Tax Commission Powerless On Tribal Tax Concerns
State tax commission powerless to audit tribes, enforce sales tax collections
by Andrew Knittle
Indian tribes that operate retail businesses on trust lands in Oklahoma are required to collect sales tax from non-Indian shoppers, but state officials admit they are powerless to take action to ensure the correct amount of tax is being collected.
While the issue has been dormant for decades as Indian tribes typically rely on other sources of income to survive, a recent public fight in Shawnee has brought it back into focus.
A U.S. Supreme Court decision more than 20 years ago seemed to settle the issue, but Shawnee city officials claim businesses owned by the Citizen Potawatomi Nation are causing municipal revenues to decrease because the tribe refuses to remit sales tax.
Shawnee city officials claim the Citizen Potawatomi Nation, the largest employer in the area with a hugely successful gaming operation, has not paid sales tax to the city in years, even though they collect sales tax on retail sales. They say a large grocery store — FireLake Discount Foods — is the primary business of concern and costs the city untold sums of money each year.