Quil Ceda Village Quil Ceda Village Who are we?

Lael R. Echo-Hawk of The Tulalip Tribes
Speaker 7b: 1
Quil Ceda Village
www.quilcedavillage.com
1
Who are we?
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We are the descendents of the
signatories to the 1855 Treaty of Point
Elliott. We are a federally recognized
Indian Tribe comprised of descendents of
the Snoqualmie, Skykomish, Snohomish
and other bands of Coastal Salish Tribes.
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Law Seminars International | Tax Management for Tribes | 02/21/08 in Seattle, WA
Lael R. Echo-Hawk of The Tulalip Tribes
Speaker 7b: 2
Who are we?
Currently, the Tulalip Tribes have 3,608
enrolled members
2,400 living on reservation
z 1,208 living off reservation
z Approximately 1,600 are 18 years of age &
younger
z 25 years ago our enrollment was about
1,000
z 25 years into the future our enrollment will
reach 10,000-12,000
z
3
Where are we?
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The Tulalip Indian Reservation is 35 miles
north
th off Seattle,
S ttl just
j t westt off Marysville.
M
ill
Approximately 110 miles from Vancouver,
B.C.
It is bounded on the west and south by the
waters of Puget Sound and on the east by I-5.
It is 23,000 acres in size, 53% of which is
owned and held in trust by the Tribe or
individual Tribal members.
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Law Seminars International | Tax Management for Tribes | 02/21/08 in Seattle, WA
Lael R. Echo-Hawk of The Tulalip Tribes
Speaker 7b: 3
TULALIP
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What are we doing?
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Strengthening
g
g the regional
g
economic base
z
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Diversifying our revenue stream
z
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Reinvesting dollars into Tribal community
and local community
Building other businesses
Making improvements that benefit the entire
region
Picking up the bill!
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Law Seminars International | Tax Management for Tribes | 02/21/08 in Seattle, WA
Lael R. Echo-Hawk of The Tulalip Tribes
The Municipal Government
of Quil Ceda Village
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Located on 2,000 acres of trust land within the
boundaries of the Tulalip Indian Reservation
Reservation.
A federal city, approved for incorporation by
receiving formal, written approval as a political
subdivision of the Tulalip Tribes from the U.S.
Dept. of the Treasury and the U.S. Dept. of the
Interior under 26 USC § 7871.
Council-Manager form of government with a 3member city council, a municipal charter and
federally approved Tribal ordinances that
govern city.
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Establishing a federal city
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Constitution and Bylaws
y
of the Tulalip
p
Tribes of Washington (1934)
z
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Enabling Legislation - Tulalip Ordinance
111 Political Subdivisions Act
111,
z
z
8
Allows the Tulalip Tribes’ Board of Directors
to create a political subdivision by enacting
ordinances.
z
Enacted by the Tribes’ October 7, 2000
Allows the chartering of Tribal political
subdivisions
Approved by the BIA on October 20, 2000.
Law Seminars International | Tax Management for Tribes | 02/21/08 in Seattle, WA
Speaker 7b: 4
Lael R. Echo-Hawk of The Tulalip Tribes
Establishing a federal city
|
Charter for the Consolidated Borough
of Quil Ceda Village
Granted by the Board of Directors on
March 2, 2001
z Included a legal description of its
specific boundaries
boundaries, encompassing
2000 acres of Tulalip Indian trust
lands.
z
9
Establishing a federal city
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KEY
z
The Charter effectively placed
governance of QCV under the Village
Council.
• The Tribes’ delegated the power to tax,
police and power of eminent domain to
the Village Council.
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Law Seminars International | Tax Management for Tribes | 02/21/08 in Seattle, WA
Speaker 7b: 5
Lael R. Echo-Hawk of The Tulalip Tribes
Speaker 7b: 6
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Establishing a federal city
• BUT, we still
needed more to
establish a
federally
recognized tribal
municipality!
