Smoke signals., August 01, 1996, Casino, Page 8, Image 8

August 1, 1996
SMOKE SIGNALS
8
Tribally-owned casinos do pay Taxes lots of taxes
You would think that the Nevada congressional delegates would have enough to worry
about with a prospective federal gaming commission ready to give a close examination to
the casino industry. Certainly, they must be shoring up their defenses (i.e., circling their
wagons) against what is envisioned as a hostile effort to impose federal regulations and the
new federal taxes on casinos. But from their bunkers, the delegates seem to have sufficient
capacity of armaments to launch new and renewed attacks on tribal gaming. Ironically, the
weapons of choice are federal regulation and federal taxation.
American Indians should not be defensive. Tribes should not have to circle their wagons
against attacks from the commercial casino industry on this point. In this article, there is
one very simple point: Tribally-owned casinos pay taxes lots of taxes.
state and local governments as if it was a non-tribal business.
Tribal casinos also transfer large sums of monies to surrounding state and local govern
ments in accordance with special provisions of gaming compacts. Most compacts require
payment of fees to states to cover all regulatory costs incurred by the states. Additionally,
in several states (Michigan, Louisiana, and Connecticut for example) tribes have agreed to
let the outside governments have funds in lieu of taxes as privilege fees for doing business.
In Connecticut, 25 of tribal slot revenues goes to the state. In Michigan, 8 of the slot
revenues goes to the state and 2 to local governments, while up to 6 of casino revenues
go to the state in Louisiana. In other places, tribes give funds to cover many governmental
activities such as extra police and fire protection.
LOTS AND LOTS OF TAXES
Taxes can be complicated, and there are some disputes about taxes on tribal lands. But
certain things are known for sure. First, American Indians who are on or off the reserva
tion pay federal personal income taxes. They and their employers, (including tribal casi
nos) pay Social Security taxes and workers and employment insurance taxes. If casino
employees are off reservation residents, they pay all state and local taxesstate incomes
taxes, property tax, and sales tax. All federal excise taxes (gas taxes, cigarette taxes, luxury
taxes) are paid for sales of goods on reservations. State sales taxes may also be paid by
tribal businesses when products are sold to non-members (this varies from state to state).
On-rescrvation liquor sales are subject to all federal, state and local taxes. State gas taxes
may be paid by tribal retailers as the taxes are levied at distribution points which are most
often off the reservations. Any tribal business that is off reservation lands pays full taxes to
TRIBES PAY 100 TAXES
But here's another point that I don't hear being made: American Indian-owned casinos
pay the highest casino taxes in the world. Casinos in Nevada pay a gross gaming tax of
6.25. In Illinois, Indiana, and Iowa, taxes equal 20 of the gross win. England is up to
a 35 tax, Spain is over 50, and Germany is up to 80. In all these places, the casinos
are left with after-tax profits. This is not so in Indian Country. Tribal casinos pay taxes that
are equal to 100 of the net revenues. Tribal casinos pay taxes to tribal governments the
same way that other local, state and federal tax dollars are used for governmental services.
As a result, there are no after-tax profits like there are in almost every other jurisdiction in
the world. Of course, there are exemptions from some state and federal gaming and in
come taxes. But are there really? Federal and state income taxes are applied to net profits
and there are no net profits after the local tribal government has imposed its 100 tax.
Reprinted from Indian Gaming, June 1996. By Bill Thompson, Ph.D.
Adam Henny: Public Relations Specialist
Tribal member Adam
Hcnny has been working in
the Marketing Department of
Spirit Mountain Casino for a
year, and recently became
the liaison between the tribal
members and the Casino.
In this new job, Adam will
be in a unique position to ad
dress any questions tribal
employees, tribal members
or members of Tribal Coun
cil have about the Casino.
Adam has been working
closely with Smoke Signals
to ensure Casino news and
happenings are publicized,
and that tribal members are
aware of all current activities.
A graduate of Oregon
State University, Adam had
several goals after college.
"I wanted to become closer to the Tribe
and increase my job experience after I got
out of school," he said. "The Casino has
helped me fulfill both these goals."
Because communication is a priority to
the Casino staff as well as the employees of
the Tribe itself, Adam's job was established
to cultivate the working relationship with
tribal and Casino staff as well as enhance
the Casino's image. If tribal members have
concerns about the Casino's policies and
procedures, they should contact Adam. Part
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of his job is to help resolve issues and make
sure members have a clear understanding
of the internal workings of the Casino. This
goes hand-in-hand with keeping members
up to date on promotional events, concerts,
and special activities.
The Public Relations and Marketing de
partments are committed to working with
tribal members in every regard, and Adam
is looking forward to meeting fellow tribal
members and assisting them with whatever
they need to know.
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toMftro dure sssssssm
A new column has been established in Smoke Sig
nals to specifically address your questions about
Spirit Mountain Casino. The most commonly-asked
questions will be featured in this column, as well as a
detailed response. Although we cannot answer each
question personally, we hope this new column will
help explain some of the main concerns tribal mem
bers have. Please send your questions in, and we'll
try to respond in an upcoming issue.
Send your questions to:
Smoke Signals
9615 Grand Ronde Road
Grand Ronde, Oregon 97347