In an ongoing dispute over sales taxes at the Royal River Casino and Hotel, First American Mart and Royal River Family Entertainment Center in Flandreau, the Flandreau Santee Sioux Tribe has filed a lawsuit against the state of South Dakota. State officials contend the state is not obeying a 2006 law requiring all tribes to remit use taxes on any goods and services purchased by non-tribal members on Indian land—including alcohol sales. Tribal officials, however, claim that all activities at Royal River fall under federal—not state–jurisdiction and the Indian Gaming and Regulatory Act clearly states it preempts state tax laws.
FSST Tribal Council President Tony Reider said, “The tribe currently has a limited tax agreement with the state in which the state and tribe split the taxes collected on the sale of cigarettes. Fifty percent goes to the tribe, 50 percent goes to the state and the state collects a fee for collection.”
A December 1 hearing will determine if an injunction will be granted, allowing the tribe to continue to operate with state issued liquor licenses, which will expire December 13 without an injunction.
