Cotton Petroleum Corp. v. New Mexico | |
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Argued November 30, 1988 Decided April 25, 1989 | |
Full case name | Cotton Petroleum Corp. v. New Mexico |
Citations | 490 U.S. 163 ( more ) 109 S. Ct. 1698; 104 L. Ed. 2d 209 |
Case history | |
Prior | Cotton Petroleum v. State, 106 N.M. 517, 745 P.2d 1170 (N.M. Ct. App. 1987) |
Holding | |
There is no "proportionality requirement" for the amount collected from tribes to be equitable to the services rendered by the government. Further, current case law allows states can impose non-discriminatory taxes on non-Tribal entities that do business with tribes, but Congress may offer immunity if it chooses. | |
Court membership | |
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Case opinions | |
Majority | Stevens, joined by Rehnquist, White, O'Connor, Scalia, Kennedy |
Dissent | Blackmun, joined by Brennan, Marshall |
Cotton Petroleum Corp. v. New Mexico, 490 U.S. 163 (1989), was a United States Supreme Court case that decided states may impose taxes on non-tribal commercial activity that takes place on tribal land. [1] [2]
The case followed the earlier Supreme Court ruling Merrion v. Jicarilla Apache Tribe (1982), which approved of the Jicarilla Apache charging a severance tax for oil extraction on tribal land.
Accordingly, Cotton Petroleum, a non-Indian corporation, extracted oil and agreed to pay the tribe a 6% severance tax. [3] However, the State of New Mexico collected an additional 8% severance tax, which it levied on all oil producers in the state. Cotton paid the state tax in protest, filed the lawsuit, and asserted that the state tax was preempted by federal law.
The Court applied Bracker balancing by weighing state, tribal, and federal interests. Because the state provided Cotton $89,384 in services, the Court found sufficient state interest to justify the state tax. [4] [5] The amount collected in taxes, $2,293,953, far exceeded the value of the state services, but the Court held there was no "proportionality requirement." [4] The Court further explained that current case law allows states to impose non-discriminatory taxes on non-tribal entities that do business with tribes and noted that Congress may offer immunity if it chooses. [6]
The Apache are several Southern Athabaskan language–speaking peoples of the Southwest and the Southern Plains. They are linguistically related to the Navajo. They migrated from the Athabascan homelands in the north into the Southwest between 1000 and 1500 CE.
Tribal sovereignty in the United States is the concept of the inherent authority of Indigenous tribes to govern themselves within the borders of the United States.
Jicarilla Apache, one of several loosely organized autonomous bands of the Eastern Apache, refers to the members of the Jicarilla Apache Nation currently living in New Mexico and speaking a Southern Athabaskan language. The term jicarilla comes from Mexican Spanish meaning "little basket", referring to the small sealed baskets they used as drinking vessels. To neighboring Apache bands, such as the Mescalero and Lipan, they were known as Kinya-Inde.
The Plains Apache are a small Southern Athabaskan group who live on the Southern Plains of North America, in close association with the linguistically unrelated Kiowa Tribe. Today, they are centered in Southwestern Oklahoma and Northern Texas and are federally recognized as the Apache Tribe of Oklahoma.
The Zuni Indian Reservation, also known as Pueblo of Zuni, is the homeland of the Zuni tribe of Native Americans. In Zuni language, the Zuni Pueblo people are referred to as A:shiwi, and the Zuni homeland is referred to as Halona Idiwan’a meaning Middle Place.
Tammie Allen is a contemporary Native American potter, enrolled in the Jicarilla Apache Nation.
Commonwealth Edison Co. v. Montana, 453 U.S. 609 (1981), is a 6-to-3 ruling by the Supreme Court of the United States that held that a severance tax in Montana does not violate the Commerce Clause or the Supremacy Clause of the United States Constitution.
Santa Clara Pueblo v. Martinez, 436 U.S. 49 (1978), was a landmark case in the area of federal Indian law involving issues of great importance to the meaning of tribal sovereignty in the contemporary United States. The Supreme Court sustained a law passed by the governing body of the Santa Clara Pueblo that explicitly discriminated on the basis of sex. In so doing, the Court advanced a theory of tribal sovereignty that weighed the interests of tribes sufficient to justify a law that, had it been passed by a state legislature or Congress, would have almost certainly been struck down as a violation of equal protection.
Bryan v. Itasca County, 426 U.S. 373 (1976), was a case in which the Supreme Court of the United States held that a state did not have the right to assess a tax on the property of a Native American (Indian) living on tribal land absent a specific Congressional grant of authority to do so.
Mescalero Apache Tribe v. Jones, 411 U.S. 145 (1973), was a case in which the Supreme Court of the United States held that a state could tax tribal, off-reservation business activities but could not impose a tax on tribal land, which was exempt from all forms of property taxes.
Merrion v. Jicarilla Apache Tribe, 455 U.S. 130 (1982), was a case in which the Supreme Court of the United States holding that an Indian tribe has the authority to impose taxes on non-Indians that are conducting business on the reservation as an inherent power under their tribal sovereignty.
White Mountain Apache Tribe v. Bracker, 448 U.S. 136 (1980), was a case in which the Supreme Court of the United States holding that Arizona's taxes that were assessed against a non-Indian contractor that was working exclusively for an Indian tribe on that tribe's reservation were preempted by federal law.
The following outline is provided as an overview of and topical guide to United States federal Indian law and policy:
Wagnon v. Prairie Band Potawatomi Indians, 546 U.S. 95 (2005), was a case in which the Supreme Court of the United States held that a state's non-discriminatory fuel tax imposed on off-reservation distributors does not pose an affront to a tribe's sovereignty.
New Mexico v. Mescalero Apache Tribe, 462 U.S. 324 (1983), was a case in which the Supreme Court of the United States held that the application of New Mexico's laws to on-reservation hunting and fishing by nonmembers of the Tribe is preempted by the operation of federal law.
Oklahoma Tax Commission v. Sac & Fox Nation, 508 U.S. 114 (1993), was a case in which the Supreme Court of the United States held that absent explicit congressional direction to the contrary, it must be presumed that a State does not have jurisdiction to tax tribal members who live and work in Indian country, whether the particular territory consists of a formal or informal reservation, allotted lands, or dependent Indian communities.
Kerr-McGee v. Navajo Tribe, 471 U.S. 195 (1985), was a case in which the Supreme Court of the United States held that an Indian tribe is not required to obtain the approval of the Secretary of the Interior in order to impose taxes on non-tribal persons or entities doing business on a reservation.
Williams v. Lee, 358 U.S. 217 (1959), was a landmark case in which the Supreme Court of the United States held that the State of Arizona does not have jurisdiction to try a civil case between a non-Indian doing business on a reservation with tribal members who reside on the reservation, the proper forum for such cases being the tribal court.
Washington State Dep't of Licensing v. Cougar Den, Inc., 586 U.S. ___ (2019), was a United States Supreme Court case in which the Court held that the Yakama Nation Treaty of 1855 preempts the state law which the State purported to be able to tax fuel purchased by a tribal corporation for sale to tribal members. This was a 5-4 plurality decision, with Justice Breyer's opinion being joined by Justices Sotomayor and Kagan. Justice Gorsuch, joined by Justice Ginsburg, penned a concurring opinion. There were dissenting opinions by Chief Justice Roberts and Justice Kavanaugh.