VERONA - Lawyers for two upstate New York counties will argue Tuesday before a federal appeals court that the counties should be able to seize land from the Oneida Indian Nation if the tribe doesn't pay its property taxes.

U.S. District Judge David Hurd incorrectly applied a U.S. Supreme Court case when he ruled for the Oneidas in 2005, according to attorneys for Madison and Oneida counties, who will appear Tuesday before the 2nd U.S. Circuit Court of Appeals in New York City.

In a ruling in October 2005, Hurd said although the counties could impose property taxes on the Oneidas, they could not foreclose on nation land because of the Oneida's sovereignty as an Indian tribe under federal law.

County officials argue that Hurd contradicted a ruling rendered earlier in 2005 by the U.S. Supreme Court in a case involving the city of Sherrill, in which the high court ruled that former reservation lands reacquired by the tribe were not exempt from taxes or local laws.

“We believe Judge Hurd has misinterpreted the decision of the Supreme Court in a fairly dramatic fashion,” said Madison County Attorney John Campanie.

Using its casino profits, the Oneidas have reacquired approximately 17,370 acres of land in the two counties.

The tribe owes about $50 million in unpaid property taxes, according to the counties, which first started foreclosure proceedings against the Oneidas in 1999.

The Oneidas have relied on Hurd's decision to maintain that their land is exempt from taxes and state and local law.

A victory for the counties could allow them to seize Oneida nation land if the property taxes aren't paid and give them leverage in enforcing state and local laws on nation land.

Nation spokesman Mark Emery declined comment.