Indian Gaming

Attorney discusses implications of a 2nd Circuit Court of Appeals decision affecting taxation at the casino owned by the Mashantucket Pequot Tribal Nation:

In Mashantucket Pequot Tribe v. Town of Ledyard, an opinion certain to echo throughout Indian Country, the Second Circuit Court of Appeals recently decided that Ledyard, Connecticut, home to Foxwoods Resort & Casino, may assess the state property tax on slot machines owned by non-Indians and leased to the casino on the reservation.

Connecticut's personal property tax, assessed for the purpose of funding the operations of local municipalities, does not apply to tribal property located on tribal land. However, many tribal casinos lease a large portion of their slot inventory, and non-Indian business owners locate substantial personal property on leased Indian land, so the ramifications of the decision could be far-reaching.

The Tribe challenged the Town's imposition of the property tax on the owners of slot machines leased by the Tribe and installed at Foxwoods. The owners, AC Coin and WMS, had been paying the Connecticut tax, totaling about $300,000 per year, without protest and without passing the tax on to the Tribe, until the Tribe asked them to cease tax payments to the Town and indemnified them from any resulting liability.

Get the Story:
Patrick Sullivan: Ruling On Leased Slots Opens Door To On-Reservation Personal Property Taxes (Mondaq.Com 7/26)
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2nd Circuit Decision:
Mashantucket Pequot Tribal Nation v. Ledyard (July 15, 2013)

Related Stories:
Law Article: Slot machine tax decision puts burden on tribes (7/25)