"Earlier this year I warned Indian Country that the state tax man cometh. I urged tribal communities to be prepared to defend against state tax collectors looking to balance multi-billion dollar state budget deficits on the backs of Indians. Since then, the states’ financial situation has gone from bad to abysmal.

State tax revenues, especially local property tax monies, have steadily declined over the last four years. Now, the Republican-hijacked Congress has added insult to the states’ injury by gutting federal aid for education, health care and transportation. And Congress’ so-called Super Committee will inflict more damage, almost certainly slashing federal funding for state Medicaid programs. Beyond the direct impact the loss of Medicaid funding, for example, will have on tribal communities, these federal-state dynamics will cause state and local tax collectors to find new targets for taxation, including Indians.

Meanwhile, Indian gaming, after a modest decline in national revenues from 2008 to 2009, held steady in 2010 at $26.5 billion. But state and local tax collectors see a $26.5 billion tribal target. As IGRA categorically prevents state taxation of Indian gaming activities, those tax collectors are looking to assess anything and anybody on the periphery of tribal casinos and reservations. In other words, as soon as a tribal dollar can be found beyond the safe refuge of Indian gaming or tribal lands, state taxes will be assessed."

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Gabe Galanda: The State Tax Man Cometh — Redux (Indian Country Today 8/21)