TULALIP — The Tulalip Tribes filed a federal lawsuit Friday to stop Snohomish County and the state of Washington from imposing sales tax within its Quil Ceda Village retail area.
The suit in U.S. District Court also seeks to stop the collection of business-and-occupation tax and personal property tax.
Tribal governments view the taxes as an injustice that starves them of revenue to pay for local services.
“With its own resources, the Tulalip Tribes transformed over 2,000 acres of vacant land into Quil Ceda Village, one of the premier shopping and entertainment destinations in Western Washington,” Tulalip tribal Chairman Mel Sheldon said in a press release. “Today, Quil Ceda Village has over 150 businesses, creating more than 6,000 jobs, attracting up to 60,000 visitors a day, and contributing hundreds of millions of dollars to the north Snohomish County economy.”
State records show that Quil Ceda Village generates approximately $40 million in tax revenue per year that never reaches the tribal government, the Tribes said.
The Tulalips said they have been trying to discuss the issue with county and state officials for the past decade, without success.
A ruling in a separate federal court case recently barred counties in Washington state from collecting property taxes on buildings owned by non-Indians on tribal trust lands. As a result, Snohomish County last year refunded about $5 million in past taxes to retail stores and 1,200 homeowners.
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