Tax enforcement agents stopped a Queensway Tank Lines truck,from Ontario, containing an illegal load of 8,506 gallons of regularunleaded gasoline destined for the Cattaraugus Indian Reservation southof Buffalo, New York. Paperwork on board indicated the gasoline wasloaded at a refinery in Hamilton, Ontario, and was destined for Triple Json the reservation. William Bramhall, the driver, was charged with twofelonies-- attempting to evade and defeat taxes, and not being registeredas a fuel distributor--and two misdemeanors not being a licensedtransporter to import fuel products into New York State, and not having aTax Department manifest. The truck and its contents were seized. Bramhall is scheduled to appear in Hamburg Town Court.
Pierre L Orange, a driver for Levy Transport of Quebec, was chargedwith attempting to evade and defeat taxes, being an unregistered motorfuel transporter, and having no valid manifest, after the truck he wasdriving was stopped in Massena, New York. L Orange was carryinggasoline to the St. Regis Reservation in New York. The truck and itscontents were seized. L Orange is scheduled to appear in MassenaTown Court. The Tax Enforcer Winter/Spring 1997 On April 1, 1997, the Enforcement Division of the New York StateDepartment of Taxation and Finance began an enforcement initiative inresponse to the Attea Supreme Court decision which allows the State to collect taxes on purchases of cigarettes and motor fuel bynon-Indians on Indian reservations. Since April 1, six trucks carrying fuelproducts were stopped and seized, and their drivers charged with taxlaw felonies and misdemeanors. (See related stories above). The TaxEnforcer Winter/Spring 1997
A protest of fuel tax collections at the Seneca Nation near Buffalo, NewYork, resulted in the arrest of up to 10 people. Demonstrators blockedtraffic in objection to a new State policy that requires Indian Nations topay excise taxes on fuel and cigarette sales to non-Indians. The Statereached an agreement with the Federally recognized Indian Nations of Onondaga, Oneida, Tuscarora, Tonawanda Seneca, and Cayuga, but notwith the Seneca. Laws prohibiting tax-free sales were previously inplace, but were rarely enforced. Over the years, the Nations tax-freesales have cost the State millions in lost revenues. Oil PriceInformation Service 4/22/97
Ten New York State Troopers were injured at a demonstration that tookplace at the Cattaraugus Indian Reservation to protest the State s plan toenforce tax collection on fuel and cigarette sales to non-Indians. Asmany as 12 police cruisers were damaged and assorted police hats andradios were stolen. The demonstration shut down the New York StateThruway for several hours while troopers attempted to bring the crowdunder control. Oil Price Information Service 4/24/97
The New York State Supreme Court will not block the State s collection of taxes on motor fuels and cigarettes to non-Native Americans. This ruling benefits New York jobbers who were hurt by tax-free sales onreservations to non-tribal members. The decision does not affect tribalwholesalers. US Oil Week 5/5/97
Governor Pataki, New York, called on the State to abandon attempts tocollect taxes on tribal sales of fuel and cigarettes to non-NativeAmericans. Conflicting decisions made in two different districts of theState Supreme Court have created a mess --one district stating that theregulations aren t enforceable, and the other saying the State couldcollect the taxes. In addition, the State s appeal which would haveallowed for collection of taxes before any appellate court trial, wasdefeated. Six Indian Nations had agreed to abide by the accords. TheSt. Regis Mohawks did not and reacted violently when their leadersigned a deal with the State. Members of the Mohawk nation reportedly beat the living hell out of the leader. The Governor s office reportedthat the Mohawks would not honor the agreement. US Oil Week5/26/97
The New York Supreme Court has issued an order, valid until June 9, forthe State to collect taxes on tribal fuel and cigarettes to non-NativeAmericans. The order follows Governor Pataki s announcement that theState would no longer seek to enforce tax collection from NativeAmerican sales of fuel and cigarettes to non-Native Americans. This is atentative victory for marketers and the New York Association ofConvenience Stores (NYACS), who on June 9 will stop paying taxes onfuel and cigarettes in order to force the hand of the Governor. Marketersand NYACS question Pataki s selective enforcement of tax collectionregulations. US Oil Week 6/2/97
