Document: 515 U.S. 450115 S.Ct. 2214132 L.Ed.2d 400 OKLAHOMA TAX COMMISSION, Petitioner,v.CHICKASAW NATION. No. 94-771. Supreme Court of the United States Argued April 24, 1995. Decided June 14, Syllabus * Respondent Chickasaw Nation (Tribe) filed this action to stop Oklahoma from enforcing several state taxes against Tribe and its members. Pertinent here, District held for State on motor fuels tax question, largely income issue. The Appeals ruled members both issues, determining: (1) that, without congressional authorization, could not impose a fuel sold by at retail stores tribal trust land; (2) that wages employed Tribe, even if they reside outside Indian country. Held: 1. may apply tax, as currently designed, in Pp. ____. (a) declines address State's argument, raised first time brief merits, Hayden-Cartwright Act expressly authorizes sales reservations. (b) When attempts levy directly tribes or their inside country, proper approach is not, contends, weigh relevant interests. Rather, more categorical should be employed: Absent clear power reservation lands Indians. initial frequently dispositive question cases, therefore, who bears legal incidence it tribe cannot enforced absent federal legislation permitting impost. inquiry case whether rests retailer, wholesaler sells consumer buys Tribe. Judicial focus accords due deference Congress' lead role evaluating taxation A "legal incidence" test, furthermore, provides reasonably bright-line standard accommodating reality administration requires predictability. And unable enforce because falls Indians within generally free amend law shift tax's incidence. (c) Appeals' ruling retailer reasonable. does identify Nor contain provision requiring passed consumers. In absence such language, one fair interpretation taxing statute written applied. case, law's language structure indicate imposed retailers. 2. work but holding contrary conflicts with well established principle interstate international jurisdiction all residents, earned jurisdiction. exception would carve out authority gains no support rule are immune taxation, operate addition, Treaty Dancing Rabbit Creek, which guarantees "no Territory shall ever have right pass laws [Tribe's] government," only Tribe's sovereignty country confer super-sovereign interfere another jurisdiction's sovereign income, sources, those choose live limits. can read incorporate repudiated doctrine an government employees treated government. Treaty's signatories likely gave thought living domain, since purpose was move unsettled land then State. Moreover, were apply, require exemption nonmember member 31 F.3d 964 (CA10 1994), affirmed part, reversed remanded. GINSBURG, J., delivered opinion unanimous respect Parts I II, Part III, REHNQUIST, C.J., SCALIA, KENNEDY, THOMAS, JJ., joined. BREYER, concurring part dissenting STEVENS, O'CONNOR, SOUTER, Charles Rothfeld, Washington, DC, petitioner. Dennis W. Arrow, City, OK, respondent. Paul A. Engelmayer, U.S., amicus curiae special leave Court. Justice GINSBURG 1 This concerns over members.1 We take up two questions: May excise upon country.2 2 hold so holding, we adhere settled law: when Congress instruct otherwise, unenforceable made further hold, however, (including employment) persons, non-Indian alike, residing between of" Nation, displace rule, accepted internationally, entire residents. 3 federally recognized tribe, commenced civil Eastern Oklahoma, members.3 Court, cross-motions summary judgment, imposition Tenth Circuit issues: stores, and, further, (1994). 4 Concerning disapproved Court's "balancing respective interests" approach. Id., 972. ruled, key concept. That incidence, determined, retailers—here, operation convenience sell other persons. Oklahoma's concluded, "conflicts . traditional scope authority." Ibid. Because asserted authorization exaction, declared preempted. 5 view, applied any Tribe;4 residence, said, "simply [its] determination." 979. relied Sept. 27, 1830, Art. IV, 7 Stat. 333, 334, [Chickasaw] Red People descendants." To treaty "the general '[d]oubtful expressions resolved favor of' Indians." F.3d, 978 (quoting McClanahan v. Arizona Tax Comm'n, 411 164, 174, 93 1257, 1263, 36 129 (1973)). also noted had endeavored "rea[d] [who signed it] understood it." 6 granted petition certiorari, 513 ----, 115 714, 130 621 (1995), now affirm judgment reverse earnings II held, tax5 levied retailers, distributors Nation's sovereignty, maintains, means Oklahoma—absent permission—may collect supplied stores. immunity asserts, recalls our reaffirmations effect: "The Constitution vests Federal Government exclusive relations ., recognition retained after formation States, individuals exempt own territory." Montana Blackfeet 471 759, 764, 105 2399, 2402, 85 753 (1985); see also, e.g., Mescalero Apache Jones, 145, 148, 1267, 1270, 114 (1973). 