The general council of the Florida-based Miccosukee recently voted to remove Chairman Colley Billie as he tried to resolve a legal dispute with the Internal Revenue Service by withholding taxes from casino gambling distributions to more than 600 tribal members—a move the IRS demanded as part of an agreement with the tribe, which currently owes the IRS billion-plus.
Billie, who was elected in 2009, had two years left in his second term. The tribe’s Assistant Chairman Roy Cypress Jr. will serve as interim chairman. An election for a new chairman will be held in 2017.
The council circulated an impeachment petition stating, “Colley Billie has failed to perform the duties of chairman and protect the resources and follow the ordinances and laws of the tribe.” The petition accused Billie of depleting $82 million from a reserve account set up for paying back taxes owed to the IRS; cited the tribe’s loss of hundreds of millions of dollars in revenue from its Miccosukee Resort & Gaming in Miami under Billie’s direction; and accused Billie of misappropriating funds for personal use.
The tribe annually distributed to each member about $120,000 to $160,000 from gaming profits. However, that has resulted in a huge income-tax liability going back more than 10 years. Under federal law, those distributions are subject to both withholding and personal income taxes, according to the IRS. According to filings in state court, the IRS estimates Miccosukee tribal members owe personal income taxes totaling $280 million and an additional $160 million in penalties and interest. In addition, the IRS estimates the tribe owes more than $262 million in unpaid withholding taxes and an additional $441 million in penalties and interest.
