142.821. The exemption for motor fuel sold within an Indianreservation or Indian country under section 142.815 shall be administeredas follows:
(1) At the discretion of the director the exemption from taxation setforth in this section shall be administered as set out in either paragraph(a) or (b) of this subdivision. In the event a court of competentjurisdiction should strike down, enjoin, or issue any form of temporaryrestraining order against either paragraph (a) or (b) of this subdivision,then the remaining paragraph shall immediately become effective and shallbe administered by the director. The two alternative methods are asfollows:
(a) The tribal member shall apply for a refund with respect to themotor fuel purchased in this state for consumption within Indian country inthis state as to which the tax imposed by this chapter has previously beenpaid and no refund previously issued; or
(b) The director shall determine, by the procedure set out herein,the annual probable demand for motor fuel for consumption by tribal memberswithin Indian country for each ultimate vendor location owned and operatedby a federally recognized Indian tribe on Indian country. Tribally ownedand operated ultimate vendors shall be permitted a monthly allocation equalto one-twelfth the annual probable demand. No motor fuel shall be removedfrom a terminal or imported into this state tax free for sale at a triballyowned and operated location except pursuant to this section. The directorshall issue exemption certificate coupons equal to the probable demand toeach federally recognized tribe which owns and operates an ultimate vendorlocation in Indian country. The tribally owned and operated ultimatevendor shall transmit the coupons to its distributor who shall grant theultimate vendor a credit in the amount of the tax exemption equal to theamount which would be due pursuant to section 142.803 absent the coupons.The distributor shall transmit said used coupons up its chain ofdistribution to the supplier charged with precollection of tax inaccordance with this chapter who has granted the same tax exemption to thedistributor. The supplier shall then claim the coupons as a credit againstthe tax liability otherwise owing on motor fuel removed from its terminals;
(2) The probable demand used in the method described in paragraph (b)of subdivision (1) of this section shall be determined in the firstinstance by the director by multiplying the number of members of the tribewhich owns and operates an ultimate vendor location in Indian country wholive within the service area of that location by the average per capitamotor fuel consumption for residents of this state by a ratio whosenumerator is the amount of motor fuel consumed in nonhighway uses (not onstate maintained highways) and whose denominator is the amount of thatmotor fuel consumed in this state;
(3) In determining the number of members of the tribe living within*the service area, the director may rely upon information including, but notlimited to:
(a) Verified information voluntarily submitted by the affected tribe;
(b) Data derived from the most recent U.S. decennial census; and
(c) Data derived from the U.S. Bureau of Indian Affairs;
(4) The service area of a tribally owned and operated ultimate vendorlocation shall be presumed to be a radius around the location with adiameter of:
(a) Ten miles in counties whose population exceeds three hundredfifty thousand; and
(b) Twenty-five miles in counties whose population does not exceedthree hundred fifty thousand.
