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THREE AFFILIATED TRIBES¯ OF THE

FORT BERTHOLD RESERVATION

TRIBAL TAX CODE

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"THREE AFFILIATED TRIBES

OF TEE FORT BERTHOLD RESERVATION

- TRIBAL TAX CODE -

TABLE OF CONTENTS

CHAPTER I;

GENERAL PROVISIONS

SECTION 101. Tribal Need for Governmental Revenue ..... I

SECTION 102. Definitions .................. 1

i. Tribe .....................

2. Tribal Business Council ............ 1

3. Indian Tribe ............... . ¯

4. Indian ....................

5. Reservation ..................

6. Tax Commission ................ 1

7. State .................... 2

8. Taxable Year ................. 2

9. Assessment Date ................ 2

i0. Period .................... 2

ii. Taxpayer ................... 2

12. Person .................... 2

13. Related Persons ................ 2

14. Tribal Member ................. 2

15. Individual .................. 2

16. Lease ..................... 2

17. Business ................... 3

18. Indian-Owned Economic Enterprise ....... 3

319. Tax ......................

20 Taxes " 3

21. Notice .................... 3

22. Return .................... 3

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23. Control .................... 3

24".-Fraud ..................... 3

25. Code ..................... 3

26. NDCC ..................... 3

27 ........................ 3

SECTION 103. Tribal Business Council to SetAll Taxes and Tax Rates ............ 3

SECTION 104. Sovereign Immunity .............. 4

SECTION 105. Tribal Tax Account Established ........ 4

SECTION 106. Assessment of Taxes .............. 5

SECTION 107. Liability for Taxes .............. 5

SECTION 108. Property Exempt From Taxation ......... 5

SECTION 109. Nondiscrimination ............... 6

SECTION 110. Savings Clause ................ 6

SECTION 111. Basis For Tribal Tax Jurisdiction ....... 6

SECTION 112 ............... . ......... 7

C~LPTER 2:

T~LE TAX COMMISSION

SECTION 201. Tax Commission EstaJ~lished ......... 8

SECTION 202. Review Revenue Resources ........... 8

SECTION 203. Lay and Collect Taxes ............ !. 8

SECTION 204. Rules and Regulations ............. 8

SECTION 205. Powers of the Tax Commission ......... 9

SECTION.206. Promulgation of Regulations .......... 11

SECTION 207. Tax Commission M~mbership ........... 12

SECTION 208. Appointment of Tax Commissioners ....... 12

SECTION 209. Conduct of Its Business ............ 12

SECTION 210. Tax Commission or Its Delegate ........ 12

SECTION 211. Office of the Director . . . ~ ........ 13

SECTION 212. Tax Commission Employees and Expenses ...... 13

SECTION 213. Recusal of Tax Comm/ssion Members ....... 13

~ECTION 214. Temporary Mambers and Acting ExecutiveDirector of the Tax Commission ........ 14

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SECTION 215. Bonds." ....................

SECTION 216."-Records of the Tax Commission .........

SECTION 217.

SECTION 218.

SECTION 219.

SECTION 220.

SECTION 221.

SECTION 222.

SECTION 223.

SECTION 224.

SECTION 225.

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Compensation of Tax Commission Members .... 16

Temporary and Permanent RemovalFrom office - Replacement ........... 16

Confidentiality Rule ............. 16

Assessment Powers ............... 17

Examination Powers .............. 18

Notice Requirements ............... 18

Examination and Audits ............ 19

Notice Deemed Effective ............ 19

and Affirmations 20Oaths ............

CHAPTER 3:

ASSESSM]~NT, COLLECTION AND NON-COMPLIANCE PENALTIES

SECTION 301. General Information Authority ......... 21

SECTION 302. Information Required by Request ........ 21

E~-~O-~Y-3D.3~--Information Included in Returns ........ 21

SECTION 304.

SECTION 305.

SECTION 306.

SECTION 307.

SECTION 308.

SECTION 309.

SECTION 310.

SECTION 311.

SECTION

SECTION 313.

SECTION 314.

SECTION 315.

SECTION 316.

Place and manner of Filing and Payment . . . 21

Extension of Time for Filing and Payment . . . 22

Due Dates and Time Determinations ....... 22

Rule for Liabilities Over $i00,000 ..... - . 23

Interest Rates and Application ........ 23

Designation of Individual ........... 23

Penalties for Failure to File ......... 24

Penalties for Failure to Pay ......... 24

Penalties for Attempt to Evade or Defeat Tax . 24

Charges for Administrative Costs ....... 25

Failure to Comply with Chapter ........ 25

Interference with Administration ....... 25

Suspension and Fraud Proceedings ....... 26

SECTION 401. Suit to Collect Taxes, Penalties and Interest 27

SECTION 402. Injunctions .................. 27

SECTION 403. Seizure of Property .............. 27

SECTION 404. Inventory of Seized Property ......... 28

SECTION 405. Public Sale of Forfeited Property ....... 28

SECTION 406. Property Exempt from Tax EnforcementProceedings .................. 29

SECTION 407. Enforcement of Subpoenas ........... 30

SECTION 408. Liens ..................... 30-

SECTION 409. Exclusion of Non-Members FromThree Affiliated Tribes Lands ......... 31

CHAPTER

ADMXNXSTRATIVEAPPEAL

SECTION 501. Prohibition of Suits ............. 32

SECTION 502. Administrative Appeal ............. 32

SECTION 503. Procedure for Hearing ............. 32

SECTION 504. Time and Manner of Appeal ........... 32

SECTION 505. Stay of Payment of Taxes .......... ~ . 32

SECTION 506. Appeal to Court ................ 32

SECTION 507. Jurisdiction of Courts ............ 33

CHAPTER 6:

MISCELLANEOUS PROVISIONS

SECTION 601. Tax Receipts and disbursements ........ 34

SECTION 602. Duties of the Controller . . .~ ........ 34

SECTION 603. Establishment of Escrow ............ 35

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THE POSSESSOR’S’: INTEREST

SECTION 701. Statement of Purpose ............. 36

SECTION 702. Short Title .................. 36

SECTION 703. Definitions .................. 36

SECTION 704. The Tax Cycle ................ 37

SECTION 705. Imposition and Rate of Tax .......... 37

SECTION 706. Computation of Value of Possessory Interest.. 37

SECTION 707. Assessment~of Tax ............... 40

SECTION 708. Tax Declaration and Designationof Natural Person ............... 40

SECTION 709. Reporting Requirements ............ 40

SECTION 710. Notice of Assessment and Payment of Taxes Due. 42

SECTION 711. Extension of Time for Paying Tax ....... 42

SECTION 712. Penalty for Late Payment .......... 42

SECTION 713. Lien for Taxes ................ 42

SECTION 714. Exemptions ................ 42

SECTION 715. Method of Claim/ng Exemption ......... 43

SECTION 716. Appeal Procedures for Protested Taxes ..... 43

SECTION 717. Collection Powers ............... 43

SECTION 718. No Waiver of Sovereign Immunity ........ 43

SECTION 719. Severability ................ ! . 43

SECTION 720. Use of Tax Proceeds .............. 43

SECTION 721. Amendment ................... 44

SECTION 722. Effective Date ................ 44

SECTION 723. Conflict with Other Applicable Law ...... 44

CHAPTER 8:

OIL AND GAS GROSS PRODUCTION TAX

SECTION 801. Declaration of Policy ............. 45

SECTION 802. Applicability of Other Tribal Law ....... 45

SECTION 803. Definitions .................. 45

SECTION 804. Gross Production Tax ............. 46

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SECTION 807.

SECTION 808.

SECTION 809.

SECTION 810.

SECTION 811.

SECTION 812.

SECTION 805. Gross 9roduction Tax to be in Lieu- -of Certain Other Tribal Taxes ......... 46

SECTION 806. Equipment and Other Property Used Exclusivelyin Production Exempt From TribalAdValoremTaxes ............... 46

Payment of Tax in General ........... 47

Payment of Tax on Reclaimed Oil ........ 47

Filing of Return with Payment of Tax ..... 48

Authority of Commission to RequireSubmission of Information ........... 48

Lien for Tax ................. 49

Reports by Persons Engaged in Transportationor Purchase and Storage of Oil or Gas ..... 49.

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CHA~TER l: GENERAL PROVISIONS

SECTION 101. Tribal Need for Governmental RsvemUeo The Tribeshave the primary responsibility for meeting the basic needs,including promotion of the health, security, economic, and generalwelfare, of both members and non-members residing or doing businesson the Fort Serthold Reservation. The enactment of this Code willprovide an important source of revenue for the continued operationand strengthening of the Tribal government and the delivery ofessential governmental services, and the development of theReservation economy. Tribal mineral resources, from which theTribes derive a substantial royalty income for governmentalservices, are .being depleted. Further, there is no tribal advalorem tax base among those tribal members living on tribal orindividual trust land. Accordingly, this Code will provide for anurgently needed additional revenue source, and will more equitablydistribute the burden of financial tribal governmental servicesamong all persons who engage in business on the Reservation andpersonswho benefit from Tribal governmental services.

