Re: Indian Tax War in New York State

frye@smtplink.ipfw.indiana.edu
Wed, 18 Jun 1997 21:43:39 -0500


NEW YORK STATE TAXATION OF SIX NATIONS' PEOPLES:
Gray areas, surrounding issue, warrant standing on the side-lines

For the past two years, I have authored a web-site devoted to Native
American issues and it is always a difficult task to decide what should or
should not be published on my site. It is a serious responsibility to be
sure what one publishes and wishes to protest is legitimate and has been
thoroughly examined. Many people have questioned me, in the past, about
why I have not included some of the most popular and most publicized
issues at my site (i.e. Navajo-Hopi Land Dispute, New York State
Taxation of the Seneca Nation, etc...). The reasons for my restraint in
publishing certain issues, usually, boils down to these few things:
1. One-sided reports from unknown individuals. 2. Fraudulent and
overexaggerated claims (of course this is something that isn't apparent
at first, but is only revealed through diligent research and notetaking.
When I publish an issue, there can't be any gray areas or false accounts.
This would be irresponsible on my part.). 3. Many contradicting reports
from all sides of a conflict. 4. Motives, reasoning and justifiable
cause. These are very important in the determining factor of an issue's
inclusion on my site. What are the motives of each side of the conflict
and does each side have a sound reason for their involvement? What is to
be lost or gained by each side? Are the motives and reasoning for each
side's involvement justified?

If it is unclear to me whether or not a conflict is justified and/or the
motives seem to be out of sync and without good reasoning, I will not
publish the issue. Everything must be "clear-cut" and confirmed. I cannot
publish anything that I'm unsure of because it can do more harm than good
and my site would be nothing short of a "tabloid."

In this particular article, I'd like to express my views on the New York
State taxation issue. This has been a tedious and complex issue to work
over and an exhausting one as well. I will not go into the details of the
issue (you can probably find earlier reports from this forum or from the
Native-L mailing list or you can contact the Mohawk Nation Council of
Chiefs for their reports), but would rather explain why this issue should
be milled over very well before acting out in protest. As an Iroquois
descendent mixed-blood (non-enrolled), myself, it can be easy to be
reactionary and immediately leap to the aid of my fellow brothers and
sisters whenever a conflict such as this surfaces, but it is more
important to determine the validity of the conflict before I jump on any
bandwagon. I would encourage all others to be cautious as well whenever
you are asked to protest an issue. DO YOUR HOMEWORK FIRST! Never take
someone's word for the truth right off the get go; check it out. I have
received many contradictory reports on this one issue, all from the Indian
TERRITORIES in question and all from ENROLLED MEMBERS of the Nations in
question. Whenever I receive conflicting reports of this magnitude from
the Native peoples themselves, it is obvious that something is amiss and
it becomes difficult to know who to believe. But I would tend to believe
those who have nothing to gain by telling me the way they see things
rather than those who seem to have everything to gain on a personal level.
Oh... And YES! Contradictory to popular belief there are Natives out
there who will lie and cheat to accomplish their tasks and create havoc
(usually at the expense of the traditional people). Usually these tend to
be business oriented individuals who are more concerned about their own
wealth and power rather than the community, yet they use their enrolled
status as an empowerment to raise a conflict if their wealth is threatened
in any fashion or form. BUYER BEWARE!

I must admit that I weigh out in the middle of this conflict as I can see
some validity to all sides, but I also feel there are some important
issues, for those involved, to discuss before a proper and just resolution
to the conflict can occur. I feel that this conflict is best worked out
through negotiations with the State of New York rather than a Supreme
Court ruling. Why? A Supreme Court ruling can have serious unwanted
side-effects that will create a ripple-effect across the entire Nation and
can have some adverse affects for all parties. At least, through
negotiations, a settlement may be reached that can appease the needs of
all involved.

