senate Bill S4679A

2013-2014 Legislative Session

Relates to the definition of qualified reservation

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Archive: Last Bill Status - Passed Senate


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jun 10, 2014 referred to ways and means
delivered to assembly
passed senate
Jun 09, 2014 ordered to third reading cal.1211
committee discharged and committed to rules
May 14, 2014 print number 4679a
amend and recommit to investigations and government operations
Jan 08, 2014 referred to investigations and government operations
Apr 18, 2013 referred to investigations and government operations

Votes

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Bill Amendments

Original
A (Active)
Original
A (Active)

Co-Sponsors

S4679 - Bill Details

See Assembly Version of this Bill:
A5393A
Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd §470, Tax L; amd §6, Indian L; amd §454, RPT L
Versions Introduced in Previous Legislative Sessions:
2011-2012: S3866C, A5151B
2013-2014: S4679A

S4679 - Bill Texts

view summary

Relates to the definition of Indian reservation; ties such term to certain treaties.

view sponsor memo
BILL NUMBER:S4679

TITLE OF BILL: An act to amend the tax law, the Indian law and the
real property tax law, in relation to the definition of "qualified
reservation"

PURPOSE: To clarify that Indian nations are only exempt from the
payment of sales taxes on cigarettes purchased for their own use on
reservations where they exercise sovereignty over such lands and that
only such lands are exempt from the payment of real property taxes.

SUMMARY OF SPECIFIC PROVISIONS: This bill amends subdivision (16) of
Section 470 of the Tax Law to eliminate from the definition of a
"qualified reservation" lands held by an Indian nation or tribe that
are located within the reservation of that nation or tribe within the
state and instead provides that the term "qualified reservation" be
limited to lands within the state over which an Indian nation lawfully
exercises tribal sovereignty or lands over which the Indian nation or
tribe exercises governmental power and that are either: held by the
nation subject to restrictions by the United States against alienation
pursuant to the Seneca Nation (New York) Land Claims Settlement Act
(25 U.S.C. 1774 et seq.); or held in trust by the United States for
the benefit of such Indian nation. The bill also amends Section 6 of
the Indian Law and Section 454 of the Real Property Tax Law by
defining "Indian reservation" to be consistent with the definition of
"qualified reservation" in Section 470 of the Tax Law.

JUSTIFICATION: In 2010, the New York Court of Appeals issued its
decision in CAYUGA INDIAN NATION OF NEW YORK V. CAYUGA COUNTY wherein
it reaffirmed the Appellate Division 4th Department's 2009 ruling that
the Cayuga Nation did not have to collect the sales tax on cigarettes
sold to non-Indian consumers at two stores located on their aboriginal
land. Specifically, the Court ruled that despite the fact that the
Cayuga Nation has no present reservation in the state, the properties
involved met the statutory test under the Tax Law of being a qualified
reservation (wherein the state is without power to impose a tax on
sales to Indians) because their reservation, established by a treaty
in 1789 and further acknowledged by the treaty of Canandaigua in 1794,
was never disestablished by Congress. Thus, the Court ruled that the
two Cayuga Nation stores were located on reservation land even though
the Nation exercised no sovereign control over them. Ultimately, only
Congress or the United States Supreme Court can settle the issue
concerning the ramifications of a Native American nation acquiring
real property in an unrecognized but also un-disestablished
reservation, Until that occurs, this bill would require that real
property owned by a nation could only be deemed a qualified
reservation under support for the bill's provisions can also be found
in the 2005 decision of the Supreme Court of the United States in CITY
OF SHERRILL V. ONEIDA INDIAN NATION OF NEW YORK which held that the
Oneida do not exercise sovereignty in whole or in part over parcels
they recently purchased on the open market and that such parcels are
subject to real property taxes. The holding in SHERRILL applies not
only to the specific parcels within the City of Sherrill at issue but
also to lands recently purchased by the Oneida within their historic
reservation of 250,000 to 300,000 acres. The principle of SHERRILL
applies equally to lands recently purchased by other New York tribes.
Nevertheless, the Oneida have refused to pay real property taxes and


