701—18.30 (422) Taxation of American Indians.
	 18.30(1) Definitions.
“American Indians” means all persons of Indian descent who are members of any recognized tribe.
“Settlement” means all lands within the boundaries of the Mesquakie Indian settlement located in Tama County, Iowa and any other recognized Indian settlement or reservation within the boundaries of the state of Iowa.
	 18.30(2)  Retail sales tax—tangible personal property. Retail sales of tangible personal property made on a recognized settlement or reservation to Indians who are members of the tribe located on that settlement or reservation, where delivery occurs on the reservation, are exempt from tax (Bryan v.	Itasca County, 426 U.S. 373, 376-77 (1976); Moe v.	Confederated Salish & Kootenai Tribes, 425 U.S. 463, 475-81 (1976)). Retail sales of tangible personal property made on a recognized settlement or reservation to Indians where delivery occurs off the reservation are subject to tax. Retail sales of tangible personal property made to non-Indians on a recognized settlement or reservation are subject to tax regardless of where the delivery occurs. Sales made to non-Indians are taxable even though the seller may be a member of a recognized settlement or reservation.
	 18.30(3) Retail sales tax—services. Sales of enumerated taxable services and sales made by municipal corporations furnishing gas, electricity, water, heat, or communication services to Indians who are members of the tribe located on the recognized settlement or reservation where delivery of the service occurs are exempt from tax (Bryan v.	Itasca County, 426 U.S. 373, 376-77 (1976); Moe v.	Confederated Salish & Kootenai Tribes, 425 U.S. 463, 475-81 (1976)). Sales of enumerated taxable services or sales made by municipal corporations furnishing gas, electricity, water, heat, or communication services to Indians where delivery of the services occurs off a recognized settlement or reservation are subject to tax.
	 18.30(4) Off-reservation purchases. Purchases made by Indians off a recognized settlement or reservation are subject to tax if delivery occurs off the reservation. Purchases made by Indians off a recognized settlement or reservation are not subject to tax if delivery is made on the reservation to Indians who are members of the tribe located on that reservation.
See rule 701—33.5(423) for the taxation of tangible personal property and services where the state use tax may be applicable.
This rule is intended to implement Iowa Code sections 422.42, 422.43, and 422.45(1).