Oneidas begin to charge sales tax
Nov. 4, 2001

From staff and wire reports

VERONA -- An Oneida Indian Nation spokesman confirmed Saturday the Nation began charging non-Oneidas a 5 percent sales tax on cigarettes, soda and other items at its stores.

On Friday, the Oneidas also started imposing a 3 percent tax on hotel rooms at its Turning Stone Casino Resort, Nation spokesman Mark Emery said. Only gasoline sales are exempt from the tax, he said.

Emery said the sales tax will raise prices so that non-Indian businesses can compete more effectively.

The Nation operates about 10 gas stations and stores in Oneida and Madison counties, and claim that as a sovereign nation it is not required to pay local or state taxes.

“This is helping to level the playing field,” Emery said.

Oneida County Executive Ralph J. Eannace Jr. said Saturday the move was a step in the right direction.

“The idea of imposing a tax and keeping a price parity does help to level the playing field,” Eannace said. “But we need to get back to the negotiating table to solve the bigger questions of how we will share the burden of services we all need and use.”

The Oneidas can use the tax money any way they choose. It will not go to local or state governments, Emery said.

Critics called the tax a mere price hike.

The hotel tax could generate about $250,000 a year, said Paul Ziegler, executive director of the Oneida County Convention and Visitors Bureau.

“If they’re going to keep it, they’re not imposing a tax, they’re raising their rates,” he said.

Ongoing discussions with state officials prompted the tax, Emery said.

“For some time, we’ve encouraged them to find ways to level the economic playing field, and we view this as a positive step,” said Joe Conway, spokesman for Gov. George Pataki Saturday.

Five percent is not enough for Scott Peterman, president of Upstate Citizens for Equality, an opponent of the Nation’s tax policies.

“Nothing short of collecting the 7 percent sales tax, like all other businesses around here, will be acceptable to us,” he said.

Contributing: The Associated Press; O-D reporter Tom Lambert