Fuel Purchases on Indian Reservations

redytrk

Veteran Expediter
Charter Member
The following is a news release about bargain fuel purchasing on reservations

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January 19, 1989
Reservation's Taxes May End Detours for Cheap Gas
By SAM HOWE VERHOVEK, SPECIAL TO THE NEW YORK TIMES
LEAD: Each day hundreds of people stop briefly just inside the reservation here near the shore of Lake Erie. Most are truck drivers or cigarette smokers looking for bargains.

Each day hundreds of people stop briefly just inside the reservation here near the shore of Lake Erie. Most are truck drivers or cigarette smokers looking for bargains.

For years the shoppers have found them. The Seneca Indians, claiming a sovereign right to set taxes on their reservation, have declined to levy any taxes at all. The effect has been the creation of the dominant industry here. Stores like the Seneca Hawk Truck Stop and the Iroquois Smoke Shop sell gasoline and diesel fuel for as much as 25 cents a gallon less than nearby off-reservation businesses and cartons of cigarettes for about $2 less. Claims to $10 Million a Year in Taxes

But now, amid pressure from competitors and the state, the end of the rock-bottom prices may be at hand. In a landmark agreement with the state, the Seneca Nation has pledged to begin imposing its own taxes. The state, in return, will give up its claims to up to $10 million a year in taxes on sales to non-Indians and will instead let the impoverished Senecas keep the revenues.

The decision has prompted outrage from some Seneca merchants, reassurances from their tribal leaders and an expression of relief from the State Tax Commissioner, who was facing intense protests about the low prices from non-Indian businesses and a suit by a trade group called the Northeast Truck Stop Operators.

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Apparently it didn't work. Today I filled up at Seneca One Stop. I68 Exit 20,Salamacha,Ny. The price was about eighteen cents less than the closest Pilot.
 

LDB

Veteran Expediter
Retired Expediter
Your 18 cents savings only cost you 19 cents a gallon. The fuel tax rate in N.Y. is about 37 cents a gallon. They collect that based on estimated fuel burned in the state regardless of where you bought. If you had paid 18 cents more at the Pilot you'd have gotten 37 cents a gallon credit on every gallon you bought. It would have fully paid the tax on every gallon burned in the state, provided you bought at least as many gallons as you burned. If you went south through PA to get to VA you'd owe 1 extra cent per gallon burned as their rate is the highest in the country I believe. With your reservation fuel you'd owe 38 cents per gallon burned. The number on the sign or pump is only price. You have to factor in fuel tax rates charged and paid to get cost. That's why the reservation fuel is priced less but costs much more than truckstop fuel.

Leo Bricker, 73's K5LDB
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Owner, Panther trucks 5508, 5509, 5641
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pellgrn

Expert Expediter
Very true,however if your in a trk under 26,000 ya don't have fuel tax to deal with and your pump cost is your pump cost.
 

LDB

Veteran Expediter
Retired Expediter
Yes, that's all based on being subject to fuel taxes in which case the cost is the important number not the price.

Leo Bricker, 73's K5LDB
OOIDA Life Member 677319, JOIN NOW
Owner, Panther trucks 5508, 5509, 5641
EO Forum Moderator
----------
Support the entire Constitution, not just the parts you like.
 

buckeyewildman

Seasoned Expediter
don,t care if they charge taxes will stop there and buy there every chance i get support them before i will support any other place
 
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