Examine Tribal property taxation

Dear Mr. Dave Thomas,

Skagit County Assessor:

As a resident of La Conner (Eagles Nest) with property interests in Shelter Bay, I am personally affected – as are all of us in Skagit County, actually – by the adverse effects of property taxation imposed on us by the Swinomish Tribe following the Great Wolf Lodge decision by the 9th Circuit. We are taxed without representation as guaranteed by our Constitution, and the tribe fails repeatedly to pass through tax monies it collects to local taxing districts causing a tax shift that burdens other taxpayers.

I have followed the history of this decision closely from the outset, and am aware that the tribal interpretation – and apparently the County’s interpretation as well – derived from a Washington State Department of Revenue (DOR) “tax advisory” issued subsequent to Great Wolf that was heavily influenced by tribal interests without input from county assessors statewide.

This DOR “tax advisory” was interpreted as law and implemented without challenge or appeal, and in Skagit County opened the door for the Swinomish Tribe to establish their own “tax authority” and impose a “use and occupation” tax (equivalent to previous County property taxes) on Shelter Bay properties. The subsequent loss of revenue to local taxing districts (e.g., school, fire, dike) caused off-reservation property taxes to increase as much as 25% to make up the difference, and a loss of revenue to the County.

Now comes the recent Aqua Caliente ruling in Palm Springs, CA, also by the 9th Circuit, that on its face appears to counter the earlier Great Wolf Lodge 9th Circuit ruling in Washington State regarding tribal taxation authority. I have read your published commentary (www.skagitcounty.net) where you sought clarification from the DOR; that DOR asserts there is no commonality nor connection between the two cases; and that the tribe’s authority to tax property on leased land stands. To me, this is a “fox guarding the hen house” response that while not surprising, is totally unacceptable.

Therefore, I ask you with the utmost sincerity and urgency to take this matter to the judicial level and seek a court ruling. I believe this process is essential to La Conner and all Skagit County residents if we are to have a fair and hopefully unbiased review and determination.

Respectfully,

Bruce Elliot

Eagles Nest