Because of rising fuel costs driven by international tensions, many American drivers are heading to unusual places to save money. One such destination is gas stations located on Native American reservations, where gasoline and diesel are often significantly cheaper.
Seattle resident Junelle Lewis drove half an hour to the Tulalip reservation, about 50 kilometers (31 miles) north of downtown, specifically to fill up her SUV. The $4.84-per-gallon price was roughly 75 cents less than nearby stations. She and many other drivers, especially from northern suburbs, have found that some of the cheapest gas stations in the country are on reservations. Trips there to fill up and to shop in duty-free stores have become common practice.
The main reason for the price difference is tax advantages. federally recognized tribes are exempt from state fuel taxes on their lands. That allows them to sell fuel at lower prices than competitors off-reservation. This legal principle has been in place for more than a century. U.S. courts, including the Supreme Court, have repeatedly ruled that states do not have the right to collect taxes from Native Americans on their own land. In some cases, as with the Yakama tribe in Washington, that right is enshrined in historical treaties from the 1850s. Such treaties affirmed the sovereign status and resource-management rights of tribes, which today allow not only the Yakama but other communities—such as Spokane, Puyallup, Muckleshoot, Lummi, Colville, Quinault and Suquamish—to develop businesses with tax advantages. Washington state has 29 federally recognized tribes in total.
The savings can be substantial. For example, at the Chukchansi tribe’s station in California, between Fresno and Yosemite, a gallon of gas cost $5.09—about 60 cents less than neighboring stations. On the Mescalero Apache reservation in New Mexico, price dipped to $3.79, and in the eastern part of New York state it fell to $3.65.
Gas stations are only part of tribal businesses. They are often combined with stores offering groceries and essentials, which is especially important in remote “food deserts.” Some stations sit next to casinos or even function as mini-casinos (“gazasinos”) with slot machines. In the Seattle suburbs, in addition to gas stations, tribes own major enterprises such as Tulalip Resort Casino and Muckleshoot Casino, as well as retail stores.
Revenues from these enterprises play a key role for tribal communities. Profits are reinvested in infrastructure, funding for police, healthcare, education and housing. For example, the Tulalip tribe directs funds from casinos and other businesses to educational programs, including scholarships and schools; healthcare through the Tulalip Health Center clinic; mental-health programs; housing construction; and cultural preservation projects.
For many customers it’s not just about saving money. As Mark Foster notes, he supports the tribal gas station because it is a good partner to the local community. “I like how the tribe operates. And the price is good, too,” he says.
Todd Hall of Oklahoma, filling his tow truck at the Potawatomi tribe’s station, paid $4.57 per gallon for diesel while prices in the county topped $5. He admits it’s cheaper than anywhere else and that his visit supports the local economy.
Thus, amid record fuel prices, gas stations on Indian reservations have become for many Americans not only a way to save, but an important part of daily life that combines financial benefit with support for Native communities.
Based on: Tribal gas stations offer a reprieve from high prices during Iran war