Legislators seek equal tax treatment among Wabanaki Nations
Emma DavisMaine Morning Star
Legislators are trying again to ensure equal treatment for the Mi'kmaq Nation.
Last session, legislation to provide the Mi'kmaq Nation the same rights to sales tax revenue on its land that the other three tribes of the Wabanaki Nations were granted in 2022 received favorable committee and floor votes, but got caught up in end-of-session procedural fights and ultimately died without final action when lawmakers adjourned.
That measure was back before the Taxation Committee on Wednesday with the support of Gov. Janet Mills' administration.
'This bill addresses a clear gap in state tax law,' said bill sponsor Sen. Rachel Talbot Ross (Democrat from Cumberland).In 2022, the Legislature revised tax laws for the Houlton Band of Maliseet Indians, the Passamaquoddy Tribe and the Penobscot Nation to afford them many of the same tax rules that apply to tribal nations throughout the country. This law also formalized regular dialogue practices between the Wabanaki Nations and the state and established a regulatory framework for sports betting.
The law ended up looking drastically different than the legislation had first been proposed by Talbot Ross.
Talbot Ross' bill originally sought to amend aspects of the 1980 Maine Indian Claims Settlement Act, which has left the Wabanaki Nations with authority more akin to municipalities than sovereign nations, putting them on different footing than all other federally recognized tribes. However, the bill was changed as a result of negotiations between three of the tribes and the governor's office and overhauling the Settlement Act remains an ongoing battle.
The Mi'kmaq Nation was not referred to in the Settlement Act and only received federal recognition later in 1991. Last session, the Legislature passed a law known as The Mi'kmaq Nation Restoration Act that put the Tribe on par with the rest of the Wabanaki Nations.
Talbot Ross' bill this session, LD 982, co-sponsored by Rep. Daniel Sayre (D-Kennebunk), builds upon this previous work and mirrors the earlier attempt to seek parity for the Mi'kmaq Nation when it comes to tax treatment, which had been proposed by State Treasurer Joseph Perry, then representing Bangor in the Maine House
LD 982 would specifically exempt the Mi'kmaq Nation from state sales and income tax for activities occurring on tribal trust or reservation lands and allow the Tribe to generate sales tax revenues from sales on their own lands — the same rights afforded to the other Wabanaki Nations.
'Allowing the Tribe to retain this revenue will strengthen economic opportunity for its citizens and enable greater reinvestment into the surrounding communities,' Talbot Ross said.
Maulian Bryant, executive director of the Wabanaki Alliance, which was formed in 2020 to advocate for the recognition of Wabanaki sovereignty, said the group supports LD 982.
'The original bill with the taxation provisions was a very significant, important, impactful restoration of sovereignty for the tribes,' Bryant said, 'and we are very happy and hopeful at the prospect of the Mi'kmaq Nation being included in this really great act of parity.'
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