An affected tribe may rebut this presumption by competent evidence in aproceeding to adjust the probable demand determination pursuant tosubdivision (7) of this subsection;
(5) In determining the per capita consumption of motor fuel and theratio of nonhighway use of fuel to that consumed the director may rely uponinformation including, but not limited to:
(a) Filings with the director regarding total fuels removed fromterminals versus the amount used upon highways in this state;
(b) Fuel consumption reports issued by the Federal HighwayAdministration; and
(c) Energy consumption reports issued by the U.S. Energy InformationService;
(6) The director may adjust his determination of probable demandperiodically at his discretion, but not less often than upon receipt of anew federal decennial census;
(7) Should any affected federally recognized Indian tribe wish tocontest the director's determination of probable demand, it may do sobefore the administrative hearing commission. At such hearing the tribeshall have the right to submit witnesses and evidence and shall have theburden of proof by a preponderance of the evidence to establish error inthe director's determination and by establishing the tribe's owncalculation. At the conclusion of such hearing, the administrative lawjudge shall prepare findings of fact, conclusions of law and an order whichshall be subject to any and all rights of appeal enjoyed by the director orany other taxpayers. In such a hearing the affected tribe may introducetestimony under oath or other competent evidence to establish:
(a) The number of its tribal members living within the service areaof a tribally owned and operated ultimate vendor location;
(b) The actual radius of the service area of the location, ifdifferent from those distances presumed in subdivision (4) of this section;
(c) Per capita motor fuel consumption of tribal members living withinthe service area if different from that calculated by the director inaccordance with subdivision (5) of this section; or
(d) The ratio of nonhighway to highway use fuels within the servicearea if different from that calculated by the director under subdivision(5) of this section;
(8) Should the director determine that an affected tribe or itssuppliers have been violating or evading its determination of probabledemand hereunder or securing or selling untaxed motor fuel to consumersother than members of the affected tribe, the director may, after noticeand hearing, cancel the tax exemption coupons granted to the tribe andprohibit removal of tax-free motor fuel from a terminal or import into thisstate for delivery to the tribally owned and operated ultimate vendorlocations. Upon such action, the tribal members must use the methodprovided in subdivision (1) of this section to obtain refunds, no furthercoupons shall be provided to the affected tribe, and the suppliers shallnot be permitted to claim a credit upon receipt of the coupons.
142.821. The exemption for motor fuel sold within an Indianreservation or Indian country under section 142.815 shall be administeredas follows:
(1) At the discretion of the director the exemption from taxation setforth in this section shall be administered as set out in either paragraph(a) or (b) of this subdivision. In the event a court of competentjurisdiction should strike down, enjoin, or issue any form of temporaryrestraining order against either paragraph (a) or (b) of this subdivision,then the remaining paragraph shall immediately become effective and shallbe administered by the director. The two alternative methods are asfollows:
(a) The tribal member shall apply for a refund with respect to themotor fuel purchased in this state for consumption within Indian country inthis state as to which the tax imposed by this chapter has previously beenpaid and no refund previously issued; or
(b) The director shall determine, by the procedure set out herein,the annual probable demand for motor fuel for consumption by tribal memberswithin Indian country for each ultimate vendor location owned and operatedby a federally recognized Indian tribe on Indian country. Tribally ownedand operated ultimate vendors shall be permitted a monthly allocation equalto one-twelfth the annual probable demand. No motor fuel shall be removedfrom a terminal or imported into this state tax free for sale at a triballyowned and operated location except pursuant to this section. The directorshall issue exemption certificate coupons equal to the probable demand toeach federally recognized tribe which owns and operates an ultimate vendorlocation in Indian country. The tribally owned and operated ultimatevendor shall transmit the coupons to its distributor who shall grant theultimate vendor a credit in the amount of the tax exemption equal to theamount which would be due pursuant to section 142.803 absent the coupons.The distributor shall transmit said used coupons up its chain ofdistribution to the supplier charged with precollection of tax inaccordance with this chapter who has granted the same tax exemption to thedistributor. The supplier shall then claim the coupons as a credit againstthe tax liability otherwise owing on motor fuel removed from its terminals;
(2) The probable demand used in the method described in paragraph (b)of subdivision (1) of this section shall be determined in the firstinstance by the director by multiplying the number of members of the tribewhich owns and operates an ultimate vendor location in Indian country wholive within the service area of that location by the average per capitamotor fuel consumption for residents of this state by a ratio whosenumerator is the amount of motor fuel consumed in nonhighway uses (not onstate maintained highways) and whose denominator is the amount of thatmotor fuel consumed in this state;
(3) In determining the number of members of the tribe living within*the service area, the director may rely upon information including, but notlimited to:
(a) Verified information voluntarily submitted by the affected tribe;
(b) Data derived from the most recent U.S. decennial census; and
(c) Data derived from the U.S. Bureau of Indian Affairs;
(4) The service area of a tribally owned and operated ultimate vendorlocation shall be presumed to be a radius around the location with adiameter of:
(a) Ten miles in counties whose population exceeds three hundredfifty thousand; and
(b) Twenty-five miles in counties whose population does not exceedthree hundred fifty thousand.
