Panel Oks Tribe Tax Compromise Payments Hang On Gaming Machines Being Ruled Illegal

Bonners Ferry businessmen and the Kootenai Tribe joined together Wednesday, asking a legislative committee to approve a compromise instead of a sales tax exemption for the tribe.

The Senate Local Government and Taxation Committee went along, sending the compromise bill to the full Senate.

Under the compromise bill, the Kootenai Tribe would receive 20 percent of Boundary County’s state sales tax collections, or about $400,000 per year. But the tribe wouldn’t get that money unless its gambling machines at the Kootenai River Inn are ruled illegal.

The tribe expects that to happen eventually, removing its major source of income.

Lobbyist Bill Roden, representing the business community, said of the compromise, “It eliminates all the issues relating to unfair competition with the local merchants. It eliminates all the issues relating to taking property off the tax rolls. Yet it provides needed support for the Kootenai Tribe.”

Lobbyist Skip Smyser, representing the tribe, said of the compromise, “I think it’s a very positive step for this community.”

The tribe originally had sought a sales tax exemption to start a grocery store. After the local business community objected, it offered several other options, but local merchants maintained that every one would result in the tribe gaining an unfair business advantage.

Velma Bahe, tribal chairman, said afterward, “I’m pleased with the results….We finally got the community’s input and support.”

Sen. Tim Tucker, D-Porthill, who worked with both sides to bring about the compromise, said he thought the measure would pass despite its cost to the state - an estimated $400,000 per year.

When the Legislature held a special session to ban casino gaming on Idaho’s Indian reservations, the state promised tribes help with economic development, Tucker said. “This is that resolution,” he said.

, DataTimes