Sale of Marked Tobacco on Indian Reserves Regulation

Sale of Marked Tobacco on Indian Reserves Regulation, M.R. 63/2006 The Tobacco Tax Act , C.C.S.M. c. T80 Regulation 63/2006 Registered March 3, 2006 bilingual version (HTML) Table of Contents 1 Definitions and interpretation 2 Purposes 3 Refund to retailer 4 Refundable sales limit for reserve 5 Allocation of reserve's limit among retailers Definitions and interpretation 1(1) The following definitions apply in this regulation. "Act" means The Tobacco Tax Act . («  Loi  ») "band" , "council of the band" , "Indian" , "member of a band" and "reserve" have the same meaning as in subsection 2(1) of the Indian Act (Canada). (« bande », « conseil de la bande », « Indien », « membre d'une bande » et « réserve ») "band assessment collection agreement" means an agreement between the minister and the council of a band respecting the collection by the minister, on behalf of the band, of amounts payable by purchasers under a band assessment imposed by the council in respect of retail purchases of marked tobacco. (« accord de perception fiscale ») "council" , in relation to a reserve, means the council of the band of that reserve. (« conseil ») "marked tobacco" means cigarettes or fine cut tobacco the packaging of which is marked or stamped for the tax purposes of Manitoba as required by the Act. (« tabac marqué ») "non-taxable retail purchase" of marked tobacco means a purchase of marked tobacco by an adult Indian, for consumption and not for resale, that is not taxable under the Act because of section 87 of the Indian Act (Canada). (« achat au détail non taxable ») "refundable sales limit" means (a) in relation to a reserve, the refundable sales limit of the reserve determined under section 4; and (b) in relation to a retailer located on a reserve, the portion of the reserve's refundable sales limit that is allocated under section 5 to the retailer. (« plafond des ventes donnant droit à un remboursement ») "retailer" means a retail dealer who (a) is located on a reserve that is not covered by a band assessment collection agreement; and (b) sells marked tobacco to Indians in the ordinary course of his or her business on the reserve. (« vendeur au détail ») 1(2) For the purposes of this regulation, a retailer who is located on more than one reserve is to be treated as a separate retailer in respect of each of those reserves. Purposes 2 The purposes of this regulation are (a) to facilitate non-taxable retail purchases of marked tobacco on reserves by providing for refunds to retailers of amounts paid by them on account of tax on that tobacco; and (b) to establish refund limits designed to ensure that the refunds to retailers are available only in respect of non-taxable retail purchases. Refund to retailer 3(1) Subject to subsection (2), the minister must refund to a retailer the amounts paid by the retailer on account of tax in respect of marked tobacco if the minister is satisfied that the tobacco was purchased on a reserve from the retailer by way of non-taxable retail purchases. 3(2) No amount is refundable under subsection (1) to a retailer in respect of sales of marked tobacco made by the retailer in any month in excess of the retailer's refundable sales limit for that month. Refundable sales limit for reserve 4(1) The following definitions apply in this section. "carton equivalent" means a quantity of marked tobacco consisting of 200 cigarettes or 200 grams of fine cut tobacco, or a combination of them equal to 200 grams, calculated on the basis of cigarettes weighing one gram each. (« équivalent d'une cartouche ») "community" , in relation to a reserve, means those who are (a) members of the band of that reserve who reside on or off that reserve, but do not reside on another reserve; or (b) members of another band who reside on that reserve. (« communauté ») 4(2) Subject to subsections (3) and (4), a reserve's refundable sales limit for each month is the number of carton equivalents of marked tobacco determined by the following formula: Limit = P × 44% × 2.5 carton equivalents In this formula, P is the population of the adult members of the reserve's community as determined by the director based on the most current issue of Registered Indian Population by Sex and Residence published by Indian and Northern Affairs Canada. 4(3) The director may adjust a reserve's refundable sales limit if the director is satisfied, based on reliable statistics obtained by the director, that (a) the population of the adult members of the reserve's community is greater or less than the population determined under subsection (2); (b) the proportion of the adult members of the reserve's community who are daily smokers is greater or less than 44%; or (c) the average quantity of marked tobacco consumed by the adult members of the reserve's community who are daily smokers is greater or less than 2.5 carton equivalents per month. 4(4) At the request of a reserve's council, the director may temporarily increase the reserve's refundable sales limit to take into account special events or circumstances. 4(5) The director must notify a reserve's council of the reserve's refundable sales limit determined under this section, and of any changes to that limit. Allocation of reserve's limit among retailers 5(1) A reserve's council may allocate the reserve's refundable sales limit among the reserve's retailers. Until the council makes the allocation and provides the director with a certified copy of the council resolution making the allocation, the director may make the allocation. 5(2) If the reserve's refundable sales limit increases or decreases, the reserve's council may allocate the increase or decrease among the reserve's retailers. Until the council makes the allocation and provides the director with a certified copy of the council resolution making the allocation, the director may allocate the increase or decrease. 5(3) The reserve's council may amend, or replace with a new allocation, an allocation made by it or by the director. 5(4) Except as otherwise permitted by subsection (2), the director may amend an allocation only if (a) the allocation to be amended was made by the director; and (b) the director has not received a certified copy of a council resolution amending the director's allocation or replacing it with a new allocation. 5(5) As soon as practicable after the director makes the allocation or amendment, or receives a certified copy of the council resolution making the allocation or amendment, the director must notify each retailer whose refundable sales limit is affected by the allocation or amendment. The notice must state (a) the retailer's refundable sales limit; and (b) the effective date, which must be the first day of a calendar month; and must be served on the retailer at least one month before the effective date. 5(6) Despite subsection (5), to the extent that a retailer's refundable sales limit is temporarily increased because of a temporary increase under subsection 4(4) in the reserve's refundable sales limit, the director may apply the retailer's increase to the period to which the reserve's increase applies.