Exempt sale

Vehicles sold to federally recognized Native American tribes and enrolled members thereof, which are delivered to a point within the Native American reservation, are not subject to retail sales tax. The Native American does not have to reside on the reservation for the exemption to apply. However, the buyer must be a member of the tribe on whose reservation delivery is made.

Requirements

If a vehicle is delivered to the reservation and the buyer is an enrolled member of the tribe, the sale is exempt from retail sales tax if the following information is provided:

1. Seller's name and address
   
   
2. Buyer's name and address
   
   
3. Tribe of enrollment
   
   
4. Enrollment number
   
   
5. Date of sale
   
   
6. Year, make and model of vehicle
   
   
7. Vehicle identification number, and
   
   
8. The reservation to which or within which delivery is made (certified by dealer)

The Retail Sales/Use Tax Exemption Certificate for Vehicles Sold to Enrolled Tribal Member (pdf) form may be used to document the sale. The documentation must be kept in the seller's records.

The purpose of the certificate is to document that the requirements for the sales tax exemption have been satisfied. Questionable circumstances or contradictory information may raise questions as to the authenticity or accuracy of the certificate. This may negate the exemption or additional information may be requested.

Who qualifies as "Native American"?

For purposes of the exemption, a Native American is defined as a person duly registered on the tribal rolls of the tribe occupying a Native American reservation and a person duly registered on the tribal rolls of the reservation upon and within whose reservation such transaction or activity takes place.

A partnership consisting of Native American partners is considered "Native American".

A partnership consisting of Native American and non-Native American partners is considered non-Native American.

A corporation owned by Native Americans and consisting of Native American officers or directors is considered "Native American".

A marital community consisting of a Native American and non-Native American member is considered "Native American" if all other qualifications are met.

Business and occupation tax

Generally, the B&O tax applies to sales to Native Americans who take delivery in Washington. However, the B&O tax does not apply when the seller delivers the property to the buyer in Indian country and:

• The property is located in Indian country at the time of sale
  
• The seller has a place of business in Indian country that is used to receive the order or distribute the property, or
  
• The sale of the property is solicited by the seller while the seller is in Indian country.

Requirements

For a purchase of a vehicle, the buyer must complete the Department of Licensing form Affidavit for Vehicle/Vessel Excise Tax Exemption for Enrolled Tribal Member Living on Reservation each year the vehicle is licensed.

Recognized Native American tribes in Washington

References

Washington Administrative Code (WAC) 458-20-192
The Handbook on Federal Indian Law (1982)
Makah Indian Tribe vs. Clallam County. 73 Wn. 2d 677, 440 p. 2d 442 (1968)
Wofford vs. Department of Revenue, 28 Wn. App. 68 (1980)

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