Legislature rejects Cayuga Nation’s settlement offer
The Cayuga County Legislature decided almost unanimously to reject a settlement deal with the Cayuga Indian Nation regarding cigarette sales tax and to pursue an appeal of a state court’s decision that allows the tribe to sell untaxed cigarettes.
An appellate court ruling on Friday granted the tribe permission to sell untaxed cigarettes, overturning a lower court’s ruling and leading Cayuga and Seneca counties to seek an appeal. On Monday, the tribe offered to throw out a lawsuit against Cayuga and Seneca counties and pay $180,000 to cover their legal fees if the counties agreed to not appeal the judge’s decision.
“We’re not for sale,” Cayuga County Legislator George Fearon, R-Union Springs, said after the Legislature’s executive session Tuesday night.
Dan French, an attorney for the tribe, said the offer was intended to protect taxpayers from what could be an expensive lawsuit. The tribe’s lawsuit seeks at least $500,000 to cover the revenue lost after their Lake Side Trading stores were raided of more than 3 million untaxed cigarettes in November and they were ordered to cease selling cigarettes in March.
“At some point the leaders of Cayuga and Seneca counties might avail themselves of the Cayuga Nation’s good faith efforts to resolve these issues through negotiations French said. “Tonight’s decision is obviously not a step in that direction.”
Cayuga County Legislator Daniel Schuster was the sole desenter in Tuesday night’s vote to move forward with an appeal.
“The opposition is not really the Cayuga Nation,” Schuster said. “The opposition is the state,” which has not sufficiently enforced its tax laws.
In addition, Schuster said, a case against the tribe brings up additional issues that were, at the moment, unpursued, if unresolved. The condition in the court’s decision Friday that allows the tribe to sell untaxed cigarettes is the designation of their property as a qualified reservation.
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