Office of Governor Gary Locke
FOR IMMEDIATE RELEASE - March 8, 2000
Contact:  Governor's Communications Office, 360-902-4136

Locke takes legal action against Yakama Tribe on alcohol tax

OLYMPIA — Gov. Gary Locke today asked Attorney General Christine Gregoire to take the Yakama Indian tribe to court to overturn a tribal alcohol tax that threatens to put a number of businesses within the borders of the Yakama Nation out of business.

Since early January, the governor sought tribal council action to suspend enforcement of the alcohol tax while the state engaged in government-to-government negotiations with the Yakama Nation to address problems of alcohol abuse among tribal members.

Tribal officials said they imposed the alcohol tax to raise revenue to deal with alcohol problems on the reservation, but owners of 47 businesses in three cities within the Yakama Nation — Toppenish, Wapato and Harrah — said the alcohol tax would put them out of business.

On Jan. 7, the tribe agreed in a joint proclamation signed by the governor and the tribal council chairman to consider placing a moratorium on the tax if the state made progress in helping the tribe respond effectively to a broad spectrum of alcohol problems faced by the tribe.

The state discovered the tribe's under-utilization of federally funded programs that would allow the Yakama Nation to be reimbursed for alcohol-related treatment of eligible tribal members. The governor directed the state Department of Social and Health Services to provide technical assistance to help the tribe fully access those funds. Locke also asked the Liquor Control Board to be more responsive to complaints from the Yakama Nation about establishments that do not comply with liquor laws or illegally serve minors. The state also moved to close one state liquor store and relocate another to a site outside the reservation.

While opposed to the tax, Locke also introduced legislation that would have allowed part of the current state liquor tax collected within the Yakama Nation to be shared with the tribe, so there would be no additional taxes on businesses or customers.

"The state of Washington acted in good faith to fulfill the terms of our joint proclamation with the Yakama Nation, and we regret the tribe has not been able to respond and agree to a mutual cooling-off period," Locke said. "I've always viewed going to court over this issue as a last resort, but now it appears that is the only alternative we have left."

Noting the alcohol tax has led to rising tensions in cities within the Yakama Nation, Locke asked Gregoire to take federal court action to overturn the alcohol tax "to protect the rights of business owners and to ensure public safety."

Locke referred the alcohol-tax issue to the attorney general after the tribe took no action to suspend the tax at its tribal council meeting this week. The governor earlier had told tribal officials that legal action would follow if the tribal council did not suspend the tax at its council meeting this week.

Since early January, Locke had sought a cooling-off period so local businesses would not have to worry about seizures of alcoholic beverages by tribal police while the state and tribal officials continued to try to negotiate a settlement of the tax.

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