Tribal Recognition Allows Indians to Bypass State Taxes

Obama Administration recognizes Virginia’s Pamunkey Tribe, causing concern for state fuel industry.

July 06, 2015

RICHMOND, Va. – Late last week, the Obama Administration announced official recognition for Virginia’s Pamunkey Tribe, in a move that state industry groups say could have a devastating impact on the petroleum marketing and convenience store industries.

According to a statement released by the Virginia Petroleum Convenience and Grocery Association (VPCGA), federal recognition of the tribe means that it will no longer be bound by state laws and regulations, particularly as it relates to taxes on fuel and tobacco products.

In response to the announcement of federal recognition for the tribe, VPCGA issued a statement, reading in part: “With this decision there are now two Virginias: The Commonwealth of Virginia and the sovereign nation of the Pamunkey. We need only look at states like New York, Oklahoma, Washington and others where tribes have used their sovereign status to sell tobacco and motor fuel to non-tribal members, tax-free.”

According to VPCGA, there is nothing to stop the Pamunkey Tribe from re-opening Virginia’s Colonial Downs as a casino, or acquiring convenience stores and selling gasoline or tobacco without collecting the state tax. “This unfortunate decision … will have widespread unfortunate ramifications for all Virginians,” said VPCGA in their statement.

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