What's happening
This bill excludes lands held by the Cayuga Indian Nation of New York from being considered a qualified reservation and from related property tax exemptions.
Why it matters
Removes special legal and tax status for Cayuga Nation lands. By specifically excluding Cayuga Indian Nation lands from being considered a "qualified reservation," the bill eliminates their eligibility for certain property tax exemptions and other legal protections that apply to most other recognized Native reservations in New York State.
Could significantly increase local tax revenue and financial pressure on Cayuga Nation. The loss of property tax exemption means the Cayuga Nation would likely have to pay property taxes on lands it owns, which could result in substantial new revenue for local governments, but at a significant financial cost to the Nation itself.
Sets a precedent for state intervention in Native land status. This legislation represents a notable state-level move to single out one tribal nation for exclusion from rights and benefits otherwise generally available to Native nations, potentially raising legal, political, and intergovernmental issues about tribal sovereignty and equitable treatment.
May intensify disputes over land, sovereignty, and taxation. The exclusion could fuel ongoing disputes between the Cayuga Nation, local municipalities, and state authorities regarding land ownership, jurisdiction, and the Nation’s rights under federal and state law, possibly leading to protracted litigation.
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End Cayuga Tax Exemption
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to investigations and government operations
- Referred to investigations and government operations
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
End Cayuga Tax Exemption
In Assembly Committee · Ways And Means · Sponsor Brian Kolb
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2576
2017-2018 Regular Sessions
IN SENATE
January 13, 2017
Introduced by Sen. HELMING -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations
AN ACT to amend the tax law, the Indian law and the real property tax law, in relation to the definition of "qualified reservation"
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 16 of section 470 of the tax law, as added by section 1 of part K of chapter 61 of the laws of 2005, is amended to read as follows:
16. "Qualified reservation." (a) Lands held by an Indian nation or tribe that is located within the reservation of that nation or tribe in the state;
(b) Lands within the state over which an Indian nation or tribe exercises governmental power and that are either (i) held by the Indian nation or tribe subject to restrictions by the United States against alienation, or (ii) held in trust by the United States for the benefit of such Indian nation or tribe;
(c) Lands held by the Shinnecock Tribe or the Poospatuck (Unkechauge) Nation within their respective reservations; or
(d) Any land that falls within paragraph (a) or (b) of this subdivision, and which may be sold and replaced with other land in accordance with an Indian nation's or tribe's land claims settlement agreement with the state of New York, shall nevertheless be deemed to be subject to restriction by the United States against alienation[.]; or
(e) Notwithstanding the provisions of paragraphs (a), (b), (c), and (d) of this subdivision, lands held by the Cayuga Indian Nation of New York shall not be considered a qualified reservation as that term is defined in this subdivision.
§ 2. Section 6 of the Indian law is amended to read as follows:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03290-01-7
S. 2576 2
§ 6. Exemption of reservation lands from taxation. 1. No taxes shall be assessed, for any purpose whatever, upon any Indian reservation in this state, so long as the land of such reservation shall remain the property of the nation, tribe or band occupying the same.
2. Notwithstanding the provisions of subdivision one of this section, lands held by the Cayuga Indian Nation of New York shall not qualify for the exemption set forth in such subdivision.
§ 3. Section 454 of the real property tax law is amended to read as follows:
§ 454. Indians. 1. The real property in any Indian reservation owned by the Indian nation, tribe or band occupying them shall be exempt from taxation and exempt from special ad valorem levies and special assessments to the extent provided in section four hundred ninety of this chapter.
2. Notwithstanding the provisions of subdivision one of this section, lands held by the Cayuga Indian Nation of New York shall not qualify for the exemption set forth in such subdivision.
§ 4. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the tax law, the Indian law and the real property tax law, in relation to the definition of "qualified reservation"
Purpose
To clarify that Indian nations are only exempt from the payment of sales taxes on cigarettes purchased for their own use on reservations where they exercise sovereignty over such lands and that only such lands are exempt from the payment of real property taxes and specify that the Cayuga Indian Nation does not meet these qualifications.
Summary of specific provisions
This bill amends subdivision (16) of Section 470 of the Tax Law to make clear that the definition of a "qualified reservation" does not include The Cayuga Indian Nation The bill also amends Section 6 of the Indian Law and Section 454 of the Real Property Tax Law by defining "Indian reservation" to be consistent with the definition of "qualified reservation" in Section 470 of the Tax Law.
Justification
In 2010, the New York Court of Appeals issued its decision in CAYUGA INDIAN NATION OF NEW YORK V. CAYUGA COUNTY wherein it reaffirmed the Appellate Division 4th Department's 2009 ruling that the Cayuga Nation did not have to collect the sales tax on cigarettes sold to non-Indian consumers at two stores located on their aboriginal land. Specifically, the Court ruled that despite the fact that the Cayuga Nation has no present reservation in the state, the properties involved met the statutory test under the Tax Law of being a qualified reservation (wherein the state is without power to impose a tax on sales to Indians) because their reservation, established by a treaty in 1789 and further acknowledged by the treaty of Canandaigua in 1794, was never disestablished by Congress. Thus, the Court ruled that the two Cayuga Nation stores were located on reservation land even though the Nation exercised no sovereign control over them. Ultimately, only Congress or the United States Supreme Court can settle the issue concerning the ramifications of a Native American nation acquiring real property in an unrecognized but also un-disestablished reservation, Until that occurs, this bill would require that real property owned by the Nation to be taxed support for the bill's provisions can also be found in the 2005 decision of the Supreme Court of the United States in CITY OF SHERRILL V. ONEIDA INDIAN NATION OF NEW YORK which held that the Oneida do not exercise sovereignty in whole or in part over parcels they recently purchased on the open market and that such parcels are subject to real property taxes. The holding in SHERRILL applies not only to the specific parcels within the City of Sherrill at issue but also to lands recently purchased by the Oneida within their historic reservation of 250,000 to 300,000 acres. The principle of SHERRILL applies equally to lands recently purchased by other New York Tribes including the Cayuga Indian Nation because in that the historic reservation has not been "disestablished."
Prior legislative history
2011/2012: S.3866, 2013/2014: S.4679A, 2015/2016: S.3286
Fiscal implications
Could result in a minimal increase in sales tax collection from any affected stores.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.