New York State Supreme Court gave Governor George Pataki until June19 to justify abandoning tax collection on tribal sales of fuel andcigarettes to non-Native Americans. Marketers in the State havethreatened to stop paying taxes on fuel and cigarettes if the courts rulein favor of Native Americans selling tax free to all individuals. Statelegislators contend Pataki s proposal will increase tax evasion by makingit easier for marketers to buy tax-free merchandise from reservationsand resell them to retailers throughout the State. US Oil Week 6/16/97
New York Governor Pataki s plans to level the playing field betweenNative Americans and convenience store operators is meetingresistance. Governor Pataki s plan would allow Indian Nations to selltax-free fuel and cigarettes to non-Native Americans. Pataki originallywas a supporter of enforcing the tax collection but several violentincidents have caused the Governor to change his mind. The SupremeCourt has ruled that States are entitled to collect taxes on sales tonon-Native Americans but enforcement is extremely difficult. Oil PriceInformation Service 6/19/97
New York petroleum marketers and convenience store owners had untilDecember 2 to contest State and tribal positions that collecting fuel andcigarette taxes from Native American sales to non-Native Americans isunconstitutional. Marketers say they are simply fighting for a level playingfield. In August, the State appellate court decided that the lower courtruling requiring tribal tax collection was too broad. The situation hasbeen compounded by Governor Pataki s change of stance which initiallywas in support of collecting the taxes, but now is one ofnonenforcement brought about by riots and controversy. US Oil Week11/10/97
Sen. Slade Gorton (R-Wash.) introduced a rider for consideration aspart of the Department of Interior appropriation bill contained languagethat would have given States the right to sue tribes for motor fuel excisetaxes. The rider stated that if a tribe accepts certain Federal funds, theywould have to give up their sovereign immunity which shields tribes fromcivil litigation and places them outside the jurisdiction of the Federal courtsystem. Senators Nighthorse-Campbell (R-Colo.) and Inouye (D-Hawaii)vowed to strip the provision from the bill and President Clinton vowed toveto legislation if it contained any Native American riders. US OilWeek 9/8/97
New Mexico recently passed an anti-tax free law that will force NativeAmericans in the State to pay tax on gasoline sales to non-NativeAmericans. The law requires tribes to pay a gross receipts tax of 5 to 6cents per gallon on all fuel sold off the reservation, while fuel to be usedon the reservation must be delivered and physically unloaded on thereservation. State passed bills are rarely enforced according to manymarketers. When enforcement attempts are made, it has often led toviolence as in New York. Episodes of violence in New York have ledGovernor Pataki to look for alternative methods to level the playing field between Native American marketers and other New York retailers. NewYork loses an estimates $200 million per year in unpaid taxes, accordingto State tax officials. Oil Price Information Service 6/12/97
Tribes in Oklahoma are trying to import gasoline in an attempt to avoid the17 cent-per-gallon State excise tax imposed at the rack since November1996. The Indian Citizens Empowerment PAC/Corp., as well as a numberof tribes, have been trying to find suppliers willing to sell fuel tax freeand have had some success. Tribes were willing to pay a 25 cents pergallon freight charge as a matter of principle as opposed to the 17 centtax, half of which is returned to the tribes for funding of road building,hospitals and other tribal ventures. Any gasoline imported into the Statemust have the tax paid up front. Oil Price Information Service 8/25/97
The Paiute Tribe in Big Pine California is planning to open the State s firsttruck stop on Native American land, creating concerns about low-ballcompetition from tax-free sales. The tribe has not decided whether ornot it will sell fuel tax free. US Oil Week 6/2/97