To amend title 23, United States Code, to provide for collection and payment of State taxes imposed on motor fuel sold on Indian lands.

Prohibits the Secretary of Transportation from allocating funds for construction or maintenance of a public lands highway on Indian lands or any other Federal reservation or for an Indian reservation road unless the Secretary determines that: (1) the Indian tribe or Alaskan Native governmental entity with jurisdiction over the land upon which the highway or road is to be constructed has entered into a written agreement with the State in which such highway or road is to be constructed which provides for payment and collection of State motor fuel taxes on any motor fuel sold by a retail establishment located on such land; or (2) the Indian tribe or Alaskan Native governmental entity with jurisdiction refuses to enter into such an agreement and the allocation of such funds is necessary to the construction or maintenance of a highway or road that is a critical component of the National Highway System and is essential to the maintenance of interstate commerce.