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MONDAY, DECEMBER 24, 2001

In a unanimous decision, the California Board of Equalization last week ruled that tribes aren't required to collect taxes on their restaurants.

The board had been trying to force at least one tribe to remit sales and local tax. The 9th Circuit Court of Appeals in September 2000 ruled that the Agua Caliente Band of Cahuilla Indians could challenge paying the taxes.

But with the board's action, the dispute is effectively resolved.

The board estimated that sales at tribal restaurants and bars total $200 million annually. Taxes on these sales would amount to about $16 million annually, of which the state was already collecting $2.9 million.

Get the Story:
Tribal Restaurants Will Be Exempted From Sales Taxes (The Los Angeles Times 12/24)

Relevant Links:
California Board of Equalization - http://www.boe.ca.gov

Related Stories:
Tribe wins round in tax case (9/12)