October 15, 1996
SMOKE SIGNALS
Cheering for tribal tax exemption
2
The results are in.
Residents living in com
munities within 35 miles
of a tribally-owned ca
sino are bigger winners
than those who live near
commercial casinos.
Why? Because tribal tax
exemptions benefit local communities.
Tribally-operated casinos pay the high
est taxes of any casino operation in the
country. They pay 100 percent on their net
operational profits to the tribal government
as mandated by the Indian Gaming Regu
latory Act (IGRA).
So how does this help the local commu
nities? It is just this simple: money that is
not taken away from the local area remains
in the local area.
For example, Wisconsin's 17 tribes re
ported $796 million in revenue (approxi
mately $665 million came from gaming and
non-gaming spending at the casinos, while
$313 million came from tourist spending
Q33SD (?1 t-rktel Oilimi) (323?
outside the casinos). One analysis showed,
after considering that most of the revenue
was introduced by casino guests travelling
from outside the local area and also taking
into consideration that the dollars recycled
once they enter the economy, the casinos
produced a net positive economic impact
of $404 million on the local 17 areas. In
addition, the tribal governments benefitted
with tax revenues of $257 million, much of
which was ultimately spent on the local off
reservation economy.
What would have happened if the casinos
incurred state and federal taxes? It is not a
happy story. A study of commercially
owned casinos in Illinois shows the nega
tive impact of state and federal taxation.
In Illinois there is a fifteen percent state
gambling tax, a five percent state corpo
rate income tax, and a thirty-four percent
federal corporate tax on net profits. As
suming pre-tax profits of thirty percent, the
federal tax represents about ten percent of
gaming revenues. The remaining twenty
percent is absorbed by commercial casino
owners, most probably living in another
state. When you add it up, at the moment
one dollar is wagered and lost at the casi
nos, nearly fifty cents exits the local
economy. Granted, the ten riverboats op
erating in Illinois generate $ 1 . 1 million in
gambling wins and almost $200 million in
other spending for the
local area. However, in
Illinois, as in other
riverboat jurisdictions,
most casinos are specifi
cally placed in urban ar
eas where sixty-two per
cent of the people who
gamble live in the local area. When com
paring the positive economic benefit of
tribal casinos in Wisconsin that do not in
cur local, state, and federal taxes versus
those Illinois casinos that do, the result is
the following: for every dollar that comes
into a tribal casino in Wisconsin, the local
area realizes a $1.51 positive economic
benefit (a $0.5 1 gain); and for every dollar
that is spent at a riverboat in Illinois, $1.18
leaves the economy (a $0.18 loss),
So now, should local business owners
moan over "Indians who don't pay taxes?"
Or should they be rejoicing?
Reprinted from Indian Gaming magazine.
Story by Bill Thompson, Ph.D.
Tribal Council Minutes
Wednesday, October 9, 1996
O" Tracy Biery, the receptionist for the
Dental Clinic, requested a Pendleton Blan
ket donation that HHS can raffle off to earn
money for the Elder's Christmas food bas
kets this year. Council agreed unanimously
to donate the blanket.
O" It was confirmed that Leon "Chip"
Tom, Margaret Provost, and Kathryn Har
rison will attend the National Congress of
American Indians in Phoenix.
O" Pam Warren, Chair of the Kwelth
Tahlkie Cultural Heritage Society, informed
Council that there is a vacant position on
the Board. All members of the Board must
be appointed by Council. Council agreed
to advertise the position and ask for appli
cations from the membership.
O Darlene Aaron, Chair of the Education
Committee, made a recommendation to
Council that Shelley Hanson be appointed
to fill a vacancy on that committee. Coun
cil approval was unanimous.
O Members of Tribal Council will attend
a joint meeting with the Siletz Tribal Coun
cil to be held in Lincoln City on October
1 8. Ed Larsen, Ed Pearsall, Kathryn Harri
son, and Reyn Leno will attend.
H Also, it was agreed by Council that the
Annual Tribal Christmas Party and Res
toration Celebration will be on Decem
ber 14 at the Grand Ronde Elementary
School. It will begin at 12 noon, and last
through the afternoon. The celebration will
include a meal and various raffles.
r
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Council approves insurance carrier
On October 9, Tribal Council approved the insurance carrier selected by
the Risk Management Department to administer the Tribal Member Health
Plan. This insurance carrier (ODS) will provide major medical insurance to
tribal members no matter where they live and is essentially identical to
what is now offered to tribal employees. To be eligible for this insurance
you must be an enrolled tribal member, 64 years old or younger.
A unique feature of this plan is that every enrolled tribal member will
have his or her own plan. This means a separate policy will be written for
each person, even dependent children. If you are a parent or guardian of
an enrolled tribal child and desire health care coverage for this child, you
will be asked to complete a separate application for each individual you
want enrolled on the plan.
During the last two weeks of October, tribal members 64 years and
under will receive information about this health plan and an enrollment
application form. The enrollment period for this plan will be from Novem
ber 1 through December 20, 1996 for a plan start date of January 1,
1997. Enrollments will be conducted through area meetings or by mail,
and you will be notified of the meetings near you. If you do not receive an
application form by October 15, and want to enroll in this health plan,
please contact Val Sheker or Marsha Jonson at 879-2221 or 1-800-422-0232.
EDITORIAL POLICY
Smoke Signals Is a publication of the Confederated Tribes of the Grand Ronde Com
munlty of Oregon. We have established an Editorial Policy to encourage input from
readt$ about storfe prints in Smte $ well as other tribal ls$uo$
Utters mm o primod or typed, and oannot txteed $00 word. $fyrt$f$
reserves the right to edit any letter for clarity and length, and to refuse publication of
any letter or any part of a letter that may contain libelous statement? or personal
attacks. Not atl httm m guaranteed publication upon $upmi$$!ori, Published
tetter do not nesarily reflect tho opinions of Smote Siypds, tr&al mploye$, or
Tribal Council.
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