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Tribes vs. property tax

Alecia Warren | Hagadone News Network | UPDATED 11 years, 9 months AGO
by Alecia Warren
| February 12, 2013 8:00 PM

Seeking equality for tribal governments, a lobbyist from the Coeur d'Alene Tribe encouraged the Legislature on Monday to halt counties' taxation of reservation land.

Helo Hancock, addressing the House Revenue and Taxation Committee, spoke in support of a bill that would make tribal government land exempt from property taxes.

House Bill 140 will next move into a hearing, said Coeur d'Alene Tribe spokeswoman Heather Keen.

The Coeur d'Alene Tribe's position, Keen said, is that tribal land should be treated the same as property owned by other government entities in Idaho.

"What it comes down to is there aren't any government entities that pay property tax in Idaho," Keen said. "No county governments, no city governments, no school districts or highway districts. Property owned by these entities aren't taxed, and property owned by the tribe should be treated the same."

Counties' taxation of reservation land has been an issue since 2006, Keen said.

"That's just when we started seeing bills," she said.

Idaho tribes received assessments on properties that had once been taken from reservations to be homesteaded, Keen said. The tribes have since reacquired the land.

The total property taxes levied on reservation lands owned by Idaho's five tribes was roughly $300,000 in 2012, Keen said.

The Coeur d'Alene Tribe's portion of that was about $200,000, she said.

Under the proposed bill, property on a reservation belonging to a federally recognized tribe would be exempt from property taxation in Idaho.

"We've been a part of the conversation," Keen said of the tribe's role in the bill's content.

The Coeur d'Alene Tribe has been discussing the matter with Kootenai County for years, Keen said.

Those talks have included pursuing an agreement where the tribe would provide the county with payments in lieu of taxes on reservation property.

A state official raised objections to the validity of such an agreement in 2011, however.

"That's an ongoing discussion," Keen said.

The tribe has approached the Legislature about the matter in hopes of providing clarity for both counties and tribes, Keen said.

"We're just looking for solutions to this issue," she said. "If it's a public policy that (solves) the issue, we'll take it."

The tribe has a meeting scheduled with Kootenai County commissioners on Friday about taxation of tribal land.

Commissioner Dan Green said he hopes to reach a resolution at that meeting.

He didn't object to the aim of House Bill 140.

"It's always a concern when we lose a tax base," Green conceded. "But also the tribe is a sovereign nation in many ways. We have to respect their sovereignty."

No legislators from Kootenai County are on the House Revenue and Taxation Committee.

But Rep. Vito Barbieri of Dalton Gardens, a member of the State Affairs Committee, had doubts about the tribe's request.

The Legislature probably won't support halting taxation of reservation land, Barbieri predicted.

"The general consensus is the tribes are doing well on their own, and I'm not sure they would want an exemption for property tax," he said.

And counties rely on taxation of tribal property for revenue, he added.

"Right now we know the local governments are struggling," Barbieri said. "As much as we want to be able to help them cut back on overall expenses, we need to recognize that they need a stable source of revenue."

The Coeur d'Alene Tribe would still support local government services, Keen said, even if it didn't pay property taxes.

The tribe provided more than $2.5 million in payments to taxing districts in 2012, she pointed out, including East Side Highway District and Worley Fire Department.

She also noted the tribe's longtime support of the free Citylink transit, including a $1 million contribution last year.

"We're not going to be leaving taxing districts empty-handed," Keen said.

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