[Congressional Record Volume 145, Number 70 (Friday, May 14, 1999)]
[Extensions of Remarks]
[Page E967]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




              THE TAX FAIRNESS FOR THE STATES ACT OF 1999

                                 ______
                                 

                        HON. PETER J. VISCLOSKY

                               of indiana

                    in the house of representatives

                         Thursday, May 13, 1999

  Mr. VISCLOSKY. Mr. Speaker, I rise today in support of bipartisan 
legislation that I am introducing with Representatives Istook, Sandlin, 
LaHood, and 17 of my colleagues. The Tax Fairness for the States Act of 
1999 will restore millions of dollars of lost revenue for the states, 
and establish an incentive program for those Native Americans who play 
by the rules.
  The Supreme Court has continuously upheld the states' power to levy 
taxes on non-tribal members within Native American Tribal Trust Lands. 
The problem that remains, however, is the mechanism to collect these 
taxes. Our bipartisan measure would solve this problem.
  The Tax Fairness for the States Act would authorize the Secretary of 
the Interior to promulgate rules to remove those Native Americans lands 
from the Tribal Trust on which a retail establishment exists that is 
not collecting the proper state excise taxes. This is not a 
discriminatory piece of tax legislation aimed at harming Native 
Americans. Rather, it focuses on the collection of excise taxes that, 
according to the Supreme Court, should have been collected in the first 
place. This legislation does not affect transactions between tribal 
members; it would only impact those retail establishments that are not 
collecting and passing on these legal taxes on non-tribal members.
  The Tax Fairness Act would protect the rights of Native Americans by 
requiring the Secretary of the Interior to promptly notify any tribe 
that is under investigation for not forwarding applicable state taxes 
and gives them a chance to respond. This notification would set out the 
time and manner in which a tribe has to answer the allegations, 
including a 90-day comment period in which interested parties could 
submit statements and request a formal hearing before the Department of 
the Interior. These important provisions will ensure due process for 
all tribal members.
  Furthermore, our legislation contains incentives for tribes who 
operate establishments in accordance with the law. The Tax Fairness 
bill awards Native Americans who play by the rules by giving priority 
among Native American tribes competing for federal grants to those 
tribes that can certify their compliance with state law.
  This measure ensures equity in the process of state taxation. This is 
not about Native American sovereignty, nor is it about discrimination. 
This measure will give back the hundreds of millions of dollars that 
states lose annually because these taxes are not collected. Support 
this measure, support tax equity for the states.

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