commission.
(4) “Tulalip Indian country,” consistent with the meaning given in 18 U.S.C. 1151, means:
(a) All land within the limits of the Tulalip Indian Reservation under the jurisdiction of the United States government, notwithstanding the issuance of any patent, and including rights-of-way running through the Reservation; and
(b) All Indian allotments or other lands held in trust for a Tulalip Tribal member or the Tribes, or otherwise subject to a restriction against alienation imposed by the United States, the Indian titles to which have not been extinguished, including rights-of-way running through the same.
(5) “Local retail sales tax” means the combined Washington local retail sales taxes applicable in the area.
(6) “State” means the State of Washington.
(7) “Tobacco products” means any product made from the tobacco plant for the purpose of smoking, chewing, inhaling or other personal use, including cigars, chewing tobacco, pipe tobacco, snuff and cigarettes in any form.
(8) “Tribal member” or “member” means an enrolled member of the Tulalip Tribes.
(9) “Tribal retailer” means a cigarette retailer wholly owned by the Tulalip Tribes and located in Indian country or a member-owned smokeshop located in Tulalip Indian country and licensed by the Tribes.
(10) “Tribal tax stamp” means the stamp or stamps that indicate the Tulalip Tribal cigarette tax imposed under this chapter is paid.
(11) “Tribes” or “Tribal” means or refers to the Tulalip Tribes, a Federally recognized tribe.
(12) “Wholesaler” means every person who purchases, sells, or distributes cigarettes for the purpose of resale only. [Res. 2022-478; Ord. 36A § 1.2, 4-12-2002 (Res. 2002-112)].
12.10.030 Cigarette Tax Commission.
There is hereby established a Tulalip Cigarette Tax Commission. The authority and responsibility for administration of this chapter shall be vested in the Commission.
The Tulalip Cigarette Tax Commission shall consist of seven members. Persons elected as Directors of the Board of Directors of the Tulalip Tribes shall be the members of the Commission and shall serve on the Commission until their respective Board terms expire. The Commission shall conduct all business pursuant to this chapter at regularly scheduled Board of Directors meetings. It shall keep accurate records and minutes of all proceedings of the Commission.
The Commission may employ such employees as in its judgment are required. [Res. 2022-478; Ord. 36A § 1.3, 4-12-2002 (Res. 2002-112)].
12.10.040 Tribal retailers – License required.
All Tribal retailers engaged in a business involving the retail sales of cigarettes in Tulalip Indian country shall be required to obtain a cigarette retail license from the Tulalip Cigarette Tax Commission. The application and fee for such license shall be in accordance with Chapters 10.10 and 10.15 TTC. The Tribal retailer shall post such license in a conspicuous place at all locations where cigarettes are sold. [Res. 2022-478; Ord. 36A § 1.4, 4-12-2002 (Res. 2002-112)].
12.10.050 Cigarette tax – Levy.
(1) The Tulalip Tribes hereby imposes a tax on all sales by Tribal retailers of cigarettes within Tulalip Indian country. The tax shall initially be levied at a rate of $0.07125 per cigarette ($14.25 per carton). The cigarette tax shall be automatically adjusted to match any cigarette tax rate adjustments enacted by the State. Tribal cigarette tax rate adjustments shall take effect on the same date that the State cigarette tax rate adjustments take effect.
(2) The Tulalip Tribes hereby imposes a retail sales tax on all sales by Tribal retailers of cigarettes within Tulalip Indian country. The tax shall initially be levied at a rate of 8.9 percent of the retail sales price of the cigarettes. The retail sales tax on cigarettes shall be automatically adjusted to match any adjustments in the combined State and local retail sales tax. Tribal cigarette retail sales tax adjustments shall take effect on the same date that the combined State and local tax rate adjustments take effect.
(3) The Tribal cigarette tax and retail sales tax on cigarettes imposed by this chapter shall become effective on the date the State formally retrocedes taxing authority with regard to the sales of cigarettes by Tribal retailers to nonmember purchasers. [Res. 2022-478; Ord. 36A § 1.5, 4-12-2002 (Res. 2002-112)].
12.10.060 Tulalip cigarette tax stamp required.
(1) All cigarettes sold by Tribal retailers shall bear a Tribal tax stamp.
(2) A bank or other qualified tax stamp vendor selected by the Tribes shall distribute Tulalip Tribal tax stamps to the wholesaler for affixing to cigarette packages. The stamp vendor shall remit to the Tribes all revenue collected from the distribution of Tribal tax stamps. The stamp vendor shall submit regular reports detailing the number of Tribal tax stamps sold and make its records available for audit. [Res. 2022-478; Ord. 36A § 1.6, 4-12-2002 (Res. 2002-112)].
12.10.070 Wholesaler requirements.
(1) Tribal retailers shall purchase cigarettes only from:
(a) Cigarette wholesalers licensed by the State; and
(b) Self-certified Tribal and out-of-state wholesalers approved under intergovernmental memoranda of understanding with the State.