SECTIO~ 102. Definitions.throughout this Code:

The following definitions apply

1. Tribe. "Tribe" means the Three Affiliated Tribes of theFort Berthold Reservation. Throughout this Code, words in thesingular shall include the plural, and words in the plural shallinclude the singular. Words in one gender shall include all othergenders.

2. Tribal Business Council. "Tribal Business Council" meansthe Three Affiliated Tribes Tribal Business Council, establishedpursuant to Article 3, Section i of the Constitution of the Three

Affiliated Tribes.

3. Indian Tribe. "Indian Tribe" means any Indian or A/askaNative tribe, band, village, community, or pueblo recognized by theUnited States Department of the Interior as eligible for services.

4. Indian. "Indian" means an individual who is an enrolledmember of an Indian tribe or of Indian descent.

5. Reservation. "Reservation" means the territory within thepresent confines of the Fort Berthold Reservation, all landsoutside and inside the exterior boundaries of the Reservation whichare under the jurisdiction of the Tribe, and such other landswithout such boundaries as may hereafter be added thereto under anylaw of the United States except as otherwise provided by law.

6. Tax Commission. "Tax Commission" means the Tax

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Commission, or its d~legate of the Three Affiliated Tribes of theFort BerthQld-Resez-vation establishedpursuant to Chapter 2 of this

Code.

7. State. "State" means the State of North Dakota.

8. Taxable Year. The term "Taxable Year" with respect to anytaxpayer means the taxable year elected for the federal and stateincome tax purposes.

9. Assessment Date.each year.

"Assessment Date" means January Ist of

10. Period. "Period" means a calendar quarter.

11. Taxpayer. "Taxpayer" means any person who is liable fortaxes imposed or assessed. Taxpayer, unless exempt by Federal Lawand Statutes, means any person or entity, including any individualpartnership, corporation, or other legal entity, having ownershiprights in any possessory interest within the Reservation.

12. Person. "Person" means any individual, receiver,assignee, trustee in bankruptcy, trust, estate, firm, partnership,joint venture, club, company, joint stock company, business trust,municipal corporation, corporation, association, society, politicalentity, or any group of individuals acting as a unit, whethermutual, cooperative, fraternal, nonprofit, or otherwise who are ormay become taxpayers by reason of the ownership of taxable ..interest; provided, that the term does not include:

< ~a. The government of the Three Affiliated Tribes of the ’ ¯For~ Berthold Reservation and any governmental entities of theTribe, and Federal Governments; or

b. Any of the above-listed forms of business entities thatare wholly-owned and operated by the Three Affiliated Tribes of the

Fort Berthold Reservation, and those of the Federal Governments.

13. Related Persons. "Related Persons" means two or morepersons owned or controlled, directly or indirectly, by the sameperson and, as applied to individuals, means two or moreindividuals who have a legal relationship arising out of marriage,adoption, or blood, through the third degree of kinship.

14. Tribal Member. "Tribal Member" means an enrolled member

of the Three Affiliated Tribes of the Fort Berthold Reservation.

15. Individual. "Individual" means a natural person.

16. Lease.. "Lease" means a lease, permit, contract, easement,right-of-way, deed, or any other conveyance instrument whichauthorizes a person to use that instrument for business, profit, or

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17o Business. "~usiness" means any activity engaged in by anyperson, or.caused to be engaged in by any person, with the objectof gain, benefit, or advantage, either direct or indirect.

18. Indian-Owned Economic Enterprise. "Indian-Owned EconomicEnterprise" means any Indian-owned commercial, industrial, orbusiness activity established or organized for the purpose ofprofit provided that such Indian ownership shall constitute notless than 51 percent of the enterprise.

19. Tax. "Tax" means a tax imposed by the Three AffiliatedTribes of the Fort Berthold Reservation.

20. Taxes. "Taxes" means the tax, and any interest, penalty,or costs, imposed or assessed by the Three Affiliated Tribes of theFor~ Ber~hold Reservation.

21. Notice. "Notice" means publication, in the Tribalnewspaper and a11 other newspaper of general circulation on andaround the Reservation, and as defined specifically in Section 206;and rules and regulations established by the Tax Commission.

22. Return. "Return" means the declaration, report, or returnrequired to be filed pursuant to a tax ordlnance or law.

23. Control. "Control" means the right, or any k3_nd ofability, to direct the performance or activity of another person,direct or indirect, whether legally enforceable or not and howeversuch right may be exercisable or exercised.

24. Fraud. "Fraud" has the s~me meaning as that establishedin the interpretation of Section 7206 of the United States InternalRevenue Code of 1954, as amended or renumbered. :

25. Code. "Code" means this Ordinance and any aunendmentsthereto.

26. NDCC.amended.

"NDCC" means the North Dakota Century Code, as

27. Wherever the term "Fort Berthold District Court" appearsin this Code, it shall be deemed to refer to the Fort BertholdTribal Court of general jurisdiction.

SECTXON 103. Tribal Business Council to ~et All Ta~es and ~a~Rates. All taxes, tax rates and amendments thereto shall be set bythe Tribal Business Council, after consideration of therecommendation by the Tax Commission, and shall be expressly setforth in this Code.

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SECTION 104. Sov~relgn Immunity. The Tribe and all itsconstituent, pa~ts, subordinate organization, boards or committees,including ~he Tax Commission established pursuant to Chapter 2 ofthis Code, are immune from suit in any jurisdiction except to theextent that such immunity has been expressly and unequivocallywaived by the Tribe or the United States. Nothing in this Codeshall be construed as waiving the sovereign immunity of the Tribeor any of its constituent parts, including the Tax Commission,except for the administrative remedies provided in this Code, whichallow a taxpayer aggrieved by the decision of the Tax Commission topetition for redetermination and review of the decision by the TaxCommission; and after exhaustion of those administrative remedies,to petition the Fort Berthold District Court for review of thedecision of the Tax Commission. Except for the remedies providedhereunder, nothing in this Code, or enforcement action takenpursuant to Chapter 4 of this Code, including without limitationthe filing of suit by the Tax Commission for the collection oftaxes, penalties, or interest, and for recover~ of r~asonableattorneys fees and expenses incurred in bringing such action, shallconstitute a waiver of sovereign immunity, either as to anycounterclaim, regardless of whether the asse~ted counterclaimarises out of the same transaction or occurrence, or in any otherrespect.

SECTION 105. Tribal Tax Account Established.

I. There is hereby authorized and directed to be establishedan aCcount in one or more federally-insured financial institutions/to be known as the Three Affiliated Tribes of the Fort Ber~hold’~Reservation Tribal Tax Account{s).

2. The Tribal Tax Account shall be an interest-bearingaccount and the funds therein may be invested and reinvested asapproved by the Tribal Business Council.

3. No monies shall be released or expended from the TribalTax Account except upon written resolution of the Tribal BusinessCouncil appropriating a specific amount of the monies containedtherein for the use of a particular department, agency, or programof the Tribe. Such appropriated amount shall be directlytransferred to the account of the receiving department, agency, orprogram named in the appropriation resolution.

4. All tax monies, license fees, penalties, interest, servicefees or charges, or other monies collected by the Tax Commission in

the administration and enforcement of this Code shall be depositedin the Tribal Tax Accounts except as provided in Subsection 5. ofthis Section.

5. The Tax Commission shall establish one or more refundaccounts in which a portion of the monies described in Subsection

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4. of this Section ~ay be deposited, and from which refunds totaxpayers who ~re lawfully determined by the Tax Comm/ssion or FortBerthold District Court to be entitled thereto shall be paid.

SECTION 106. Assessmen~ of Taxes. Each tax ~mposed is assessedeach year as of the assessment date,, unless otherwise specified ina particular tax ordinance or law.

SECTION 107. Liability for Taxes. Taxes assessed are the1lability of the taxpayer.

a. Owners of a Lease. Owners of interests in a lease shallbe jointly liable for the taxes assessed with respect to a leaseand shall be severally liable for such taxes in proportion to theirinterests in the lease on the assessment date.

b. Part of Another. If a taxpayer is a’corporation or atrust or a part thereof, then the corporation or trnst shall beliable for the taxes. If a taxpayer is an association, jointventure, or partnership, or a part thereof, then all associates,participants, or partners, both general and limited, shall bejointly and severally liable for the taxes.

c. R/ght of Contribution. Subject to alteration byagreement between them, any owner, associate, participant, orpartner shall have a right of contribution from any other owner,associate, participant, or partner for its proportionate share oftaxes paid.

SECTION 108. Property Exempt From Taxation. The following shallbe exempt from any tax enacted by this Code:

I. Allotted trust or restricted land owned by any tribalmember or any other Indian.

2. Any interest of an enrolled tribal member in any triballyor individually owned trust, restricted, or fee land used solelyfor the purpose of a permanent residence by the tribal member andhis/her immediate family.

3. Any building, barn, home, storage tank or facility, fence,or other structure of a permanent or sem/-pe.rmanent nature affixedto or placed upon trust, restricted, or fee land used solely by thetribal member and his immediate family.

4. Indian arts and crafts made or maintained for sale,whether wholesale or retail, by any tribal member, or anypossessory interest of his Indian-owned economic enterprise.

