A federal appeals court has ruled that the Flandreau Santee Sioux must pay an excise tax for work being done on tribal lands by nonmember contractors. Previously, the tribe had been ruled exempt by a Circuit Court judge. The state, in Tribe v. Houdyshell, No. 20-344, challenged that ruling.
The case involved the application of South Dakota contractor’s excise tax on the renovation of the Royal River Casino and Hotel.
No word yet on what exactly the new ruling might mean for businesses that routinely work with the Tribe and Royal River Casino and Hotel, but tribal spokesperson David Kills A Hundred said that the Tribe is deeply disappointed by the decision, “which is contrary to long-existing federal precedent.” The Tribe, he added, “is concerned about the impact this decision will have on tribal sovereignty and self-sufficiency. The decision…continues to perpetuate the anti-tribal policies and practices of the State of South Dakota, and directly impacts the ability of the Tribe to provide economic development on its Reservation.”
The Tribe’s Executive Committee is currently considering an appeal with the Supreme Court of the United States.