Title
Chief Administrative Office recommending the Board approve and authorize the Chair to sign the Tax Sharing Agreement between the Shingle Springs Band of Miwok Indians and El Dorado County for the gas station on Shingle Springs Drive near Highway 50.
FUNDING: Sales Tax.
Body
DISCUSSION / BACKGROUND:
Through its development corporation, Shingle Springs Band of Miwok Indians (“Tribe”) owns and operates a gas station on Shingle Springs Drive near Highway 50 that opened in late August 2018. Because the gas station is located on land held in trust by the federal government for the Tribe, the County lacks the ability to ensure it receives tax revenue from gas station sales, which the County would otherwise receive if the gas station was not operated on tribal trust land.
Before the gas station was constructed, the Tribe made a commitment to the County to enter a tax sharing agreement to address the loss of tax revenue that the County would likely experience when the gas station opened. This commitment was reaffirmed in the settlement agreement that resolved the legal challenge that El Dorado Council.org and El Dorado Council, Inc. brought based on the County’s issuance of an encroachment permit for the gas station.
The Tribe is also seeking to amend its gaming Compact with the state. A primary reason the Tribe is seeking to amend its Compact is that other tribes have recently amended their compacts to provide the tribes with credits for payments made to local governments that the tribes would otherwise pay to the state Revenue Sharing Trust Fund or the Tribal Nation Grant Fund. The Tribe has requested the County’s support of its effort to amend its Compact. The current draft of the amended compact does not propose to increase or expand gaming at the Tribe’s casino.
Through a series of negotiations between County staff and the Tribe, the attached proposed agreement was reached and has been executed by the Tribe. Because the Tribe is currently purchasing...
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