Wash. state high court OKs gas tax challenge
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YAKIMA, Wash. (AP) - A lawsuit challenging Washington state's gas tax compacts with American Indian tribes may proceed even though the tribes are not party to the lawsuit, the state Supreme Court ruled Thursday.
Washington state has long argued that it is barred by federal law from taxing tribes and tribal members on reservations for motor vehicle fuel, and has instead entered into agreements with tribes to mitigate those taxes. Under most of the deals, the state refunds 75 percent of its taxes on fuel purchased by the tribes or tribal retailers, and the tribes agree to spend the money on roads.
The Automotive United Trades Organization, a trade group representing Washington gasoline and automotive service retailers, claims the compacts give tribal retailers an unfair advantage and allows them to undercut prices offered by neighboring nontribal retailers.
The group filed suit last year in Grays Harbor County Superior Court to have the compacts declared unconstitutional and to seek an order barring the state from making payments from its motor vehicle fund to the tribes.
The state argued that the station owners could not sue without including the tribes, and since the station owners could not sue the tribes, which are sovereign nations, they could not sue anyone. The judge agreed and dismissed the case.
In a 5-4 decision, the Supreme Court overturned that ruling, saying that complete justice may not be served when the plaintiff is divested of all relief because an absent party is a sovereign entity.
"In such an instance, the quest for 'complete justice' ironically leads to none at all," Justice Debra L. Stephens wrote for the majority. "Sovereign immunity is meant to be raised as a shield by the tribe, not wielded as a sword by the State."
In the dissenting opinion, Justice Mary E. Fairhurst wrote that a judgment rendered in the tribes' absence will prejudice their interest in the compacts. Such a judgment will weaken tribes' ability to negotiate for future contracts and impede their sovereign right to govern their reservations, she said.
"This case cannot proceed 'in equity and good conscience,'" Fairhurst wrote. "The tribes' substantial interests far outweigh AUTO's much weaker interest in litigating its claim."
Washington state has long argued that it is barred by federal law from taxing tribes and tribal members on reservations for motor vehicle fuel, and has instead entered into agreements with tribes to mitigate those taxes. Under most of the deals, the state refunds 75 percent of its taxes on fuel purchased by the tribes or tribal retailers, and the tribes agree to spend the money on roads.
The Automotive United Trades Organization, a trade group representing Washington gasoline and automotive service retailers, claims the compacts give tribal retailers an unfair advantage and allows them to undercut prices offered by neighboring nontribal retailers.
The group filed suit last year in Grays Harbor County Superior Court to have the compacts declared unconstitutional and to seek an order barring the state from making payments from its motor vehicle fund to the tribes.
The state argued that the station owners could not sue without including the tribes, and since the station owners could not sue the tribes, which are sovereign nations, they could not sue anyone. The judge agreed and dismissed the case.
In a 5-4 decision, the Supreme Court overturned that ruling, saying that complete justice may not be served when the plaintiff is divested of all relief because an absent party is a sovereign entity.
"In such an instance, the quest for 'complete justice' ironically leads to none at all," Justice Debra L. Stephens wrote for the majority. "Sovereign immunity is meant to be raised as a shield by the tribe, not wielded as a sword by the State."
In the dissenting opinion, Justice Mary E. Fairhurst wrote that a judgment rendered in the tribes' absence will prejudice their interest in the compacts. Such a judgment will weaken tribes' ability to negotiate for future contracts and impede their sovereign right to govern their reservations, she said.
"This case cannot proceed 'in equity and good conscience,'" Fairhurst wrote. "The tribes' substantial interests far outweigh AUTO's much weaker interest in litigating its claim."
Both my wife and I are tribal members, but both of us believe that there should be no tax exemptions, no special fishing rights, no special gaming rights, no gas tax refunds. All of this money that is diverted from the state goes back to the members in the form of a CAPA check. These check are very large and makes it so our people donât want/ have to work. Our tribal governments are destroying our people by making them dependent on a hand out. Iâm sure that there are a ton of you that would love to get 80k a year for not doing anything. Its time sovereign lands and tax breaks come to an end. Sorry to tell the truth, but it needs to happen before our people are hopelessly destroyed.
