Posted on 12/06/2005 12:05:57 PM PST by NormsRevenge
WASHINGTON - The Supreme Court on Tuesday ruled that states have the power to tax fuel sold on Indian reservations.
In a 7-2 vote, the high court said Kansas can tax distributors who sell fuel at an Indian-owned and operated gas station near the Prairie Band Potawatomi tribe's casino. Most of the Nation Station's fuel customers are patrons of the casino, which is 15 miles north of Topeka, Kan.
Writing for the majority, Justice Clarence Thomas said the Denver-based 10th U.S. Circuit Court of Appeals was wrong in ruling that the tax violated tribal sovereignty.
"Kansas law makes clear that it is the distributor, rather than the retailer, that is liable to pay the motor fuel tax," Thomas wrote. "While the distributors are 'entitled' to pass along the cost of the tax to downstream purchasers ... they are not required to do so."
The tribe had argued that it already collects taxes on fuel to pay for maintaining the reservation's roads, which are among the worst in the nation.
Justices Ruth Bader Ginsburg and Anthony M. Kennedy dissented, arguing that the fuel is "effectively double-taxed" and may force the tribe's gas station to operate at a deficit or go out of business.
Ginsburg also said Kansas is not gaining much through the tax — about $300,000 annually. But, in doing so, she wrote, the state is preventing the tribe from imposing its own tax.
The case is Wagnon v. Prairie Band Potawatomi Nation, 04-631.
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On the Net:
Supreme Court: http://www.supremecourtus.gov
Don't know a thing about it, but if Ginsburg is against it then I am all for it!
Ain't that the truth!!
Not so fast. Gas isn't the only thing available for sale on reservations. I wonder what the next item of taxation will be?
The Potawatomi were complaining that this prevented them from also taxing the gas, since it raised the price on the reservation.
A weak argument.
In NY...They tried to make a deal with the indians to get them to raise their price (call it an Indian Tax) so that retailers around NY wouldn't lose business.
Heh. Our public officials are always looking out for the 'public' interest, aren't they?
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