In the past four months much has been flogged, blogged and blathered around in Washington State concerning the potential loss of dollars from casino revenue sharing. Gregoires supporters defend her actions as on a par with the wisdom of Solomon. Her detractors think she sold Manhattan back to the Indians for a few trinkets and blankets. Well it was all exciting but little can be done about it because Gregoire ain't about to back down and the Indians got a good deal.
There is another deal which Gregoire recently struck with the tribes in this state which few people know about much less understand. It is both costly and clandestine and possibly has more to do with tribal support of our governor and her political party than the hypothetical loss of casino gambling dollars.
Over the past two years the governor has delegated authority to the Department of Licensing to negotiate new 25/75 percent fuel tax sharing compacts with the tribes in this state. Under the new compacts the state collects at the refinery the full excise tax of 37.5 cents per gallon for fuel purchased and sold by the tribes but then rebates 75 percent back to the tribes. Supposedly the rebates are to fund tribal roads.
It ain't chicken feed. One tribe in Skagit County is estimated to be pumping 800,000 gallons per month. They receive a rebate of $225,000 per month, 2.7 million per year. Multiply that out by 19 tribes selling gas, some with up to three stations, and to paraphrase Everett Dirksen, a million here, a million there and pretty soon you are talking about real money!
Fortunately for the governor, the recently revised legislation which authorizes all this, RCW 82.36.450, has a provision which states that any information regarding tribal fuel sales is personal information and exempt from public inspection and copying.
So .... the state heavily subsidizes tribal fuel sales but the public is denied any knowledge of the amount of that subsidy. Open government, Gregoire style, at work?
The next time readers of this blog fill up at a tribal gas station you can give thanks to our governor, and not the altruistic motives or entrepreneurial expertise of the tribe, for being so bountiful. Keep in mind however that you are paying for this subsidy by not contributing your fair share to Washington State's highway funding. Also, you might keep in mind that the reason the long established Chevron Gas station at 12th and Commercial in downtown Anacortes went out of business last year is because the owner could no longer profitably compete with the subsidized gas prices of a local tribe. Skeptical of that statement? Check out the pricing of gas at a tribal station located at 12939 Casino Drive in Skagit county.
Also, you might want to ponder the fairness of such a taxing system. Those with access to tribal gas effectively only pay about 9 cents per gallon in support of our states highway system. The other 27 cents goes into tribal coffers --- supposedly earmarked for tribal roads. Folks without access to tribal fuel pay a full tax of 37.5 cents per gallon.
Many folks will apply our recent national ethic and say screw the state - I can't afford high priced gas, I'm getting mine wherever it is cheapest. Well, personal needs aside, there are constitutional issues at stake here. Article 2, Section 40 of the Washington State Constitution specifically states that excise fuel taxes are to be used for public highways, county roads and bridges and city streets. There is no reference to Indian highways, roads, bridges and streets.
Article 7, Section 1 of our constitution reiterates that taxes shall be levied and collected for public purposes only. There is no reference to collecting taxes for non-public entities such as Indian tribes.
Finally, Article 11, section 9 of the state constitution states "No county, nor the inhabitants thereof ... shall be released or discharged from its or their proportionate share of taxes to be levied for state purposes, nor shall commutation for such taxes be authorized in any form whatsoever."
Now just what is it about the term in any form whatsoever that the clowns in the Governors Office, the State Legislature and the Department of Licensing don't understand?
Something to think about next time you fill up your gas guzzler or Prius at a tribal fuel station.