North Dakota bill would allow tribes to levy state sales tax

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BISMARCK, N.D. (AP) - A newly released draft legislative bill sets the framework for American Indian tribes in North Dakota to levy state sales taxes on their reservations and keep a share of the collections.

State Tax Commissioner Ryan Rauschenberger says the legislation comes largely in response to tribes' concerns about dwindling federal dollars.

It also comes after Three Affiliated tribal officials doubled taxes on non-American Indian retail businesses that sell liquor - leading some to halt sales.

The draft legislation would forbid tribal governments that reach an accord with the state on sales tax collections to impose such taxes.

The bill is the work of the Legislature's newly formed Tribal Taxation Issues Committee, headed by Gov. Doug Burgum (R-N.D.). The Republican governor called the draft legislation "a good starting point for conversation."