TOBACCO TAX. The Tribe and the State agree that all tobacco products sold within the Agreement Area shall be subject to the provisions of the Tobacco Products Tax Act, except as provided in this Agreement.
A. The Tribe may purchase a quantity of tax exempt tobacco products. The exempt purchases of cigarettes and other tobacco products shall be administered by either the quota method or the refund method set forth in this Agreement.
B. Implementation: Refund Method
1. All tobacco products for resale shall be purchased in accordance with State law from any State licensed wholesaler and shall be tax prepaid. Taxable Sales of such tobacco products shall include the tax in the retail price.
2. The Tribe shall determine which retailers within the Agreement Area will be entitled to seek refunds on exempt sales.
3. The total amount of refunds obtainable by the Tribe or its designated retailers shall be limited by a ceiling determined jointly by the Tribe and the State in the same manner as a quota described in the quota option set forth below. The entitlement shall be prospective and shall be reviewed periodically. There shall be no retroactive reconciliation.
4. All refunds shall be issued within 45 days of the receipt of the claim for refund, after which interest shall accrue at the statutory rate.