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Law Seminars International | Tax Management for Tribes | 02/21/08 in Seattle, WA
Lael R. Echo-Hawk of The Tulalip Tribes
Speaker 7b: 7
Establishing a federal city
• The Charter alone did not establish a
f d ll recognized
federally
i d ttribal
ib l municipality
i i lit
• Must go through additional federal review
as established by the U.S. Department of
Treasury and Interior to implement
provisions of the Tribal Government Tax
Status Act of 1982, 26 U.S.C. 7871.
13
Establishing a federal city
• The Tribes’ filed its application for political
subdivision
bdi i i status
t t with
ith the
th Treasury
T
and
d
Interior in April 2001.
– Process required assembling the facts and
law governing the Tribes’ situation
– $7000 user fee
– Both departments must confer and conclude
the tribally organized entity meets the
standards of 26 U.S.C 7871.
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Law Seminars International | Tax Management for Tribes | 02/21/08 in Seattle, WA
Lael R. Echo-Hawk of The Tulalip Tribes
Speaker 7b: 8
Establishing a federal city
• KEY - §7871(d)
– A ssubdivision
bdi ision of a tribal go
government
ernment shall be
treated as a political subdivision if, and only if,
the Secretary of the Treasury and Secretary
of the Interior determine that the subdivision
has been delegated the right to exercise one
or more of the substantial governmental
f
functions
ti
off the
th tribal
t ib l government.
t Such
S h as,
• Power to tax
• Police power
• Power of eminent domain
15
Establishing a federal city
– The Charter effectively placed governance of
QCV under the Village Council
Council.
– The Tribes’ delegated the power to tax, police
and power of eminent domain to the Village
Council.
• MEETS requirements of §7871(d)!
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Law Seminars International | Tax Management for Tribes | 02/21/08 in Seattle, WA
Lael R. Echo-Hawk of The Tulalip Tribes
Speaker 7b: 9
Establishing a federal city
• Th
The Tribes’
T ib ’ received
i d a favorable
f
bl private
i t letter
l tt
ruling on November 14, 2001.
– “We conclude that within the meaning of §7871(d),
the Village has been delegated the power to exercise
one or more substantial g
governmental functions of the
Tribe. Therefore, for the purposes of §7871, the
Village will be treated as a political subdivision.”
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Law Seminars International | Tax Management for Tribes | 02/21/08 in Seattle, WA
Lael R. Echo-Hawk of The Tulalip Tribes
Speaker 7b: 10
Quil Ceda Village
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Wal Mart opened in April 2001-Home Depot opened in
November 2001
Neighborhood Retail Center opened in September 2002
New Casino opened June 2003
Chelsea Seattle Premium Outlet Mall opened 2005
11,000 visitors on weekdays and up to 15,000 on weekends
Plans for further development of the 2,000 acre city
z More retail
z Government Offices
z Possible University
z Convention/Hotel – opening in June 2008
z Office/High Tech/Distribution
z Environmental preservation with streams, wetland
preserves and trails
Will bring in over 8,000 new jobs in the next 15 years
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Law Seminars International | Tax Management for Tribes | 02/21/08 in Seattle, WA
Lael R. Echo-Hawk of The Tulalip Tribes
Speaker 7b: 11
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Law Seminars International | Tax Management for Tribes | 02/21/08 in Seattle, WA
Lael R. Echo-Hawk of The Tulalip Tribes
Speaker 7b: 12
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Law Seminars International | Tax Management for Tribes | 02/21/08 in Seattle, WA
Lael R. Echo-Hawk of The Tulalip Tribes
Speaker 7b: 13
What taxes have been
collected?
• Municipal Tax Code
adopted 2002
– Sales and Use Tax
– Leasehold Tax
– Lodging Excise Tax
– Real Estate Excise Tax
– Utility Occupation Tax
– Business & Occupation
Tax
– Gambling Tax
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What taxes have been
collected?
• Estimated 2007 (tribal businesses only)
– Restaurant Tax $1.5 million
– Sales and Use $329,000
– Estimated Sales tax to State - $28 million
• Estimated 2008 hotel taxes at mid
capacity.
