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July 20, 1992
XXXXX
Re: Sales to the Affiliated XXXXX Citizens
This letter is in response to your recent request for a Tax Commission ruling on whether sales tax is due on sales to mixed-blood members of the Affiliated Ute Citizens.
The Tax Commission policy is to refer such requests to the division most qualified to analyze the request and make recommendations concerning it. As such, your request was referred to the Tax Commission's Auditing Division for their analysis and recommendations. The division's recommendations are as follows:
1. Tax Bulletin 11-87 states that sales to tribal members made on the tribe's reservation are not subject to sales tax. A sale on the Ute Indian Reservation to a Ute Indian should be evidenced by completion of a list of on-reservation sales containing the Indian customer's name, the date of sale, the amount of the sale and the Federal Bureau number of the tribal member.
2. Anyone who is not an enrolled member of the tribe living on the reservation is not entitled to any tax exemption even though he or she may claim membership in another tribe or some relationship to an enrolled member of the tribe. For example, members of other tribes, mixed-blood Indians who live on or visit the reservation (such as Affiliated Ute citizens), or relatives of tribal members who do not themselves qualify for a tribal card must pay taxes on the same basis as any other non-tribal member living on the reservation.
Based upon the facts presented in your letter, we are in agreement with the Auditing Division's recommendations. Obviously, if there are deviations from these facts, this opinion may be negated.
If you do not agree with this determination, you may appeal to the Tax Commission for a formal hearing. The results of that hearing would constitute a declaratory judgment and be appealable to the Utah State Supreme Court. A Notice of Appeal Rights and a copy of the Utah Taxpayer Bill of Rights are attached.
For the Commission,
Joe B Pacheco,
Commissioner
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June 8, 1992
Dear Tax Commission:
I'm writing in regards to the status of the Original 490 Ute mixed-blood Utes residing on the XXXXX and XXXXX Reservation.
As a store owner I've had many claiming to be tax exempt along with those on the Ute Tribe Roll. They do have cards. Some are issued by the Bureau of Indian Affairs Fort Dushesne Utah. And some are issued by a group called the Affiliated Ute Citizens of Utah.
I'm enclosing a copy of a letter being circulated throughout the Reservation to store owners.
Will you please clear this matter up. The Tax Bulletin from March 1987 is not clear, only mentions a card and roll number.
Are the 490 mixed-blood's exempt from State tax as long as they have a card or what?
Thank You
XXXXX
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April 30, 1987
XXXXX, President
Dear XXXXX:
In March 1987, the Tax Commission issued a bulletin concerning non-taxable sales to tribal members. This bulletin (copy attached) stated that enrolled members of a tribe, who live within the exterior limits of the reservation, are not subject to Utah sales or use tax.
The Tax Commission did not make any determination for full-blood or mixed-blood members. They do require, however, that the member give their Federal Bureau Number as evidenced by their tribal card.
XXXXX, XXXXX, State Tax Commission, can be contacted if you have further questions.