Foxwoods Challenges Ledyard Tax

Ledyard, Connecticut is the site of what may seem like a strange reversal of events.  A community lashing out against a casino is not an uncommon report, but in this instant it is the town of Ledyard on the receiving end of an attack from the gaming community.  An out of state slot machine distributor and Foxwoods Resort Casino have filed a suit against Ledyard over property taxes imposed on leased slot machines.

Many parties are involved in the slot machine suit, including: Atlantic City Coin, The Mashantucket Pequot Tribe, and Pleasantville, New Jersey’s Slot Service Co. claim all slot machine taxes collected by the town since 2003 are in direct violation of federal law.

According to the language of the lawsuit, the federal Indian Gaming Regulatory Act “completely pre-empts state or municipal attempts to regulate, tax or otherwise control Indian gaming, except as set forth in IGRA’s express provisions.”  The suit also claims the tribes “self-determination and sovereignty” is being obstructed by the town history of taxing their slot machines.

Paul Hopkins, Town Tax Assessor does not deny many of the claims.  He acknowledges that the Pequot Tribe is federally recognized and that their property is, indeed, tax-exempt.  He, however, does not include the tribe’s leased properties in that exemption.

Since the company is independently owned, Hopkins reasons that the 500 slot machines from Atlantic City Coin are rightfully taxable by the town.

Prior to this year, the town’s assessment of the Atlantic City Coin slot machines have gone unchallenged by the tribe.  The 2005 grand list valued the slot machines at $430,701, generating a $10,758.90 property tax.

The tribe filed an appeal with Ledyard’s Board of Assessment in February of 2005.  The Board rejected the appeal.

Ledyard is not foreign to property tax lawsuits.  In 2004, the town was sued for taxing leased motor vehicles.  Hopkins said a March settlement allowed Ledyard to keep the already collected taxes, but restricted future collections to vehicles that ran outside the reservation to facilitate gaming operations.

Bruce MacDonald, the Mashantucket Pequot Tribal spokesperson had little to say on the matter beyond, “We’ll let the matter play out in court and just not say anything at this point.”

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