The Western District of Washington denied a motion for a preliminary injunction brought by the Confederated Tribes of the Chehalis Reservation to prevent Thurston County, Washington from taxing a business (a Great Wolf Lodge) jointly owned by a non-native corporation and the tribes.
indian taxation
NYTs: New York Complains about Tribal Smokeshops
From the NYTs:
He emerged from the No. 2 subway at 125th Street wearing a bright orange shirt and aviator sunglasses, with a small backpack concealing his stock in trade — tax-free Newport cigarettes.
Like a Yankee Stadium hawker, but in voice closer to a stage whisper, he kept repeating his pitch: “Newports. Loosies. Shorts. Longs.”
His name is Paco, but on the streets of Harlem he is known simply as a “$5 man,” the nickname for a highly visible network of peddlers who sell bootleg cigarettes. His illegal traffic in Newports — $5 a pack or a single “loosie” cigarette for 50 cents — can bring him $100 or more a day.
Paco will not reveal his last name or the source of his Newports, the menthol brand widely popular in urban communities. But legal authorities say the trail of the $5 men leads to American Indian reservations in New York State, a path they contend is smoothed by the tacit cooperation of some cigarette makers and distributors.
Mashantucket Pequot Not Required to Disclose Financials to Conn. Town
In an ongoing case where the Mashantucket Pequot Nation is seeking relief from local taxation of slot machines leased by the tribe from non-Indians, the district court rejected the Town of Ledyard’s motion to compel discovery of the Nation’s entire financial records.
Yakama v. Gregoire TRO Against State Tax Law Enforcement
The Eastern District of Washington issued a TRO at the behest of the Yakama Indian Nation preventing the State of Washington from enforcing its tobacco tax laws against the Nation on Sept. 12. Here are the materials:
Collecting State Taxes in Indian Country
As usual, there is interest in New York in collecting taxes likely owed in accordance with the Milhelm Attea case (see article here). The St. Regis Mohawk leadership, however, suggests:
“This bill, like similar legislation proposed before it, will harm the Northern New York economy, not help it,” said Chief James W. Ransom, citing a 2003 study performed by Regional Economic Models Inc. “The economic impact could be greater than $2 million per year.”
“We already collect fees from tribal businesses that would be harmed by this legislation and that will hurt our ability to deliver essential governmental services,” said Chief Barbara A. Lazore. “It will also result in a loss of jobs that no one in the state is even considering.”
This is the problem that Supreme Court Indian tax cases have created. Indian tribes and Indian people try to develop their economies and tax base, and the state can — at any time it wishes — destroy that economy merely by imposing taxes.
False Advertising Claim against Tribal Smokeshop
In Gristede Foods v. Unkechauge Nation/Shinnecock Trading Post, the district court refused to dismiss a Lanham Act claim against a tribal retailer. The plaintiff alleges that the retailer promised tax-free sales, but didn’t deliver. This is the second motion to dismiss denied by the court.
Kemp v. Osage Nation Cert Opposition Brief
This case, which I suspect has a fairly good chance of being granted, involves the Osage Nation’s successful suit against the Oklahoma Tax Commission to declare its Indian Country boundaries. The cert petition post is here, which includes the lower court decision and the relevant briefs. Here is the opposition brief.
Senate Finance Committee Hearing — Witness Statements
Senate Finance Committee Hearing on Tribal Tax Policy
Go Del!
From Indianz:
The Senate Finance Committee will hold a hearing on Tuesday, July 22, to address tax policy in Indian Country.
Sen. Max Baucus (D-Montana), the chairman of the committee, said the hearing will address three specific issues: the Indian Employment Tax Credit, the tax-exempt bonds for tribal governments and accelerated depreciation for tribes. Witnesses at the hearing include Dante Desiderio, an economic development specialist for the National Congress of American Indians; Del Laverdure, the chief counsel for the Crow Tribe of Montana; and Wayne A. Shammel, the general counsel of Cow Creek Band of Umpqua Tribe of Indians in Oregon. The hearing takes place at 10am in Room 215 of the : Senate Dirksen Office Building.
Committee Notice:
Indian Governments and the Tax Code: Maximizing Tax Incentives for Economic Development (July 22, 2008 )
Matheson v. Gregoire Cert Petition
The questions presented are:
Whether the State of Washington Cigarette Tax laws are federally preempted and inapplicable to an American Indian motor carrier hauling cigarettes between Indian reservations in Interstate and Indian Commerce.
Whether the laws of the State of Washington can regulate an enrolled tribal Indian shipping goods between a federally recognized Indian Reservation in Idaho to his business on the reservation of his membership located in the State of Washington.
Turtle Talk 
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