Oklahoma Tax Commission v. Citizen Band, Potawatomi Indian Tribe of Oklahoma

Last updated
Okla. Tax Commission v. Citizen Band, Potawatomi Indian Tribe of Okla.
Seal of the United States Supreme Court.svg
Argued January 7, 1991
Decided February 26, 1991
Full case nameOklahoma Tax Commission v. Citizen Band, Potawatomi Indian Tribe of Oklahoma
Citations498 U.S. 505 ( more )
111 S. Ct. 905; 112 L. Ed. 2d 1112; 1991 U.S. LEXIS 1298
Case history
Prior888 F.2d 1303 (10th Cir. 1989); cert. granted, 498 U.S. 806(1990).
SubsequentRemanded, 932 F.2d 1355 (10th Cir. 1991); judgment affirmed, 969 F.2d 943 (10th Cir. 1992).
Holding
The tribe was not subject to state sales taxes on sales made to tribal members, but that they were liable for taxes on sales to non-tribal members.
Court membership
Chief Justice
William Rehnquist
Associate Justices
Byron White  · Thurgood Marshall
Harry Blackmun  · John P. Stevens
Sandra Day O'Connor  · Antonin Scalia
Anthony Kennedy  · David Souter
Case opinions
MajorityRehnquist, joined by unanimous
ConcurrenceStevens
Laws applied
Tribal sovereign immunity

Okla. Tax Commission v. Citizen Band, Potawatomi Indian Tribe of Okla., 498 U.S. 505 (1991), was a case in which the Supreme Court of the United States held that the tribe was not subject to state sales taxes on sales made to tribal members, but that they were liable for taxes on sales to non-tribal members. [1]

Contents

Background

The Potawatomi was originally from the Wabash River area of Indiana and was known as the Mission Band of Potawatomi. After 1833, they were relocated to Kansas, where they lost most of their land due to the allotment system. In 1867, in a treaty with Kansas, the tribe sold their land in that state in order to purchase land in the Indian Territory (now Oklahoma) and took United States citizenship. They have henceforth been known as the Citizen Potawatomi Nation. [2]

District Court decision

The tribe, for many years has sold cigarettes on tribal lands without collecting Oklahoma's cigarette tax. In 1987, the Oklahoma Tax Commission demanded that the tribe pay $2.7 million for taxes due from 1982 to 1986. The tribe sued in the U.S. District Court. The District Court denied the tribe's motion for summary judgment and following a trial, held that the tribe's sales to tribal members was immune from state taxation, but that sales to non-tribal members could be taxed. [1]

Circuit Court decision

The tribe appealed, asserting that they enjoyed total tribal sovereign immunity for sales on tribal lands. The State of Oklahoma stated that the tribe had waived its immunity by filing the case in the district court. The Tenth Circuit Court of Appeals held that Oklahoma lacked the authority to collect any state sales taxes on tribal lands, whether to tribal members or non-tribal members. Oklahoma appealed and the Supreme Court granted certiorari. [1] [3]

Opinion of the Court

Affirmed in part, reversed in part. Chief Justice Rehnquist delivered the opinion for a unanimous court. [1]

Rehnquist first stated that the tribe does not waive immunity by instituting an action in the district court, noting that the court had previously determined that tribes were immune from counter-claims or cross-suits, absent Congressional authorization to the contrary. He next addressed the state's argument that tribal land held in trust was not the same as reservation land, and found the state's position unpersuasive. Tribal land, whether held in trust or as part of a reservation, is set apart for the use of the tribe, and as such qualifies for immunity. The court then held that the Tenth Circuit erred in holding that tribe did not have to collect sales taxes on cigarettes sold to non-members. [1]

Concurring Opinion

Justice Stevens issued a concurring opinion that mainly discussed the question of immunity as applied to the facts of the case. [1]

Related Research Articles

Indian Territory evolving land area set aside by the United States Government for the relocation of Native Americans

The Indian Territory and the Indian Territories are terms that generally describe an evolving land area set aside by the United States Government for the relocation of Native Americans who held aboriginal title to their land as a sovereign independent state. In general, the tribes ceded land they occupied in exchange for land grants in 1803. The concept of an Indian Territory was an outcome of the US federal government's 18th- and 19th-century policy of Indian removal. After the American Civil War (1861–1865), the policy of the US government was one of assimilation.

Tribal sovereignty in the United States type of political status of Native Americans

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. Originally, the U.S. federal government recognized American Indian tribes as independent nations, and came to policy agreements with them via treaties. As the U.S. accelerated its westward expansion, internal political pressure grew for "Indian removal", but the pace of treaty-making grew nevertheless. Then the Civil War forged the U.S. into a more centralized and nationalistic country, fueling a "full bore assault on tribal culture and institutions", and pressure for Native Americans to assimilate. In the Indian Appropriations Act of 1871, without any input from Native Americans, Congress prohibited any future treaties. This move was steadfastly opposed by Native Americans. Currently, the U.S. recognizes tribal nations as "domestic dependent nations" and uses its own legal system to define the relationship between the federal, state, and tribal governments.

United Keetoowah Band of Cherokee Indians Federally recognized tribe based in Oklahoma

The United Keetoowah Band of Cherokee Indians in Oklahoma is a federally recognized tribe of Cherokee Native Americans headquartered in Tahlequah, Oklahoma. According to the UKB website, its members are mostly descendants of "Old Settlers" or "Western Cherokee," those Cherokee who migrated from the Southeast to present-day Arkansas and Oklahoma about 1817. Some reports estimate that Old Settlers began migrating west by 1800. This was before the forced relocation of Cherokee by the United States in the late 1830s under the Indian Removal Act.

