Tax and Revenue Administration Alberta Indian Tax Exemption Program Information Circular AITE-1R3

AITE-1R3 / June 2006

NOTE: This Information Circular is intended to explain legislation and provide specific information. Every effort has been made to ensure the contents are accurate. However, if a discrepancy should occur in interpretation between this Information Circular and governing legislation, the legislation takes precedence.

This series of information circulars is intended for the use of:

• Indians and Indian bands that may be eligible for the AITE;
• retailers who may be eligible to sell tobacco products or fuel exempt from Alberta tax to eligible Indian consumers;
• operators that provide accommodation on Indian reserves to eligible Indian consumers; and
• tobacco wholesalers and fuel suppliers who provide products to registered retailers making tax exempt sales to eligible Indian consumers.

This information circular provides an overview of the AITE program. The topics include:

• Introduction to the AITE Series of Information Circulars
• The Alberta Indian Tax Exemption Program
• Establishing Eligibility for the Alberta Indian Tax Exemption
• Providing the Alberta Indian Tax Exemption

1. Eligible Indian consumers are exempt from payment of Alberta tax on:
   
   
   • fuel and tobacco products purchased on Indian reserves in Alberta, including fuel delivered onto Indian reserves by bulk fuel dealers; or
   • the Alberta tourism levy when accommodation is purchased on a reserve for the use of an eligible Indian consumer.
     
     
2. An eligible Indian consumer may be one of the following:
   
   
   • an Indian, as defined by the Indian Act (Canada), who is 16 years of age or older;
   • an Indian band, as defined by the Indian Act (Canada), whose reserve is partially or totally located in Alberta; or
   • an Indian band whose band office is located in Alberta.

No incorporated entity is eligible for the Alberta Indian tax exemption.

3. Under federal law, tobacco products cannot be sold to anyone under 18 years of age. Therefore, eligible Indian consumers under 18 cannot take advantage of the exemption from tax on tobacco.

4. An eligible Indian consumer must prove eligibility when making tax-exempt purchases. An AITE card, presented at the time of the tax-exempt purchase, shows the retailer that the fuel, tobacco or accommodation may be sold to the cardholder tax-exempt. Tax-exempt purchases of:
   
   
   • fuel or tobacco can only be made from a retailer located on an Indian reserve and registered with Alberta Finance, Tax and Revenue Administration (TRA) to sell the products tax-exempt;
   • fuel delivered to an Indian or Indian band can only be provided by a bulk dealer registered with TRA to sell the product tax-exempt; and
   • accommodation can only be obtained tax-exempt if the accommodation is located on a reserve and purchased for the use of an eligible Indian consumer.
     
     
5. An AITE card can be either a card obtained by an Indian or Indian band from TRA or a card issued by the Treaty 7 Tribal Council. Applications for an AITE card are available from TRA. The Certificate of Indian Status card, issued by Indian and Northern Affairs Canada cannot be used to obtain AITE benefits at this time.
   
   
6. For more details about rules and procedures to be followed by eligible Indian consumers, see Circular AITE-2, “Tax Exempt Purchases Made by Indians and Indian Bands”.

Providing the Alberta Indian Tax Exemption