 @Kodiak I'm part native american and find myself feeling the same way.Â
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Sadly, this isn't just happening with tribes - it's happening all over the country. Â Our government is rewarding people for not working by way of giving them more money for NOT working than a person can make at a job. Â I believe that this is contributing to the skyrocketing unemployment.Â
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The things that made America great was people willing to go out and create something out of nothing and work their tails off to have a better life. Â The socialism is slowly, but surely killing that spirit.
I like your post very much and also the one by Kodiak. Americans used to be a proud and self suficient people and it is sad what we are becoming because of the policies our government employees. A hand up for those willing to help themselves not a cradle to grave entitlement for contributing nothing.
If the state does not maintain reservation roads, why not just charge a smaller tax for those gas stations on Indian reservations so that they can continue to maintain their roads on their private land but still contribute a small amount of tax go to the state for neighboring roads next to the reservations.
@Tattooed_Angel
The problem is much bigger than you know. I am a tribal member as is my wife, and this tax refund is being misspent by the tribes. Iâd be all for it if the money actually went back into reservation infrastructure, but thatâs not how it works. Those projects come about through federal grants to the tribes. Yeah the tribe kicks in a couple bucks, but they donât pay for the whole project. The system is broken and it only hurts our people. The tribes need to wake up and see this because its happening right here and now.Â
This is why no trusts the state politicians regarding taxing and why every other year the 2/3rd requirement to raise taxes is passed. There is no accountability by the politicians and they'll spend money like it was free money.
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First, the 75% refund is not related to anything. It's an arbitrary number. There is no proof that 75% of the sales by tribal gas stations are bought by tribal members. If you look at some of the locations of the tribally owned gas stations, their sales are nearly 100% to non-tribal members. Hence, it's a tax on Washington citizens where the money goes directly to tribes.
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Second, the problem is easily solved. I've noticed at some tribal gas stations, tribal members can swipe a tribal card and either get a discount or points. It would be easier to tag onto that system. If you are a tribal member and you swipe the card, then you don't pay the state tax. Accurate numbers can be obtain in this way, instead of the fuzzy math employed by the politicians in Olympia.Â
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The long and short of it is, that the 75% refund is arbitrary, unsupported by facts, and the program is largely unsupervised. Tax dollars, paid by Washington citizens, is being illegally funneled to tribal nations.Â
@GeorgeG. 75% is an arbitrary number? You need to say 75% of the tax collected. Washington pays about 56 cents on a gallon of gas and 75% of that number is refunded back to the tribe.
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Regardless what they sell a gallon gas for- they collect the 56 pennys and hand it ober to the state like all non tribal stations. The arguement is, part of the refund is us to cut the price of gas and attracting more customers.
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To say "Tax dollars, paid by Washington citizens, is being illegally funneled to tribal nations." is just a lie. You could simply make your point that the tribes have an unfair pricing advantage but they are still pay ing the require tax and may not be using it on roads like they should. That in it's self is wrong and why the The Automotive United Trades Organization is suing.
 @GeorgeG. So are you saying they have to provide ID to prove they are Native American? Somehow that doesn't sound legal... (LOL)
no different than an Oregonian showing an Oregon drivers license to avoid paying WA sales tax.
Beyond this, in the vein of sovereignty and immunity from lawsuits on the part of the Tribes, be very careful about going onto the reservations. Why? Police forces with leterally no oversight, and very relaxed standards, to the point that there are a number of tribes in the area that have Officers on the street that cannot pass a basic academy, and some that can't pass a background investigation. Example, if XYZ City/County/State Police Agency does something underhanded, you have recourse. No so with a tribal PD. I know this from years of working as a real LEO next to and near a couple of reservations, and having a wife that was an Officer for 2 tribes...