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5. All federal "trust lands.

6. All 6ther exemptions recognizedstatutes o

by federal law and

SECTION 109. Nondiscrim/na~ion. No provision of this Chapter willbe construed as ~unposing a tax which discriminates on the basis ofwhether the person on which the tax is imposed is a Tribal memberor the taxable proper~y or person is owned or controlled by aTribal member.

~ECTION 110. Savings Clause. In the event that any provision ofthis Code shall be found or declared to be invalid, the remainingprovisions of this Code shall be unaffected thereby, and shallremain in full force and effect.

SECTION 111. Basis For Tribal Tax Jurisdiction. No tax shall beimposed on any person unless one or more of the following factorsapply to the taxpayer or to the taxpayer’s activities:

I. Taxpayer is a member of the Three Affiliated Tribes; or

2. Taxpayer is engaged in consensual relationship with the Tribeor its members, through commercial dealing, contracts, leases,or other arrangements; or

3. Taxpayer’s activities threaten or have some direct effect onthe political integrity, economic security, or the health orwelfare of the Tribe; or

4o Taxpayer’s activities substantially involve or base somedirect effect on the lands, air quality, mineral resources orsurface or ground waters of the Tribe; or

5. Taxpayer benefits from governmental services provldedbytheTribe; or

6. Taxpayer benefits from the existence of the civil and/orcriminal laws of the Tribe and administration of those laws; or

7. Taxpayer benefits from the advantages of a civilized societywhich are assured by the existence of tr.ibal government; or

8. Taxpayer may be excluded from tribal lands.

SECTION I12. Whenever a petition is filed with the Commissionchallenging the basic applicability to the petitioner of thepetitioner’s activities of any tax assessed by the Commission; the

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Commission shall aft6r notice and hearing make findings of fact asto whether .and.of the factors listed in Section 111 a~ove apply tothe petitioner or to the petitioner’s activitieso If theCommission finds that any of the factors apply, the petition shallbe dism/ssed, and the petitioner may appeal the dismissal to theFort Berthold District Court. If the Commission finds that none ofthe factors apply, it shall forthwith abate the assessment, and theTribe may appeal such action to the Fort Berthold District Court.

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CP~L~TER 2: TE~ TAX COMMISSIOR

SECTION 201 Tax Com=tission Established. The Tax Commission isestablished "as an agency of the Government of the Three AffiliatedTribes.

SECTION 202. Review Revenue Sources. The Tax Commission willresearch all the sources of wealth and income within the FortBe~thold Reservation and the possible revenues from the taxation ofthose sources.

SECTION 203. Lay and Collect Taxes. The Tax Commission from timeto time will submit to the Tribal Business Council proposedresolutions to lay and collect ta~es on property, both tangible andintangible, on incomes from whatever source derived, and on sales,inventories, and wages completed or earned, and other measures ofeconomic activity or engagement within the Reservation; the TaxCommission will oversee the administration of the tax laws; andwill present what recommendations it may have regarding the wealth,income, and revenues of the Reservation and the fiscal policy ofthe Tribe.

SECTIO~ 204. Rules and Regulations.

1. The Tax Commission will administer such other rules andregulations as it deems necessary for its proper functioning, anr~enforce the tax laws, to establish the m~nner and means focompliance with those laws, and to set forth the requirements forthe administration of taxes and the general tasks andresponsibilities of the Tax Commission and its offices. Theserules and regulations relate to:

a. Internal operational procedures of the Tax Commissionand its staff.

b. Interpretation and application of this Code as may benecessary to ascertain or compute the tax owed by any taxpayer.

c. The filing of any reports or returns required by, ornecessary to implement, this Code.

d. The conduct of inspections, investlgatlons, hearings,enforcement actions, and other powers of the Tax Commissionauthorized by this Code.

2. Such rules shall provide for a hearing for all interestedpersons prior to a recommendation by the Tax Commission to theTribal Business Council that a tax be established or a tax rate be

orinterestedwritten .personStestimony.Of the hearing and their right~o present oral

3. No rule or regulation of the~ Tax Commission shall be ofany fo~ce or effect until and unless copies of the rule orregulatlon have been filed for record in the office of theAdministrative Secretary of the Tribe and in the office of theClerkof the Fort Berthold District Court. The copy shall bear thesignature of at least two Tax Commission members, certifying thatthe rule or regulation was duly adopted by the Tax Commissionpursuant to this Code.

4. The Fort Berthold District Court shall take judicialnotice of all rules and regulations of the Tax Commissionpromulgated pursuant to this Code.

SECTIOH 205. Powers of the Ta~ Comud~sio~. The Tax Comm/ssion isempowered to administer the tax laws of the Tribe and, to that end,will execute rules and regulations, both substantive andprocedural, and orders implementing its decisions, rullngs, andinstructions, as may be necessary for th~ proper and efficientadministration of those laws. The Tax Commission shall have thefollowing powers:

1. To.exercise all managerial authority over the TribalRevenue Divlsion pursuant to this Code.

2. To promulgate and enforce rules and regulations consistentwith this Code as provided in Section 204.

3. To assess and collect all taxes authorized by thi~ Code.

4. Subject to the limitations and restrictions set out inSection 212.4, to employ and consult with such advisors regardingits duties as it may deem necessary.

5. To make recommendations to the Tribal Business Councilregarding the setting of all taxes, ordinances and tax rates forall taxes authorized by this Code, and regarding the amendment ofthis Code.

6. To hear and rule upon a petition by any taxpayer forreassessment of any taxes levied pursuant to.this Code, as providedin Section502. However, the Tax Commission shall have no power toalter tax rates set by the Tribal Business Council pursuant to thisCode or to declare any port/on of this Code void for any reason.

7. To publish and make available to the public standardforms, and to require by regulation the filing of any forms orreports necessary for implementation of this Code.

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8. TO administer oaths, conduct hearings, and, by subpoena,to compel the~ttendance of witnesses and production of any books,records, papers, vouchers accounts, documents, and financialstatements of any taxpayer or any other person relating to anyenforcement action authorized by this Code.

9. In the conduct of any enforcement action authorized bythis Code, to make, or cause to be made by its agents or employees,an exam/nation or investigation of the place of business,equipment, facilities, tangible personal proper~y, and the books,records, papers, vouchers, accounts, documents, and financialstatements of any t~xpayer, during normal business hours, or at anyother time whatsoever pursuant to a search warrant issued by theFort Berthold District Court.

10. To examine under oath, either orally or in writing, anytaxpayer or agent, officer, or employee of any taxpayer, or anyother witness with respect to any enforcement action authorized bythis Code.

11. To delegate to an individual member of the Tax Comm/ssion,staff or Tribal staff, such of its functions as may be necessary toadminister this Code efficiently, provided that the Tax Commissionmay not delegate its powers to promulgate ru~es and regulations, orto hear and rule upon petitions for reassessment of taxes.

12. To adopt by regulation a schedule of fees and charges forsel-vices rendered relating to transcripts and the furnishing orcertifying of copies of proceedings, files, and records. Such feesand charges shall be credited to miscellaneous receipts of the TaxCommission and deposited in the Tribal Tax Account.

13. The Tax Co~mission is authorized to negotiate ~utualassessment and collection assistance agreements with any othertaxing jurisdiction. The agreements so negotiated will come intoforce only upon ratification and approval by the Tribal BusinessCouncil.

14. In response to a written request, but before any courtacquires jurisdiction in the matter, it may abate any part of anassessment which it determ/nes was incorrectly, erroneously, orillegally made.

ao Form of Request. The request must be made in writingto the Office of the Director, state the abatement sought, and mustcontain a complete statement of the facts relied on, together withany information and documents necessary to support those facts.

bo Compromise. Upon the compromise of a tax liability andaccording to the terms of the closing agreement formalizing the "compromise, the Tax Conmdssion will cause the abatement of theappropriate amount of the assessment to be m~de.

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C. Public Re~ord~ Abatements in excess of $i,000 will berecorded i~-th~ Office of the Director in a form available forpublic inspection. The record shall be maintained for a minimum ofsix (6) years after the date of abatement.

15. If, at any time after a final assessment of taxes has beenmade, the Tax Commission, in good faith, is in doubt of theliability of a taxpayer for the payment thereof, it may compromisethe liabil£tyby entering into with the taxpayer a written closingagreement that adequately protects the interests of the Three

.Affiliated Tribes, provided that the a~reement will be subject toapproval by the Legal Department of the Three Affiliated Tribes.

a. Stipulation. If entered into after a court acquiresjurisdiction over the matter, the closing agreement must be madepart of a stipulated order or judgment disposing of the case.

b. Security. As a condition of entry into a closingagreement, the Tax Commissionmay require the provision of securityfor payment of any taxes due according to the terms of theagreement.

c. Concluslvemess. A closing agregment is conclusive asto the liability or non-liability for payment of taxes for theassessment dates or periods referred to in the agreement, exceptupon a showing of fraud, malfeasance, or misrepresentation orconcealment of a material fact.

SECTION 206. Promulgation of Regulations. Following theiradoption by the Tribal Business Council, regulations shall bepromulgated according to the following rules:

I. Notice Required. Regulations will be effective only uponthe publication of a notice in accordance with Subsection 2. ofthis Section.

