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Got cut off in my post.
Indian reservations are technically not in the state and are federally created which is why they are always having problems with the states over who has power over whom i.e gambling, collecting taxes etc. (If you get them from somewhere else in state it doesn't make any sense.)

Anyways, there is not a whole lot you can do if its the state. You can fight it but they already got your money and thus nothing to lose. The amount of money they took is not enough that it would pay to raise a first class defense. Since the chances of winning your money back are slim if its for legitimate taxes owed how much can you really afford to risk to fight it. Best course of action may be to get an attorney tommorrow and have them call the state and negotiate a settlement if possible (if you know that the taxes owed are legit). If you owe the money anyway maybe he can get you a considerable amount of it back or at least something in return for you not fighting it. Anything returned would be found money. Alot of times the state attorneys are willing to cut a deal to save work and in the interest of being fair. They usually have some idea how heavy handed the state can be and may cut you some slack if its presented to them properly. If the taxes are not legitimate then you have much more room to put up a good defense. Find out tomorrow and talk to an attorney. Good luck.