Tribes Battle Gorton Over Gas, Tobacco Dispute Centers On Collection Of State Taxes

The war of words over Indian rights focused on taxes Wednesday as Sen. Slade Gorton and the tribes faced off over cigarettes and gasoline.

Gorton and his allies from gas stations and convenience stores accused the tribes of not collecting all the taxes they should. That puts non-tribal stations and stores at a disadvantage, they said.

Such concerns are fueling a drive in Congress to strip tribes of their immunity to lawsuits.

Legislation sponsored by Gorton would subject tribes to a variety of lawsuits, including actions by states to force the collection of taxes and suits by people who think they’ve been harmed by tribal governments or businesses.

Tribes accused Gorton of trying to undo efforts to make their reservations self-sufficient by taking money that goes for scholarships and medical care. They oppose the Washington Republican’s new bill which he has called the “American Indian Equal Justice Act.”

Ron Allen, chairman of the Jamestown S’Klallam Tribes in Washington state, said the bill “would make it nearly impossible” for tribal governments to function. “Congress has the fundamental obligation to protect our status,” said Allen, who is also president of the National Congress of American Indians.

Coeur d’Alene tribal members joined Allen in opposing the bill.

Chief Allan, the tribal council’s legislative assistant, said bill supporters are exaggerating the impact of taxfree products on competitors.

A person living in Spokane or Coeur d’Alene is not going to drive the extra miles to the reservation just to buy cheap gas, he said.

Representatives of the Society of Independent Gasoline Marketers of America said reservations should be forced to collect state taxes. When they don’t, they deprive states of millions of dollars for roads and other projects.

Greg Love, owner of a chain of convenience stores and gas stations in Oklahoma, accused the tribes of “tax evasion” for neglecting to collect state excise taxes on gas and tobacco purchases by customers who aren’t Native Americans.

The U.S. Supreme Court has ruled the tribes must collect those taxes, he said.

State officials say, however, that there is no way for them to enforce that decision. Gorton’s bill would change that by lifting tribal immunity.

Tribes in Washington and Idaho do pay such excise tax on gasoline, however, because it is automatically charged to wholesalers before tribes purchase the fuel.

Gorton and the tribes battled before a room packed with spectators, but sparse with senators. Other than Gorton, only Indian Affairs Committee Chairman Ben Nighthorse Campbell, R-Colo., and Vice Chairman Daniel Inouye, D-Hawaii, attended the hearing.

Campbell is the only Native American in the Senate, and both he and Inouye oppose the bill.

, DataTimes MEMO: This sidebar appeared with the story: What’s next Gorton’s bill has two hearings next month: in Seattle on April 7 and in Minneapolis on April 9.

The following fields overflowed: BYLINE = Alia Beard Staff writer The Associated Press contributed to this report.