2. Publication Defined. Publication means to publish noticein the Tribal newspaper and all other newspapers of generalcirculation on and around the Reservation, and as definedspecifically in Section 102.21. The notice will identify orotherwise describe the subject regulations.

3. Effective Dates. Regulations become effective thirty (30)days after the first publication of notice or on the datesotherwise specified therein.

4. Availability of Text. A copy of the regulations will befiled and made available for public inspection at the Office of theDirector and will be mailed to any person making a written requesttherefor.

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SECTION 207. Tax ~ommlssion Membership. The Tax Comm/ssionmembership ,comprises of three (3} commissioners, at least two (2}of whom must be Tribal members residing within the Fort Berth01dReservation. i"

SECTION 208. Appointment of Tax Commissioners. Tax Commissionersare selected, confirmed, and appointed as follows:

1. Nomination. The Chairman of the Tribal Business Councilwill select and nominate three (3) individuals~qualified accord/ngto Section 207.

2. Confirmation. Upon the confirmation by the TribalBusiness Council, the nominee is appointed to serve as a TaxCommissioner.

3. Three-Year Term. Each Tax Commissioner’s term of officewill be three (3) years, except that:

a. In order to establish staggered terms among the membersof the initial group of appointees, one will be appointed for one(i) year, one for two (2) years, and one for three (3) years.

b. Any appointment which does not begin coincident withthis scheme will be shortened to the time necessary to maintain thepattern of staggered terms.

c. A vacancy in the Tax Commission, whether caused by death/or incapacity, disqualification, resignation, or removal, will be~filled in the manner prescribed in this Section.

SECTION 209. Conduct of Its Business. The business of the TaxCommission will be conducted by a quorum of its members, atmeetings duly called by its presiding officer or the ExecutiveDirector, whose authority is defined in Section 211.

I. Quorum. A quorum comprises of two (2} Tax Comudssionersand any substantive action must be taken by the affirmative vote ofat least two (2) Tax Commissioners.

2. Delegation. The Tax Commissioners from time to time mayselect a.presiding officer and may delegate specific duties amongthemselves. :

3. Resolution. Any substantive action of the Tax Commissionwill be recorded in a written resolution certified by the presidingofficer.

SECTION 210. Tax Commission or Its Delegate.

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specifically reserve~-to itself pursuant to Sections 205.13 and403, Tax Commission means the Tax Commission or its delegate.Delegates ~f the Tax Commission are the Executive Director and anyother representative who is acting within the scope of his/herauthorization, delegation, or duty.

SECTION 211. Office of the Director. The Tax Commission herebydelegates to the Office of the Director authority to administer thetax laws of the Tribe according to the regulations and the generalinstructions of the Tax Commission. The Executive Director shallexercise the powers granted to this Office and conduct its affairsas an agency of the Government of the Tribe, and m~y employ orengage those persons qualified by education ~nd experiencenecessary to discharge the duties of the Office and may delegateauthority and duties among such persons. In this Code, theExecutive Director is hereinafter referred to as the Director.

SECTION 212. Tax Comm/sslon Employees and Expenses.

I. The Tax Commission may employ such employees and incu~such expenses as may be necessary for the Rroper discharge of itsduties subject to the limitations and restrlctions set out in thisSection.

2. Upon the approval of the Tribal Business Council byresolution, the Tax Commission mny utilize regular tribal staff inexercising the duties and responsibilities set out in this Code.

3. The Tax Comm/ssion may delegate to the tribal staff byrule much of its function as may be necessary to administer thisCode efficiently, consistent with the llm/tations of Section205.11.

4. The total ~mount disbursed by the Tax Commission in anyone fiscal year for the payment of salaries, expenses, andincidentals shall not exceed the amount appropriated therefore bythe Tribal Business Council. The Tax Commission shall submit tothe Tribal Business Council a line item proposed budget for thenext fiscal year not later than August 15 of each year.

SECTION 213. Recusal of Tax Commission Hembers.

I. No member of the Tax Commission sh~ll participate in anyaction or decision by the Tax Commission directly involving his owntax liability, or the tax liability of a member of his immediatefamily, or the tax liability of any person, business, or otherentity of which he or a member of his immediate family is anemployee, or in which he or a member of his immediate family has asubstantial ownership interest, or with which he or a member of his

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immediate family has’a substantial contractual relationship.

2. No~hing in this Section shall preclude a Tax Commissionmember from participating in any action or decision by the TaxCommission which:

a. Generally affects a class of taxpayers, regardless ofwhether the Tax Commission member or a member of his immediatefamily is a member of the affected class.

b. Affects the Three Affiliated Tribes, a tribalenterprise, or a person or entity in a contractual relationshipwith the Tribe or a tribal enterprise, regardless of whether theTax Comm/ssion member is also a member of the Tribe.

3. A member of the Tax Commission may voluntarily recusehimself and decline to participate in any action or decision by th~Tax Commission when the member, in his own discretion, believes:

a. That he/she cannot act fairly or without bias; or

b. That there would be an appearance that he/she could notact fairly or without bias.

SECTION 214. Temporary Members and Acting Executive Director ofthe Tax Commission. The Tax Commission shall select one of itsmembers to sea-re as Deputy Executive Director. Whenever theDirector of the Tax Commission is unavailable because of hisrecusal or any other reason, the Deputy shall serve as ActingDirector of the Tax Commission. If the Deputy is also unavailable,the Tax Commission shall provide by regulation for another of itsmembers to serve as Acting Director. The alternate member~of theTax Commission shall serve temporarily as a member of the TaxCommission only when necessary for the Tax Commission to achieve a

SECTION 215. Bonds.

i. The Tax Commission may require its members and each of itsofficials and employees who may handle tribal monies or revenues,or who are responsible therefor, to give a bond for the honest and.faithful performance of their duties, in such amounts as may befixed by the Tax Commission. ~

2. The premiums on any bonds required of the Tax Commissionmembers, officials, and its employees shall be paid from fundsauthorized in the Tax Commission budget.

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SECTION 216. Record~ of the Tax Comm/ssion.

lo The Tax Commission shall keep and maintain accurate,complete, and detailed records which reflect all taxes, penalties,and~ interest levied, due, and paid, and each and every officialtransaction, communication, or action of the Tax Comm/ssion,including minutes of all meetings of the Tax Commission.

2. Such records shall be maintained at the Office of the TaxCommission and shall not be removed from that location without theconsent of the Tax Commission by formal resolution.

3. Such records shall be subject to auctit at any time uponthe direction of the Tribal Business Council, and shall be auditednot less than once each year by an independent auditor selected bythe Tribal Business Council.

4. Any records of the Tax Commission, except the records ofadministrative appeals, which relate to the individual business orpersonal activities of a named pal-ticular taxpayer or taxpayers,shall not be opened to public inspection and shall be released onlyto the taxpayer involved or persons duly authorized by the taxpayerin writing to have access to such records.

5. Any records of the Tax commission which do not relate tothe individual business or personal activities of a namedparticular taxpayer or taxpayers, and any records of administrativeappeals, shall be public records of the Tribe and ~hall beavailable for public inspection during regular business hours.Copies of such records may be obtained by payment of such copyingcost as may be established by rule of the Tax Commission, pro~ide~,that names and other identification of any taxpayer appearlng Insuch records shall be rendered unreadable prior to release of suchcopies un]essthe provisions of Subsection 4. of this Section wouldallow release of such information.

6. For any disclosure of records or their contents inviolation of this Sectioh, the For~ Berthold District Cour~ isauthorized to impose one or more of the following sanctionsapplicable to the individual making or causing the disclosure:

a. If the disclosure is by an elected or appointed tribalofficial and is intentional -- temporary or permanent removal fromoffice, a civil penalty of not more than $5,000, or both.

b. If the disclosure is by a tribal employee and isintentional -- temporary or peru~nent termination of tr/balemployment, a civil penalty of $5,000, or both.

c. If the disclosure is by a non-Indian and is intentional-- temporary or per~mnent termination of tribal employment, a civilpenalty of $5,000, or both.

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d. If the disclosure is not intentional -- civil penaltyof at least.$~5~but not more than $250. The Fort Berthold DistrictCourt shall determ/ne the applicability of Subsections a. throughd. to the individual making or causing the disclosure, and shallimpose the appropriate sanction or sanctions.

SECTION 217. Compensation of Tax Comm/sSion Members. TaxCommission members and the alternate Commission member shall becompensated and shall be reimbursed for e~penses related to TaxCommission duties. No compensation shall be paid when otherwise

~performing official duties not actually attending a meeting of theCommission. The alternate Tax Comm/ssion member shall not becompensated for attending Tax Comm/ssion meetings while serving asa temporary member of the Tax Co~mission pursuant to Section 214,or unless his/her attendance is requested by the Director.

SECTION 218.Replacement.

Temporary and Permanent Removal- From Office -

1. Any Tax Comm/sslon member and any alternate Tax Commissionmember may be removed from ~ffice on the basis and under theprocedures provided in the Tax Comm/ssion ~ules.

