The agreement applies to Michigan Sales Tax (6% of Retail Price), User Tax (6% of Purchase Price), Fuel Tax, Cigarette Tax, and Sole Proprietorship Tax. Members are also eligible for an annual review of the income tax refund, which represents 4% of adjusted gross income and must be filed when you file your income tax return. (Use tax form 4013.) The State of Michigan has signed a tax agreement that benefits many members whose primary residence is in certain contract areas. Members living in the territories of the Convention are exempt from State income tax. You also get government tax refunds on many purchases. • Questions about state income taxes, registration in the tax agreement area or change of address – Contact the tax office with the contact details given above. Members of the Sault Tribe who live in and around the tribe`s supply area have enjoyed tax benefits since April 2003. The State of Michigan has signed a tax treaty that benefits many members whose primary residence is in certain treaty territories, often located on or near tribal reservations. Initial registration and/or change of address Under the tax treaty between the tribe and the state, tribal members living in the “contract territory” can apply for an exemption from certain state taxes. In order to benefit from these benefits, the member must be registered with the tribal tax office and prove that he resides in the contractual territory. Tribal members in the area of tax treaty must apply for a tax exemption certificate BEFORE a purchase, which would entitle a tribal member to a Michigan sales tax exemption. Members who do not reside in the contractual territory are not entitled to VAT reductions, tax exemptions or income tax refunds.

However, you can get tax reductions for gasoline, diesel and cigarettes at certain retail stores in the contract territory. Fuel and cigarette tax refunds are made at the time of purchase. The following is an important note that tribal members living in the tax treaty area should read. (For more information on the Tribal Tax Agreement, see www.saulttribe.com/government/tribal-tax-agreement.) Tribal Code 43.1103 states that resident tribal members must notify the tribal tax office in writing before moving their principal residence. If the tribal tax office receives an application for an exemption certificate and the member`s address on the application does not match the address stored by the tribal tax office and the IM Treasury Department, no exemption certificate can be issued. We will usually try to contact the member to ask them to update their address by filling out the address verification card and providing the required documents, but it is the member`s responsibility to provide this information. An exemption certificate can only be issued if the member has provided accurate information proving that he or she resides in the contract territory. Before you can claim an annual tax refund or tax exemption, you must first sign a registration card and return it to the Sault Tribe tax office to verify your residency in a tax treaty area.

This is mandatory for all tribe members.* Members living in the agreement area are exempt from state income tax. You also get government tax refunds on many purchases. The agreement applies to Michigan Sales Tax (6% of Retail Price), User Tax (6% of Purchase Price), Fuel Tax, Cigarette Tax, and Sole Proprietorship Tax. If you are 16 years of age or older and would like to benefit from these tax benefits, you must sign a Sault Tribe Tax Treaty Registration Card to verify your residence in a contract territory.* It is the member`s responsibility to notify the tribal tax office if they change their address, even if the change of address is still within the scope of the agreement. Please note that if you have left the scope of the tax treaty and still enjoy certain tax benefits or exemptions through this agreement, this may be considered tax evasion. Please contact your personal accountant or call the tribal tax office if you have any questions. Members are responsible for compliance with the agreement and are encouraged to contact the Sault Tribe tax office if they have any questions about the regulations. Tribal governments, as a whole or as majority owners, can set up business enterprises that are also exempt from income tax. State governments do not have the power to tax tribal governments or businesses of individuals living on tribal lands if the revenues come from tribal land resources. These include wealth tax and state income tax.

However, states may tax the income of Native Americans who live outside the tribal land, even if their income comes from conducting business on tribal land. The registration process begins with the member filling out an “address verification card” and providing their name, address and other personal information. The member must also present a copy of their Michigan driver`s license, Michigan state identification card or voter card. All of these forms of government identification MUST have the member`s current address and that address must be in the tax treaty area. Members must also attach a utility bill to their name and current address as additional proof of residence in the tax treaty area. The Tribal Tax Office cannot register a member with the IM Treasury Department unless these documents are included in the address verification card. • Exemption Certificate for Building Materials – Contact the tax office with the contact details listed above. Please provide the name and address of the supplier and their fax number. Indian payroll and insurance tax credits may be available to employers who hire skilled employees who live on tribal lands. This tax credit is worth up to 20% of salaries and employees with health insurance for qualified employees.

As of Monday, March 23, please follow the instructions below for tax applications: Registration of Tribal Members in the Tax Treaty Area Responsibilities of Tribal Members (including issuance of Exemption Certificates) Members are also eligible for an annual audit of the income tax refund, which represents 4% of adjusted gross income and must be filed when filing your income tax return. (Use tax form 4013.) Many tribal businesses are eligible for federal and state tax exemptions on the income and expenses of investors, owners, and employees. Capital tax credits or new market tax credits may be available for capital investments in tribal lands; this provides for tax credits of up to 39% of the total investment amount. *Registration cards must be completed by September 15. of the month at the tax office so that the member is included in the state RTM list for the first day of the following month. (Tax treaties Section II and Section VIII Section B point 1). Companies operating on tribal lands can more quickly devalue assets used on tribal lands. This reduces the property tax liability of corporations and creates an incentive to invest in businesses on Native American lands.

Tax Agreement and Tribal-State Tax Agreement maps can be downloaded: • Exemption certificates for private vehicles, recreational vehicles, snowmobiles and off-road vehicles – -If you are purchasing from the dealership, please contact the dealer numbers listed above by fax or email. . . .