"The argument being made is that tribes are governments, just as cities and counties are governments. If cities and counties can get tax exemption on bonds from the state, tribes ought to be able to do the same.

That's a solid argument - until you dig a little deeper into the issue. It is true that cities and counties get the tax break, but the trade-off is that they must abide by state laws. Tribes do not. Tribes must adhere to federal regulations on such matters as planning and environmental protection, but they are exempt from state laws on those crucial matters.

If tribes want to use state-supported tax-free bonds to finance projects for government services, which in the tribes' case includes casino operations, tribal leaders should be willing to play by the same rules as other governments that enjoy the tax-free status. That would be fair to everyone."

Get the Story:
Editorial: Take a little, give a little (The Santa Maria Times 4/14)

Relevant Documents:
IRS Letter | Senate Testimony

Relevant Links:
Tax Exempt Bond Community - http://www.irs.gov/taxexemptbond

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