Indian casinos/hotels and sales tax??

Okay: whats the law on Indian casinos charging state sales tax? Do they remit the sales tax money to the state or do they hold on to the purported sales tax money as "extra profit" ? Does it vary from state to state?
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Originally posted by: MoneyLA
Okay: whats the law on Indian casinos charging state sales tax? Do they remit the sales tax money to the state or do they hold on to the purported sales tax money as "extra profit" ? Does it vary from state to state?


Under Federal law, Indian land doesn't get taxed by the state. If the tribe wants to tax, they tax. The casino stuff, is between the tribe and the state.
CT casino's charge 6% sales tax.
Where does the tax go?

snidely hit the proverbial nail. If the Indian casinos are charging the sales tax, and they are exempt, where does the "sales tax" go?
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Originally posted by: MoneyLA
Okay: whats the law on Indian casinos charging state sales tax? Do they remit the sales tax money to the state or do they hold on to the purported sales tax money as "extra profit" ? Does it vary from state to state?
Federal Law prohibits collection of State sales taxes from Indians on Indian Lands. DonDiego assumes MoneyLA is not an Indian so this doesn't address his questions.

Federal Law permits States to impose sales-taxes on non-Indians on Indian Land.
Some States do, some States don't.

Sometimes the Indian Tribe objects to the State collecting the tax, or the State and Tribe agree to difficulties in the State collecting the tax on the reservation - what with the dam revenuers mucking about and such, . . . so the State and Tribe agree that the Tribe may collect it and use it to benefit the Tribe, if the Tribe agrees to concessions, . . . like f'rinstance not setting gasoline prices so low as to make non-Indian businesses outside the reservation non-competitive.

Bottom-line: It varies a lot from State-to-State.
Good question, Money. If the Indian casinos are technically not in the state, why do they collect state sales tax. Or is it local Indian sales tax?
I would think that if they are charging a state sales tax, the money has to go to the state. Otherwise, they would be no different from any other tax fraud. They don't have to charge the tax- in NY, they don't charge tax on smokes- but if they do, it best go where it is supposed to.
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Originally posted by: billryan
I would think that if they are charging a state sales tax, the money has to go to the state. Otherwise, they would be no different from any other tax fraud. They don't have to charge the tax- in NY, they don't charge tax on smokes- but if they do, it best go where it is supposed to.
If they are collecting a State sales-tax the money has to go to the State or to the Tribe, as agreed between the State and Tribe. Otherwise, it might be tax fraud.

(Before posting his previous post DonDiego scampered about the internet to educate himself a mite on this subject. He read 'bout some Supreme Court case with some Oklahoma Injuns, . . . and he read some clear explanations from the State of Washington, . . . and he read some about the State of New York and the Oneida. It seems the New York Legislature passed a law requiring the Injuns to collect sales tax when Mr. George Pataki was Governor; and the Governor refused to institute or enforce the Law. Court cases ensued leading to some sorta Court Order that the tax be collected. DonDiego didn't read further so he doesn't know what's goin' on up there now.
This here internet is the cat's pajamas !)

Perhaps your question will be answered at the 2011 Indian Gaming Expo held April 3-6 in Phoenix.
https://www.indiangaming.org/
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