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Tribal sovereignty needs to go away. It does nobody any good. Â
If the state is required to maintain the roads on tribal lands then they should contribute those fuel taxes to the state for the service. In the same note the tribal members use state roads for their commerce and pleasure so they should also contribute to their maintenance. This giveaway is for the birds and only throws the load for repairs and maintenance on the backs of us.Â
@LongBeachBum The state is not required to do anything on tribal lands the tribal land is a nation un to itself. Gov Gargoyle wanted the tax money. the tribes have zero taxes for fuel. and so it can sell fuel at a very nice cut throat price ans zero ethanol in it.
 @wynooheeman  @LongBeachBum Does the state do any maintenance on reservation roads? How about state roads that pass through reservations?
@LockesChild @wynooheeman @LongBeachBum Yes they actually do. Using Tulalip and and example Marine drive is concidered a hwy. The try does not maintain that road. More posted above.Â
What a bunch for crybabies. Just because someone can sell their gas for $0.10 to$0.15 per Galion less than you, you have to make a big twisted political story out of it. Drop your prices on a gallon of gas and become competitive.
I can certainly tell you know nothing about the operating of a gas station. The profit margins and the overhead. Have you ever wondered why there are very few stations anymore that sell only gasoline? Most have a convenience store or auto maintenance attached....there's a reason.
Certainly nothing narrow minded about that statement...
Actually do you realize, that gas stations make barely any profit on selling gas? Maybe 4 cents per gallon? The price per gallon is almost the same as what they buy it from distributors and oil companies. So your suggestion that they should drop it and be competitive is a fallacy.
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Tribal stations are maybe ten cents less, because they pay little or no tax to the state, as the article suggests. Im sure it took you no time to come up with your theory though; its obvious there was little or no thought put to it
@DDG You might not feel that way if you owned a gas station next to a tribal one and they are selling gas cheaper than you can buy it. The other component is whether or not the tribes are using that money on their own roads.
In my humble opinion, this back-room deal making is very unfair. Â
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If the tribes aren't obligated to pay these taxes, they should simply tell the government to get lost without this "rebate" crap. Â Then make them 100% responsible for ALL of their roads. Â
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If they want the benefits of state DOT taking care of their roads, then they need to pay the taxes just like everyone else.
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Any deal making outside of these two options isn't right. Â
You are so correct. The Tribes cant have it both ways. Besides @ their Casinos most of us are losing our A** so they are getting plenty of $$$ from the taxpayers with NO BENEFIT TO US.Â
This is good news....one might wonder what the "donation" was to State Democrats when the DState made the deal....It was not enough $$ when Chris mad the compact not not collect $$ when the gambling deal was made, so overturning the back room deal would be good for us all.
@Sydthepiper Today the gas stations. Tomorrow the casino's.
How about we disolve the indian tribes as Sovereign nations? They can act as local governments still, but within the laws that govern the rest of the United States. I know this sounds bad, but it'll also include the proper allocation for public education, grants, relief aid, ect.
 @Jalharad Absolutely! The time for the Native Americans to become fully assimilated as American citizens is long overdue.
 @Furd  @Jalharad Agreed
The indians shouldn't make any agreement with the state for gas taxes or anything else. If they collect any taxes ALL of it should go directly to the indian reservations that collected the tax.
 @Blindman Taxes should go to the state that the resident belongs to. Just like if a resident of WA purchases something in OR, they are technically supposed to claim the purchase on their taxes.
Native Amerikans are not residents of the state. They are sovereign citizens of the US. They do not have to abide by any state laws only federal laws. They just need to quit buckling under to our state government and sell whatever they want and keep the profits to help there own people. @keeper  @Blindman
 @Blindman  @keeper ...and your screen name is perfect...you ARE blind, or is that blinded by ignorance? By your post(s), I'll go with the latter.
@Blindman@keeper
Tribal-State Compacts are declared necessary for any Class III gaming on reservations under the Indian Gaming Regulatory Act of 1988 (IGRA). They were designed to allow tribal and state governments to come to a "business" agreement
 @Blindman .....NO! ALL the taxes collected go to the State, just like the gas taxes outside the reservations....might just dry up a few of the tears of poverty cried by Chrissy form the throne room.