Town of Ignacio fighting tribal sales tax exemption
Sales tax is the largest revenue source for area towns to provide community services. But Ignacio's sales tax revenue could take a significant hit if Southern Ute Tribal members and the tribe itself are exempt from paying any sales tax in town. The issue has been simmering sort of under the radar for months, if not years.
It goes back to 1984 when Congress passed PL98-290 as an addendum to existing federal law regarding Indians and specifically the Southern Ute Indian Tribe. It refers to jurisdictions within Southern Ute Reservation boundaries. It says, "The State of Colorado shall exercise criminal and civil jurisdiction within the boundaries of the town of Ignacio, Colorado, and any other municipality which may be incorporated under the laws of Colorado within the Southern Ute Indian Reservation..."