Q&A: Tulalip Tribes sue to reclaim sales taxes

What’s the lawsuit all about?

The Tulalip Tribes want to collect their own taxes on sovereign land, more particularly at Quil Ceda Village, their retail hub along I-5 near Marysville. They filed a federal lawsuit June 12 to stop the state of Washington and Snohomish County from collecting sales tax there. In addition to sales tax, the tribes want to stop the county from collecting personal property tax (mainly levied on business equipment) and the state from collecting business-and-occupation tax.

So what?

If the tribes prevail, the state and county could lose more than $40 million per year. By some estimates, Snohomish County receives roughly $9 million of that. That’s nearly 4 percent of the county’s $226 million operating budget for 2015. Losing those dollars could mean layoffs at the county — possibly 90 employees, some county officials say.

Is that really going to happen?

Unknown. It depends on what the courts decide. Some county and tribal leaders say they’re optimistic about reaching a revenue-sharing agreement to avoid drastic impact to county services, particularly those involving public safety, the county’s largest area of expense.

No sales tax … couldn’t that turn Quil Ceda Village into a tax-free zone?

The tribes insist that’s not their goal. They want to collect their own taxes, and could do so today, except that they don’t want to double-tax their tenants and shoppers. Their lawsuit states: “Tulalip and the Village have not offered, do not currently offer, and will not offer any tax advantage to businesses, suppliers, or patrons at Quil Ceda Village in relation to other municipalities in Snohomish County with respect to the taxes challenged in this action.”

Didn’t something similar come up recently?

In 2013, a 9th U.S. Circuit Court of Appeals decision over the Great Wolf Lodge on the Chehalis Reservation in Thurston County had statewide effect. It forced Snohomish County last year to stop collecting property taxes on buildings owned by non-Indians on Tulalip trust lands.

The Tulalip tribes subsequently imposed their own property taxes on those properties at the same rate. Indian-owned businesses on the reservation, such as the Tulalip Resort Casino, were not affected by the decision because they were already exempt from state and county property taxes.

The ruling affected about 1,200 non-Indian homeowners on the reservation, as well as businesses paying property taxes at Quil Ceda Village. As a result, the county refunded about $5 million to property owners. The Marysville School District, fire departments and other taxing districts recouped the money from the remaining taxpayers.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Local News

Employees and patrons of the Everett Mall signed a timeline mural that traces the history of the 51-year-old indoor mall that was once considered the premier place to go shopping in the city. Thursday, March 20, 2025 (Aaron Kennedy / The Herald)
Mall mural offers nostalgic trip into the past

Past and present Everett Mall employees joined customers Thursday to view an artistic timeline of the once popular shopping mecca.

Edmonds Mayor Mike Rosen gives his State of the City address on Thursday, March 20 in Edmonds, Washington. (Will Geschke / The Herald)
Edmonds mayor talks budget at 2025 State of the City

Mayor Mike Rosen discussed the city’s deficit and highlights from his first year in office.

Public’s help needed to find missing Arlington man

The 21-year-old left the house Sunday night without his shoes, cell phone or a jacket, and was reported missing the following morning.

The Marysville Tulalip Campus on the Tulalip Reservation, where Legacy High School is located. (Will Geschke / The Herald)
Marysville board votes to keep Legacy High at current location

The move rolls back a decision the school board made in January to move the alternative high school at the start of next school year.

The former Marysville City Hall building along State Avenue on Tuesday, April 30, 2024 in Marysville, Washington. (Olivia Vanni / The Herald)
City of Marysville, school board amend property exchange

The city will relocate its public works facility to the district’s current headquarters, which will move to the former City Hall.

Snohomish County Elections employees Alice Salcido, left and Joseph Rzeckowski, right, pull full bins of ballots from the Snohomish County Campus ballot drop box on Monday, Nov. 4, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
County to mail ballots for Edmonds, Brier elections

Registered voters should receive their ballots by April 9 for the April 22 special election.

A stormwater diversion structure which has been given a notice for repairs along a section of the Perrinville Creek north of Stamm Overlook Park that flows into Browns Bay in Edmonds, Washington on Thursday, July 18, 2024. (Annie Barker / The Herald)
Edmonds Hearing Examiner decides on Perrinville Creek saga

The examiner revoked the city’s Determination of Non-Significance, forcing Edmonds to address infrastructure issues on the creek

Don Sharrett talks John Wrice through his trimming technique on Friday, March 14, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Everett barber school offers $5 haircuts — if you’re brave enough

Students get hands-on practice. Willing clients get a sweet deal.

Our Lady of Hope Fr. Joseph Altenhofen outside of his parish’s building that will be the new home of Hope ‘N Wellness on Wednesday, March 5, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
New Hope ‘N Wellness location to open Wednesday in Everett

Our Lady of Hope Church will host the social service organization at 2617 Cedar St. in Everett.

Amtrak Cascades train 517 to Portland departs from Everett Station on Saturday, Sep. 2, 2023, in Everett, Washington. (Ryan Berry / The Herald)
Limited train service to resume on Amtrak Cascades

Trains will have less capacity for now, but service is expected to resume for some routes as early as Tuesday.

Marysville
Police: 66-year-old Marysville man dead from fatal stabbing

A neighbor found the man unconscious on the sidewalk as the result of an apparent stabbing. Police said they are looking for suspects.

Logo for news use featuring Snohomish County, Washington. 220118
Driver, suspected of DUI, hits WSP vehicle on I-5 near Everett

The trooper was blocking the HOV lane for a previous collision when his vehicle was struck Saturday morning.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.