One of the most important powers a government has is to tax people within its territory. Taxing power is easy to identify and understand when discussing federal and state governments. However, it can be confusing when a tribe, legally a third sovereign entity, is added to the picture. States generally do not have the power to tax tribes or tribal members on their reservation. However, while tribal governments, businesses, and members do not pay most state taxes, tribes contribute to their communities in other ways.
When Wisconsin residents think of Native American tribes, they often think of casinos, inexpensive cigarettes, spearfishing, and powwows. Those living near reservations might also be aware of tribal governments or that tribal members do not pay state taxes.
However, there is little outside understanding of the hows and whys behind tribal activity. Why do tribes operate casinos? Why do state laws, such as the smoking ban, not apply to them? And why do tribal members not pay state taxes?
Answers to these questions and many more rest on federal and state laws, court rulings, and treaties, many of which are old and complex, with origins outside Wisconsin. Without an understanding of these, issues surrounding tribal governance, rights, and operations can frustrate the public and create tensions between communities.
WISCONSIN TRIBES
Wisconsin has 11 federally recognized tribes. Six are Chippewa (or Ojibwe), with governments located in northern Wisconsin: the Lac Courte Oreilles Band of Lake Superior Chippewa Indians, the Bad River Band of Lake Superior Chippewa Indians, the Red Cliff Band of Lake Superior Chippewa Indians, the Lac du Flambeau Band of Lake Superior Chippewa Indians, the St. Croix Chippewa Indians, and the Sokaogon Chippewa Community.
The remaining five tribal governments are located in northeast and central Wisconsin. They are the Oneida Tribe of Indians, the Ho-Chunk Nation, the Menominee Indian Tribe, the Stockbridge-Munsee Community Band of Mohican Indians, and the Forest County Potawatomi Community (see Figure 1, page 2).