The California Board of equalization issued its opinion in response to a request from "Stand Up For California," a group backed by small retailers who have complained that outlets on tribal reservations were able to undercut them at the pump because they are not paying state taxes.

 
Officials said that members of the Yakama tribe are subject to the same prepayment of sales and excise taxes when the fuel enters the state as every other importer, whether a tribal member or not.  Native Americans who reside on a reservation and purchase the fuel can apply for a refund of the prepaid part of the tax.  All other purchases, however, are subject to the full tax payment.

 
The BOE does not address whether the fuel must meet California air quality specs or what happens when fuel is imported through several reservations that span the Arizona-California border, although there are no major highways in those locations, according to the California Independent Oil Marketers Assn.  The firm doing the importing is said to be chartered under the bylaws of the Yakama tribe in Washington State.

"The BOE is working with Nevada officials to ensure enforcement of these taxes and to ensure that, with respect to state taxes on fuel, it is a level playing field for all suppliers and retailers of gasoline and diesel fuel," said Carole D. Johnston, a BOE tax specialist in the letter ruling.