Native Sun News: County blames revenue loss on trust lands

The following story was written and reported by Brandon Ecoffey, Native Sun News Managing Editor. All content © Native Sun News.

Bennett County facing bankruptcy
By Brandon Ecoffey
Native Sun News Managing Editor

MARTIN— Bennett County is headed towards bankruptcy. In an attempt to avert this the county is now asking the federal government to step in and help supplement the potential revenue they are not receiving due to the high amounts of federal trust land in the county.

Bennett County like many counties across the country that either border or operate on Indian Reservations is checker boarded with lands that are held in trust by the federal government that are under federal jurisdiction. The problem that arises is that the county, whose primary source of revenue is the funds it takes in from property tax, cannot legally tax trust land. Lands owned by tribes that are held in trust by the federal government are exempt from state property taxes. For a county like Bennett that has a large amount of trust land within its borders this creates a unique dilemma where services must be provided for all its residents despite the limitations on tax revenue.

“It is really important that people understand that this isn’t about the people we are providing services to who live on these lands. We want to provide services for everybody but the problem is there just isn’t enough money,” said Rohl Kraft, Chairman of the Board of Bennett County Commission. “We have people who come to the county for services who live on the trust land but there is no mechanism to help the county pay for these services. This is an issue between the county and the federal government. ”

The county in a recently passed resolution said that the amount of current taxes collected on property is $2.5 million and that the loss in revenue they are experiencing due to the presence of trust lands is estimated to be roughly $900,000. So in response the County Commission voted to request that the federal government provide funding for the Native American residents it serves who live on these trust lands.

When asked if there was any historical or legal precedent for the action Kraft replied that he was not aware of any other state municipalities taking this action.

“We have been asking about it for a long time and it sort of falls on deaf ears. Nobody has enough money with the budget the way it is now. What is for sure is that this county is in financial peril and if we cannot lift the state tax freeze this county will be bankrupt,” he said.

The county in the resolution based their claims that the federal government has failed to meet its responsibility to provide funding for the services to Native Americans living in the county on the historic Supreme Court decision in Cherokee Nation vs. Georgia a cornerstone case of Federal Indian Law. In Cherokee Nation vs. Georgia the Supreme Court declined to rule saying they did not have jurisdiction over the case because the Cherokee Nation was a “domestic dependent nation.”

Bennett County in its resolution says that the ruling implies that the “federal government is responsible for all Indian peoples wants and needs.” The Supreme Court in Cherokee Nation vs. Georgia did not explicitly state this nor has it been interpreted legally in this way.

Bennett County is asking other counties around the state who have large amounts of trust land to join them in their request. Kraft also said that they were told by South Dakota Governor Dennis Daugaard that he would assist them in lobbying the government for funds.

Representatives from the Governor’s office did not respond to Native Sun News when contacted.

(Contact Brandon Ecoffey at staffwriter2@nsweekly.com)

Copyright permission by Native Sun News

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