have argued that these parcels are exempt from such taxes under
Section 6 of the Indian Law and Section 454 of the Real Property Tax
Law because in the historic reservation has not been "disestablished."
In 2010, the Supreme Court of the United States granted certiorari on
two questions, including "whether the ancient Oneida reservation in
New York was disestablished or diminished." After the Oneida passed a
tribal declaration and ordinance waiving "its sovereign immunity to
enforcement of real property taxation through foreclosure by state,
county and local governments," the Supreme Court vacated the judgment
of the Second Circuit and remanded the case to that court, where it is
still pending. This bill would provide that real property owned by an
Indian nation or tribe could be deemed an "Indian reservation" under
the Indian Law and under the Real Property Tax Law only if that tribe
or nation lawfully exercises tribal sovereignty over such real
property, or that property is (1) either held by the nation or tribe
subject to restriction by the United States again alienation pursuant
to the Seneca Nation (New York Land Claims Settlement Act (25 U.S.C.
1774 et seq.); or(2) held in trust by the United States for the
benefit of such nation or tribe as set forth in the bill.

PRIOR LEGISLATIVE HISTORY: 2011: S.3866

FISCAL IMPLICATIONS: Could result in a minimal increase in sales tax
collection from any affected stores.

EFFECTIVE DATE: Immediately.

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                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  4679

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                             April 18, 2013
                               ___________

Introduced  by Sen. NOZZOLIO -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

AN ACT to amend the tax law, the Indian law and the  real  property  tax
  law, in relation to the definition of "qualified reservation"

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivision 16 of section 470 of the tax law, as  added  by
section  1  of  part  K of chapter 61 of the laws of 2005, is amended to
read as follows:
  16. "Qualified reservation." (a) Lands [held by an  Indian  nation  or
tribe  that is located within the reservation of that nation or tribe in
the state] WITHIN THE  STATE  OVER  WHICH  AN  INDIAN  NATION  OR  TRIBE
LAWFULLY EXERCISES TRIBAL SOVEREIGNTY;
  (b)  Lands within the state over which an Indian nation or tribe exer-
cises governmental power and that are either  (i)  held  by  the  Indian
nation  or  tribe  subject  to restrictions by the United States against
alienation PURSUANT TO THE SENECA NATION (NEW YORK) LAND  CLAIM  SETTLE-
MENT  ACT  (25  USC  1774  ET SEQ.), or (ii) held in trust by the United
States for the benefit of such Indian nation or tribe  PURSUANT  TO  THE
INDIAN REORGANIZATION ACT (25 USC 461 ET SEQ.);
  (c)  Lands held by the Shinnecock Tribe or the Poospatuck (Unkechauge)
Nation within their respective reservations; or
  (d) Any land that falls within paragraph (a) or (b) of  this  subdivi-
sion,  and  which may be sold and replaced with other land in accordance
with an Indian nation's or tribe's land claims settlement agreement with
the state of New York, shall nevertheless be deemed  to  be  subject  to
restriction by the United States against alienation.
  S 2. Section 6 of the Indian law is amended to read as follows:
  S  6. Exemption of reservation lands from taxation.  1. No taxes shall
be assessed, for any purpose whatever, upon any  Indian  reservation  in

