WA Supreme Court hears oral arguments on tribal gas tax case
Today, the Washington State Supreme Court heard oral arguments on the tribal gas tax case.
Washington Policy Center filed an Amicus Brief on this case encouraging the court to accept direct review (which they did). WPC also conducted a statewide study that found tribal gas stations use their unfair tax advantage to undercut the price of fuel at private gas stations. Washington drivers lose about $30 million per year in gas taxes to Indian tribes.
Representing AUTO (a statewide association representing gas station owners) was Phil Talmadge. Representing the defense was the State Attorney General’s Office.
Talmadge addressed both the immunity issue and the constitutional challenge to the tribal gas tax agreements, while the state only addressed the immunity argument. Basically, the state claims AUTO’s suit should be dismissed because tribes have sovereign immunity and as such, they are not subject to judicial review.
Talmadge counters and says tribes are not a necessary party to their challenge, which asks the court to affirm that the legislature should appropriate the gas tax refunds (not the governor) and the refunds should be subject to 18th Amendment restrictions.
What is most troubling about the state’s position, and as some of the justices pointed out, claiming sovereign immunity in this case means there is no remedy for citizens to challenge the agreements with Indian tribes, no matter how illegal they may be.
Citizens can use the legislature to address their concerns with the tribal agreements, but as Talmadge points out, any change to the agreements (which do not have end dates or re-opening clauses) would invite tribes to sue the state for breaching the terms of their original contracts.
It was interesting to watch the state try to ignore the constitutional questions introduced by Talmadge but at one point, it sounded as if the assistant AG actually agreed with AUTO’s fundamental claims.
Read WPC’s full tribal gas tax study here: State Gives Away Gas Taxes to Indian Tribes.
