Tribal Taxes Raise Policy Brew

As Congress weighs in on the volatile Native American excise tax, two industry lobbyists are taking divergent courses toward resolving the critical legislative issue.

The National Association of Convenience Stores (NACS) and Petroleum Marketers Association of America (PMAA) agree they both want the thorny issue settled ? the disagreement arises from what that solution should be.

"Putting out a bill prematurely just to have something to wave around would be foolish," Lyle Beckwith, NACS senior director of government relations, said of the PMAA-backed bill in the House of Representatives. "Our goal is to get meaningful legislation passed into law. Only then will we achieve relief for the convenience store and petroleum marketing industry."

For its part, PMAA points out that at least it has a bill to support. "I think the idea of NACS is fine, but they don't have anything going on it. They don't have a bill or congressman to support it. We've got 40 signatures behind our bill," rejoined PMAA President Dan Gilligan.

Here's the battle of the bill.

A number of tribes currently do not pay state taxes on tobacco and motor fuels, thereby allowing them to undercut retailers on non-tribal lands. Finding a remedy that does not violate tribal rights has been vexing and politically sensitive.

PMAA endorses a measure by Reps. Ernest Istook (R-Okla.) and Peter Visclosky (D-Ind.) that empowers states to pursue legal remedies against tribes that resist paying state taxes. Under H.R. 1814 states could petition the Bureau of Indian Affairs to remove the retailer's land from trust. Once removed, the state could tack a lien on the property.

The NACS proposal would allow the state to petition the federal government to act as a collection agent against a tax-evading tribe. To pacify the tribes, collected monies would be returned on condition it does not land in the pockets of tribal retailers.