Oklahoma Indian Tribes Open to Fuel Tax
By Brian Ford, Tulsa World, Okla.

Date: Wed, 14 Feb 1996 23:52:12 -0500


Knight-Ridder/Tribune Business News

OKLAHOMA CITY--Feb. 15--Leaders of the Five Civilized Tribes met with Gov. Frank
 Keating Wednes day urging tribal compacts on the issue of motor fuels taxes.

The tribes are willing to place tribal taxes on gasoline and diesel fuels that 
equal those of the state so that Indian service stations do not have a 
competitive advantage over non-tribal service stations, said Chickasaw Nation 
Gov. Bill Annoatubby during opening ceremonies of the state capitol's new Tribal
 Flag Plaza. The plaza is a monument to peace between the state and its resident
 tribes.

A ruling last year by the U.S. Supreme Court prohibits direct state taxation of 
motor fuel sold by tribally owned service stations. The state puts a 16 cents 
per gallon tax on gasoline and a 13 cents per gallon tax on diesel fuel.

Critics of the ruling say it would enable Indian tribes to sell gasoline and 
diesel fuel much cheaper than non-tribal stations. State transportation 
officials say the state will lose at least $2 million in uncollected tax 
revenues this year as a result of the ruling, but predict that amount will go 
much higher with the prolifera tion of tribal service stations. Such a situation
 would erode revenues that are used to maintain roads, bridges and highways, 
they say.

The House Revenue and Taxation Committee passed a bill Tuesday that addresses 
the issue by moving the point of taxation from the retail level to the refinery 
level. Indian tribes and tribal members would be eligible for tax breaks and tax
 rebates under the measure.

There is nothing in the measure that would prevent tribes from entering into 
compacts with the state that address the same issue. The governor is authorized 
to enter into compacts with tribes on behalf of the state.

Annoatubby did not divulge the contents of the draft compact, but added his 
tribe is willing to enter into an agreement to share the taxes through an 
in-lieu-of-tax payment or collecting the taxes and remitting part of it back to 
the state. He predicted the House bill, if passed into law, would only lead to 
continued litigation over the issue.

Annoatubby said the tribes could agree to use the motor fuels tax revenues they 
collect on road and highway maintenance.

``We want the roads and high ways to be in good shape,'' he said.

Other members of the Five Civilized Tribes include the Choctaw, Cherokee, 
Seminole and Creek nations.

Rep. Howard Cotner, D-Altus, the author of the House bill dealing with the tax 
issue, said he is getting ``mixed signals'' from the Senate and the governor 
regard ing his bill.

Sen. Kelly Haney, D-Seminole, a member of the Seminole tribe, said he would 
prefer to see the state enter into compacts with the tribes over the motor fuel 
is sue. Haney is the nephew of Jerry Haney, principal chief of the Seminole 
Nation. On the other hand, state Transportation Secretary Neal McCaleb -- a 
Chickasaw Indian -- has been a strong advocate of Cotner's bill.

Members of the 36 federally recognized tribes gathered at the state Capitol 
Wednesday along with state leaders to recognized the opening of the Tribal Flag 
Plaza, which features 35 flags in recognition of the 36 federally recognized 
tribes in Oklahoma. A 36th flag post belongs to the Kickapoo Tribe, but does not
 have a flag because the Kickapoos do not believe in tribal flags.

Tribal leaders at the ceremony said the flag plaza -- the bulk of which was 
built with state appropriations -- should serve as a reminder of tribal 
sovereignty. They said it should also serve as a reminder that the state 
government and Indian tribes can cooperate on projects.

The flag plaza, called ``The Meeting Place,'' is eight years in the making and 
cost nearly $400,000 in legislative appropriations. The plaza also received 
private donations, including one from the Kerr Foundation that helped build the 
granite fountain in the middle of the plaza.

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END!N4?TU-FUEL-TAX

AP-NY-02-14-96 2212EST