2. Upon permanent removal of an official, as provided inSubsection 1. of this Section, the Tribal Business Council shallappoint a replacement for the remainder of the official"s term ofoffice, as provided in Section 208 of this Code.

SECTION 219. Confidentiality Rule. Information received by theTax Commission is protected under the following disclosure’rnles:

1. Public Information. Nothing in this Section is intendedto prevent the publication or disclosure of the n~mes and addressesof registered taxpayers or general information which is otherwisein the public record Or generally available to the public upon themaking of a reasonable inquiry.

2. Non-D~sclosure. Information supplied by a person inresponse to a request, included in any return or form required tobe filed under this Chapter, or obtained in the course of anexamination, shall not be disclosed to third parties without theconsent of the person who supplied such information.

3. Lawful E~ceptions. It shall be unlawful for an employeeor former employee of the Tax Comudssion to reveal to anyindividual, other than an employee or the legal counsel of the TaxComm/ssion, any information contained in the return of any taxpayeror any other information about any t~xpayer acquired as a result ofhis or her employment by the Tax Commission, except:

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ao To an authorized representative of the taxpayer.

bo "To an employee of the Government of the Tribe or a f-member of the Tribal Business Council authorized by the Tax’Commission to obtain such information for use in connection withthe governmental function of said employee or Tribal BusinessCouncil member; provided that, it shall be unlawful for theemployee or Tribal Business Council member to reveal saidinformation except as permitted in this Section.

c. To an authorized representative of another Indian tribeor a state, provided that the receiving tribe or state has enteredinto a written agreement with the Tax Commission to use theinformation for tax purposes only and that thereceivlng tribe orstate has enacted a similar confidentiality rule.

do To an authorized representative of a federal agencyaccording to the terms of a reciprocal agreement for the exchangeof information.

e. In any administrative or judicial proceeding to enforceany act or collect taxes or in any matter in which the taxpayer hasput its own liability for taxes at issue.

f. In compliance with an order of any court of c~mpetentjurisdiction in which the information sought is material to theinquiry.

go In recording tax liens on the proper~y of a taxpayer or~collecting taxes by levy upon the property or rights to property ofa taxpayer.

h. In statistical releases which do not identify a s~ecifictaxpayer or otherwise disclose the information therein as beingapplicable to any single taxpayer.

io To the extent of revealing whether a taxpayer has madea designation (and, if so, the name and address ofthat individual)or whether a person is a designee (and, if so, by whom theindividual has been designated).

j. To the extent of revealing the amount and basis ofunpaid taxes to the purchaser or an intended purchaser of thepropel-ty or business of the taxpayer.

SECTION 220. Assessment Powers. The Tax Commission is empoweredto assess against a taxpayer liability for tax, interest,penalties, and/or costs in the following circumstances:

1. Deficient Amount of Tax. When it appears that a returnfiled, or a payment made, does not reflect the a~ount of tax due

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under this Chapter,’the Tax Commission will issue a notice ofassessment .of-a deficiency, interest, and penalties.

2. Estimated Amount of Tax. When no return has been filed,the Tax Comm/ssion is authorized to estimate the tax due and issuea binding notice of assessment of the tax, interest, and penalties.The assessment may be recalculated only through an appeal and upona showing that it is clearly erroneous.

3. Failure to Provide Information. If a taxpayer fails toprovide information within its possession or control, which isrelevant to a determination of the value of a lease or any tax dueand is required to be provided under this Chapter, the TaxCommissionis authorized to proceed to determine the value or makean estimate of the tax and issue a binding notice of assessment ofthe tax, interest, and penalties. The Tax Commissionwillmake theestimate on the basis of the best information it finds readi~available. Unless, for good cause shown, it relieves the taxpayerfrom the operation of this Subsection, the Tax Commission’sassessment is binding and may be redeterm/ned only through a~appeal and upon a showing that the estimate on the basis of the TaxCommission’s best information when it was made, was clearlyerroneous.

4. Overpayments. When it appears that a taxpayer has madea~overpayment, the Tax Commission will issue a notice to determine-and remit a refund. A taxpayer my file a claim for refund of a~overpayment.

SECTION 221. Exam/nation Procedure. Upon completion of theexamination of a taxpayer, the Tax Commission will provide thetaxpayer with a written statement of the findings supporting anydetermination which alters a liability for tax, interest, orpenalties, and will issue a notice of assessment (or refund) forany &mounts due (or overpaid). If no such determination is .made,the Tax Comm/ssion may issue a letter stating that there is nochange in liability for the assessment date or period examined.

SECTION 222. Not£ce Requiremen%s. A notice of assessment (orrefund} will require the payment of the &mount assessed (orremittance of the refund) by a time not less than sixty (60) daysafter the date of the notice. The taxpayer must comply with (oraccede to) the terms of the notice and, within the time allowed inthe notice, may request a reassessment of the taxes, and he/she mayalso seek an informal conference with respect to such matters.

1. Occasions for Notice. A notice of assessment may arisefrom an initial assessment of tax, from an estimate of tax due whena required return has not been filed, from a deficiency in the&mount of tax reported or paid as determined upon exam/natlon of a

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declaration, or from’the application of interest, penalties, orcharges for. c~s:ts.

2. Assessments Blnding. All such assessments are binding onthe taxpayer according to the terms of the notice.

3. Overpayment. When it appears that a taxpayer has made anoverpayment, the Tax Commission will issue a notice to determineand remit a refund.

SECTION 223. Examination and ~udits. For the purpose of making anassessment, making a required return where none has been made,determining the correctness of any return or form, the liabilityofany person for taxes or the liability in law or in equity of anytransferee or fiduciary of any person for taxes, or collecting anyliability, the Tax Commission may make an inquiry and may p~eedas follows:

1. E~am/na%ion. To exa/nine any books, records, papers, maps,documents, or other data which may be relevant and material to theinquiry.

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3. Testimony. To take such test/mony of any such person,under oath, as may be relevant and material to the inquiry.

SECTION 224. No£1ce Deemed Effective. Notice required to be givenby the Tax Commission may be effectively given to a taxpayer bymailing the notice to the individual last designated by thetaxpayer, at the address shown on the designation. Where ataxpayer has not designated an individual, notice may beeffectively given by mailing the notice to any owner of an interestin the lease or any other person who is a lessee, perm/ttee, orassignee of property on which the productive activity at issue isconducted, or to a person holding a permit or license for theconduct of said activity. The foregoing is not intended toexclude the use of other methods of providing notice, includingpublication, so long as such other methods comport with dueprocess. Public notice of a lien will be effective as to allproperty and rights to property of a taxpayer, business, or person,

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2. Summons. To summon the person liable for the tax orrequired to perfoz~n the act, any officer or employee or agent ofthe person, any person having possession, custody, or care of booksof account containing entries relating to the business of theperson liable for tax or required to perform the act, or any otherperson the Tax Commissionmay deem proper, to appear before theCommission at the time and place named in the summons and to \

produce such books, records, papers, maps, documents or other data,and to give such testimony, under oath, as may be relevant andmaterial to the inquiry.

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if the description "of the taxpayer, business, or person issufficient ~o~p.ut a reasonable person on inquiry to ascertain theexistence of a lien on the property.

SECTION 225. Oaths and Afflrma~ons. Any agent or employee of theTax Commission may be designated by the Tax Commission asauthorized to administer such oaths or affirmations and to certifyto such papers as may be necessary under this Chapter.

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ICSAPTE~ 3 : ASSESSMENT, COLLECTION AND

: - : NON-CQMPILIANCE PENALTIES

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SECTION 301. General Information Authority. The Tax Commission,to the extent it deems practical, shall inquire of and concerningany and all persons owning or havingthe care and management of anyproperty with respect to which any tax is imposed and all personswho may be liable for any tax imposed by the Tribe.

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I SECTION 302. Information Required by Request. The Tax Commissionmay require of any and all persons who own interests in a ~easegranted by the Tribe, who are engaged in business activity wlthi~the Reservation, such information as the Tax Commission may deemrelevant and material. Upon a written request and after anadequate opportunity to comply, those persons must provide theinformation required. Any person who fails to so .comply with thisSection shall be subject to the penalties provided in this Chapter.

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SECTION 303. Information Included in Returns. Forms to be filedpursuant to this Chapter shall be provided by the Tax Commission,and the information to be included in or filed with the forms willbe prescribed in instructions and other rules.

1. Any additional information, supplemental material, orother attachment filed with a form is deemed a part of the form ....itself. ~

2. Any return, form, or other document which is required tobe made or filed under this Chapter must be signed and verified bya written declaration made under the penalties set forth inSections 311 and 312.

SECTION 304° Place and Manner of Filing and Payment. Taxpayersand other persons making filings and payments under this Chaptermust comply with the following requirements:

I. Place and ~x~dress. All filings and payments must bedelivered to the Office of the Director or be mailed to: ThreeAffiliated Tribes Tax Commission, Office of the Director, PostOffice Box 220, New Town, North Dakota,-58763.

2. Identification. Any payments must be marked with a clearidentification of the taxpayer, of the return or other form, of theassessment date or period, and of the kind of liability for whichthe payment is being made.

