For Information Contact:

Ralph J. Eannace, Jr.,
 798-5800

Oneida County Executive Ralph J. Eannace, Jr., was joined today by members of the Oneida County Indian Affairs Committee in affirming the County's intentions to abide by New York State Real Property Tax Law and "make whole" communities and school districts in the Oneida Indian Nation Land Claim area.

"These payments are required under State Real Property Tax law. The only way to change that is to declare these properties non-taxable, which we are not going to do while we are arguing in two Federal Courts that these properties are taxable," stated Eannace. "These payments also signal that the local taxpayers of Western Oneida County do not have to handle the burdens of lost taxes alone. That is absolutely the right response. This is a regional issue that requires a regional response."

Eannace noted that Silver Covenant Chain payments made by the Oneida Indian Nation to communities and school districts are not considered PILOT (Payment in Lieu of Taxes) payments by either the Oneida Indian Nation or the governments that except them. "The Silver Covenant Chain program is a gift to the neighboring communities of the Oneida Nation, they are discretionary and can be removed at any time by the Nation. Although these gifts are appreciated, communities cannot rely on discretionary gifts to offset a recurring loss they incur due to the non-payment of taxes," Eannace said.

Neil Angell (R-4), Chairman of the Oneida County Board of Legislators Indian Affairs Committee agreed. "Our schools and communities cannot depend on revenues from a gift that could be eliminated at any time. This offers no stability to our taxpayers, and we as a County have the responsibility under State Real Property Tax law to make them ‘whole,’" he said.

County Legislator Bill Croll (R-2) added, "The County has come to the aid of our local communities in the past, whether in the form of the Arson Task Force or revitalizing the former Griffiss Air Force Base. This is just one more example of the County assisting our local communities is an area that they have little if any control over."

Eannace remarked that the best solution for this issue would be to receive a favorable ruling in the Oneida Indian Nation v. City of Sherrill 00-CV-223, or in the absence of that, a negotiated settlement that would include relief for both property and sales taxes. "One possible solution to offset lost property taxes is to have the Federal government expand the Bureau of Land Management's PILT (Payment in Lieu of Taxes) program, which currently reimburses counties for certain federal lands. An expansion of the program to include Indian Country would greatly alleviate the lost property tax due to the Oneida Nation's purchases," stated Eannace. In the alternative, part of the negotiated settlement would have included the State repaying lost property and sales tax for our communities.