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In Ledyard, Connecticut, the slot machines tax lawsuit
battle is still underway, and the town is still pitched against the
Mashantucket Pequot Tribe. There is still no court decision on who is in the
right regarding the slot machines taxes the town has levied on the tribe.
The tribe insists the taxes on slot machines are illegal and are pressuring
for a complete reversal—and for months now they have scarcely moved forward
in the lawsuit.
Now, however, the tribe could see the end of this lawsuit because they chose
to drop their supplier from the lawsuit. Originally, their slot machines
supplier, Atlantic City Coin and Slot Service, Co. was a part of the lawsuit
battle. But after considerations, they pushed to have Atlantic removed from
the lawsuit.
The issue comes down to this: the tribe claims it is tax-exempt because of
the federal law protecting their slot machines and the income they make on
the reservation. On the other hand, Ledyard insists that because their
supplier is not federally protected, the town has the right to tax Atlantic
when they sell the slot machines. But the tribe does not believe these
additional taxes on Atlantic are fair since the tribe will wind up paying
the increased price on the slot machines.
Now though that Atlantic is dropped from the lawsuit, the town has no
grounds for the lawsuit. They are aware they cannot tax the tribe, and now
the tribe is the only other party in the lawsuit.
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