Capitol Briefs: Tuesday, Oct. 7, 2008

Osages' tax case can proceed

WASHINGTON — The Osage Nation can sue members of the Oklahoma Tax Commission in federal court over the issue of collecting income taxes from tribal employees who live in Osage County. Without comment, the U.S. Supreme Court on Monday let stand a ruling by the 10th Circuit Court of Appeals that the tribe could sue individual Tax Commission members, though not the state of Oklahoma. The merits of the income tax case have not been heard. The two sides have been arguing in court about whether the tribe could pursue action in federal court. States can't generally tax tribal members who work for the tribe and live within Indian country. The Osage Nation contends all of Osage County is Indian country, arguing that Congress never has altered the legal status of its reservation.

Chris Casteel, Washington Bureau

DISASTER RELIEF

State still seeks flood aid

State officials still are pressing for public assistance to help 10 flood-damaged northern Oklahoma counties despite being denied assistance for individuals and businesses in five of those counties. Federal officials denied the individual assistance Monday for Alfalfa, Grant, Kay, Major and Woods counties, the governor's office said. Such assistance would have aided individuals and businesses that had uninsured losses from last month's floods. “I thought we made a very strong case for federal support,” Henry said. “We are also seeking public assistance to repair roads and other infrastructure in the region, and we will continue to push for that aid in the days to come.” The governor is seeking public assistance for 10 counties: Alfalfa, Cimarron, Dewey, Ellis, Grant, Harper, Kay, Major, Woods and Woodward. They incurred an estimated $8.8 million in infrastructure damage and response costs, according to the governor's office. A disaster declaration would also help towns in those counties.

Michael McNutt, Capitol Bureau