CALIFORNIA, USA — Today's Why Guy question comes from Cyndi Wilson via Facebook: "Why is gas cheaper at casino gas stations? Is it true they don't pay all the taxes?"
The answer is yes and no. If a California Tribal Casino gas station sits on reservation land, they have to pay state taxes, which is about 54 cents per gallon. But, they don't have to pay federal taxes, saving them about 18 cents a gallon.
There are 23 tribal gas stations currently listed in California, but no one tribe has the same tax agreement, according to a local tribal spokesperson. Some tribes have different treaties with the state that allows a different tax structure than other casinos.
Other tribes may have a "memorandum of understanding" with their local county governments on how much taxes they pay, according to a local tribal spokesperson.
In short, tribes not paying federal taxes means you save about 18 cents per gallon by gassing up at a tribal casino — if you can find one that’s situated near you.
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