Seattle Comptroller/Clerk Files Index
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Clerk File 319890
Title | |
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Seattle Business Tax Rule No. 5-129, Tribes and Tribal Members/Citizens. |
Description and Background | |
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Current Status: | Filed |
Index Terms: | ADMINISTRATIVE-PROCEDURES, DEPARTMENT-OF-FINANCE-AND-ADMINISTRATIVE-SERVICES, NATIVE-AMERICANS, TAXES |
Legislative History | |
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Date Filed with Clerk: | July 19, 2016 |
PDF Copy: | Clerk File 319890 |
Text | |
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SeattleRule 5-129 Tribes andTribal Members/Citizens
(1) Introduction. This section explains the Seattle businesslicense tax as it relates to sales to and on Tribal reservations.
(2) Definitions. As used herein:
(a) The term "Indian," as used herein, means aperson on the tribal rolls of an Indian Tribe. A person on the tribal rolls is also known as an "enrolled member" or a"member" or an "enrolled person" or an "enrollee" or a "tribal member." The term includes only those persons who areenrolled with the tribe upon whose territory a business activity takes placeand does not include Indians who are members of other tribes.
(b) The term "Indian country" has the samemeaning as given in 18 U.S.C. 1151 and means:
(i) All land within the limits of any Indianreservation under the jurisdiction of the United States government,notwithstanding the issuance of any patent, and including rights of way runningthrough the reservation;
(ii) All dependent Indian communities withinthe borders of the United States whether within the original or subsequentlyacquired territory thereof, and whether within or without the limits of astate; and
(iii) All Indian allotments, the Indian titlesto which have not been extinguished, including rights of way running throughthe same.
(c) The term "Indian reservation" as usedherein, means all lands, notwithstanding the issuance of any patent, within theexterior boundaries of areas set aside by the United States for the use andoccupancy of Indian tribes by treaty, law, or executive order and that areareas currently recognized as "Indian reservations" by the United StatesDepartment of the Interior. The termincludes all lands within the exterior boundaries of the reservation owned bynon-Indians as well as land owned by Indians and Indian tribes and it includesany land that has been designated "reservation" by federal act.
(d) The term "Indian tribe," as used herein,means an Indian nation, tribe, band or other entity recognized as an "Indiantribe" by the United States Department of the Interior. The phrase "federal recognized Indian tribe"and the term "tribe" have the same meaning as "Indian tribe."
(e) The following Washington tribes are theonly "Indian tribes" currently recognized as such by the United StatesDepartment of Interior as of November 2012: Chehalis, Colville Confederated Tribes, Cowlitz, Hoh, JamestownS'Klallam, Kalispel, Lower Elwha Klallam, Lummi Nation, Makah, Muckleshoot,Nisqually, Nooksack, Port Gamble S'Klallam, Puyallup, Quileute, Quinault,Samish, Sauk-Suiattle, Shoalwater Bay, Skokomish, Snoqualmie, Spokane, SquaxinIsland, Stillaguamish, Suquamish, Swinomish, Tulalip, Upper Skagit, and YakamaNation.
(f) The term "Nonmember," as used herein,means a person not on the tribal rolls of the Indian tribe.
(g) The term "Treaty fishery" means thefishing and shellfish rights preserved in a tribe's treaty, a federal executiveorder, or an act of Congress. Itincludes activities such as harvesting, processing, transporting, or selling,as well as activities such as management and enforcement.
(3) Business License Tax Certificate.
(a) Tribal members/citizens must obtain abusiness license tax certificate if they are engaging in business within theCity of Seattle.
(4) Business License Tax.
(a) Sales of tangible personal property.
(i) With the exception of treaty fisheryactivity, Indians conducting business outside of Indian country and within theCity of Seattle are subject to the business license tax.
(ii) If an Indian or tribe with a BusinessLicense Tax Certificate engages in a business activity within Indian country,then the activity is not subject to the business license tax.
(iii) Income derived from treaty fishingrights-related activity is not subject to the business license tax.
(iv) Income from non-member sales of tangiblepersonal property to the tribe or to tribal members is not subject to B&Otax if the tangible personal property is delivered to the buyer in Indiancountry and if:
(A) Theproperty is located in Indian country at the time of sale; or
(B) The seller has abranch office, outlet, or place of business in Indian country that is used toreceive the order or distribute the property; or
(C) The sale of theproperty is solicited by the seller while the seller is in Indian country.
Whenthese conditions are not met, the seller must pay B&O tax on its businessactivity.
Example: A tribal member purchases furniture from astore in the City of Seattle. The tribal member presents identification to thestore owner and requests delivery to the reservation upon which he or she is atribal member. In this case, business license tax is not due. However, if thetribal member takes possession of the furniture inside of Seattle, businesslicense tax is due.
(b) Retail services.
(1) The business license tax is not imposed ifthe retail service, such as construction or repair services, is performed forthe member or tribe in Indian country.
(2) In the case of a retail service that isperformed both on and off Indian country, only the portion of the contract thatrelates to work done in Indian country is excluded from tax. The work done for a tribe or tribal memberoutside of Indian country is subject to the business license tax.
(3) Construction in Indian Country performedfor nonmembers is treated like construction that occurs outside of IndianCountry.
Example: A companyperforming road work for a tribe or tribal member both inside and outside ofIndian country reports revenue generated from work conducted outside of Indiancountry. Any work performed within the boundaries of Indian country is exemptfrom the business license tax.
Example: Acontractor enters into a contract with a tribe to install a sewer line thatextends off reservation. Only the incomeattributable to the installation of the portion of the sewer line offreservation is subject to the business license tax.
(c) Professional services.
(1) Income from the performance of services(e.g. accounting, legal, or dental) in Indian country for the tribe or fortribal members is not subject to the business license tax. Services provided outside of Indian countryfor a tribe or tribal members are subject to the two-factor serviceapportionment method in accordance with SMC 5.45.081.
DIRECTOR'S CERTIFICATION
I, Glen M. Lee, Finance Director of the City ofSeattle, do hereby certify
under penalty of perjury of law, that the within andforegoing is a true and
correct copy as adopted by the City of Seattle,Department of Finance and
Administrative Services.
DATED this ______ day of July 2016.
CITY OF SEATTLE,
a Washingtonmunicipality
By: ____________________________________
Glen M. Lee,Finance Director
Department ofFinance and Administrative Services
Effectivedate: July 14, 2016 |
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