Our View: Land trust impact needs more attention

Wednesday, May 21, 2008 11:41 AM EDT

The federal government's decision to place 13,000 of acres of land into trust for the Oneida Indian Nation isn't just bad news for municipalities in Oneida and Madison counties, because it may be a sign of things to come here in Cayuga County.
The Oneidas had applied to have more than 17,000 acres put into trust, arguing that it should be allowed to recoup a native homeland.

But much of the land involved is not historic Indian land, but lands purchased on the open market in recent years, and the trust distinction makes the land exempt not only from state and local taxes but also from state and local laws, such as the ones restricting gambling or requiring that taxes be collected on sales of gasoline and cigarettes.

The federal government is downplaying the impact this decision will have on the local municipalities. The ruling means that Oneida and Madison counties will each lose more than $2 million a year in property taxes, but the government insists there will be a “net benefit” in state and local revenue when the wealth being paid out to employees of the Turning Stone Casino and other tribal businesses is factored in.

The Cayuga Indian Nation has also bought local land and in recent years and has also applied to have all of its holdings placed in trust in a land claim involving thousands of acres in Cayuga and Seneca counties.

The Nation currently owns about 12.5 percent of the land that makes up the village of Union Springs, and the potential loss of that taxable property would be a huge hit there.

While it may now be inevitable that some portion of Cayuga Nation lands will be put into trust, our state and local leaders need to press the federal government to consider the impact its decision will have on local municipalities and local taxpayers.

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