The Citizen
The Cayuga Indian Nation of New York has offered to pick up the current legal tab for Cayuga and Seneca counties and to dismiss a pending multimillion dollar lawsuit against them if the counties agree not to appeal a state court's decision allowing the tribe to sell untaxed cigarettes.
Nation attorney Dan French said the offer was made Monday afternoon in light of Friday's Appellate Division decision, which stated the tribe does have a “qualified reservation” and that it cannot be charged with tax evasion since there is an injunction on the law meant to exempt tribes from paying cigarette taxes while still charging non-Indian customers.
“(The Nation) is concerned the counties will continue to fight, and if they lose, then the residents will be on the hook for thousands of dollars in legal fees and millions in damages,” French said. “We wanted to give the counties a graceful way out.”
In February, the nation filed paperwork in the state Supreme Court announcing its intent to sue the county for loss of property and a loss of business.
The tribe was originally seeking at least $500,000 to cover the loss of more than 3 million untaxed cigarettes seized from its Lake Side Trading stores on Nov. 25, 2008. The stores have not sold cigarettes since March 4 after the Appellate Division ordered the tribe to refrain from selling untaxed smokes until it released a decision.
The sheriff's offices in both counties raided the nation's stores in November to seize unstamped cigarettes and the district attorneys had argued the Cayugas could be charged with tax evasion.
While the tribe has offered to dismiss that pending lawsuit and to pay the counties' $180,000 legal bill, Cayuga County Legislator Ray Lockwood said a final decision on whether or not to accept the offer will be discussed during the Legislature's executive session scheduled for 5:30 p.m. today.
The Cayuga County District Attorney's Office needs the Legislature's permission to continue the case since legal fees are paid with county money, Lockwood said.
“I feel that we have to go for the appeal,” Lockwood said. “I am not ready to acknowledge they are a sovereign nation.
“If we drop the appeal, they will re-open their gaming halls, continue to sell tax free cigarettes and won't have to follow any local or state laws.”
Friday's decision overturned a lower court's ruling that the counties could pursue criminal charges because the Cayuga-owned Lake Side Trading convenience stores were not on a recognized reservation.
Cayuga County District Attorney Jon Budelmann said he believed the state Court of Appeals - the state's highest court - will rule against Friday's Appellate Division decision, but said it will ultimately be up to the county governments whether or not to push forward.
French said he was confident the tribe will win any future appeals, and that the counties have until 5 p.m. Friday to accept the nation's offer.
“The nation does not want to leave this as an open-ended proposition,” he said. “If the counties do not accept and do not win, the Cayuga Nation does not want to be in a position where it did not give the counties a chance to get out of this.”
Nation attorney Dan French said the offer was made Monday afternoon in light of Friday's Appellate Division decision, which stated the tribe does have a “qualified reservation” and that it cannot be charged with tax evasion since there is an injunction on the law meant to exempt tribes from paying cigarette taxes while still charging non-Indian customers.
“(The Nation) is concerned the counties will continue to fight, and if they lose, then the residents will be on the hook for thousands of dollars in legal fees and millions in damages,” French said. “We wanted to give the counties a graceful way out.”
In February, the nation filed paperwork in the state Supreme Court announcing its intent to sue the county for loss of property and a loss of business.
The tribe was originally seeking at least $500,000 to cover the loss of more than 3 million untaxed cigarettes seized from its Lake Side Trading stores on Nov. 25, 2008. The stores have not sold cigarettes since March 4 after the Appellate Division ordered the tribe to refrain from selling untaxed smokes until it released a decision.
The sheriff's offices in both counties raided the nation's stores in November to seize unstamped cigarettes and the district attorneys had argued the Cayugas could be charged with tax evasion.
While the tribe has offered to dismiss that pending lawsuit and to pay the counties' $180,000 legal bill, Cayuga County Legislator Ray Lockwood said a final decision on whether or not to accept the offer will be discussed during the Legislature's executive session scheduled for 5:30 p.m. today.
The Cayuga County District Attorney's Office needs the Legislature's permission to continue the case since legal fees are paid with county money, Lockwood said.
