Two Lake Side Trading stores owned by the Cayuga Indian Nation have temporarily suspended operations pending a review of Tuesday's state Supreme Court decision that ruled the businesses could be investigated for felony tax evasion allegations.
Dan French, an attorney for the Cayugas, said the stores stopped all operations on Wednesday after he talked with the nation's leaders. The nation does not charge taxes on any purchases made at the store.
“The Cayuga Nation has always abided by the law, and the law seems to be in flux right now,” French said. “Until there is more clarity, we will temporarily suspend business.”
In a written decision, state Supreme Court Judge Kenneth Fisher rejected the nation's lawsuit against the district attorneys' and sheriffs' offices in Seneca and Cayuga counties. The nation claimed law enforcement illegally raided and searched their businesses in Seneca Falls and Union Springs on Nov. 25 because they were located on a reservation owned by a sovereign nation.
The tribe, along with other Indian nations in New York, have claimed they are exempt from collecting sales and excise taxes on their property because their businesses are protected by their sovereign nation status.
But Fisher said the tribe, while recognized as a sovereign nation, does not have a recognized reservation according to New York state's tax laws. He also said that an injunction on a part of the tax law only prevented the use of a coupon system to exempt American Indians from paying tax, and did not excuse the tribe from collecting taxes on transactions made by non-Indians.
Fisher cited the decisions of several U.S. and state Supreme Court rulings involving the Oneida and Cayuga nations as the basis for his decision.
French said the nation will appeal Fisher's ruling.
Meanwhile in Albany on Thursday, the state Assembly has sent Gov. David Paterson a bill requiring the collection of taxes on cigarettes at the wholesale level. The governor, who had asked the Assembly to keep the bill off his desk so he could negotiate with tribes, has 10 days to sign or veto the measure.
For the Cayugas, between the two stores, French said more than 30 employees are out of work, and that the nation will be losing a key source of income for its social programs.
“I am sure this will result in a hardship for the nation's programs,” French said. “The revenue wholly supported their health care, roads, homes and employment.”
Cayuga County Sheriff David Gould said the stores are allowed to sell taxed cigarettes.
“If they closed, it was not because we shut them down or told them they had to,” Gould said. “We have maintained that they can sell anything at their stores as long as they are taxed.”
But French said the nation had no intention of collecting excise or sales taxes.
“The Cayuga Nation is a sovereign nation that owns these stores within their reservation,” French said. “No nation, including the Cayuga Nation, has ever collected or administered sales tax, and no nation has ever been required to do so.”
Staff writer Nate Robson can be reached at 253-5311 ext. 248 or nathan.robson@lee.net
“The Cayuga Nation has always abided by the law, and the law seems to be in flux right now,” French said. “Until there is more clarity, we will temporarily suspend business.”
In a written decision, state Supreme Court Judge Kenneth Fisher rejected the nation's lawsuit against the district attorneys' and sheriffs' offices in Seneca and Cayuga counties. The nation claimed law enforcement illegally raided and searched their businesses in Seneca Falls and Union Springs on Nov. 25 because they were located on a reservation owned by a sovereign nation.
The tribe, along with other Indian nations in New York, have claimed they are exempt from collecting sales and excise taxes on their property because their businesses are protected by their sovereign nation status.
But Fisher said the tribe, while recognized as a sovereign nation, does not have a recognized reservation according to New York state's tax laws. He also said that an injunction on a part of the tax law only prevented the use of a coupon system to exempt American Indians from paying tax, and did not excuse the tribe from collecting taxes on transactions made by non-Indians.
Fisher cited the decisions of several U.S. and state Supreme Court rulings involving the Oneida and Cayuga nations as the basis for his decision.
French said the nation will appeal Fisher's ruling.
Meanwhile in Albany on Thursday, the state Assembly has sent Gov. David Paterson a bill requiring the collection of taxes on cigarettes at the wholesale level. The governor, who had asked the Assembly to keep the bill off his desk so he could negotiate with tribes, has 10 days to sign or veto the measure.
For the Cayugas, between the two stores, French said more than 30 employees are out of work, and that the nation will be losing a key source of income for its social programs.
“I am sure this will result in a hardship for the nation's programs,” French said. “The revenue wholly supported their health care, roads, homes and employment.”
Cayuga County Sheriff David Gould said the stores are allowed to sell taxed cigarettes.
“If they closed, it was not because we shut them down or told them they had to,” Gould said. “We have maintained that they can sell anything at their stores as long as they are taxed.”
But French said the nation had no intention of collecting excise or sales taxes.
“The Cayuga Nation is a sovereign nation that owns these stores within their reservation,” French said. “No nation, including the Cayuga Nation, has ever collected or administered sales tax, and no nation has ever been required to do so.”
Staff writer Nate Robson can be reached at 253-5311 ext. 248 or nathan.robson@lee.net
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Weedsport Civilian wrote on Dec 12, 2008 7:14 PM:
Think about it. The sheriff didn't tell the Indians to shut the stores down. THEY did it themselves on their won accord.
So you should be blaming the Indian Nation for being ousted from work right before Christmas if you indeed are an employee at one of the stores.
After all, they COULD have kept operating.
And having "x" times the amount of cigarettes legally allowed on the property wasn't a serious crime either I suppose? Get real!! What was the figure on that? Can someone remind "nomatterwhat"? In my recollection, it was WAAAAAAAAAAAAAAAAAAAAAAAAAAY too many!! "
nature lover wrote on Dec 12, 2008 6:56 PM:
localman wrote on Dec 12, 2008 5:10 PM:
What Roads are they talking about?? only state and county roads arount those two locations. "
nomatterwhat wrote on Dec 12, 2008 4:44 PM:
localman wrote on Dec 12, 2008 4:10 PM:
irritated wrote on Dec 12, 2008 10:31 AM: