California Appeals Court Rejects State Tax Demands

A controversial bid by the state of California to force Indian tribes to pay a percentage of their revenue into a general fund in exchange for more slot machines was an illegal ‘tax’, an appeals court has ruled.The judgment confirmed an earlier district court assessment that the state was acting in bad faith and in violation of federal Indian gaming laws when it hammered out the deal to give perks to the tribes in exchange for general fund money.

The decision was passed 2-1 by a panel of judges in the 9th Circuit appeals court.

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