ITG FAQ #5 Answer-Do Indian tribal governments have any obligations for leaking underground storage tanks in terms of federal taxes?

If the tribal government uses any applicable fuels purchased for essential governmental purposes, there is no obligation for taxes on leaking underground storage tanks. Internal Revenue Code section 4041(g)(3) states "with respect to the sale of any liquid for the exclusive use of any state, any political subdivision of a state, or the District of Columbia, or with respect to the use by any of the foregoing of any liquid as a fuel that no tax shall be imposed by this section, as it relates to the additional taxes to fund the Leaking Underground Storage Tank Trust Fund". This includes Indian tribes.

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