An affected tribe may rebut this presumption by competent evidence in aproceeding to adjust the probable demand determination pursuant tosubdivision (7) of this subsection;
(5) In determining the per capita consumption of motor fuel and theratio of nonhighway use of fuel to that consumed the director may rely uponinformation including, but not limited to:
(a) Filings with the director regarding total fuels removed fromterminals versus the amount used upon highways in this state;
(b) Fuel consumption reports issued by the Federal HighwayAdministration; and
(c) Energy consumption reports issued by the U.S. Energy InformationService;
(6) The director may adjust his determination of probable demandperiodically at his discretion, but not less often than upon receipt of anew federal decennial census;
(7) Should any affected federally recognized Indian tribe wish tocontest the director's determination of probable demand, it may do sobefore the administrative hearing commission. At such hearing the tribeshall have the right to submit witnesses and evidence and shall have theburden of proof by a preponderance of the evidence to establish error inthe director's determination and by establishing the tribe's owncalculation. At the conclusion of such hearing, the administrative lawjudge shall prepare findings of fact, conclusions of law and an order whichshall be subject to any and all rights of appeal enjoyed by the director orany other taxpayers. In such a hearing the affected tribe may introducetestimony under oath or other competent evidence to establish:
(a) The number of its tribal members living within the service areaof a tribally owned and operated ultimate vendor location;
(b) The actual radius of the service area of the location, ifdifferent from those distances presumed in subdivision (4) of this section;
(c) Per capita motor fuel consumption of tribal members living withinthe service area if different from that calculated by the director inaccordance with subdivision (5) of this section; or
(d) The ratio of nonhighway to highway use fuels within the servicearea if different from that calculated by the director under subdivision(5) of this section;
(8) Should the director determine that an affected tribe or itssuppliers have been violating or evading its determination of probabledemand hereunder or securing or selling untaxed motor fuel to consumersother than members of the affected tribe, the director may, after noticeand hearing, cancel the tax exemption coupons granted to the tribe andprohibit removal of tax-free motor fuel from a terminal or import into thisstate for delivery to the tribally owned and operated ultimate vendorlocations. Upon such action, the tribal members must use the methodprovided in subdivision (1) of this section to obtain refunds, no furthercoupons shall be provided to the affected tribe, and the suppliers shallnot be permitted to claim a credit upon receipt of the coupons.
142.821. The exemption for motor fuel sold within an Indianreservation or Indian country under section 142.815 shall be administeredas follows:
(1) At the discretion of the director the exemption from taxation setforth in this section shall be administered as set out in either paragraph(a) or (b) of this subdivision. In the event a court of competentjurisdiction should strike down, enjoin, or issue any form of temporaryrestraining order against either paragraph (a) or (b) of this subdivision,then the remaining paragraph shall immediately become effective and shallbe administered by the director. The two alternative methods are asfollows:
(a) The tribal member shall apply for a refund with respect to themotor fuel purchased in this state for consumption within Indian country inthis state as to which the tax imposed by this chapter has previously beenpaid and no refund previously issued; or
(b) The director shall determine, by the procedure set out herein,the annual probable demand for motor fuel for consumption by tribal memberswithin Indian country for each ultimate vendor location owned and operatedby a federally recognized Indian tribe on Indian country. Tribally ownedand operated ultimate vendors shall be permitted a monthly allocation equalto one-twelfth the annual probable demand. No motor fuel shall be removedfrom a terminal or imported into this state tax free for sale at a triballyowned and operated location except pursuant to this section. The directorshall issue exemption certificate coupons equal to the probable demand toeach federally recognized tribe which owns and operates an ultimate vendorlocation in Indian country. The tribally owned and operated ultimatevendor shall transmit the coupons to its distributor who shall grant theultimate vendor a credit in the amount of the tax exemption equal to theamount which would be due pursuant to section 142.803 absent the coupons.The distributor shall transmit said used coupons up its chain ofdistribution to the supplier charged with precollection of tax inaccordance with this chapter who has granted the same tax exemption to thedistributor. The supplier shall then claim the coupons as a credit againstthe tax liability otherwise owing on motor fuel removed from its terminals;