8 response, urges inevitably " 'generally' taxation. Brief Petitioner 19 S.Ct., 2402). At least some aspects order. 17. Even (as retailer), concludes, disallowed here interest supporting compelling, insubstantial, effect 'tribal governance self-determination.' 22 (emphasis original). 9 alternative, argues "erred retailer." 10. newly otherwise impermissible, Congress, 1936 Act, U.S.C. § 104, permitted activity type. 23-24. 10 set reason refusing entertain late date argument permits levies explain why agree tax. 11 On brief, points out—for litigation—that "United military reservations." 104(a). Act's word "reservations," encompasses decline statutory interpretation. reference courts second instance. though flagged possible relevance,6 did mention certiorari. discovered claim vintage legislative "fairly included"7 tendered review: "Whether principles pre-emption preclude imposing tribe. .?" Pet. Cert. (i). As court review, will issues withheld until merits briefing 'only most exceptional cases.' Yee Escondido, 503 519, 535, 112 1522, 1533, 118 153 (1992) (citation omitted). fit bill. B 12 Assuming, then, has authorized must decide exaction nonetheless permitted. asks us make determination weighing interests, balance tilts favor. emphasizes used "almost exclusively roads," "very substantial costs State—but burden Tribe." 9. stresses reach value generated land," id., 10; i.e., produced refined often outsiders. 13 balanced federal, state, interests diverse contexts, notably, assessing regulation involve see, California Cabazon Band Mission Indians, 480 202, 216-217, 107 1083, 1091-1092, 94 244 (1987) (balancing affected attempt regulate on-reservation high-stakes bingo operation), compel remit actually non-Indians. See, Moe Confederated Salish Kootenai Tribes Flathead Reservation, 425 463, 483, 96 1634, 1646, 48 (1976) sellers cigarette non-Indians; precedent about controlling "this [collection] strictly speaking, all"). 14 But rather than non-Indians, employed, instead balancing inquiry, "a approach: '[A]bsent cession statutes it,' County Yakima Bands 502 251, 258, 683, 688, 116 687 Taking approach, number whose rested Bryan Itasca County, 426 373, 2102, 710 (tax Indian-owned personal property situated country); 165-166, 1258-1259, (1973) reservation). 15 If authorization. Moe, 475-481, 1642-1645 (Montana's consumers "smoke shop" members). bar prevents enforcement tax; favors State, contrary, levy, Washington Colville 447 134, 154-157, 100 2069, 2081-2083, 65 (1980), place "minimal burdens" collecting toll. Department Taxation Finance New York Milhelm Attea & Bros., 512 2028, 2036, 52 (1994) (slip op., 12). Thus, transactors—here, wholesalers buy Tribe.8 16 lieu venturesome See Yakima, 267, 692. complains, 'has relationship economic realities.' 30 Complete Auto Transit, Inc. Brady, 430 274, 279, 97 1076, 1079, 51 326 (1977)). accommodates factors enter into kind daunting. "economic reality" guide, might obliged consider, example, how completely retailers along increases sacrificing volume—a complicated matter dependent characteristics market product. Cf. 267-268, 692-693 (categorical safeguards risk litigation "engulf States' annual assessment process, validity each multiplicity vary year year, parcel parcel"). 17 By contrast, large populations informed us, "provide[s] which, perspective, responds need certainty permissible South Dakota et al. Amici Curiae 2.9 impost tribes, So, recognizes agrees accomplish what seeks "by declaring fall directing levy." 17; 10-13.10 C 18 key, erred (here, Tribe). consider Appeal's point altogether reasonable, therefore uphold it. Haring Prosise, 462 306, 314, n. 8, 103 2368, 2373, 76 595 (1983) (noting "our practice accept reasonable construction appeals"). incidence—distributors, consumers; nor "pass through" provision, cost 482, 1645-1646 (statute issue provided "shall conclusively presumed [a] direct [tax] precollected facility only"). 20 "fair applied." Bd. Equalization Chemehuevi 474 9, 11, 106 289, 290, 88 (1985) (per curiam). "remit" amount Commis- sion; crucially, describes remittal distributor "on behalf licensed Okla.Stat., Tit. 68, 505(C) (1991) added). inference obligation legally retailer's, distributor's, supported prescriptions 507, subject 505(E). Further, remits subsequently deduct uncollected future payments Commission. 