CIRI files counter lawsuit against Chickaloon Village

ANCHORAGE — According to federal court filings, the large native corporation CIRI has filed a lawsuit against the Chickaloon Native Village hoping a judge will agree the corporation does not owe the village $500,000 in taxes the village is seeking.

On Oct. 5, according to federal court filings entered Nov. 23, the village sent CIRI a letter.

“It has been determined that Cook Inlet Region Inc. owes taxes for (fiscal year 2011) in the amount of $500,000, due by Dec. 31, 2012,” reads the letter addressed to CIRI chairman Charles Anderson. “Send us the amount due of $500,000, or we will seize (‘levy’) your property or rights to property on or after Dec. 31, 2012.”

A search of borough property records turned up dozens upon dozens of CIRI-owned parcels scattered throughout the borough, many in the Sutton/Chickaloon area.

In CIRI’s complaint, the corporation’s lawyers say CIRI talked to village officials who told them the taxes were due under the Indian Tribal Government Tax Status Act.

According to CIRI’s understanding, the claim is for an annual tax at that rate.

“CIRI thereafter informed Chickaloon that federal law did not allow Chickaloon to impose a tax on CIRI and demanded that Chickaloon withdraw its tax claim. Chickaloon refused,” according to CIRI’s complaint.

According to CIRI’s reading of the law, changes to the Indian Tribal Government Tax Status Act in 1982 allowed tribal governments to be treated the same way as states for purposes of federal taxation.

“(It) does not authorize or otherwise provide a basis for Chickaloon to lawfully tax CIRI,” according to the filing.

The corporation’s lawsuit asks that Chickaloon be ordered not to seize or levy CIRI’s property and asks for court costs.

Chickaloon Village Traditional Chief Gary Harrison referred questions about the tax dispute to village Chairman Doug Wade, who was not immediately available for comment Thursday.

Contact Andrew Wellner at andrew.wellner@frontiersman.com or 352-2270.