California CDTFA Issues Publication on Sales and Use Tax Exemptions for Transactions in Native American Territories

The California Department of Tax and Fee Administration (CDTFA) issued a publication providing guidance on the application of sales and use tax to transactions occurring in Native American territories, involving Native Americans and non-Native Americans. The guidance clarifies that certain on-reservation sales to Native Americans and other transactions in Native American territories may be exempt from California sales or use tax due to the inherent sovereignty of Native American tribes. However, there is no general sales tax exemption for all sales to Native Americans. The publication also explains when sales or use tax applies based on factors such as the ...