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In Ledyard, the tensions are still high between the
Mashantucket Pequot Tribe (which operates slot machines and a casino) and
the town. The town believes it has the right to levy taxes on the Tribes
slot machine revenue, the Tribe though is firm on the fact that the taxes
are illegal. Recently the tribe managed to get their co-plaintiff removed
from the lawsuit—they really didn’t see how it was going to help them in the
lawsuit. And now the focus of the lawsuit is just on the tribe and the town
and the slot machines.
The town says that the right to levy taxes doesn’t have to do with them
operating slot machines—they feel they feel they have the right to collect
property taxes from independent vendors.
Then on the other side though you have the tribe which is firm on the fact
that the county, state, no one has the right to tax the property that is
within the borders of an Indian reservation. Federal Law says guarantees
them that right, and that is why the tribe wants the case heard in Federal
court rather than state court.
Says King, “the town acknowledges that if the tribe (were) the owner of
these machines, they couldn't tax us. And when you lease them, it's really
almost as if the tribe owns them. ... We say that the reality of the
situation is that the tax becomes in essence a tax on the gaming operation.
And the burden of the tax falls on the tribe. And (the town) has no right to
tax the gaming operation.”
Others though are stressing that the tribe is trying to extend the no
taxation to gaming items—and that may not be acceptable.
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