The Department of Revenue has cancelled the following audit directive effective February 15, 2001.

AD 8192.1	Corporations owned by Indians
	Upper Skagit Indian, Sauk-Suiattle and Jamestown Klallam Indian Tribes

     This document explains that sales to a business incorporated under the Washington Business Corporation Act are subject to the retail sales tax, even if all of the shareholders are Indians. This document also notes that the Upper Skagit, Sauk-Suiattle, and Jamestown Klallam Indian Tribes are recognized Indian tribes, even though not listed in WAC 458-20-192 as it existed in 1990.

     This document is incorrect and out-of-date. The Department of Revenue now considers sales to Indian-owned businesses incorporated under the Washington Business Corporation Act to be exempt of retail sales tax if the property is delivered on the reservation and the business is comprised solely of Indians. WAC 458-20-192 was revised effective January 1, 2001, and no longer lists the federally recognized Indian tribes in Washington. The rule now explains that up-to-date lists of federally recognized Indian tribes can be obtained from the Governor's Office of Indian Affairs or the Internet.

     Questions regarding the repeal of these directives may be directed to Alan R. Lynn, Legislation and Policy, P.O. Box 47467, Olympia, WA 98504-7467, phone (360) 570-6125, fax (360) 664-0693, Internet alanl@dor.wa.gov.

Claire Hesselholt

Policy Counsel

© Washington State Code Reviser's Office