(2) The probable demand used in the method described in paragraph (b)of subdivision (1) of this section shall be determined in the firstinstance by the director by multiplying the number of members of the tribewhich owns and operates an ultimate vendor location in Indian country wholive within the service area of that location by the average per capitamotor fuel consumption for residents of this state by a ratio whosenumerator is the amount of motor fuel consumed in nonhighway uses (not onstate maintained highways) and whose denominator is the amount of thatmotor fuel consumed in this state;
(3) In determining the number of members of the tribe living within*the service area, the director may rely upon information including, but notlimited to:
(a) Verified information voluntarily submitted by the affected tribe;
(b) Data derived from the most recent U.S. decennial census; and
(c) Data derived from the U.S. Bureau of Indian Affairs;
(4) The service area of a tribally owned and operated ultimate vendorlocation shall be presumed to be a radius around the location with adiameter of:
(a) Ten miles in counties whose population exceeds three hundredfifty thousand; and
(b) Twenty-five miles in counties whose population does not exceedthree hundred fifty thousand.
An affected tribe may rebut this presumption by competent evidence in aproceeding to adjust the probable demand determination pursuant tosubdivision (7) of this subsection;
(5) In determining the per capita consumption of motor fuel and theratio of nonhighway use of fuel to that consumed the director may rely uponinformation including, but not limited to:
(a) Filings with the director regarding total fuels removed fromterminals versus the amount used upon highways in this state;
(b) Fuel consumption reports issued by the Federal HighwayAdministration; and
(c) Energy consumption reports issued by the U.S. Energy InformationService;
(6) The director may adjust his determination of probable demandperiodically at his discretion, but not less often than upon receipt of anew federal decennial census;
(7) Should any affected federally recognized Indian tribe wish tocontest the director's determination of probable demand, it may do sobefore the administrative hearing commission. At such hearing the tribeshall have the right to submit witnesses and evidence and shall have theburden of proof by a preponderance of the evidence to establish error inthe director's determination and by establishing the tribe's owncalculation. At the conclusion of such hearing, the administrative lawjudge shall prepare findings of fact, conclusions of law and an order whichshall be subject to any and all rights of appeal enjoyed by the director orany other taxpayers. In such a hearing the affected tribe may introducetestimony under oath or other competent evidence to establish:
(a) The number of its tribal members living within the service areaof a tribally owned and operated ultimate vendor location;
(b) The actual radius of the service area of the location, ifdifferent from those distances presumed in subdivision (4) of this section;
(c) Per capita motor fuel consumption of tribal members living withinthe service area if different from that calculated by the director inaccordance with subdivision (5) of this section; or
(d) The ratio of nonhighway to highway use fuels within the servicearea if different from that calculated by the director under subdivision(5) of this section;
(8) Should the director determine that an affected tribe or itssuppliers have been violating or evading its determination of probabledemand hereunder or securing or selling untaxed motor fuel to consumersother than members of the affected tribe, the director may, after noticeand hearing, cancel the tax exemption coupons granted to the tribe andprohibit removal of tax-free motor fuel from a terminal or import into thisstate for delivery to the tribally owned and operated ultimate vendorlocations. Upon such action, the tribal members must use the methodprovided in subdivision (1) of this section to obtain refunds, no furthercoupons shall be provided to the affected tribe, and the suppliers shallnot be permitted to claim a credit upon receipt of the coupons.