(2) Wholesalers shall be responsible for affixing the Tribal stamp to the smallest container of cigarettes that will be sold or distributed by the Tribal retailer. Stamps shall be affixed so that the stamps may not be removed from the package without destroying the stamp. Stamps shall be affixed so that it may be readily ascertained by inspection that the tax has been paid. [Res. 2022-478; Ord. 36A § 1.7, 4-12-2002 (Res. 2002-112)].
12.10.080 Cigarette tax – Payment.
All applicable taxes shall be paid prior to the sale, distribution, or transfer of possession of the cigarettes. The cigarette tax shall be initially prepaid to the tax stamp vendor prior to distribution of the tax stamps for affixation to the cigarette packages. The tax stamp vendor shall remit the tax payment to the Tribes in accordance with TTC 12.10.060. Whenever cigarette taxes are paid by any person other than the consumer, user, or possessor, that payment shall be considered a pre-collection of such taxes due. When the tax is prepaid, this amount is part of the selling price of the cigarette to the retail purchaser. [Res. 2022-478; Ord. 36A § 1.8, 4-12-2002 (Res. 2002-112)].
12.10.090 Retail sales tax on cigarettes – Payment.
The retail sales tax on cigarette sales shall be paid by the retail purchaser at the time of purchase. The Tribal retailer shall remit the retail sales tax to the Tribes on a quarterly basis. [Res. 2022-478; Ord. 36A § 1.9, 4-12-2002 (Res. 2002-112)].
12.10.100 Cigarette tax exemption.
Individuals who are enrolled members of the Tulalip Tribes shall be exempt from the cigarette and retail sales tax for cigarettes purchased from Tribal retailers that are wholly owned by the Tulalip Tribes. Cigarettes purchased by Tribal members from Tribal retailers wholly owned by the Tulalip Tribes shall bear a Tribal tax stamp but the cigarette and retail sales tax rate shall not be charged to the tax exempt purchaser.
The Tribal retailers wholly owned by the Tulalip Tribes may charge a separate price for cigarettes sold to Tribal members, and such price shall not include the Tribal cigarette or retail sales tax. In order to purchase cigarettes at the tax exempt price, Tribal members must present a Tribal identification card or other sufficient proof of their enrollment in the Tulalip Tribes at the time of purchase.
All tax exempt sales shall be limited to five cartons per person, per day. Resale of tax exempt cigarettes purchased from Tribal retailers is prohibited.
Tribal retailers wholly owned by the Tulalip Tribes shall be required to maintain records of all tax exempt sales. Tribal retailers shall submit to the Tribes on a quarterly basis records documenting tax exempt sales of cigarettes to Tribal members. Upon receipt of proper documentation of the amount of tax exempt sales of cigarettes by the Tribal retailer, the Tribes shall refund to the Tribal retailer the value of the tax stamps affixed to cigarettes sold to tax exempt Tribal members.
Tribal retailers that are not wholly owned by the Tulalip Tribes shall not be permitted to sell tax exempt cigarettes. [Res. 2022-478; Ord. 36A § 1.10, 4-12-2002 (Res. 2002-112)].
12.10.110 Records maintenance, intergovernmental agreement compliance and audit.
All Tribal retailers shall maintain accurate written records of the purchase, stamping, and retail sales of taxable and tax exempt cigarettes, and shall make such records available for inspection and audit. Records shall be maintained no less than four years.
Tribal retailers shall be required to comply with all applicable provisions of any intergovernmental agreement or memorandum of understanding on cigarette taxes between the Tulalip Tribes and the State of Washington entered into pursuant to RCW 43.06.455. Tribal retailers shall provide access to their records for audits in conformity with the provisions of such intergovernmental agreement(s). [Res. 2022-478; Ord. 36A § 1.11, 4-12-2002 (Res. 2002-112)].
12.10.120 Sales to minors prohibited.
Sale of cigarettes or tobacco products to any person under 21 years of age is strictly prohibited. [Res. 2022-478; Ord. 36A § 1.12, 4-12-2002 (Res. 2002-112)].
12.10.130 Cigarette tax revenues.
All revenues generated from the cigarette and retail sales taxes imposed by this chapter shall be used for essential governmental functions, which include, but are not limited to, Tribal administration, public facilities, fire, police, courts, public health, education, job services, sewer, water, environmental, cultural resource, land use, transportation, utilities and economic development. Cigarette tax revenue shall not be used to subsidize Tribal retailers engaged in cigarette sales.
Cigarette tax revenue shall be deposited in a separate Tribal government account, and shall not be commingled with other Tribal funds. [Res. 2022-478; Ord. 36A § 1.13, 4-12-2002 (Res. 2002-112)].
12.10.140 Civil penalties – License revocation.
The Tulalip Cigarette Tax Commission shall have authority to assess a civil fine of up to $500.00 for each violation of this chapter, and shall also have the authority to suspend or revoke the license of any Tribal retailer that is found to have violated the requirements of this chapter. The procedural due process provisions of Chapter 3.70 TTC shall apply to all fines, license suspensions or revocations issued by the Commission for violations of this chapter. [Res. 2022-478; Ord. 36A § 1.14, 4-12-2002 (Res. 2002-112)].