Re: NY State Taxation Issue - URGENT

Cindy B. (cbenedic@prairie.nodak.edu)
Tue, 7 May 1996 17:17:01 -0500 (CDT)


[ Since I announced that I would permit a discussion here on the NATIVE-L
mailing list to examine the issues raised by Cindy Benedict's postings
on the possible attempt to collect sales taxes by New York State on the
territory of the Six Nations reserve it has become clear that certain
aspects of the matter may be difficult to talk about without expressing
personal opinion, which has the potential to turn this discussion into
something other than what is appropriate for NATIVE-L. Therefore, I
have invited Sandy and Cindy and anyone else who wants to join in to
have a conversation about the broader issues on the NATCHAT list. Any-
one not now on that list who would like to join can do so via the Web
page at "http://www.fdl.cc.mn.us/natnet/" (select the "subscribe" option
on that page) or by sending "subscribe natchat Your Name" (where "Your
Name" is replaced by your own name) to "listserv@tamu.edu" The NATIVE-L
list will remain open for articles on this subject which simply state the
facts as anyone sees them - but to express an opinion, please use NATCHAT
instead. (I hope to make an electronic transcript of the dialogue from
that list available via the Web at its conclusion. I'll announce how to
get a copy of that transcript here at the time it becomes available.

--Gary ]

In reply to questions asked by NATIVE-L moderator Gary Trujillo
(gst@gnosys.svle.ma.us):

I've attempted to answer some of your questions. I hope this helps. I'm
only one person far from home and I invite other people curious or
knowledgable about this struggle to jump in.

> More specifically, are purchasers of goods and services on reservations
> within the boundaries of New York State supposed to be exempt from taxa-
> tion on their purchases, or not?

Yes they are exempt.

> If they are not exempt, do people operating businesses on the reservations
> recognize and accept that fact, and have they made any arrangements to
> collect tax in the case of non-exempt purchasers, or is their position that
> the matter is between the purchasers and New York State?

Consumers of Native businesses know they are not taxed...I have yet to
learn of one Native business that is collecting NY tax at this time. It's
been a long ongoing problem, and as Native businesses are getting bigger and
expanding their types of business to noncigarrette, non gas items. This
problem won't go away until NY stays out of the way of tribal enterprises
and lets private Native enterprises conduct their business. If there are
any merchants collecting taxes for NY they are probably doing so out of fear
from the tax folk of NY....

> If such is their position, have they offered any suggestions as to how the
> state can assert its authority to collect the tax owed it?

NY is not owed any tax.

> Cindy has said that Governor Pataki is preparing to violate solemn treaties.
> Perhaps she could tell us more about the provisions of these treaties with
> regard to the matter of taxation, and something of the history of this
> matter - whether it has been the subject of ongoing dispute historically or
> whether the present situation is without precedent.

I think I have tried in the previous writings..

> Are all Indian people in the state supporting the Six Nations in this
> struggle - and are people on the reservation unified in this matter, or
> are there recognizable factions?

I believe there is very much a majority - I have never heard of a
minority faction that supports this taxation issue. However there have
been numerous meeting about what to do in case NY tries to come onto the
reservations using the National Guard. I believe there is strong unity.
The rally in ALbany should prove the number of people that are trying to
fight this issue. I just wish I could get there and see our people
display their numbers. I know of people going that usually don't get
involved with issues that affect us. But this issue is one of the bigger
ones. I believe there is alot of NonNative support as well..Those folk I
think have been viewing the struggle of Natives for awhile. Their
motivations are their own and I wouldn't want to speculate on what
motivates them, but their support is unique.