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01567-01-3

S. 4679                             2

this  state,  so  long  as the land of such reservation shall remain the
property of the nation, tribe or band occupying the same.
  2. FOR THE PURPOSES OF THIS SECTION, "INDIAN RESERVATION" MEANS:
  (A)  LANDS  WITHIN  THE  STATE  OVER  WHICH  AN INDIAN NATION OR TRIBE
LAWFULLY EXERCISES TRIBAL SOVEREIGNTY;
  (B) LANDS HELD BY AN INDIAN NATION OR TRIBE SUBJECT TO RESTRICTIONS BY
THE UNITED STATES AGAINST ALIENATION PURSUANT TO THE SENECA NATION  (NEW
YORK) LAND CLAIMS SETTLEMENT ACT (25 USC 1774 ET SEQ.);
  (C)  LANDS  HELD IN TRUST BY THE UNITED STATES FOR THE BENEFIT OF SUCH
INDIAN NATION OR TRIBE PURSUANT TO THE  INDIAN  REORGANIZATION  ACT  (25
U.S.C. 46, ET SEQ.); OR
  (D)  LANDS HELD BY THE SHINNECOCK TRIBE OR THE POOSPATUCK (UNKECHAUGE)
NATION WITHIN THEIR RESPECTIVE RESERVATIONS.
  S 3. Section 454 of the real property tax law is amended  to  read  as
follows:
  S  454.  Indians. 1. The real property in any Indian reservation owned
by the Indian nation, tribe or band occupying them shall be exempt  from
taxation  and  exempt from special ad valorem levies and special assess-
ments to the extent provided in section  four  hundred  ninety  of  this
chapter.
  2. FOR THE PURPOSES OF THIS SECTION, "INDIAN RESERVATION" MEANS"
  (A)  LANDS  WITHIN  THE  STATE  OVER  WHICH  AN INDIAN NATION OR TRIBE
LAWFULLY EXERCISES TRIBAL SOVEREIGNTY;
  (B) LANDS HELD BY AN INDIAN NATION OR TRIBE SUBJECT TO RESTRICTIONS BY
THE UNITED STATES AGAINST ALIENATION PURSUANT TO THE SENECA NATION  (NEW
YORK) LAND CLAIMS SETTLEMENT ACT (25 USC 1774 ET SEQ.);
  (C)  LANDS  HELD IN TRUST BY THE UNITED STATES FOR THE BENEFIT OF SUCH
INDIAN NATION OR TRIBE PURSUANT TO THE  INDIAN  REORGANIZATION  ACT  (25
U.S.C. 46, ET SEQ.); OR
  (D)  LANDS HELD BY THE SHINNECOCK TRIBE OR THE POOSPATUCK (UNKECHAUGE)
NATION WITHIN THEIR RESPECTIVE RESERVATIONS.
  S 4. This act shall take effect immediately.

Co-Sponsors

S4679A (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A5393A
Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd §470, Tax L; amd §6, Indian L; amd §454, RPT L
Versions Introduced in Previous Legislative Sessions:
2011-2012: S3866C, A5151B
2013-2014: S4679A

S4679A (ACTIVE) - Bill Texts

view summary

Relates to the definition of Indian reservation; ties such term to certain treaties.

view sponsor memo
BILL NUMBER:S4679A

TITLE OF BILL: An act to amend the tax law, the Indian law and the real
property tax law, in relation to the definition of "qualified reserva-
tion"

PURPOSE: To clarify that Indian nations are only exempt from the payment
of sales taxes on cigarettes purchased for their own use on reservations
where they exercise sovereignty over such lands and that only such lands
are exempt from the payment of real property taxes and specify that the
Cayuga Indian Nation does not meet these qualifications.

SUMMARY OF SPECIFIC PROVISIONS: This bill amends subdivision (16) of
Section 470 of the Tax Law to make clear that the definition of a "qual-
ified reservation" does not include The Cayuga Indian Nation The bill
also amends Section 6 of the Indian Law and Section 454 of the Real
Property Tax Law by defining "Indian reservation" to be consistent with
the definition of "qualified reservation" in Section 470 of the Tax Law.

JUSTIFICATION: In 2010, the New York Court of Appeals issued its deci-
sion in CAYUGA INDIAN NATION OF NEW YORK V. CAYUGA COUNTY wherein it
reaffirmed the Appellate Division 4th Department's 2009 ruling that the
Cayuga Nation did not have to collect the sales tax on cigarettes sold
to non-Indian consumers at two stores located on their aboriginal land.
Specifically, the Court ruled that despite the fact that the Cayuga
Nation has no present reservation in the state, the properties involved
met the statutory test under the Tax Law of being a qualified reserva-
tion (wherein the state is without power to impose a tax on sales to
Indians) because their reservation, established by a treaty in 1789 and
further acknowledged by the treaty of Canandaigua in 1794, was never
disestablished by Congress. Thus, the Court ruled that the two Cayuga
Nation stores were located on reservation land even though the Nation
exercised no sovereign control over them. Ultimately, only Congress or
the United States Supreme Court can settle the issue concerning the
ramifications of a Native American nation acquiring real property in an
unrecognized but also un-disestablished reservation, Until that occurs,
this bill would require that real property owned by the Nation to be
taxed support for the bill's provisions can also be found in the 2005
decision of the Supreme Court of the United States in CITY OF SHERRILL
V. ONEIDA INDIAN NATION OF NEW YORK which held that the Oneida do not
exercise sovereignty in whole or in part over parcels they recently
purchased on the open market and that such parcels are subject to real
property taxes. The holding in SHERRILL applies not only to the specific
parcels within the City of Sherrill at issue but also to lands recently
purchased by the Oneida within their historic reservation of 250,000 to
300,000 acres. The principle of SHERRILL applies equally to lands
recently purchased by other New York Tribes including the Cayuga Indian
Nation because in that the historic reservation has not been "disestab-
lished."