3. Payee. The check or other remittance must be made payableto the order of the "Three Affiliated Tribes Tax Commission."

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4. Application ~f Payments. Any payment received by the TaxCommission will be applied first, in satisfaction of any penalty,then interest, and lastly, the tax due from the taxpayer. The TaxCommission will report to the taxpayer the application made and theresulting status of the taxpayer’s account(s} and will issue anotice of assessment for any unpaid tax or interest.

SECTION 305. Extension of Time for Filing and Payment. A taxpayermay file a written request for a one-month extension of the timefor filing a return and for any payment due with the r~turn,subject to. the requirements of Subsection 2.

Io Manner and T~ne of Request. The request must identify thetaxpayer, return, and assessment date or period, include astatement of cause, and be filed at the place and by the time forfiling the return.

2. Effe=t of Extension. The time for filing’the return willbe automatically extended one month upon such timely request. Thetime for any payment will also be so extended, provided that thetaxpayer pays with the request an amount equal to the tax liabilitydue for the previous period or at least ninety percent (90%) of thetax due with the extended return. The balance of the tax due, andaccrued interest, must be paid on the extended date for filing thereturn.

3. A~dltional ExtensiOn. Within its discretion and for goodcause shown, the Tax Commissionmay grant additional extensions oftime of up to three months, on the basis of a similar writtenrequest filed before an extended due date. The Tax Commission mayrequire the payment of an estimated amount of tax or condition thegrant of an extension of-time to pay upon the posting of a bond,the provision of other security, or the creation of a lien.

SECTION 306. Due Dates and Time Determinations. The followingrules will apply in the determination of dates and time:

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I. Due Dates. Due dates are those stated in this Chapter orspecified in instructions, forms, and notices provided by the TaxCommission. If a due date falls on a Saturday, Sunday, or legalholiday, then the due date will become the next working day.Holidays of the Three Affiliated Tribes are the same as the federalholidays, except Columbus Day, and additionally include Four BearsDay and Tribal Days, as designated by the Tribal Business Councilor Chairman; and, when a holiday falls on a Saturday or Sunday, itis observed on the adjacent Friday or Monday.

2. Action by Mail. When a taxpayer elects to act by m~ilrather than by another manner of delivery, the date of the actionis determined by the postmark. For example, mail postmarked by

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midnight of the dare’due is timely made and is deemed made as ofthat day. If ~If-metered mail is received within five days of themetered date, ~he metered date is deemed to be the postmark.

3. Computation of Interval. In computing an interval of timeand determining the day on which a period of time ends and actionis due, the first day is not counted and all days -- includingSaturdays, Sundays and holidays -- elapsed are included in thecomputation.

SECTION 30T. Rule for Liabilities Over $100,000. If the tax duewith the return or on a specified date is in excess of $i00,000,the payment must be r~ceived by the Office of the Director notlater than the due date, and the rule in Section 306.2 regardingpostmarks does not apply. A t~xpayermay remit the tax duebywireor other direct bank transfer according to the instructions of theTax Commission.

SECTION 308. Interest Rates and Application. Interest is imposedon any unpaid tax.

Io Duration of Accrual. Interest is ~omputed from the datethe tax was first due (without regard to any extension or stay oftime) to the date payment is received.

2. Annual Ra~e. The rate of interest will be the respective~.rate in current use by the Internal Revenue Service, plus tw~..percent (2%|°

3. Interest on Refunds. Interest will be remitted to ataxpayer on any overpayment of tax from the date the payment wasreceived to the date a refund is. made; the interest will becomputed at the respective rate in current use by the InternalRevenue Service, less two percent (2%}.

SECTION 309. Designation of Individual. Each taxpayer mustdesignate and provide themailing address of a natural person foethe purposes of notice, together with such other information as maybe required by form and instructions.

Io More Than One Tax. A taxpayer obligated to designateunder more than one tax ordinance or law must designate a singleindividual as the designee for all such taxes.

2. Joint or Common Undertakings. Participants in a joint orcommon undertaking, regardless of their ownership interest oragreement or the form of their organization, must designate oneindividual, and if one participant is the operating agent or ischarged with the m~nagement of the undertakinge the designation

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must be made by that’par~icipant.

3. A~itlonal Individuals. A taxpayer may also name a fewother individuals, not for the purpose of notice, but for thepurpose of information, to receive the tax publications issued bythe Tax Commission. The Office of the Director will maintain areasonably current list of and will be diligent in mailing to suchindividuals notices, regulations, rulings, instructions, and otherinformation in a timely manner.

SECTION 310. Penalties for Failure to File. If a taxpayer failsto file a retur~ by the time due, a penalty of ten percent {I0%} ofthe tax due for the assessment date or period, but not less than$100, will be assessed against the taxpayer.

i. A~dltional Penalty. An additional penalty of one percent{1%) of the tax due, but not less than $100, will be assessed foreach full month the return is overdue. The additional penaltywill not, except as to the minimum amount, exceed twenty-fourpercent (24%) of the tax.

2. Extended Return. A return filed on or before an extendeddate for filing is timely filed.

SECTION 311. Penalties for Failure to Pay. A taxpayer f~iling topay an amount of tax by the time due will be assessed a penalty offive percent (5%} of the amount of the underpayment.

1. A~ditio.al Penalty. An additional penalty of one-halfpercent (I/2%) of the underpayment will be assessed for each fullmonth payment is overdue, but not to exceed thirty-six percent(36%} of the underpayment.

2. Extended Due Date. An amount paid on or before anextended date for payment is timely paid.

SECTION 312. Penalties for Attempt to Evade or Defeat Tax. Anytaxpayer, who is underassessedbyreason of incomplete or incorrectinformation provided, or any taxpayer who understates the taximposed, through negligence or intentional disregard of the rulesand regulations (but without the intent to defraud), will beassessed a penalty of $250, plus twenty-fiv~ percent (25%) of theunderpayment of tax.

I. Fraud Penalty. If any part of an underassessment orunderstatement of tax is shown to be due to fraud, a taxpayer willbe assessed a penalty of fifty percent (50%} of the underpayment oftax.

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2. Party to FraUd. Any person who assists a taxpayer in thefraud will .b~ :subject to a penalty of $500, plus twenty-fivepercent (25%} of the underpayment of tax. Any liability arisingunder this Subsection shall be assessed and collected as a taximposed by the Chapter.

SECTION 313. Charges for Adm/nistrative Costs. A taxpayer failingto pay any tax at the time due may be charged for extraordinaryadministrative costs incurred in collecting the unpaid amount,including attorney fees and other costs incurred in collectionoutside the jurisdiction of the Tribe. These charges will beassessed, unless the Tax Commission, for good cause shown, relievesthe taxpayer from the operation of this Section.

~. Costs. Costs will be.limited to direct costs and the out-of-pocket expenses incurred in collection efforts beyond theordinary office functions, duties, and notices .for collectingtaxes, and the usual legal expenses for obtaining Fort BertholdDistrict Court judgments.

2. Cause. A mere mistake, the absence of negligence or ofintentional disregard of the regulations~ or the presence ofsubstantial issues of interpretation, especlally in the case of adeficiency arising upon examination of a return which was timelyfiled, and all surrounding facts and circumstances, including thepattern of compliance of the taxpayer, may be given due weight indetermining good cause.

3. Notice. Upon determining any charges for costs, the TaxCommission will issue a notice of assessment to the taxpayer.

SECTION 314. Failure to Comply with Chapter. Any person obligatedto pay a tax, to make a designation, to file a return, to provideinformation, documents, or access thereto or to property, tofurnish a surety bond or other security, or to comply with a lawfulorder of the Tax Commission, and failing to do the Same inaccordance with this Chapter, may have its rights to engage inbusiness activity within the Fort Berthold Reservation suspendeduntil compliance is accomplished.

SECTION 31S. Interference with Administration.

I. Unlawful Acts. It is unlawful for any person:

a. To forcibly, or by bribe, threat or other corruptpractice, obstruct or impede the due administration of any tax; or

b. To willfully fail to comply with a subpoena duly issuedpursuant to this Chapter; or

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c. To commie fraud, or knowingly assist another in thecommission .o~:fraud, with the intent to evade or defeat thea~sessment or collection of any tax, interest, or costs imposed orassessed; or

d. With knowledge and intent, to falsely veri~y, by writtendeclaration, any return, form, or other document.

2. Indian Violator. Any Indian who violates any of theprovisions of this Section shall be guilty of an offense and, uponconviction, shall be sentenced to a term of imprisonment of notmore than 180 days, or ordered to pay a fine not to exceed $500, orboth.

3. Nonmember Exclusion. Any nonmember of the ThreeAffiliated Tribes who violates any of the provisions of thisSection may be excluded from lands subject to the jurisdiction ofthe Three Affiliated Tribes.

4. Suspension. Any person who violates any provision of thisSection, or whose employees or agents, in the course of theiremployment or agency, violate any provision of this Section, mayhave its rights to engage in business activity within all or partof the For~ Berthold Reservation suspended~ either temporarily orpermanently.

