Our View: BIA report neglects crucial sales tax impact

Sunday, June 21, 2009 12:04 AM EDT

The federal Bureau of Indian Affairs Draft Environmental Impact Statement on the Cayuga Indian Nation's of New York's application for trust status on roughly 130 acres of local land is woefully inadequate.
The report, which was the subject of a public hearing in Seneca Falls last week, is remarkable for the amount of detail it provides without actually touching on the most important information.

The massive document arrives at the conclusion that trust status for the tribe's land, which would make those properties exempt from local and state tax laws, would have a negligible impact on the local economy. In fact, it attempts to make the argument that the economy would expands by millions of dollars if the application is approved.

Amazingly, that conclusion comes with no analysis on how the Cayugas' ability to operate businesses without being subject to taxes or regulations would impact neighboring businesses. We already know the answer to that because we've seen retailers struggle in the past when the tribe was disregarding tax laws.

No where does the BIA report assess how much revenue competing businesses would lose, and how that would affect jobs as well as the local sales tax revenue streams that governments need to balance their budgets and provide services to taxpaying residents.

In fact, the only mention of sales tax impact in the document relates to the nation. The report says the Cayugas wouldn't be able to continue a scholarship program for its members if it is forced to collect sales taxes on cigarette purchases by non-Indian customers.

Pardon us if we're a little skeptical that profits from tax-free cigarette sales are the only way to sustain a scholarship program. But there's no doubt that giving the nation's businesses unfair advantages in the marketplace will hurt the local economy.

Before it does anything else, the BIA needs to go back and address this vital issue.

The Citizens' Say

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There are 2 comment(s)

Rezzdog wrote on Jun 22, 2009 11:26 AM:

" The column mistakenly says that Tribes with trust lands do not have to follow tax laws or zoning or environmental laws. Not true. Tribes must follow Federal laws and procedures and often times opt to draw up their own laws and regulations that often are more stringent than mere state laws and rules. And Tribal members do pay taxes and fees, to their own government. Double taxing tribal businesses is not fair or legal under federal law. "

daydreamer wrote on Jun 21, 2009 8:01 AM:

" I would assume that the millions upon millions of taxpayer dollars that was spent on promoting a smoke-free N.Y. was wasted on a failed program since businesses are still relying on taxes from cigs. to keep them afloat. Or is this issue continuously thrown in our faces to cover up the real issue of local-state government overtaxation of a business? "

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