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Senate transportation panel backs excise-tax exemption for tribal government vehicles
Summary
The Senate Transportation Committee voted to give Senate Bill 2207 a due-pass recommendation. The bill would exempt federally recognized tribal governments from motor vehicle excise tax for vehicles titled to a tribe.
The Senate Transportation Committee voted to give Senate Bill 2207 a due-pass recommendation after testimony that the measure would align tax treatment for tribal governments with state and local governments.
Senator Dale Patent, sponsor and senator from District 26 of Watford City, told the committee, "This bill is essentially a cleanup bill." He said the bill would make tribal-government motor vehicle purchases subject to the same excise-tax treatment currently applied to state and local governments.
That alignment matters, supporters said, because current motor vehicle excise tax provisions are silent about tribal governments. Colette Brown, who identified herself as a district representative, told the committee the exemption would help tribal programs that purchase vehicles with tribal funds; she estimated Spirit Lake Nation might buy vehicles for five or six programs that do not qualify for federal funding and might purchase about two vehicles per program.
Representative Lisa Finley Deville, representing District 4A and Fort Berthold Reservation, urged passage for equity and practical access to services: "I support the passage of senate bill 2207 as it is vital to improving the economic opportunities and quality of life for enrolled tribal members," she said, adding that many reservation residents travel long distances for health care and employment.
Richard Marsley, a state senator who said his district includes Turtle Mountain and Spirit Lake, said tribal governments are "another government" and should receive parity with federal and state entities. Shannon Fleisher, associate director with the Office of the State Tax Commissioner, clarified a question from the committee about lottery prizes: she said the exemption in the bill applies when the lottery buys a vehicle to raffle; the individual who wins the vehicle would still pay tax when they register it.
Committee members asked procedural and scope questions during testimony. Several senators and witnesses clarified that the bill applies to vehicles titled to a tribal government (government-owned vehicles) rather than to private purchases by individual tribal members. Senators also noted that last session’s change already allows enrolled tribal members who live on a reservation to buy a vehicle tax-exempt anywhere in the state, so this bill is narrowly focused on vehicles owned by tribal governments.
After discussion, Senator Dean Rummel moved a due-pass recommendation; Senator Klein seconded. The roll call recorded votes in favor from Senators Hogan, Klein, Paulson, Rummel, Chairman Clemens and Vice Chair Corey (6 ayes; no no votes recorded). Senator Corey agreed to carry the bill.
The committee closed the hearing on SB 2207 after the vote and moved on to other agenda items.
Votes at a glance: Senate Bill 2207 — Motion: give a due-pass recommendation; Mover: Senator Dean Rummel; Second: Senator Klein; Roll call: Hogan — Aye, Klein — Aye, Paulson — Aye, Rummel — Aye, Chairman Clemens — Aye, Vice Chair Corey — Aye; Outcome: approved.
