An Act To Provide a Tax Exemption for Tobacco Sold to an Adult Member of a Federally Recognized Indian Tribe for Cultural, Spiritual or Ceremonial Purposes

Sec. 1. 36 MRSA §1760, sub-§95  is enacted to read:

Sec. 2. Process for exemption or refund of cigarette and tobacco taxes. The State Tax Assessor shall work with representatives of federally recognized Indian tribes in the State to establish a process for adult members of federally recognized Indian tribes to purchase cigarettes and tobacco products for cultural, spiritual or ceremonial purposes without payment of the taxes imposed under the Maine Revised Statutes, Title 36, chapter 703 or 704 or to receive a refund of those taxes. The State Tax Assessor shall submit the results of this process to the Joint Standing Committee on Taxation by January 15, 2014, including draft legislation to authorize and implement the exemption or refund process. The committee may report out a bill to the Second Regular Session of the 126th Legislature to implement the exemption or refund process.

SUMMARY

This bill provides a sales tax exemption for the purchase of cigarettes and tobacco products by adult members of federally recognized Indian tribes for cultural, spiritual or ceremonial purposes and requires the State Tax Assessor to work with representatives of federally recognized Indian tribes in the State to establish a process for adult members of federally recognized Indian tribes to purchase cigarettes and tobacco products for cultural, spiritual or ceremonial purposes without payment of the cigarette or tobacco products taxes or to obtain a refund of those taxes.