How does Native American law affect taxation?

Native American law affects taxation in Michigan in multiple ways. First, Native American tribes have the authority to exempt their own citizens from paying state taxes. This exemption is codified in the 1983 Michigan Indian Tax Exemption Act. This means that Native Americans living on tribal lands do not have to pay state sales tax on goods and services bought or sold within the tribal boundaries. The exemption also applies to income earned by tribal members living on tribal lands. Native American tribes also have the right to collect taxes on sales of goods and services provided by non-Native Americans. For example, a tribe may require non-Native businesses operating within its lands to pay a tribal sales tax on sales of goods and services. This practice helps tribes collect revenue to fund government services and programs. Finally, Native American tribes can also enter into agreements with the state or with other tribes to allocate the responsibility for collecting taxes on certain goods and services. For example, a tribe might enter into an agreement with a state to collect taxes on cigarettes, liquor, and gasoline purchased on tribal lands. These agreements are beneficial because they help ensure that taxes are paid on goods sold on tribal lands, and they ensure that tribes are able to collect revenue to fund government services and programs.

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How does Native American law affect taxation?

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