Seneca Nation To New York State: Bring It On

In a press conference held today in Irving, NY, Seneca Nation President Barry E. Snyder Sr., supported by the Tribal Council, announced a series of actions designed to elevate the Nation’s response level to New York State’s decision to impose a sales tax on wholesalers who supply the Seneca Nation’s tobacco retailers.

“The Council believes the state is once again intending to take action to impose an embargo on tobacco products, which poses a grave threat to recent progress the Nation made to recover from the historic economic limitations inflicted on the Seneca people by the state and federal governments,” President Snyder said. “This justifies taking any and all prudent actions to protect and defend the Nation’s economy and the way of life of the Seneca people.”

The Seneca Nation believes that the state’s effort to collect tax on reservation commerce violates the Treaty of 1842 signed by federal, state and tribal governments.  The Tribal Council approved planning to devise a system for the Nation to collect tolls on the New York State Thruway in Irving; authorized an action filed in the Nation’s tribal courts for an advisory opinion to declare the Thruway an illegal invasion of sovereign Nation territory; and increase to $2 the current per-car toll the Nation charges the state on behalf of motorists using it; and, Senecas are being encouraged to make provisions for stockpiling basic needs.

The Nation’s position regarding the Thruway stems from a Council vote on April 14, 2007 that rescinded the 1954 agreement with the state for use of Nation land for its highway. The Nation and the state have yet to discuss outstanding compensation for past land use, but the state has refused to pay the $1 assessed on motorists since May 12, 2007.

The Council also authorized President Snyder to invoke the provisions of the Canandaigua Treaty of 1794 and ask President Obama next week to provide federal troops to protect Indian lands.  Evidently, the tribal council is referring to Article 7 of the Canandaigua Treaty which stipulates:

Lest the firm peace and friendship now established should be interrupted by the misconduct of individuals, the United States and the Six Nations agree, that for injuries done by individuals, on either side, no private revenge or retaliation shall take place; but, instead thereof, complaint shall be made by the party injured, to the other; by the Six Nations or any of them, to the President of the United States

However, Article 5 of that same treaty stipulates as follows:

The Seneca Nation, all others of the Six Nations concurring cede to the United States the right of making a wagon road from Fort Schlosser to Lake Erie, as far south as Buffalo Creek; and the people of the United States shall have the free and undisturbed use of this road for the purposes of traveling and transportation. And the Six Nations and each of them, will forever allow to the people of the United States, a free passage through their lands, and the free use of the harbors and rivers adjoining and within their respective tracts of land, for the passing and securing of vessels and boats, and liberty to land their cargoes, where necessary, for their safety.

Now, I’m far from an expert on Indian treaties, but it would seem that the two articles referenced above are contradictory.  There is no language in that treaty which provides for action by the Seneca Nation to discontinue use of the highways in the event of a treaty violation.  I guess that’s why we have courts, right?

Last month, I recapped the protests of 1997 when the state last pursued collection of taxes on reservation commerce. Are we headed for a redux of violent clashes and tire fires?  Perhaps.

The thing that strikes me as odd about the desperate efforts of New York State to collect taxes on reservation cigarette sales is Governor Paterson’s estimate that the state could realize $62MM in revenue from such a program.  The imposition of a sales or wholesale tax would simply drive down business on the reservation as people would no longer realize significant savings on their purchases.  As sales drop, tax revenue drops…this is not complicated math.  So, New York would depress commerce on the reservation and also not realize near the benefit they estimate would come from such an effort?  Sounds like a lose/lose plan to me.

Also, for some additional reading material on the merits of the state’s effort to collect taxes on Indian to Non-Indian commerce, check out the website of Upstate Citizens for Equality.