Tax Issues
Disputes have arisen over the Oneida Nation's economic advantage of operating the Class III gaming facility without having to collect or pay state taxes on retail sales at the resort. (The tribe does pay a portion of the revenues to the state under the gaming compact.)
Vernon Downs opened a casino to attempt to compete with Turning Stone. It is heavily taxed under state law. Vernon Downs struggles to operate and, in late 2007, many of its original investors pulled out of the venture. The Upstate Citizens for Equality and supporters attribute his failure to the OIN being able to operate their casino tax free.
OIN supporters attribute Vernon Downs' troubles to the state collecting 54% of the revenue in taxes, making profitability difficult. ? In early 2008, the director Steve Gural closed down the racino at Vernon Downs for three days. He was trying to make the state decrease its rate of taxation of the facility, to make it more profitable. The closure cost the state approximately $1.5 million in lost tax revenues (the state has earmarked revenues from gambling for education, part of the original campaign to have the laws approved). Many argue that the state should not call this "lost revenue." Building the track created the revenue; without the track, there would be no revenue The track was facing insolvency.
The Nation consistently re-invests in the local economy and aids its neighboring cities. The Oneida helped pay for and fix Verona's water problems. The Oneida have worked hard to win the host for a PGA tournament in the Fall of 2007 after a successful B.C. Open, a PGA tournament traditionally held in Binghamton, New York. In 2006, Binghamton experienced significant flooding and could not host the B.C. Open tournament. The OIN offered its own course as an alternative. The PGA officials and players were impressed with the venue. OIN and PGA officials entered into negotiations to host another PGA tournament in 2007.
Before the recent conflict among the Indian Nation, UCE, state, and county officials, the Indian Nation donated millions of dollars to local school districts through its Silver Covenant Chain of Education Grants Program. The Nation has discontinued that program since the opposition to its casino operations. School supporters hope the tribe will revive its donations and make a permanent commitment to supplement school funding through its grants.
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