May 2018 gaming distributions from the Keweenaw Bay Indian Community (KBIC) to local governments have been released. Baraga County, Baraga and L’Anse townships, Baraga and L’Anse Area Schools and the villages of Baraga and L’Anse all received payments, ranging from $1,600 to almost $39,000. Exact numbers are listed at the end of this article.

“We’ve asked for the traditional amounts that we used to get,” Baraga County Prosecuting Attorney Joseph O’Leary said. He wrote the letter of request to the KBIC on behalf of Baraga township, L’Anse township, the villages of Baraga and L’Anse and Baraga County.

“I call it a traditional request because they are under no obligation to pay any taxes,” O’Leary said.

As a sovereignly-governed people, land held by tribal members within the KBIC are not under the tax authority of any local, state or federal government, a right they have defended in court successfully at the federal level. O’Leary worked as legal counsel for the KBIC.

“For many many years, the local governments sent a bill to the tribe and got a check,” O’Leary said.

This bill was for the same amount as what taxes on KBIC property would be, if they could be charged taxes. The KBIC recognized the value of the public services the local governments provided and wrote a check for the requested amount. This agreement lasted from 1994 to 1999, according court documents.

The Michigan State Tax Commission then interceded and tried to force the properties back onto the tax rolls in violation of the local government’s agreement. The case progressed to U.S. District Court in Keweenaw Bay Indian Community v. Robert Naftaly. Naftaly was the chairman of the State Tax Commission. The court decided in KBIC’s favor in May 2005, once again exempting them from taxation by local and state governments. The State of Michigan lost their appeal. But the court cases still had an effect.

“All the properties came off the tax roll,” O’Leary said. “There was no agreement to get reimbursement to the local governments.”

Since then, the KBIC has distributed money from slot machine proceeds to the local units of government in accordance with negotiated consent agreements.

“No complaints, the tribe doesn’t have to pay any of that,” O’Leary said.

Payments to local governing bodies in Baraga County:

Baraga County, $32,284.35; Baraga Area Schools: $38,867.01; Baraga Township: $13,005.07; Village of Baraga: $9,997.71; L’Anse Area Schools: $19,398.57; L’Anse Township: $2,186.58; Village of L’Anse: $1,600.70; Total: $117,339.99.