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Frustrated taxpayers on the east side of the Swinomish Channel threaten to break away from Fire District 13 to join Fire District 2 over costs imposed by higher property tax bills.

“We were going to retire here, but now we won’t be able to afford it,” said Linda Ryan, who lives on Channel Drive. “Tell me how it’s fair to be taxed out of our houses!”

The “Great Wolf” federal court ruling exempted all structures on the Swinomish Reservation — including homes owned by non-tribal members on leased land in Shelter Bay — from paying state and county property taxes. Thi...