Tribes Undercut Non-tribal Fuel Stations with Gas Tax Subsidy
In 2006, Governor Christine Gregoire negotiated an agreement with Washington State Indian tribes that exempts tribally owned fuel stations from paying 75% of state gas taxes.
This year the state will give Indian tribes approximately $22 million in state fuel tax revenue. And the amount will certainly grow as tribes continue to add more fuel stations. Taxpayers will pay approximately $621 million to tribes over the next 17 years.
Appealing a lower court decision, a group called the Automotive United Trades Organization (AUTO) has filed a lawsuit requesting direct review by the Washington State Supreme Court. Washington Policy Center (WPC) filed an Amicus Curiae Memorandum in support of AUTO’s petition for direct review. The Washington State Supreme Court granted WPC’s motion and accepted the Amicus Brief on August 15, 2011.
WPC is asking the Washington State Supreme Court to review the prior decision of a lower court that dismissed AUTO’s lawsuit. WPC has made this request because:
- The state’s payments of Motor Vehicle Fund monies (fuel tax revenue) to Indian tribes for non-highway purposes violates Washington’s constitution and harms local businesses.
- The secrecy inherent in the government’s compacts is improper and anathema to Washington’s established values of open government.
- The state cannot afford to unnecessarily provide Indian tribes with constitutionally protected transportation funds.
WPC research indicates that tribal stations consistently charge less for fuel than the regional average. This competitive advantage allows tribal station owners to undercut non-tribal fuel stations, and ultimately run them out of business. WPC’s full report on gas prices will be available in September, 2011.
Battle Explodes as Business Challenges Indian Gas-Tax Deal (Washington State Wire article)
Comments
tribal gas tax subsidy
I live in Southwest Washington. The Chehalis tribe owns two gas stations near Grand Mound. We used to get gas at one of them until my husband filled his 25 gallon tank with 28 gallons of gas, and he was not empty. He was puzzled, but later that week heard another local resident on our local morning radio show state that she found out that tribal gas pumps are not subject to the same inspections and standards that non tribal gas pumps are. The public is not assured that what is pumped is accurate, thus leading to situations like my husband's. In other words, it may charge you for 10 gallons, but actually pump 8 gallons. There is no regulation on tribal pumps to insure this does not happen. Or if there is, there is no enforcement.
You are correct!
The weights and measurement division of the Washington Dept of Agriculture is responsible for checking all gas station pumps for accuracy within the state of Washington. They have no jurisdiction over gas stations operated by the tribes whether said station is on tribal land or elsewhere in the state. The tribes (also known as the gas station owners) are responsible for insuring the accuracy of the pumps. Thank You Ms Gregoire!