The Minnesota Department of Revenue has tax agreements with each tribal government in the state except Prairie Island.
The 11 tribal governments in Minnesota and their locations are:
| Bois Forte |
Lake Vermillion |
|---|
| Fond du Lac |
Carlton and Duluth |
|---|
| Grand Portage |
Grand Portage |
|---|
| Lower Sioux |
Morton |
|---|
| Leech Lake |
Walker, Cass Lake and Deer River |
|---|
| Mille Lacs |
Hinckley and Onamia |
|---|
| Prairie Island |
Red Wing |
|---|
| Red Lake |
Red Lakes, Thief River Falls and Warroad |
|---|
| Shakopee |
Prior Lake |
|---|
| Upper Sioux |
Granite Falls |
|---|
| White Earth |
Mahnomen |
|---|
The tax agreements do not have expiration dates and either party can seek to amend or cancel it. The agreements allow the department to seek tribal government assistance with collecting debts and auditing the following:
- Sales and use tax
- Withholding tax
- Cigarette and tobacco tax
- Liquor tax
- Motor fuel excise tax
Income Tax Agreements
Tribal governments may also assist the department with collecting income tax.
American Indians who live on reservations may claim income from reservation sources (such as wages, gaming distributions or gambling) as exempt from Minnesota income tax. However, they must pay state income tax on any income derived from non-reservation sources.
Tribal members who live off the reservations must pay state income tax on all income, including any from reservation sources.
Non-tribal members must pay state income tax on all reservation source income, whether living on or off the reservation.
