For nearly five years Rep. Ernest Istook, R-Okla., has pushed legislation to force tribal governments to collect state sales tax on tribal lands. This session of Congress was no different and the outcome was the same. He lost, at least for now.
At the outset of the 106th Congress, Rep. Istook and Rep. Pete Visclosky, D-Ind., introduced H.R. 1814 which not only would have force tribes to collect “lawfully imposed state sales taxes on goods sold on tribal lands,” it would have levied penalties on those who didn’t comply.
It provided for the Department of the Interior to take tribal land out of trust status if a retail operation on that land was not paying “qualified state taxes.” In effect, loss of that trust status would “eliminate tribal authority regarding taxation and make the property subject to all applicable state and local sales taxes.”
Many in Indian country felt the legislation was dead after it failed to make it into the House Resource Committee earlier this month. Before the obituary was written, a watered-down hybrid version made it to committee. The bill and an amendment, offered by Committee Chairman Don Young, R-Alaska, were defeated in committee, 23-15.
Although the measure was defeated in markup, it still could be offered as an amendment on the House floor.
