Tax Free Purchases on Indian Reservations PDF Print E-mail

The Mandate: Although state law requires the collection of sales taxes on products sold to non-Native Americans on Indian-owned lands, this statute is not currently enforced.

The Cost: It is estimated that the state's lack of enforcement results in a loss of $500 million to $1 billion annually in state and local revenue, just on sales of tobacco products alone.

The Solution: The state should enforce the collection and remittance of sales tax on goods purchased by non-Native Americans on Indian-owned lands, particularly gasoline and cigarettes.