If you timely accept a completed exemption certificate from an Indian purchaser in good faith, BOE staff should not question your acceptance of the certificate. However, if you have evidence or knowledge that the Indian may not live in Indian country, you should not accept an exemption certificate unless the Indian purchaser provides you with other reliable documentation to verify residency in Indian country.
A mailing address outside Indian country or the same address used by numerous Indians may cause you to ques- tion the validity of an exemption certificate. Many Indians residing in Indian country maintain post office boxes at locations outside Indian country. Other reservations may only have a single mailing address on the reservation that is shared by Indians on the reservation. Provided the property is in fact delivered to an Indian in Indian country that resides in Indian country, the exemption still applies. However, if delivery of the property is made to the “off-reser- vation” Post Office Box, the exemption does not apply. If you have reason to question the validity of an exemption certificate, you should obtain additional documentation to support the exempt sale.
A retailer’s records should include documents to support the basis for a claim that a particular sale was exempt from tax. You should retain exemption certificates and any other supporting documentation you obtain to support claimed exempt sales for at least four years.
SALES TO AMERICAN INDIANS AND SALES IN INDIAN COUNTRY