– $500,000 (10.5%)
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Law Seminars International | Tax Management for Tribes | 02/21/08 in Seattle, WA
Lael R. Echo-Hawk of The Tulalip Tribes
Speaker 7b: 14
The Municipal Government
of Quil Ceda Village
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Infrastructure and services were developed
and
d 100% ffunded
d db
by T
Tulalip
l li T
Tribes.
ib
The Village government does not receive
one cent of revenue from sales, business
and property taxes which ordinary
municipalities receive to support its
government.
The
e ta
taxes
es are
a e ta
taken
e by tthe
e State o
of
Washington which refuses to negotiate an
equitable division of the tax revenues being
generated by the Village.
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Snohomish County ROI
$2,000,000
$1,500,000
$1,000,000
$500,000
$0
$1,700,000
$20,000
SnoCo Net In from QCV SnoCo Net Out to QCV
(Revenue)
(Expenditures)
* 2002
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Law Seminars International | Tax Management for Tribes | 02/21/08 in Seattle, WA
Lael R. Echo-Hawk of The Tulalip Tribes
Speaker 7b: 15
QCV Infrastructure Investments
$45,000,000
$50,000,000
$40,000,000
$30,000,000
$20,000,000
$10 000 000
$10,000,000
$0
$0
Tulalip Tribes
Snohomish County
* Approximately $60 million expended by the Tribes through 2005
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QCV Job Creation
3000
2500
3000
2000
2000
1000
0
0
'00
400
500
'01
'02
'03
'04
'05
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Law Seminars International | Tax Management for Tribes | 02/21/08 in Seattle, WA
Lael R. Echo-Hawk of The Tulalip Tribes
Speaker 7b: 16
State legislation and
negotiation
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Over the past several years, Tulalip has attempted
through
g legislation
g
to g
gain the state’s p
portion of
sales tax collected at Quil Ceda Village without
success.
Changing strategy, we created a bill to gain only the
municipal portion of the sales tax just as any other
city.
The legislation would have allowed Tulalip to
compact with the State to collect and rebate to the
Tribe the municipal portion of the State sales tax.
Benefited both the tribe and our retailers.
Did not authorize a new tax.
HB 1721 would have cost the state nothing.
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Editorials & Opinion: Wednesday, March 30, 2005
Edit i l
Editorial
A workable tax deal for tribe and state
Quil Ceda Village, the Tulalip Tribes' retail enclave on the Tulalip
Reservation, helps power the Snohomish County economy with jobs
and tax receipts. The tribe deserves a share of sales taxes — a city's
share — to help cover expenses.
32
Law Seminars International | Tax Management for Tribes | 02/21/08 in Seattle, WA
Lael R. Echo-Hawk of The Tulalip Tribes
Speaker 7b: 17
House Bill 1721:
What did it do?
Expanded
p
the “city”
y definition to include a
“federally approved political subdivision of the
Tulalip Tribes’” within the boundaries of the
reservation.
| Required tribal sales and use tax definitions to be
uniform with state sales and use tax definitions as
defined by state law
| Required tribal tax rate to never be more than
state and local taxes.
|
33
House Bill 1721:
What did it do?
Tribes’ agreed
g
to remit to the county
y the
same percentage as the county would
receive from any other city.
| Subjected the tribal municipality to state
auditing and reporting requirements!
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Tribes asked only to be treated as every
other municipality in the state of
Washington.
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Law Seminars International | Tax Management for Tribes | 02/21/08 in Seattle, WA
Lael R. Echo-Hawk of The Tulalip Tribes
House Bill 1721:
What does this mean?
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Sales tax in Washington 8.5%
State = 6.5%
z County = 1.15%
z Municipality = .85%
z
z
Bill would have given the Municipality
portion, .85%, back to the Tribes.
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House Bill 1721:
What does this mean?