Cayuga Nation of New York Federally recognized tribe of Cayuga people, based in New York, United States

The Cayuga Nation of New York is a federally recognized tribe of Cayuga people, based in New York, United States. Other organized tribes with Cayuga members are the federally recognized Seneca-Cayuga Tribe of Oklahoma and the Canadian-recognized Six Nations of the Grand River First Nation in Ontario, Canada.

Citizen Potawatomi Nation

Citizen Potawatomi Nation is a federally recognized tribe of Potawatomi people located in Oklahoma. The Potawatomi are traditionally an Algonquian-speaking Eastern Woodlands tribe. They have 29,155 enrolled tribal members, of whom 10,312 live in the state of Oklahoma.

Oneida Indian Nation Indigenous tribe of North America

The Oneida Indian Nation (OIN) or Oneida Nation is a federally recognized tribe of Oneida people in the United States. The tribe is headquartered in New York, where the tribe originated and held its historic territory long before European colonialism. It is an Iroquoian-speaking people, and one of the Five Nations of the Iroquois Confederacy, or Haudenosaunee. Three other federally recognized Oneida tribes operate in locations where they migrated and were removed to during and after the American Revolutionary War: one in Wisconsin in the United States, and two in Ontario, Canada.

Ottawa Tribe of Oklahoma

The Ottawa Tribe of Oklahoma is one of four federally-recognized Native American tribes of Odawa people in the United States. Its ancestors had migrated into Michigan and Ohio in the 18th century. In the late 1830s they were removed to west of the Mississippi River, first to Iowa, then to Kansas in what was then Indian Territory. In 1867 they sold their land to purchase territory in what became Oklahoma, then primarily settled by Native Americans.

The Oklahoma Tax Commission (OTC) is the Oklahoma state government agency that collects taxes and enforces the taxation and revenue laws of the state. The Commission is composed of three members appointed by the Governor of Oklahoma and confirmed by the Oklahoma Senate. The Commissioners are charged with oversight of the agency but appoint an Executive Director to serve as the chief administrative officer of the Commission and to oversee the general practices of the Commission.

Sovereign immunity in the United States Legal protection of Federal, State and Indian Tribal governments

In United States law, the federal government as well as state and tribal governments generally enjoy sovereign immunity, also known as governmental immunity, from lawsuits. Local governments in most jurisdictions enjoy immunity from some forms of suit, particularly in tort. The Foreign Sovereign Immunities Act provides foreign governments, including state-owned companies, with a related form of immunity—state immunity—that shields them from lawsuits except in relation to certain actions relating to commercial activity in the United States. The principle of sovereign immunity in US law was inherited from the English common law legal maxim rex non potest peccare, meaning "the king can do no wrong." In some situations, sovereign immunity may be waived by law.

C & L Enterprises, Inc. v. Citizen Band, Potawatomi Indian Tribe of Oklahoma, 532 U.S. 411 (2001), was a United States Supreme Court case in which the Court held that the tribe waived its sovereign immunity when it agreed to a contract containing an arbitration agreement.

Kiowa Tribe v. Manufacturing Technologies, 523 U.S. 751 (1998), was a case in which the Supreme Court of the United States held that an Indian Nation were entitled to sovereign immunity from contract lawsuits, whether made on or off reservation, or involving governmental or commercial activities.

City of Sherrill v. Oneida Indian Nation of New York, 544 U.S. 197 (2005), was a US Supreme Court 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.

Chickasaw Nation v. United States, 534 U.S. 84 (2001), was a case in which the Supreme Court of the United States held that Indian tribes were liable for taxes on gambling operations under 25 U.S.C. §§ 2701–2721.

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.

The following outline is provided as an overview of and topical guide to United States federal Indian law and policy:

Cherokee Commission

The Cherokee Commission, was a three-person bi-partisan body created by President Benjamin Harrison to operate under the direction of the Secretary of the Interior, as empowered by Section 14 of the Indian Appropriations Act of March 2, 1889. Section 15 of the same Act empowered the President to open land for settlement. The Commission's purpose was to legally acquire land occupied by the Cherokee Nation and other tribes in the Oklahoma Territory for non-indigenous homestead acreage.

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.

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.

Former Indian reservations in Oklahoma

Both Oklahoma Territory and Indian Territory contained suzerain Indian nations that had legally established boundaries. The US Federal government broke up collective tribal landholdings through the allotment process before the establishment of Oklahoma as a state in 1907. Tribal jurisdictional areas replaced the tribal governments, with the exception of the Osage Nation. As confirmed by the Osage Nation Reaffirmation Act of 2004, the Osage Nation retains mineral rights to their reservation, the so-called "Underground Reservation".

References

  1. 1 2 3 4 5 6 Oklahoma Tax Commission v. Citizen Band, Potawatomi Indian Tribe of Oklahoma, 498U.S.505 (1991).
  2. "Citizen Potawatomi Nation History". Citizen Potawatomi Nation. 2008. Archived from the original on December 21, 2009. Retrieved March 9, 2010.CS1 maint: discouraged parameter (link)
  3. Citizen Band Potawatomi Indian Tribe of Oklahoma v. Oklahoma Tax Commission, 888F.2d1303 (10th Cir.1989).