SECTION 316. Suspension and Fraud Proceedings. Suspensions andthe monetary penalties for negligence and fraud will be imposedonly by resolution of the T~x Commission and upon notice sent tothe taxpayer or other person which provides a date and time, notless than fourteen (14) days after the date of the notice, when theperson may appear before a hearing officer to show cause why theproposed suspension or penalty should not be imposed. The officerwill issue findings of fact and a recommendation and submit themand the hearing record to the Tax Commission. Enforcement orcollection is. stayed until the conclusion of any appeal to the TaxCommission.

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2. Seizure pursuant to the distress warrant may be carrie~I’out by a member, employee, or agent of the Tax Commission, whenaccompanied bya law enforcement officer of the Tribe or the Bureau

Iof Indian Affairs.

3. Within ten days of such seizure, the Tax Commission shallcause an action to be filed in t~e For~Berthold District Court, or

I other court of competent jurlsdiction, against such p~opertyalleging the non-payment of tax or other lawful reason for suchseizure and forfeiture. Upon proof, the Court shall order such

i property forfeited for non-payment of taxes and title theretovested in the Tribe. . .4. Anyperson clalming ownershlp, the .right to possession,, or.I other interest in such seized property may intervene an such court

action and raise any defenses that he may have, iDcluding a priorperfected security interest in the proper~y, and any such personshall be served with process if he is known prior to the beginningI of the action.

5. If the Fort Berthold District Court determines, based on

m the evidence presented, that such person, ot~er than the defendant,would be found to have a prior perfected security interest in theproper~y had the same action been brought in North Dakota State for

iD non-payment of State taxes, the Fort Berthold District Court shall

order that a lien be placed on the property in the name of such~person, that a lien subordinate thereto be placed on such property~in the name of the Tribe and such person and the Tribe will assume-the same position as lien creditors under State law.

I6. The taxpayer may redeem seized property at any time prio~

to. the entry of a final judgment of forfeiture by depositing withthe Fort Berthold District Cour~ all taxes, penalties, interest~m attorneys fees and expenses and other fees or charges assessedagainst or owed by the taxpayer.

I SECTION 404. Inventory of Seized Proper~y. Whenever anyauthorized person shall seize any property pursuant to thisChapter, he shall inventory and appraise such property and leave acopy thereof with the person from whom it is seized, or if suchperson cannot be found, at the place from which such property isseized, and deliver a copy of the inventory~to the Tax Commissionand the Legal Department.ISECTION rubl± Sale or ei ed roper y.

--I. Upo~ entry of a final order of forfelture by the Court,I

ethe Tax Commlssion shall forwardan inventory of forfeited property

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to the Property Department of the Tribe. The Property Departmentshall recomme~ to the Tribal Business Council which property willbe retained, and the Tribal Business Council shall order the TaxCommission to conduct a public sale of the remainder, or to destroyany contraband.

2. The property to be sold shall be sold at public auction atthe Tribal Business Center. Notice of such sale shall be posted inthe Tribal Business Center at least 20 days before the sale andpublished at least twice in a newspaper of general circulation inthe vicinity of the Reservation at least ten days before the sale.All funds received at the sale, in excess of the costs of the sale,shall be deposited in the Tribal Tax Account except as provided inSubsection 4. of this Section.

3. The Tax Commission may conduct a sale at such times as itdeems sufficient property has accumulated to make the sa~eprofitable, and shall also conduct a sale upon direction of theTribal Business Council.

4. The seizure, forfeiture, and sale of any property shallreduce the liability for payment of taxes, penalties, interest, andother fees and charges of the person from whom such property wasseized, by the sale price, less costs of ~he sale and attorneysfees and expenses incident to the forfeiture action, or in the caseof property retained for the benefit of the Tribe, by the fairmarket value of such propel-ty, less attorneys fees and expensesincident to the forfeiture action. Any excess shall be credited tothe taxpayer’s account, to be applied toward payment of futuretribal taxes the Tax Commission determines will be owed to theTribe by the taxpayer. If the Tax Commission determines thatfuture taxes will not be owed, such excess shall be refunded to thetaxpayer.

SECTION 406. Property Exempt From Tax Enforcement Proceedings.The following property shall be exempt from garnishment,attachment, execution, and sale for the payment of taxes,penalties, and interest due the Tribe:

i. Three-fourths of the net wages earned per week by theperson or an amount equivalent to 40 times the federal .~inimumhourly wage per week, whichever is greater.

2. One automobile of fair market valu~ equity not exceeding$2,000.

3. Tools, equipment, utensils, or books necessary to theconduct of the person’s business, but not including stock orinventory.

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4. Trust or re6tricted title to any lands held in trust bythe United.S~ates or subject to restrictions against alienationimposed bythe United States, but not including leasehold or other~possessory interests in such property.

5. Any dwelling used as the actual residence of the taxpayerincluding up to five acres of land upon which such dwelling islocated, regardless of whether s~ch dwelling is owned or leased bythe taxpayer.

6. Household goods, furniture, wearing apparel, personaleffects, and up to two firearms, but not-including televisions,radios, phonographs, tape and video recorders, more than twofirearms, works of art, and other recreational or luxury items.

7. One horse, one bridle, and one saddle.

8. Five head of livestock.

9. All ceremonial or religious items.

SECTION 407. Enforcement of Subpoenas. Upon the failure of anytaxpayer to comply with a subpoena issued by the Tax Commissionpursuant to Section 205, the Tax Commission shall apply to the FortBel-thold District Court for issuance of a show cause order. Theshow cause order shall be issued by the Fol-t Berthold DistrictCoul-t fo~-thwith, without notice or hearing, unless the Courtthat the subpoena was not lawfully issued or that the subpoenanot properly served. The show cause order, which shall be promptlyserved, shall state that the person against whom the subpoena wasissued shall comply with the subpoena within ten days or show causewhy he should not be held in contempt of court. :

SECTION 408. Liens.

1. Lien Agains~ Possessor~ Interest. The tax shall be a lienagainst all property and rights to proper~y of the taxpayer infavor of the Tribe to secure payment of the tax and any penalty andinterest that become due. The lien under this Subsection shallarise as of January I of the tax year, without notice or demand,and shall be a first lien and superior to any other interest in theproperty.

2. Lien Agains~ O~her Property. If. a taxpayer fails totimely pay the tax after assessment, the amount of the unpaid tax,including any penalty and interest that becomes due, shall be alien in favor of the Tribe upon all property and rights to prope.rtyof the taxpayer. The lien imposed by this Subsection shall ar~seat the time of the assessment, but shall be effective against anymortgagee, pledgee, purchaser, judgment, creditor, lienor or otherencumbrancer for value when notice of lien has been filed as

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provided in SubsectiOn 3. below.

3. No~ic~ of Lien. A notice of the lien provided for inSubsection 2. of this Section shall be filed with the For~BertholdDistrict Court and with the Superintendent of the Bureau of IndianAffairs of the Fort Berthold Reservation. The notice of lien shallidentify the taxpayer whose tax liability is sought to be enforcedand the date the tax was due, and shall state that the Tribe claimsa lien for the entire amount of tax claimed to be due, includingapplicable interest and penalty.

~. Release or Reduction of Lien. The liens provided for inthis Section shall continue until the liability for payment of thefull amount demanded in the lien is released by the Tribe. Partialpayment of the amount due shall reduce the amount of the llen bythe amount paid. The Tribe may release the lien when the paymentof the tax, plus any penalty and interest, is adequately ~arant~e~by other security or by a surety bond.

5. Foreclosure. The Tribe may foreclose upon the proper~ysubject to a lien by filing a civil action in Fort BertholdDistrict Court. In the event of such foreclosure, the propertyshall be sold in a commercially reasonable manner and the proceedsapplied to the expenses of the foreclosure and then to theliability for costs, penalties, interest and tax. Any remainingbalance shall be remitted to the taxpayer. The Tax Commissionmay,by regulation, prescribe the circumstances in which propertysubject to a lien may be retained to offset the amount due ratherthan being convel-ted into money.

6. Trust Property. The forfeiture of interests in trustproper~y shall be accomplished in accordance with Bureau of IndianAffairs regulations and approval of the Bureau of Indian Affairs.

SECTION 409. Exclusion of Non-Members From Three Affiliated TribesLands. In addition to all other remedies provided for in thisChapter, any non-Indian who willfully fails to comply with anyprovision of this Code or any of the rules and regulations whichthe Tax Commission is authorized bythis Code to promulgate, may beexcluded from the Reservation pursuant to the Tribe’s Law and OrderCode, provided that such action may not be brought against a personauthorized by federal law to be present on such lands, and providedthat the non-Indian and owner of fee lands within Reservationterritory may not be excluded either actu~lly or constructivelyfrom such fee land.

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|CHAPTER 5 : ~NISTIq~TIVE

SECTION 501. Prohibition of Suits. No suit to restrain theassessment or collection of any tax shall be maintained in anycourt by any person, whether or not such person is the personagainst whom such tax has been assessed.

SECTION 502. Administrative Appeal. Any appeals from assessmentsand denials of refund must be made first to the Tax Commissionaccording to its procedures under Section 503. Appeals from finalactions of the Tax Commission, including, but not necessarilylimited to, assessments, denials of refund, and suspension orders,shall be made only to the Fort Berthold District Court.

