(d) It shall be a defense to a violation of subsection 44-7.01(a) that the person making a sale reasonably relied on officially issued identification that shows the purchaser’s age and bears the purchaser’s signature and photograph. Legislative History - Adopted 12/04/07, Resolu 2008-071 Section 44-13 Levy and Assessment of the Tribal Cigarette Tax 44-13.01 Tribal Cigarette Tax–Levy. Beginning no later than the 1st date of the sale of cigarettes by Tribal Retailers or Tribally-Licensed Retailers after the effective date of the Agreement, the Tribe shall impose taxes, pursuant to the terms of this section, on all sales of cigarettes to all persons. Legislative History - Adopted 12/04/07, Resolu 2008-071 44-13.03 Tribal Cigarette Tax Rate. The Tribal cigarette tax rate shall be as follows: (a) For the first 36 months after the effective date of the Agreement (“phase-in period”), the tax rate shall equal no less than the sum of an amount equal to 80% of the State cigarette tax that is expressed in cents per cigarette, plus an amount determined pursuant to an agreed-upon formula under section 4.3.6 of the Agreement in lieu of state and local retail sales taxes. (b) The phase-in period may be reduced in accordance with subsection 7-8.02(d) of the Agreement. (c) No later than 36 months after the initial effective date of the Agreement, and subject to the phase-in period reduction under subsection 7-8.02(c) of the Agreement, the Tribal cigarette tax rate shall be no less than the sum of an amount equal to 100% of the state cigarette tax that is expressed in cents per cigarette, plus an amount determined pursuant to an agreed-upon formula under section 4.3.6 of the Agreement in lieu of state and local retail sales taxes. (d) If during any quarter the number of cartons of cigarettes, excluding those manufactured by the Spokane Tribe of Indians or its enterprises, that are sold at retail exceeds by at least 10% the quarterly average sales of the 6 months preceding the imposition of the Tribal cigarette tax, the 36month phase-in period shall be reduced by 3 months. These reductions shall be cumulative. (e) The quarterly average sales baseline shall be determined by the Auditor. (f) For the purposes of this provision: (g) “Quarter” means a 3-month period, each quarter immediately succeeding the next. The first quarter begins the first day of the first month the Tribal cigarette tax is imposed, if the imposition of the tax is on or before the 15th of the month, or begins the first day of the second month the Tribal cigarette tax is imposed, if the imposition of the tax is after the 15th of the month; and (h) The “quarterly average sales” means the sum of the retail sales made during the 2 quarters divided by 2. (i) During the term of the Agreement, upon any future increase in the state cigarette tax, state retail sales tax, or local retail sales tax, the Tribal tax on cigarettes shall increase by no less than 100% of the increase in the combined state and local tax rates; provided, however, that during the phase-in period the Tribal tax rate shall be set so that it is at least equal to 80% of the thencurrent combined state cigarette tax and an amount determined pursuant to an agreed-upon formula under section 4.3.6 of the Agreement in lieu of state and local retail sales taxes. (j) During the term of the Agreement, upon any future decrease in the state cigarette tax, state retail sales tax, or local retail sales tax, the Tribal tax on cigarettes may decrease to a minimum of no less than 100% of the combined state and local tax rates; provided, however, that during the phase-in period the Tribal tax rate shall be set so that it is at least equal to 80% of the thencurrent combined state cigarette tax and state and local sales tax, as reflected pursuant to an agreed-upon formula under section 4.3.6 of the Agreement in lieu of state and local retail sales taxes. Legislative History - Adopted 12/04/07, Resolu 2008-071 44-13.05 Cigarettes Manufactured by the Tribe or a Tribal Enterprise within Spokane Tribal Lands. All cigarettes manufactured by the Tribe or its enterprises upon Spokane Tribal lands that also are sold within Spokane Tribal Lands shall be exempt from the Tribal cigarette tax and from state cigarette taxes and state and local sales and use taxes. Legislative History - Adopted 12/04/07, Resolu 2008-071 390 Revised Spokane Law & Order Code, 5/14/2013

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