Re: Collection of Sales Tax on Sales to Tribal Members

The purpose of this Tax Bulletin is to inform vendors of the sales tax implications of a recently signed agreement between the Ute Indian Tribe of the Uintah and Ouray Reservation and the State of Utah.

Sales of Goods and Services on Tribal Trust Land
Effective July 1, 2000, purchases of goods and services on Uintah and Ouray Reservation trust land are exempt from state and local sales and use taxes provided the following conditions are met:

(1) the purchaser must be an enrolled member of the Ute Indian Tribe living on the Uintah and Ouray Reservation, as evidenced by a federal tribal card; and 

(2) the tribal card must be presented to the vendor at the time of purchase.

Vendors must record the number from the tribal member's federal tribal card for sales tax exempt purchases over $100. For purchases of $100 or less, the vendor is not required to record the tribal member's card number. Vendors on tribal trust land must continue to collect state and local sales and use tax on purchases made by individuals who are not members of the Ute Indian Tribe.

Sales of Goods and Services on Non-Trust Land
Effective July 1, 2000, except as provided below, purchases of goods and services on non-trust lands within the Uintah and Ouray Reservation are subject to state and local sales and use taxes, regardless of whether the purchaser is an enrolled member of the Ute Indian Tribe.

Items purchased on non-trust lands by an enrolled member of the Ute Indian Tribe living on the Uintah and Ouray Reservation are exempt from state and local sales and use taxes if the items are delivered to tribal trust land by the vendor or common carrier. To validate these tax-exempt sales, vendors on non-trust land must record the number from the tribal member's federal tribal card for sales over $100, and must, in all cases, retain proof of the delivery of the goods to tribal trust land. This proof may include a freight bill or a bill of lading. Vendors are liable for sales taxes that should have been, but were not, collected.

To ask questions regarding this Tax Bulletin, please call Taxpayer Services at (801) 297-2200 or call toll free 1-800-662-4335. To submit questions in writing, mail to Taxpayer Services, 210 North 1950 West, Salt Lake City, UT 84134 or email taxmaster@tax.state.ut.us. Those who have impaired hearing may call the Telecommunications Device for the Deaf (TDD) at (801) 297-2020.