SECTION 503. Procedure for Hearing. The Tax Commissionmay permitor require one or more levels of review by its employees ordelegates and will provide for hearings before a hearing officer,but the decision or recommendation of the hearing officer will bebinding only to the extent adopted bythe Tax Commission as a finaldecision. The failure by a taxpayer to proceed to a next level ofreview required under this Section shall constitute a waiver of anyfurther appeal.

SECTION 504. Time and Manner of Appeal. Within Sixty (60) day~.after the date of a notice of assessment (or denial of refund), th~taxpayer may request a formal review of the assessment (or denial},a procedure involving two steps -- administrative hearing and entryof the record, findings, and recommendations of the hearing officerfrom which will issue the final action of the Tax Commission.

SECTION 505. Stay of Payment of Taxes. Payment of taxes which arebeing appealed in anadministrative hearing may be stayed upon thewritten request of the appellant. The stay may be conditioned onthe posting of a bond, the provision of other security, or thecreation of a lien.

SECTION 506. Appeal to Court. Upon a final action of the TaxCommission, the taxpayer may then appeal to the Fort BertholdDistrict Court. .

1. Payment Required. No appeal may be taken or will proceedbefore the Court until payment of the taxes assessed or determinedby the Tax Commission has first been made.

2. Time for Appeal. The request for appeal must be filedwith the Court within thirty (30) days after the issuance of the

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Tax Commission’s order.

SECTION 507. Jurisdiction of Courts. The Fort Berthold DistrictCourt of the Tribe is vested with jurisdiction~

I. Personal.Chapter.

Over any .and a11 persons subject to this

2. Subject Matter. To hear and determine any challenge tothe validity of this Chapter, either generally or as applied to anyperson, provided that the regulations governing appeals arec~mplied with.

3. Review on Appeal. Review of Tax Commission actions in theFor+- Berthold District Court and appeals from that court shall bein accordance with the Tribal Civil Code, and shall be onrecord made before the Tax Commission and not de novo, and shall belimited to the determination of the issue as to whethe~ the actionof the Tax Commission was supported by the evide~nce or wasarbitra/y, capricious, an abuse of discretion, beyond itsauthority, or otherwise contrary to applicable Tribal or federallaw.

4. Suspensions~ In those instances wherein an affirmation ofthe Tax Commission’s action would suspend the right of an appellantto engage in business activity within the Reservation, theappellant shall, on request, be entitled to a hearing de nov~ onany material question of fact.

5. Actions of the Court. The Fort Berthold District Courtshall be empowered to affirm, reverse, or modify a Tax Commissionaction, or to remand the matter to the Tax Commission for lurtheraction, and it may stay the effect of an order suspending the rightto engage in businessactivity, pending the appeal.

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C~TEk 6: HISC~OUS PROVISIONS

SECTION 601. Tax Receipts and Dishu~semonts. ~1.1 monies receivedby the Tax Commission as taxes shall be deposited immediatelypursuant to appropriate procedures with the Controller of the Tribefor credit to the Three Affiliated Tribal Tax Account pursuant toSection 105.

1. Payment of Refunds. Refunds shall be disbursed from thisFund, except where there was a pertinent escrow established underSubsection 3. of this Section and Section 603.

2. Transfer of Remainder. At the end of each month, themoney remaining in the Fund, after the payment of refunds underSubsection 1. of this Section, shall be transferred to the TribalBusiness Council Fund or to such other funds or to the credit ofsuch accounts, as may be provided by Tribal law.

3. Maintain Escrow or Balance. Notwithstanding theforegoing, the Tax Commission may, within its discretion, holdcertain contested amounts in escrow under Section 603 or directthat a certain balance be maintained in the Tribal Tax Account frommonth-to-month in anticipation of payment~ which may have to bemade therefrom.

SECTION 602. Duties of the Controllero The Controller i~ ~authorized and directed:

I. Deposit. To credit all tax monies received from the TaxCommission to the Three Affiliated Tribal Tax Account.

2. Separate Accounts. To maintain separate accounts for theFund and for any escrow accounts established within the Tribal TaxAccount.

3. Accountability and Reports. To be accountable to the TaxCommission for the accounts and their disposition, by regular andtimely reports and reconciliation to the Director.

a. The reports will be confidential and subject to thedisclosure rule.

b. The reports will be made no le~s often than monthly,with quarterly sununa/ies.

c. The reports will show thedisbursed during the respective monthbeginning and ending Fund balances.

amounts deposited andand will reconcile the

4. Disbursements° To disburse refunds as directed by the Tax

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Commission and in a~cordance with procedures to be establishedjolntly wi~h ~e Office of the Director.

SECTION 603. Es~abllshmen~ of Escrow. The Tax Commission byresolution may establish escrow accounts with the Controller or anacceptable fiduciary agency and prescribe the procedures andaccountability required for the custody and management of themonies placed in those accounts.

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: " THE FORT BERTHOLD RESERVATION

SECTION 701. S~.atement of Purpose. Pursuant to the provisions ofChapter 1 of thls Code, it is the policy, of the. T.hree .Affili.a~edTribes of the Fort Berthold Reservation uo provlue, thel.r membersand non-members resid.ing, doing bus.iness, or working wlthin thejurisdiction of the Trlbe with essentlal governmental services. Tofinance this governmental policy, the Tribe adopts in this Chaptera possessory interest tax, which will provide the Tribe with aportion of .t.he. revenues necessary to fund es.sential gove.rnmen.talservices wlthln their jurisdi.ction boundarles and .whlch willbenefit all individuals and buslnesses on the Reservatlon.

SECTION 702. Short Title. The tax levied by this .Chapter shall be

called, the ’Possessory Interest Tax" of real and personal property,_which includes any right or interest, and actual ownership obtainedin a tract of land, (trust, restricted or fee land}, within .theboundaries of the Fort Berthold Reservation by lease, permlt,contract, easement, right-of-w.ay, deed, or other agre.ement), whichauthorizes a person, (as deflned hereunde£ in Sectlon 102.12 ofthis Code} to use that real and personal property for business,(as defined hereunder in Section 706.1.a.), profit, or use, exceptas otherwise exempted Section 108 of this Code.

I. All terminologies and concepts as defined in Section 102,Subsections i. t.hrough 26. of the C.ode shall apply hereunder.

2. Regulations. Regulations shall mean any written rules

and regulations adopted and administered by the Tax Commissionpursuant to thls Code.

3. Taxes.--Taxes" shall mean the tax, and any interest,penalty, or costs, assessed or imposed.pursuant to this Code.

4. Commercial Busi.ness. "Commerclal Business" shall mean anybusiness for profit whlch is not a utility/railroad, and shallinclude agriculture, (which includes farming, ranching, grazing,livestock, an.’.a~.l husbandry, and horticult.ure}, and simil.ar landrelated activlties and mining of surface and subsurface rlghts.

5. U.tilit~. "Utility" shall mean any privately or p~l~clyheld entlty primarily engaged in s uppl.y.ing, transmlttl~, g,transDortina or distributinq electricity, oll and oil producus,gas, ~natura’l gas, natural ~as products, water, carbon d~oxi.de,liquid hydrocarbons, telephone, telegraph or other communlcatlon

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I - SECTION ~0~. The Tax Cycle. The tax rate and the approaches todeterminlng the appraised value, (i.e., the Tax Base} of thePossessory Interest shall remain constant for a three-year taxI The initial tax cycle of this Chapter commences on thecycle.(1st} of January, 1992, and terminates on December 31, 1994.Thereafter, the tax cycle shall take a full three-year period

I ending the last day in December of the third year of the tax cycle.SECTION 705. Imposition and Rate of Tax. The Possessory Interesttax set forth herein shall be imposed on the ownership ofpossessory interest on January Ist of each year and shall beassessed at the.rate of one percent (1%} of the.assessed value ofthe possessory interest as determined and appraised in accordanc~

I with as utilized in Section 706.5. Thea~proaches Imethodologie sestabllshed said rate and methodologies shall be’and remain thesame as herein unless modified, pursuant to Section 103 of thisCode, by the Tribal Business Council and implemented by the TaxCommission. The said tax rate may not be escalated by more thanthe annual rate of inflation as measured by the annual average rateof the GNPPrice Deflator of the preceding ~ear for the succeedingtax cycles. Upon passage of any determination and resolutionchanging the tax rate and/or the methodologies, notice shall b~given to all taxpayers and shall be published in newspapers o~general circulatio~ and posted or published at such places as theTax Commission deslgnates.

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SECTION 706. Computation of Value of Possessor~ Interest. Thevalue of a possessory interest shall be assessed as provided inthis Chapter or any method adopted by the Tribal Business Councilpursuant to Section 103 of this Code. The method reflects thereasonable value of the possessory interest which is subject totaxation.

1. Subject of Valuation.

a. The subject matter of valuation under this Chapter isreal and personal property of possessory interest except asexempted under Section 108 of this Code. "Real property" means alllands or interests in land to which title or the right of title hasbeen acquired from the government of the United States on behalf ofthe sovereign authority of the Tribe and/or lands or interests inland on the Reservation. Real property, moreover, includes a