By SCOTT MCKIE B.P.
One Feather Asst. Editor
CHEROKEE, N.C. – During its regular session on Thursday, Sept. 4, Dinilawigi (Tribal Council) approved an increase to the tribal levy and privilege tax and approved the FY2026 budget for the Eastern Band of Cherokee Indians (EBCI).
EBCI Attorney General Michael McConnell presented a substitute for Ord. No. 518 (2025) during Thursday’s session dealing with the tribal levy and privilege tax. That legislation was originally submitted by Brandi Claxton, EBCI interim secretary of treasury, during the July session.
The whereas portion of the legislation states part of its purpose, “The levy rate has not been adjusted since 2011 {Ord. No. 785 (2011)} and the short-term privilege tax rate has not been adjusted since 2018 {Ord. No. 59 (2018)} and is substantially below the rate imposed by surrounding destination communities.”
As discussion began on Ord. No. 518 on Thursday, Attorney General McConnell told Dinilawigi, “This ordinance is straightforward. It increases the tribal levy from 7.5 percent to 9 percent. It increases the privilege tax rate from 4 percent to 6 percent..the percentage allocations going to the tribal programs stays the same. Of course, they’ll be more money behind those percentages because the rate increases. One thing that is added to the ‘use of funds section’ is the authority to help fund a Tourism Development Authority, a TDA, here in Cherokee.”
Kolanvyi (Big Cove) Rep. asked if the local hoteliers had been consulted on the increase.
Attorney General McConnell responded, “No, we have not shopped this to hoteliers. With the effective date starting in January, you have time to inform people of the change before they have to change their systems and, if they want to, inform anybody else.”
Kolanvyi Rep. Richard French said, “I can’t support this. We’ve got businesses here that owned by tribal members, and they’ve not had a chance to see this and give their input. We get hit a lot of times saying this Council does stuff behind closed doors, behind people’s backs, but the cameras are on today. It’s not behind closed doors, but this still was brought in here without their input.
I’m going to make a move to re-table this until we can sit down with all of the businesses and get input from them.”
Wayohi (Wolftown) Rep. Bo Crowe commented, “The tribal levy is going to affect everybody on the Boundary. Everything is going to be raised up with tribal levy jumping up 1.5 percent. I just can’t support it either.”
Dinilawigi Vice Chairman David Wolfe said he hoped there would be “teeth” added to the ordinance to handle those businesses not paying levy on a timely basis.
Attorney General McConnell responded, “We did talk about adding teeth. We were going to do that in a separate item. Several people brought up the issue of some businesses not paying tribal levy – remitting that to the Tribe. That issue has come to Business Committee. The Budget and Finance Office has been very active sending letters to them, and instructions are to me to back that up with action from the Attorney General’s Office. So, we are pursuing that.”
He said it is of the utmost importance for local business owners to pay tribal levy. “If you don’t pay it, we do have authority within the (Cherokee) Code to take action including going to court, including revocation of a tribal business license, including shutting the business down. So, we’re not playing games with this. If you owe the tribe money, please pay it.”
During the continued discussion on Ord. No. 518, Interim Secretary Claxton noted, “The increase to the levy and privilege tax was built into the (FY) 26 budget proposal. So, if that doesn’t pass, then we would hold the budget until it either passes; or, if it doesn’t pass, then we would update the budget to reflect the current tax rates.”
Elawodi (Yellowhill) Rep. Tom Wahnetah commented, “If you cross the mountain…it is 10 percent over there, and it doesn’t bother you to spend it over there. I don’t think it will affect us spending it here. I think we need this for our budget. I think we need this for our TDA. I think once the businesses realize this is going to fund a TDA to help their businesses, they’ll be ok with it.”
That ordinance passed with the voting as follows: For – Tsisqwohi (Birdtown) Rep. Jim Owle, Aniwodihi (Painttown) Rep. Michael Stamper, Vice Chairman Wolfe, Elawodi Rep. Wahnetah, Tsisqwohi Rep. Boyd Owle, Tutiyi/Tsalagi Gadugi (Snowbird/Cherokee County) Rep. Bucky Brown; Against – Kolanvyi Rep. Richard French, Kolanvyi Rep. Perry Shell, Tutiyi/Tsalgi Gadugi Rep. Adam Wachacha, Wayohi Rep. Bo Crowe, Dinilawigi Chairman Mike Parker; and Absent – Aniwodihi Rep. Dike Sneed.
Following that vote, Res. No. 519, which was submitted by EBCI Ugvwiyuhi (Principal Chief) Michell Hicks and EBCI Taline Ugvwiyu (Vice Chief) Alan B. Ensley, was taken up which was for the approval of the EBCI’s FY2026 budget. Dinilawigi went into a closed session as discussions began.
When they came out, Tutiyi/Tsalagi Gadugi Rep. Wachacha made a motion that the budgeted amount of the merit raise metric average be 3.5 (range of 3 to 5 percent) percent. That was approved, and the FY2026 budget was approved unanimously.
Following that vote, Ugvwiyuhi Hicks said, “I just want to say thank you on behalf of all of the employees. As you guys know, we have a lot of hard-working folks here and whatever we can do to keep them above inflation, I think it is good for the community.