PROBLEMS FOR BOTH SIDES

>From my sources I have gathered a wealth of information on New York
State's motives and I find that the State's reasoning is valid, yet it's
actions are not. I feel it is understandable that New York wishes to
collect taxes on NON-IndianS who purchase tabacco products inside Indian
TERRITORY. Why? 1. Competition: Local businesses outside the
boundaries of Indian Territory (under New York jurisdiction) are at a loss
because of unfair competitive prices. All a non-Indian must do is step
over the line into Indian-territory to purchase tobacco products at a much
lower price (this includes non-Indian wholesalers!) thus hurting the
local economies surrounding Indian-territory. 2.Loss of State Revenues:

Due to the facts stated above (in number one), a non-Indian individual
or wholesaler purchasing tax-exempt tobacco products in Indian-territory
not only creates a loss to local outside business, but also creates a loss
in State revenues that would be normally gained if the non-Indian buyer
purchased outside the boundaries of Indian-territory. It is all too easy
for a non-Indian individual or wholesaler to take advantage of this
situation and New York business and New York State is losing out while
certain Indian businesses reap the rewards of such an advantage (one must
also remember that the RESERVATIONS do not gain any revenue from these
sales inside Indian TERRITORY...this is strictly all profit for the Indian
business owner. ) . Does anyone else see a problem here? I do.

After stating the above, do I feel that it is REASONABLE for New York
State to impose and/or enforce a State sales tax on the sale of tobacco
products within the boundaries of Indian-territory? ABSOLUTELY NOT! My
reason for this is immovable: IMPOSITION OF STATE TAXES ON A NATIVE
AMERICAN NATION VIOLATES THE INTEGRITY OF AND CHALLENGES THE SOVEREIGNTY
OF THE NATION IN QUESTION. Allow me to explain, since a Native Nation
enjoys Sovereignty equal to or above that of a State as MUST BE
RECOGNIZED, the imposition of taxes from a foreign sovereign nation (a
State) is ludicrous unless it is in agreement by both Nations involved.
To enforce a tax on a foreign nation would be indicative of dictatorial
rule (hey...who called this a democracy? ). There is no jurisdiction to
justify such an imposition. Heck didn't the U.S. fight a revolution to rid
themselves of taxation from a foreign crown. And, of course, because they
were taxed without representation. Is that what is reoccurring here? Where
are the Indian representatives to take up the case? I'm not sure what is
going on here because it is another GRAY area. I think I can offer a
good example of what WOULD NOT happen if it were two States rather than a
State and an Indian Nation. About twelve years ago, I lived in the state
of Tennessee and in Tennessee there were state sales taxes on food items
(yep...groceries!), but then there were no property taxes. At the present
time, I live in the State of Indiana and there is no sales tax on food
items, yet there ARE property taxes. For the sake of argument, let's say
that Indiana is adjacent to Tennessee and I'm a resident of Tennessee just
over the border of the two states (enjoying tax free property), yet, of
course, I choose to do all my grocery shopping at Krogers in Indiana
because I can save money because of the tax free status of food items
there. With this in mind, does Tennessee impose or try to impose a tax on
Indiana for sales to Tennessee residents? OF COURSE NOT! It would be
ridiculous to try to regulate such a course of action and, MOST
IMPORTANTLY, A STATE RESPECTS THE SOVEREIGNTY OF ANOTHER STATE.

CONCLUSION So here we are with two parties in conflict and both
have some faults and some legitimate complaints over the same thing. I
must put myself in the middle, it is a large GRAY area where I stand and
it is an uncomfortable place to be, but I assure you if the sovereignty of
the Seneca or Mohawk nations, in this conflict, is undermined or
challenged by a State imposition and enforcement of taxes, you can
definitely bet you'll find a front page protest at my web-site. But until
then, hopefully, all parties can come to an agreement and fair resolution
to this conflict. A resolution that is not intended to undermine the
sovereignty of any nation but to equalize a valid economic problem.

Thank You,

Will Frye Keihan's Native American Issues
http://tuscaroras.com/keihan/