Washington State Seeks $11m In Gas Taxes From Yakama Nation

A new legal challenge has flared up from a controversial revenue-sharing agreement between Washington State and Tribes located therein – the state claims the Yakama Nation owes more than $11 million in taxes from gasoline sales revenue.
Pursuant to a consent decree in federal court, the state and the Nation split gas tax revenue, with 75 percent of sales from reservation gas stations going to the Nation. The Yakama Nation is credited up front when fuel is purchased wholesale, based on calculations of its member population and gallons of fuel delivered to reservation stations. The Nation’s members are exempt from the state's gas tax for fuel sold on Tribal lands, but the Nation is required to keep records and audit fuel sales from eight stations and submit the information to the state. The Department of Licensing asserts the Nation failed to submit audit reports in 2007, 2008, and 2009 that are required to differentiate sales to its members from sales to non-members.
After requesting the audit reports, the Department notified the Nation in March that it would request the up-front gas tax money be repaid. "DOL is unable to verify, due to lack of audit reports...that the Yakama Nation has used any gallons of fuel sold or distributed to the Tribe in the manner described in (the agreement)," the letter said. "The Yakama Nation is then subject to the state's taxes on all fuel delivered to the reservation under the Consent Decree."
A meeting with the Nation has been scheduled for June 13.






