By JON FAULKNER
HAINES – In a move highlighting ongoing tensions between local governments and Alaska Native tribes over taxation, the president of the Central Council of the Tlingit & Haida Indian Tribes of Alaska has formally urged Haines Borough Mayor Tom Morphet to drop a small claims court action seeking roughly $7,500 in unpaid sales taxes from a tribal business.
In a letter dated August 29, 2025, Tlingit & Haida President Richard J. Peterson detailed the tribe’s receipt of court documents around August 18, 2025 from Haines’ chief fiscal officer, alleging non-payment of taxes tied to The Gathering Place, a short-term rental operation at 360 Lutak Road. Peterson noted that the claim may not have been properly served but emphasized the tribe’s preference for dialogue over litigation.
“This isn’t just about a bill—it’s about recognizing tribal governments on equal footing with other entities,” Peterson wrote, referencing a 2023 letter to former Mayor Douglas Olerud on the same issue. He proposed amending Haines Borough Municipal Code Section 3.80.050(14), which currently exempts sales, services, and rentals to or by foreign governments, the U.S. government, the state, its subdivisions, and municipalities from taxation. Adding tribal governments to that list, Peterson argued, would align Haines with Southeast Alaska municipalities like Juneau and Sitka, while acknowledging the “critical role” tribes play in community services.
Peterson outlined an array of programs funded by tribal enterprises like The Gathering Place, including childcare development, job placement and training, Temporary Assistance for Needy Families (TANF), emergency support, realty and forestry management, burial assistance, language and traditional trades programming, self-governance support, and general financial aid. These services, he stressed, extend benefits to both tribal citizens and their non-Native family members, bolstering the broader Haines community amid fluctuating federal and state funding.
“Revenue from small businesses like The Gathering Place is even more critical in this current environment of unreliable federal and state funding,” Peterson added, underscoring how such operations sustain vital public services.
While affirming the tribe’s readiness to defend against the borough’s authority to tax a business on an Alaska Native allotment, Peterson called for a “spirit of partnership” to resolve the matter amicably. He requested that Haines withdraw the claim or seek a court stay on deadlines to allow for discussions.
Peterson invited direct contact via email at [email protected] or through Connor Ulmer, manager of the Office of the President, at [email protected] or 907-463-7185.
The dispute comes as Alaska’s rural communities grapple with budget pressures, and tribal contributions to local economies and services often intersect with municipal revenue needs. Neither the Haines Borough nor Mayor Morphet’s office has publicly responded to the letter as of this writing.
The full letter can be viewed here: