McClanahan v. Arizona State Tax Comm'n | |
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Argued December 12, 1972 Decided March 27, 1973 | |
Full case name | McClanahan v. Arizona State Tax Commission |
Citations | 411 U.S. 164 ( more ) 93 S. Ct. 1257; 36 L. Ed. 2d 129; 1973 U.S. LEXIS 89 |
Case history | |
Prior | McClanahan v. State Tax Commission,484P.2d221(Ariz. App. Div. 11971). |
Holding | |
Arizona has no jurisdiction to impose a tax on the income of Navajo Indians residing on the Navajo Reservation and whose income is wholly derived from reservation sources. | |
Court membership | |
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Case opinion | |
Majority | Marshall, joined by unanimous |
Laws applied | |
Treaty with the Navajo Indians, 15 Stat. 667; Buck Act, 4 U.S.C. § 104 et seq.; Ariz. Rev. Stat. Ann. §43-102(a) |
McClanahan v. Arizona State Tax Comm'n, 411 U.S. 164 (1973), was a case in which the Supreme Court of the United States holding that Arizona has no jurisdiction to impose a tax on the income of Navajo Indians residing on the Navajo Reservation if their income is wholly derived from reservation sources. [1]
Lower Courts
Rosalind McClanahan was an enrolled member of the Navajo Nation in Arizona. In 1967, all of her income came from work on the Navajo Reservation; $16.20 was withheld from her wages. She requested a refund of the entire amount and protested the collection of state taxes. When the state declined her claim, she filed an action in the Arizona Superior Court. The court dismissed her case for failure to state a claim. McClanahan appealed to the Arizona Court of Appeals, which affirmed. The Arizona Supreme Court declined to hear the case, and the United States Supreme Court granted certiorari to hear the case. [1]
History of Navajo Sovereignty
For the history of the Government, see Navajo Nation .
The Navajo Nation has a modern history of being very self established within the United States federal recognition system. The Navajo Nation has its own government, education and healthcare programs, and its own police system in place. In 1868 the Navajo Nation and the United States signed the Navajo Nation Treaty of 1868, which detailed the agreement between the two of reservation boundaries and rights of the Navajo Nation. Later on in 1922, The U.S. Secretary of the Interior created the Navajo Business Council for the purpose of being able to obtain mineral leases.
Prior to this court case, the Navajo Nation had a government to government relationship with the United States government.
United States Code on Taxation
The United States Code is the collection of all the laws published by the US House of Representatives that was started in 1926. [2] In 1947 Title 4 Chapter 4 was made for laying out the framework for states authority, jurisdiction and taxation. In section 109 (Same; exception of Indians), it explicitly mentions in regard to the prior sections 105 and 106 that were discussing taxation rules:
Nothing in sections 105 and 106 of this title shall be deemed to authorize the levy or collection of any tax on or from any Indian not otherwise taxed. [3]
This was the precedence set by the US House of Representatives 21 years prior to the case and was later used in the Supreme court hearing of the case.
Justice Thurgood Marshall delivered the opinion of a unanimous court. He found that there was nothing in federal law that authorized Arizona to collect a state income tax from an Indian that earned the income on the reservation. The case was reversed. [1]
An important quote that is cited in many future cases from this one from Justice Thurgood Marshall is:
"It must always be remembered that the various Indian tribes were once independent and sovereign nations, and that their claim to sovereignty long predates that of our own Government." [1]
This holds the implication that various Indian tribes' claims and rulings were standing long before the United States claims and rulings.
This case was a foundational supreme court case for the rights of Native Americans. This case was later cited in 638 other court cases. [4] These court cases range from the topics of:
A recent example of this case being cited would be in the 2024 case of Lexington Ins. Co. v. Smith, where Lexington Insurance Company claimed that the Suquamish Tribe wasn't responsible for the insurance claim submitted by the tribe, and then was sued by the Tribal in tribal court. Lexington challenged the Tribe stating that the tribal court didn't have jurisdiction. The case was cited in this court case and ended up favoring the Suquamish Tribe by confirming that the tribal court had jurisdiction on the case. [5]
The Indian Reorganization Act (IRA) of June 18, 1934, or the Wheeler–Howard Act, was U.S. federal legislation that dealt with the status of American Indians in the United States. It was the centerpiece of what has been often called the "Indian New Deal".
