CHAPTER 16 - - BUSINESS LICENSE AND TAX LAW

16.1 SECTION 1: LICENSING

16.1.1

All individuals, corporations, or partnerships who are Tribal members or controlled by Tribal members currently conducting or prior to conducting any business operations within the Red Cliff Reservation shall apply for and obtain a permit to carry on a Bu siness within the Red Cliff Reservation.

16.1.2

Any Tribal member or corporation or partnership controlled by Tribal members may conduct a concession to sell cigarettes within the Reservation provided s/he secures Cigarette Sales License.

16.1.3

Any Tribal member or corporation or partnership controlled by Tribal members may conduct a concession to sell intoxicating beverages provided that s/he first obtain an Alcohol License.

16.1.4

The laws and regulations controlling sale of intoxicating beverages pursuant to a Red Cliff Alcohol License shall be identical to those laws of the State of Wisconsin controlling the sale of intoxicating beverages in the State at large.

16.1.5

Application for said Permits shall be made to and issued by the Red Cliff Law Enforcement Office.

16.1.6

The fee for said Permits shall be $2.00, and the Permits shall be renewed by the applicant on or about January 1 of each year.

16.1.7

Any individual, corporation, or partnership in violation of this ordinance shall be subject to a civil forfeiture of not more than $100.00 per day of violation and/or may be subject to a Court order to cease and desist all business operations until a Per mit is obtained.


16.2 SECTION 1: TAXATION

16.2.1

For the privilege of doing business on the Red Cliff Indian Reservation by means of the operation of a restaurant, bar, liquor store, hotel, motel, campsite, marina, theatre, or other enterprise providing recreation, amusement or entertainment to the publ ic, there is hereby imposed on every non--member engaged in such an operation a tax on the gross receipts of such an operation.

16.2.2

For purposes of computing the tax, gross receipts shall include the receipts from the sale of all goods and services which are realized as an incident of the operation of an enterprise described above, whether or not such sales directly involve the vendin g of food, drink, shelter or recreational services.

16.2.3

Receipts from the lease or rental of hotel or motel accomodations, campsites, marina slips or similar docking facilities shall be taxed at the rate of 5% per annum. Receipts from all other operations subject to tax shall be taxed at the rate of 2%.

16.2.4

Sales of food or medicine shall be exempted from the tax herein imposed. The tax herein imposed shall not apply to enterprises directly operated by the United States or an agency thereof.

16.2.5

A non--member, as referred to above, shall include any person, natural or corporate, other than enrolled members of the Red Cliff Band of Lake Superior Chippewa Indians. Where a corporation or similar entity claims exemption from the tax on the grounds of membership, the burden of proof shall be on the corporation to prove that both ownership and control of the corporation is predominantly in the hands of members of the Red Cliff Band.


16.3 SECTION 3: APPLICATION AND DEPOSIT

16.3.1

Any person subject to the tax imposed above shall submit an application to the Tribe for a permit to carry on a tax regulated business. The application shall be accompanied by a $250.00 deposit, except that where an enterprise has grossed $50,000 or more in the immediately preceeding calendar year, the amount of the deposit shall be $500.00.

16.3.2

Taxes shall be paid on a quarterly basis, and shall be due on the 20th day of the month following the end of the quarter.

16.3.3

Persons subject to tax shall file a tribally prescribed return by the aforesaid 20th day of the month succeeding each quarter. Said return shall be accompanied by a copy of any state sales tax return which is to be filed for the similar period. The April return shall also be accompanied by a copy of the in question. A permittee shall file a return in each quarter whether or not the operation has taxable receipts in that quarter. Where an operation suspends doing business, it shall notify the tribal treas urer within 30 days of such suspension, and file a final return and payment.

16.3.4

Any tax remaining unpaid after the 20th day following the taxable quarter shall be subject to interest at the rate of 10% per annum.


16.4 SECTION 4: PENALTIES

16.4.1

Failure to file a return when due, or the filing of a fraudulent return with intent to evade the tax, shall result in a civil penalty equal to half the amount of the tax due, but in any case not less than $50.00. Where no return has been filed, the tribal treasurer shall estimate the amount of taxable receipts on the basis of whatever information is then available, and assess the tax due and the penalty and interest thereon, on the basis of the aforesaid estimate. The penalty shall become due on the due d ate of the return. The penalty may be waived upon a showing that a failure to file was due to excusable neglect, provided that a proper return, together with payment, is made within 30 days of the date due.

16.4.2

Where a person subject to tax has failed to file a return, has filed a fraudulent return, or has failed to pay the tax within 30 days of the date due, the treasurer shall formally notify the Tribal Council, which may revoke the permit to carry on a tax re gulated business as well as other tribal permits held by the taxpayer. After revocation no new permit shall be issued for at least six months, and only after all taxes, penalties and interest due have been paid in full, and a deposit in the amount of $1,0 00.00 has been made.

16.4.3

After notification by the Treasurer of the failure to file a return, of the filing of a fraudulent return, or the failure to pay a tax within 30 days of the due date, the Tribal Court may order the seizure and sale of such of the taxpayers property locate d within the Red Cliff Reservation as may be necessary to satisfy the delinquent tax, together with penalty and interest.

16.4.4

Nothing in the sections above shall operate to prevent the Tribal Council from employing other remedies, through courts of competent jurisdiction and otherwise, to recover any taxes, penalties and interest which may be due pursuant to this Article, or to take such steps as may be necessary to prevent a non-permittee, or a revoked permittee, from doing business on the reservation.


16.5 SECTION 5: DUTIES OF THE TREASURER

It shall be the duty of the tribal treasurer:

16.5.1

To make tax permit applications available, to receive completed applications and deposits, and to transmit them to the Tribal Council for action.

16.5.2

To make tax returns available, to receive completed returns, and to deposit and account for all tax monies received.

16.5.3

To request investigation or tax audits from appropriate tribal officials, and to notify the tribal council of any delinquencies of whatever sort.


16.6 SECTION 6: RIGHT OF AUDIT

16.6.1

Upon request of the tribal treasurer, a person subject to tax shall make his books and records available for audit by appropriate tribal officials, and supply such information as may be necessary to assess the tax due under § 16.2.1 above. Failure to comp ly with such a request shall be treated as a failure to file a return for purposes of assessing a penalty.

16.6.2

Any person assessed a tax, interest or penalties under this Article, or who is subjected to enforcement procedures, shall have the right to be heard before the Tribal Court.