BILL REQ. #:  S-0315.1 

Read first time 01/14/09.   Referred to Committee on Ways & Means.

     AN ACT Relating to documentation of eligibility to claim a tribal member exemption from retail sales tax; adding a new section to chapter 82.08 RCW; and prescribing penalties.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   A new section is added to chapter 82.08 RCW to read as follows:
     (1) Any person claiming exemption from retail sales tax as a tribal member in accordance with federal law and rules prescribed by the department must display documentation of current enrollment in the federally recognized Indian tribe within whose jurisdiction the person makes a purchase or receives delivery in one of the following forms:
     (a) A tribal membership card;
     (b) A letter from a tribal official;
     (c) A list of tribal members issued by the tribe; or
     (d) A treaty fishery identification card.
     (2) To make a sale without collecting the sales tax, the vendor must request documentation as provided under subsection (1) of this section and maintain a record of the tax exempt sale showing the form of documentation accepted and including identification number and expiration date, if any.
     (3)(a) Any person making fraudulent statements or offering either fraudulent or fraudulently obtained documentation to a vendor, in order to claim exemption from retail sales tax as a tribal member, is guilty of perjury under chapter 9A.72 RCW.
     (b) Any person making tax exempt purchases under this section by displaying documentation not his or her own, or counterfeit documentation, with intent to violate the provisions of this section is guilty of a misdemeanor and, in addition, is liable for the amount of tax due and subject to a penalty equal to the greater of one hundred dollars or the amount of tax due.
     (4)(a) Any vendor who makes tax exempt sales to a person who does not display documentation as provided in subsection (1) of this section or fails to maintain records as provided in subsection (2) of this section is personally liable for the amount of tax due.
     (b) Any vendor who makes tax exempt sales and has actual knowledge that the purchaser's documentation under subsection (1) of this section is fraudulent is guilty of a misdemeanor and, in addition, is personally liable for the amount of tax due and subject to a penalty equal to the greater of one thousand dollars or the amount of tax due. In addition, both the purchaser and the vendor are liable for any penalties and interest assessable under chapter 82.32 RCW.