The Navajo Nation, also known as Navajoland, is an Indian reservation of Navajo people in the United States. It occupies portions of northeastern Arizona, northwestern New Mexico, and southeastern Utah. The seat of government is located in Window Rock, Arizona.
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.
Oliphant v. Suquamish Indian Tribe, 435 U.S. 191 (1978), is a United States Supreme Court case deciding that Indian tribal courts have no criminal jurisdiction over non-Indians. The case was decided on March 6, 1978 with a 6–2 majority. The court opinion was written by William Rehnquist, and a dissenting opinion was written by Thurgood Marshall, who was joined by Chief Justice Warren Burger. Justice William J. Brennan did not participate in the decision.
An American Indian reservation is an area of land held and governed by a U.S. federal government-recognized Native American tribal nation, whose government is autonomous, subject to regulations passed by the United States Congress and administered by the United States Bureau of Indian Affairs, and not to the U.S. state government in which it is located. Some of the country's 574 federally recognized tribes govern more than one of the 326 Indian reservations in the United States, while some share reservations, and others have no reservation at all. Historical piecemeal land allocations under the Dawes Act facilitated sales to non–Native Americans, resulting in some reservations becoming severely fragmented, with pieces of tribal and privately held land being treated as separate enclaves. This intersection of private and public real estate creates significant administrative, political, and legal difficulties.
The Indian Gaming Regulatory Act is a 1988 United States federal law that establishes the jurisdictional framework that governs Indian gaming. There was no federal gaming structure before this act. The stated purposes of the act include providing a legislative basis for the operation/regulation of Indian gaming, protecting gaming as a means of generating revenue for the tribes, encouraging economic development of these tribes, and protecting the enterprises from negative influences. The law established the National Indian Gaming Commission and gave it a regulatory mandate. The law also delegated new authority to the U.S. Department of the Interior and created new federal offenses, giving the U.S. Department of Justice authority to prosecute them.
The Uintah and Ouray Indian Reservation is located in northeastern Utah, United States. It is the homeland of the Ute Indian Tribe, and is the largest of three Indian reservations inhabited by members of the Ute Tribe of Native Americans.
Duro v. Reina, 495 U.S. 676 (1990), was a United States Supreme Court case in which the Court concluded that Indian tribes could not prosecute Indians who were members of other tribes for crimes committed by those nonmember Indians on their reservations. The decision was not well received by the tribes, because it defanged their criminal codes by depriving them of the power to enforce them against anyone except their own members. In response, Congress amended a section of the Indian Civil Rights Act, 25 U.S.C. § 1301, to include the power to "exercise criminal jurisdiction over all Indians" as one of the powers of self-government.
Indian country jurisdiction, or the extent which tribal powers apply to legal situations in the United States, has undergone many drastic shifts since the beginning of European settlement in America. Over time, federal statutes and Supreme Court rulings have designated more or less power to tribal governments, depending on federal policy toward Indians. Numerous Supreme Court decisions have created important precedents in Indian country jurisdiction, such as Worcester v. Georgia, Oliphant v. Suquamish Tribe, Montana v. United States, and McGirt v. Oklahoma.
Montana v. United States, 450 U.S. 544 (1981), was a Supreme Court case that addressed two issues: (1) Whether the title of the Big Horn Riverbed rested with the United States, in trust for the Crow Tribe or passed to the State of Montana upon becoming a state and (2) Whether Crow Tribe retained the power to regulate hunting and fishing on tribal lands owned in fee-simple by a non-tribal member. First, the Court held that Montana held title to the Big Horn Riverbed because the Equal Footing Doctrine required the United States to pass title to the newly incorporated State. Second, the Court held that Crow Tribe lacked the power to regulate nonmember hunting and fishing on fee-simple land owned by nonmembers, but within the bounds of its reservation. More broadly, the Court held that Tribes could not exercise regulatory authority over nonmembers on fee-simple land within the reservation unless (1) the nonmember entered a "consensual relationship" with the Tribe or its members or (2) the nonmember's "conduct threatens or has some direct effect on the political integrity, the economic security, or the health or welfare of the tribe."
City of Sherrill v. Oneida Indian Nation of New York, 544 U.S. 197 (2005), was a Supreme Court of the United States case in which the Court held that repurchase of traditional tribal lands 200 years later did not restore tribal sovereignty to that land. Justice Ruth Bader Ginsburg wrote the majority opinion.
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:
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.