One year Projection
| Total projected NET SALES from
QCV for 2006
|
z
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$132,823,529
Total projected TAXES on net sales in
QCV for 2006
z
$11,290,000
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Law Seminars International | Tax Management for Tribes | 02/21/08 in Seattle, WA
Speaker 7b: 18
Lael R. Echo-Hawk of The Tulalip Tribes
House Bill 1721:
What does this mean?
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BREAKDOWN
z
Total State Sales Tax Portion (6.5%)
• $8,633,529
z
Total County Sales Tax Portion
(1.15%)
• $1,527,470
z
Total Municipal (QCV) Sales Tax
Portion (.85%)
• $1,129,000
37
House Bill 1721:
What does this mean?
Six Year Projection
| Total projected NET SALES from
QCV for 2006-2011:
|
z
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$940,705,882
Total Tax Revenue Generated By
QCV 2006-2011 (8.5%)
z
$79,760,000
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Law Seminars International | Tax Management for Tribes | 02/21/08 in Seattle, WA
Speaker 7b: 19
Lael R. Echo-Hawk of The Tulalip Tribes
House Bill 1721:
What does this mean?
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BREAKDOWN
z
Total State Sales Tax Portion (6.5%)
• $61,145,882
z
Total County Sales Tax Portion
(1.15%)
• $10,818,117
z
Total Municipal (QCV) Sales Tax
Portion (.85%)
• $7,996,000
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County’s Position
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Tribes’ do not have right to tax.
Tribes
Fact: Tribes DO have the ability to tax nonIndians on TRUST land.
z BUT, the states also can tax.
z If the Tribes’ imposed a tax on top of the
state tax
tax, they would be at a tax DIS
DISadvantaged status.
z Would be impossible to create commercial
development on reservation.
z
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Law Seminars International | Tax Management for Tribes | 02/21/08 in Seattle, WA
Speaker 7b: 20
Lael R. Echo-Hawk of The Tulalip Tribes
County’s Position
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If one tribe in the state gets the sales tax,
then remaining 28 tribes will also ask for the
sales tax.
z
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Response: Potential is there. BUT would
require a lot of work for those tribe.
Bill draws money away from county services.
z
Response: Bill simply redirected the money to
QCV government for use towards essential
governmental services needed by the 11K
visitors who go to the QCV in a day.
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No Remedy from
Federal Courts
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Federal courts have upheld the tribal
jurisdiction to tax on Indian trust lands.
lands
Federal courts have also upheld the state
authority to tax on these lands as well.
The courts have refused to act to equitably
divide the revenues between the two.
This leaves tribes at a distinct practical
disadvantage because tribes would have to
impose tribal taxes on top of state levies,
establishing a tax disfavored jurisdiction.
42
Law Seminars International | Tax Management for Tribes | 02/21/08 in Seattle, WA
Speaker 7b: 21
Lael R. Echo-Hawk of The Tulalip Tribes
Speaker 7b: 22
Remedy from
Congress?
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Hayden Cartwright Act, 4 U.S.C. 104 and Buck Act,
4 U.S.C.
U S C 106 established federal/state tax policy on
all other federal lands.
Indian trust lands were the only federal lands
excluded from these Acts.
Congress has never acted to establish tax policy on
Indian trust lands.
Tax policy is a basic component of Indian Economic
Development.
Congress can resolve this issue if it chooses.
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What Next?
o
Try
y to push legislation
g
through
g the
Washington State legislature?
o
Litigation?
o
Continue on with business of operating
government at QCV.
o
o
o
o
Roads
Infrastructure
Police services
Public Health and Safety services
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Law Seminars International | Tax Management for Tribes | 02/21/08 in Seattle, WA
Lael R. Echo-Hawk of The Tulalip Tribes
Contact information:
Lael Echo-Hawk
e [email protected]
e.
laeleh@yahoo com
w. www.tulaliptribes.com
p. 360/651.3444
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Law Seminars International | Tax Management for Tribes | 02/21/08 in Seattle, WA
Speaker 7b: 23