Connecticut Attorney General's Office

Press Release

Attorney General Says Tribal Tax Should Be Identified Apart From State Tax On Foxwoods Receipts

September 9, 2009

Attorney General Richard Blumenthal has urged the Mashantucket Pequot Tribal Nation to clearly identify its 1-percent tribal tax separately and distinctly from the state tax on all customer receipts at Foxwoods.

Blumenthal wrote to Richard Sebastian, vice-chairman and acting chair of the Mashantucket Pequot Tribal nation, after Foxwoods consumers recently discovered a 7-percent unspecified "tax" on receipts -- one percentage higher than the state sales tax.

Foxwoods officials have indicated that the "tax" represents the state sales tax combined with a newly imposed 1-percent tribal tax.

Also troubling is that, in some cases, a 7-percent tax is imposed even when no state sales tax is charged -- likely deceiving casino patrons into believing that they are paying a state tax, Blumenthal said.

Blumenthal strongly urged Foxwoods to revise its receipts and signage, saying that casino patrons deserve to know the entire source and amounts of any taxes imposed. The practice is already implemented at the hotels, where the tribal occupancy tax on rooms is clearly identified as a tribal levy on consumer bills.

Blumenthal said, "The ongoing failure to clearly identify the source of the tax has already caused confusion to the public and will continue to mislead consumers, who believe that the entire amount collected is a state tax, not a tribal surcharge.

"Equally serious, on some sales at Foxwoods where the state imposes no sales tax, the tribe is charging a 7-percent tribal sales tax, without identifying it as such. This practice easily and falsely leads patrons to assume that most or all of the tax goes to the state. When the tribe retains all of the supposed 7-percent tax, and remits none of it to the state, the effect is to misinform and mislead consumers.

"The public and patrons, who purchase items in the many retail establishments located at the casino or elsewhere on the reservation, are entitled to a fair and accurate description of any surcharge imposed on their purchases, including whether it is assessed by the tribe or the state."