Tribe taxes wrong, shameful

 

March 16, 2022



Kudos to La Conner resident Dan O’Donnell for his persistent and astute analysis of local and county financial matters, especially regarding taxation (letter, March 9 Weekly News).

The Swinomish taxation of Shelter Bay “improvements” – only the homes, not the land – is an anomaly.

For those who do not know the history or have forgotten, it is the consequence of a lawsuit brought in Thurston County by the Chehalis Tribe over property taxation of Great Wolf Lodge, in which they had a majority interest.

Local courts ruled in favor of the county; the Tribe appealed to the United State Courts for the Ninth Circuit, which reversed the ruling and ultimately exposed individual lease-hold properties in Shelter Bay to similar treatment.

It was discovered by Sandy Stokes, former publisher of the Weekly News, that tribes in Washington had lobbied the state Department of Revenue which had drafted a “tax advisory” sent to all county assessors.

That “advisory” was interpreted as tantamount to law. The ruling was not challenged, and Shelter Bay leasehold properties subsequently were removed from the county tax rolls. Seizing the opportunity, the Swinomish established their own “use and occupation” tax authority modeled on the county property tax structure and began levying annual taxes.

As O’Donnell notes, the Swinomish expect to collect more than $2.3million in Shelter Bay taxes in 2022, similar to totals collected the past several years.

Out of “good will,” they distribute portions of this revenue to various local taxing districts as they see fit, but not to all.

The conclusion is, the Tribe does not pay their full fair share, and the process causes an unfair tax shift to other property tax payers in the community.

As an observer, I have always been amazed at the willingness of Shelter Bay residents to pay these taxes without protest for one basic, fundamental reason:

No taxation without representation! This was a cornerstone concept in the founding of this country, yet Shelter Bay taxpayers have virtually no say whatsoever in how their tax monies paid to the tribe will be spent.

That is wrong and shameful!

Bruce Elliot

La Conner

 

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