Yakama Tribe Owes $11 Million in Unpaid Gasoline Taxes

Washington State claims that the tribe is not upholding its end of a 75-25 split on gas taxes collected from reservation fueling stations.

May 25, 2011

SEATTLE - Washington State wants the Yakama Tribe to fork over $11 million in unpaid gasoline taxes, KOMO-TV reports. Native American gasoline stations receive gas tax refunds from the state as part of a court settlement that gave the tribes 75 percent of the gasoline tax revenue and 25 percent to the state.

State officials claim that the Yakamas ?" which received $32 million in gasoline tax refunds in 2010 ?" have not given the state its share. "I would respectfully disagree with the people that contend we have to pay that tax, because as I alluded to earlier, there are some provisions in our treaty of 1855 that exclude us from those types of things," said Harry Smiskin, the Yakama Tribal chairman.

The Washington Department of Licensing sent a letter to the tribe saying that they have missed tax-related deadlines for three years and have not handed over audits from 2007, 2008 and 2009. With no audits, the state puts what the tribe owes at more than $11 million.

That amount is in addition to the $32 million in gasoline tax refunds Washington gave other Native Americans in 2010. Paula Hammond, secretary of transportation, said the state receives less tax dollars because of more tribal retailers selling fuel.

Gasoline stations on the Yakama Reservation have consistently lower pump prices than other retailers. The state is meeting with tribal leaders in June to attempt to settle the matter.

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