Judge grants temporary restraining order in YN lawsuit
http://www.reviewindependent.com/articles/668/1/Judge-grants-temporary-restraining-order-in-YN-lawsuit/Page1.html
Richard Burger
By Richard Burger
Published on 09/18/2008
The Yakama Nation cigarette tax stamp is valid again, at least until
the end of January next year, despite the termination of the tribe’s
tax compact agreement with the state, after a ruling by a federal judge
Sept. 12.
The Yakama Nation cigarette tax stamp is valid again, at least until the end of January next year, despite the termination of the tribe’s tax compact agreement with the state, after a ruling by a federal judge Sept. 12.
The Yakama Nation and the Yakama Nation Commerce Association filed suit seeking to permanently prevent the state from taking any enforcement action against them related to the state’s cigarette tax laws.
Following a telephone conference with opposing attorneys, District Court Judge Lonny Suko issued a temporary restraining order that stops that enforcement action and requires only that cigarettes sold by tribal retailers bear the Yakama Nation tax stamp.
However, Suko’s ruling did not make any reference to what tax rate would apply.
According to court records, the officers of the Yakama Nation Commerce Association are Harvey Davis, president, Richard “Kip” Ramsey, vice-president, Dacie Ramsey, secretary, and Bill Hoptowit, sergeant at arms.
Other members of the association mentioned in the documents are Delbert Wheeler and Ty Young.
In a declaration filed as part of the lawsuit, Davis said the association is open to any Indian-owned business on the Yakama Nation reservation, and that he had been a member for about 30 years.
The suit was the second filed this year related to the cigarette tax issue.
Ramsey sued the state department of revenue earlier this year in Tribal Court to prevent the implementation of a new tax compact negotiated with tribal officials, until the proposed agreement was approved by the tribe’s General Council.
The state argued that Tribal Court did not have jurisdiction over state officials, but Judge Reuben Sandoval ruled that his court did have jurisdiction.
The state has appealed that ruling.
The tax compact in question was to have replaced a compact enacted in 2004, that required tribal cigarette retailers to collect a cigarette tax of a little more than $16 pr carton, increasing to $20.25 over several years.
All taxes collected went to the tribe, however, to be used for a variety of social services.
Non-compliance issues related to the tribe’s handling of tax stamps and other problems finally resulted in the state threatening to terminate the agreement.
The tribe then requested mediation, which turned into a renegotiation of the compact which took place over a period of about a year.
The Washington Legislature enacted legislation that authorized the governor to enact the new compact when it reached its final form, but Ramsey’s lawsuit stopped work on the new compact.
Throughout that process, the old compact was technically still in place, however, shortly after Ramsey’s suit was filed, the state formally terminated the agreement, and said the only cigarettes that could be legally sold to non-Indians were those bearing the state tax stamp.
All cigarettes not bearing the state stamp sold to non-Indians were considered contraband, and DOR officials said they intended to take enforcement action.
Despite prospect of enforcement, Tribal officials said they would no longer participate in compact negotiations and would not enter into another tax agreement.
The restraining order issued by Suko stipulates that a hearing and bench trial will be held Jan. 30, 2009, and continued to Feb. 2, if necessary, to hear the merits of the suit.
The Yakama Nation and the Yakama Nation Commerce Association filed suit seeking to permanently prevent the state from taking any enforcement action against them related to the state’s cigarette tax laws.
Following a telephone conference with opposing attorneys, District Court Judge Lonny Suko issued a temporary restraining order that stops that enforcement action and requires only that cigarettes sold by tribal retailers bear the Yakama Nation tax stamp.
However, Suko’s ruling did not make any reference to what tax rate would apply.
According to court records, the officers of the Yakama Nation Commerce Association are Harvey Davis, president, Richard “Kip” Ramsey, vice-president, Dacie Ramsey, secretary, and Bill Hoptowit, sergeant at arms.
Other members of the association mentioned in the documents are Delbert Wheeler and Ty Young.
In a declaration filed as part of the lawsuit, Davis said the association is open to any Indian-owned business on the Yakama Nation reservation, and that he had been a member for about 30 years.
The suit was the second filed this year related to the cigarette tax issue.
Ramsey sued the state department of revenue earlier this year in Tribal Court to prevent the implementation of a new tax compact negotiated with tribal officials, until the proposed agreement was approved by the tribe’s General Council.
The state argued that Tribal Court did not have jurisdiction over state officials, but Judge Reuben Sandoval ruled that his court did have jurisdiction.
The state has appealed that ruling.
The tax compact in question was to have replaced a compact enacted in 2004, that required tribal cigarette retailers to collect a cigarette tax of a little more than $16 pr carton, increasing to $20.25 over several years.
All taxes collected went to the tribe, however, to be used for a variety of social services.
Non-compliance issues related to the tribe’s handling of tax stamps and other problems finally resulted in the state threatening to terminate the agreement.
The tribe then requested mediation, which turned into a renegotiation of the compact which took place over a period of about a year.
The Washington Legislature enacted legislation that authorized the governor to enact the new compact when it reached its final form, but Ramsey’s lawsuit stopped work on the new compact.
Throughout that process, the old compact was technically still in place, however, shortly after Ramsey’s suit was filed, the state formally terminated the agreement, and said the only cigarettes that could be legally sold to non-Indians were those bearing the state tax stamp.
All cigarettes not bearing the state stamp sold to non-Indians were considered contraband, and DOR officials said they intended to take enforcement action.
Despite prospect of enforcement, Tribal officials said they would no longer participate in compact negotiations and would not enter into another tax agreement.
The restraining order issued by Suko stipulates that a hearing and bench trial will be held Jan. 30, 2009, and continued to Feb. 2, if necessary, to hear the merits of the suit.