PRIOR LEGISLATIVE HISTORY: 2011: S.3866

FISCAL IMPLICATIONS: Could result in a minimal increase in sales tax
collection from any affected stores.

EFFECTIVE DATE: Immediately.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 4679--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                             April 18, 2013
                               ___________

Introduced  by Sens. NOZZOLIO, SEWARD -- read twice and ordered printed,
  and when printed to be committed to the  Committee  on  Investigations
  and  Government Operations -- recommitted to the Committee on Investi-
  gations and Government Operations in accordance with  Senate  Rule  6,
  sec.  8  --  committee  discharged, bill amended, ordered reprinted as
  amended and recommitted to said committee

AN ACT to amend the tax law, the Indian law and the  real  property  tax
  law, in relation to the definition of "qualified reservation"

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivision 16 of section 470 of the tax law, as  added  by
section  1  of  part  K of chapter 61 of the laws of 2005, is amended to
read as follows:
  16. "Qualified reservation." (a) Lands held by  an  Indian  nation  or
tribe  that is located within the reservation of that nation or tribe in
the state;
  (b) Lands within the state over which an Indian nation or tribe  exer-
cises  governmental  power  and  that  are either (i) held by the Indian
nation or tribe subject to restrictions by  the  United  States  against
alienation,  or  (ii) held in trust by the United States for the benefit
of such Indian nation or tribe;
  (c) Lands held by the Shinnecock Tribe or the Poospatuck  (Unkechauge)
Nation within their respective reservations; or
  (d)  Any  land that falls within paragraph (a) or (b) of this subdivi-
sion, and which may be sold and replaced with other land  in  accordance
with an Indian nation's or tribe's land claims settlement agreement with
the  state  of  New  York, shall nevertheless be deemed to be subject to
restriction by the United States against alienation[.]; OR
  (E) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPHS (A),  (B),  (C),  AND
(D)  OF  THIS SUBDIVISION, LANDS HELD BY THE CAYUGA INDIAN NATION OF NEW

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01567-02-4

S. 4679--A                          2

YORK SHALL NOT BE CONSIDERED A QUALIFIED RESERVATION  AS  THAT  TERM  IS
DEFINED IN THIS SUBDIVISION.
  S 2. Section 6 of the Indian law is amended to read as follows:
  S  6.  Exemption of reservation lands from taxation. 1. No taxes shall
be assessed, for any purpose whatever, upon any  Indian  reservation  in
this  state,  so  long  as the land of such reservation shall remain the
property of the nation, tribe or band occupying the same.
  2. NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION ONE OF THIS  SECTION,
LANDS HELD BY THE CAYUGA INDIAN NATION OF NEW YORK SHALL NOT QUALIFY FOR
THE EXEMPTION SET FORTH IN SUCH SUBDIVISION.
  S  3.  Section  454 of the real property tax law is amended to read as
follows:
  S 454.  Indians. 1. The real property in any Indian reservation  owned
by  the Indian nation, tribe or band occupying them shall be exempt from
taxation and exempt from special ad valorem levies and  special  assess-
ments  to  the  extent  provided  in section four hundred ninety of this
chapter.
  2. NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION ONE OF THIS  SECTION,
LANDS HELD BY THE CAYUGA INDIAN NATION OF NEW YORK SHALL NOT QUALIFY FOR
THE EXEMPTION SET FORTH IN SUCH SUBDIVISION.
  S 4. This act shall take effect immediately.

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