“I feel that we have to go for the appeal,” Lockwood said. “I am not ready to acknowledge they are a sovereign nation.
“If we drop the appeal, they will re-open their gaming halls, continue to sell tax free cigarettes and won't have to follow any local or state laws.”
Friday's decision overturned a lower court's ruling that the counties could pursue criminal charges because the Cayuga-owned Lake Side Trading convenience stores were not on a recognized reservation.
Cayuga County District Attorney Jon Budelmann said he believed the state Court of Appeals - the state's highest court - will rule against Friday's Appellate Division decision, but said it will ultimately be up to the county governments whether or not to push forward.
French said he was confident the tribe will win any future appeals, and that the counties have until 5 p.m. Friday to accept the nation's offer.
“The nation does not want to leave this as an open-ended proposition,” he said. “If the counties do not accept and do not win, the Cayuga Nation does not want to be in a position where it did not give the counties a chance to get out of this.”
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Post your comment - click hereThere are 14 comment(s)
Moonwillow wrote on Jul 15, 2009 4:18 AM:
States cannot directly tax a tribal government. The Supreme Court has held that state governments can collect excise taxes on sales to non-members that occur on tribal lands, so long as the tax does not fall directly on the tribal government. States and tribes have developed a variety of methods for collecting these taxes, which most often take the form of intergovernmental agreements or pre-taxing at the wholesale level.
Sp Patterson put into law the taxes coming out at wholesell level BUT..see below>
Murphy contended the legislation is not active because certain provisions including the issuance of coupons that would allow Indian retailers to sell untaxed cigarettes to tribal members while taxing other customers have not been met.
Now the state of NY may have made a law stating the wholesellers cannot sale unless those taxes are made
yet in the constitution it states any state law that contradicts aFederal law ..see first part of post..Federal law rules. "
tim5150 wrote on Jul 14, 2009 5:06 PM:
But I also believe that our state government is so corrupt and inadequate that good god knows where ANY of our money goes. Local government does a decent job, but still not up to par.
The proposal by the native Americans, although respectable considering the on-going battle, is a drop in the bucket of what they will gain. We are all in this mess together, we need to try to get out of it together, ALL of us. "
Farmer's Gal wrote on Jul 14, 2009 1:05 PM:
uscitizen wrote on Jul 14, 2009 12:58 PM:
Farmer's Gal wrote on Jul 14, 2009 11:36 AM:
Keep smoking, your choice --(you're free and over 21)-- it'll probably put you in an early grave. Then you can have one of your posts carved in the headstone to baffle future generations trying to puzzle out the meaning.
Meanwhile, we'll see what the DA decides to do. With all the local municipalities hurting in the current economy, I can see why they are not wanting to lose money this way, though daydreamer has one good point -- I would like to see some figures on the improvements to local businesses during the embargo period. That would certainly be a good support to the DA's case. "
auburn~sucks wrote on Jul 14, 2009 11:06 AM:
CVA62 wrote on Jul 14, 2009 9:31 AM:
a. If Auburn is such a bad place, go live in North Korea.
b. Since you claim to be "HAVE(?) INDIAN", does that mean you should pay only "HAVE" taxes?
c. Please proof read before you post. "
MR13160 wrote on Jul 14, 2009 9:16 AM:
Bottom line, the Cayugas have been paid and vacated the land 5 times. They have no claim to the land, and remember the Oneidas V Sherril...that was a UNITED STATES SUPREME COURT RULING.
You know, the one that says Indians cannot just buy land up and make reservations? Yeah thats the one.
Bottom line is they have no legitimate right to continue what they are doing.
The counties need to fight this tooth and nail.
NO SOVEREIGN NATION. "
daydreamer wrote on Jul 14, 2009 7:54 AM:
auburn~sucks wrote on Jul 14, 2009 7:35 AM:
3414 wrote on Jul 14, 2009 7:34 AM:
FormerCayugian wrote on Jul 14, 2009 7:28 AM:
Sepeterman wrote on Jul 14, 2009 7:24 AM:
dan w wrote on Jul 14, 2009 2:22 AM: