New York Counties File To Oppose Cayuga Indian Land-Trust Claim
Seneca and Cayuga county officials say taxpayers could lose millions of dollars, and be prevented from enforcing laws that protect the public, if the Cayuga Indian Nation of New York is allowed to put its lands in those counties in a federal trust.
Waterloo, NY (PRWEB) February 12, 2006 -- Seneca and Cayuga county officials say taxpayers could lose millions, and be prevented from enforcing public safety laws, if the Cayuga Indian Nation of New York is allowed to put its lands in a federal trust.
The counties argue that to the federal government in a report submitted Friday (February 10), (cite: 25 CFR 151) opposing the Cayugas’ application to have their properties in the two counties placed in trust with the federal Bureau of Indian Affairs (BIA). If granted, the Cayugas’ property would become tax free and “sovereign” from state and local laws.
According to the report, if the application is granted, the counties and their towns stand to lose more than $85,000 in property tax revenue in a single year. Seneca County would initially lose $21,631.27 and Cayuga County would initially lose $64,905.48.
These tax losses could continue indefinitely into the future.
The report estimates future losses in Seneca County to range from $550,513.18 to $3,751,160.56, depending on future tax rate growth. Similarly, in Cayuga County, the value of removing the Nation’s parcels from the tax rolls ranges from $1,651,836.53 to $11,255,505.48. The combined high for both counties would be more than fifteen million dollars ($15,000,000.00).
On Thursday (February 9), the Cayugas paid their back property taxes to both counties. (cite: No. 36-1-49, 36-1-48.2) However, according to Seneca County Attorney Steven Getman, this was required for their application to proceed any further.
“Federal law requires back taxes be paid before the BIA takes the land in trust,” Getman explained. "This payment is simply part of the overall strategy to get the lands taken into trust and avoid any future taxes.”
Other officials agreed.
“The issue is not the taxes past due, but the taxes that will never be paid if the land is taken into trust,” said Robert Shipley, Chair of the Seneca County Board of Supervisors.
“We all know their motive is to never pay taxes again,” Cayuga County Legislature Chairman George Fearon stated.
Shipley also noted that both counties could also lose sales tax revenue from the Cayugas’ businesses. The Cayugas currently operate convenience stores in the town of Seneca Falls and the village of Union Springs. At each location, they sell gasoline and cigarettes, but do not collect state or local sales taxes on either.
“We estimate that their failure to collect sales taxes in 2005 cost the county $200,000,” Shipley said.
The Cayugas have still not paid any back sales tax.
The report also alleges that putting the Cayugas’ land in trust would create a “checkerboard” Indian reservation in the two counties, resulting in “serious jurisdiction problems” and preventing the counties from enforcing state and local laws.
According to Getman, that includes laws related to the environment, gambling and child welfare.
“Creation of a reservation within either county would create barriers to police, health officials and others working to ensure public safety,” Getman said.
From June, 2004 to October, 2005, the Cayugas also operated “high stakes Bingo” parlors in both counties. However, the counties took action to close the gaming halls, alleging the Cayugas were operating illegal gambling casinos. (cite: 390 F.Supp.2d 203, N.D.N.Y.,2005. Oct 05, 2005)
Syracuse attorney Daniel French, who represents the Cayugas, has stated publicly that they intend to resume their gambling operations in the future.
In its report, both counties also argue:
| | - Granting the application would allow unfair competition with non-Indian businesses;
- No statutory or constitutional authority exists to grant the applications;
- The Cayugas have failed to demonstrate any need for the lands to be placed in trust;
- Taking the Nation’s property in trust would be directly at odds with the U.S. Supreme Court.
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The Cayugas originally applied to put their lands in trust in April of 2005. They did so after the Supreme Court ruled in “City of Sherrill v Oneida Indian Nation” that an Indian tribe could not purchase land and unilaterally declare it “sovereign” from local control or taxes. (cite: U.S. Supreme Court, 544 U.S. 197, 125 S.Ct. 1478 U.S., March 29 2005)
Prior to that decision, the Cayugas had maintained their property was sovereign “Indian country” and refused to obey state and local laws.
In December, a separate faction of the Cayugas announced its purchase of a 70-acre farm in Cayuga County. That faction has not attempted to put its land into trust, something the counties say proves that the trust application is unwarranted.
No land has ever been taken into trust in New York before.
The BIA has scheduled a public hearing on the Cayugas’ application, to be held Wednesday, March 1, in Seneca Falls.
In addition to its application to the BIA, the Cayugas have filed with the Supreme Court, asking the Court to reinstate its twenty-five year old land claim against the State of New York and the counties. (cite: Petition for Certiorari filed Feb 03, 2006 NO. 05-978)
A federal appeals court last year dismissed the Cayugas' claim to 64,000 acres in both counties and nullified a $247.9 million court award to the tribe. The court said the tribe waited too long to reclaim the land. (cite: 413 F.3d 266, 2nd Cir.N.Y., Jun 28, 2005)
The U.S. Justice Department has joined the Cayugas in petitioning the Supreme Court to review that decision. (cite: Petition for Certiorari Filed Feb 03, 2006 NO. 05-978)
Shipley stressed that the counties do not oppose the Cayugas, as long they obey pay taxes and obey the law.
“The counties welcome the Cayugas’ presence in the community, but believe that they should operate their businesses under the same laws as others,” Shipley said. “No community can survive if there are two sets of laws based on nothing but race.”
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