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[source: NativeNews; Fri, 11 Feb 2000 12:06:38]
City takes ownership of Indian property for back taxes
 

City takes ownership of Indian property for back taxes
The Associated Press
2/10/00 11:28 AM

SHERRILL, N.Y. (AP) -- City officials have followed through
on their promise to the Oneida Indian Nation -- the city
took ownership of three parcels of land occupied by the
tribe.

"We are the owners of record," City Manager David Parker
said after Wednesday's action.

Parker said the city's deed to the property was filed
formally with the Oneida County Clerk's office after the
Oneida Nation failed to pay back taxes by Tuesday's
deadline. The Sherrill City Commission will decide on Monday
what the city's next move is.

The Nation turned down the city's request to pay the taxes
under protest.

The takeover of the property, which is home to the tribe's
OTD textile plant, sets the stage for a possible
confrontation with the Oneidas, who claim that their
property is not subject to taxation because the tribe is a
sovereign nation.

"Under federal law, the county does not have the authority
(to tax Indian land)," said Richard Lynch, a member of the
Oneida Nation's governing council. "There's a law here, a
relationship. It's not that the Nation just refuses to pay."

The Oneidas filed a lawsuit Friday in federal court asking
for an injunction to block the foreclosure. The plant
employs 27 people and plans to hire eight to 10 more this
year, Nation officials said.

Sherrill Mayor Dwight Evans said there is no deadline to act
if the commission should decide to evict the textile
business. In all, the city has started foreclosure
proceedings on 10 parcels owned by the Oneidas for
nonpayment of approximately $12,000 in city property taxes.

The deed transfer went ahead despite a letter from Oneida
Nation attorney Michael R. Smith asking Sherrill attorney
Charles King to "defer further foreclosure and eviction
action."

Smith said such an agreement would avoid legal action and
preserve Sherrill's future right to renew its claim "that
taxes, penalties and interest are owed, or to claim that it
has acquired title to the properties in question."

Lynch said he viewed the deed transfer as "kind of shuffling
of papers." He said the question of the taxable status of
Oneida Nation property will be settled ultimately by a
negotiated settlement of the Oneida Indian land claim.

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