505(C). distributor, "is transmittal agent 971. services "agent collection," retain small portion collect. 506(a). 21 contains comparable indication simply collection agents ultimately No sets off retailer's liability fail due; neither compensated efforts. applies purchased consumer. ("There hereby sale every gallon gasoline sold, stored distributed, withdrawn storage. ."). Finally, imposes purchasing, possessing, using untaxed fuel; makes unlawful "to offer diesel while delinquent payment state." fairly concluded: "[T]he import collects purchaser fuel"; "motor consumer." 971-972. III 23 Regarding including 24 runs taxation—namely, jurisdiction, jurisdiction:11 25 "That receipt resident territory taxable event universally recognized. Domicil itself affords basis Enjoyment privileges residence attendant invoke protection inseparable responsibility sharing These rights attach domicil state. Neither privilege character source derived." ex rel. Cohn Graves, 300 308, 312-313, 57 466, 467-468, 81 L.Ed. 666 (1937). "general principl[e] ha[s] acceptance." American Law Institute, Income Project: International Aspects 4, (1987); C. Cretton, Expatriate Manual (2d ed. 1991) ("An individual UK his sources worldwide."). It been Shaffer Carter, 252 37, 57, 40 221, 227, 64 445 (1920); J. Hellerstein Hellerstein, 20.04, p. 20-13 (1992), Government. E.g., Cook Tait, 265 47, 56, 44 444, 445, 68 895 (1924); Isenbergh, 45-56 (1990).12 26 block exercising ordinary prerogative resident; particular, shelter lands.13 For authority, (1973), Comm'n Sac Fox 508 ---- - 113 1985, 1990-1992, 124 (1993). 27 Notably, before Appeals, infringes self-governance. Opposition 9-10 ("infringement" presented Court); 42, 37; Fox, 1992 (reserving "whether self-governance independently territorial pre-empt ability performed employee country").14 28 Instead, relies impairs reserved law. 148-149, ("[E]xpress contrary" overrides "Indians going beyond boundaries nondiscriminatory applicable citizens State."). invokes 333-334, pertinent part: 29 people secure said [Chickasaw]15 persons limits west, descendants forever from, against, [such] laws. ." According "for descendants," immaterial these "descendants" mindful "treaties construed liberally Oneida 470 226, 247, 1245, 1258, 84 169 (1985). liberal save claim, founders geographic limit Treaty. terms, "within [the Nation's] limits." comprehend provide do conferring supersovereign 32 States16 urge accord view Dobbins Commissioners Erie 41 (16 Pet.) 435, 1022 (1842). Graves O'Keefe, 306 480, 59 595, 598, 83 927 (1939) ("The theory, once won qualified approval, economically source, longer tenable. Under seen impermissible itself. 33 doubt meant now-defunct They expect there. put distance States. Treaty, moved across Mississippi River, Alabama D. Hale Gibson, 46-59 (1991). 34 importing prove too much. dubious doctrine, typing itself, Tribe—not just members, nonmembers well. rejected extension, 975 ("It employee, employer. Therefore, extent non-member ancestry, infringe prohibition."), urging admitting "substantially tenuous." 47. 35 reasons stated, remand proceedings consistent opinion. 37 ordered. APPENDIX 38 Article IV 333-334 39 descendants; them embraced State; except enacted National Councils, inconsistent Constitution, Treaties, Laws States; may, under required exercise Affairs. [Chickasaws], ratified, express wish grant [Chickasaws] punishing laws, white man come nation, national regulations. whom SOUTER join, part. dissent decision pays (3) (4) (5) apparently, commute work. promise 1837—a "State laws" (and certain others here). (1830); Jan. 17, 1837, 573. my covers 42 thing, history suggests intended broad guarantee Chickasaws west River—which did. promise's initially induce Choctaws extended, same reason, hope follow. DeRosier, Removal Choctaw 46, 100-128 (1970); 104 (quoting, among things, President Jackson's statement 1829, "if remained east states," but, "free men few soldiers"). 43 promise, broadly light purpose, fits promised "[Chickasaw] made. supra explicit exceptions promise. creating additional implied where, affects significantly way conducts affairs areas jurisdiction—how much, pay workers kinds expenditures consequently able afford. impact wages, possible, indeed (insofar wages) amounting Indeed, Chickasaws, considered like present source—i.e., 445-448, (1842) (Federal salaries laws). Although changed, (1939), empirical connection not. basic objective, namely practical unchanging impact, shifting critical consideration. majority forth strong arguments application. But, ultimately, find convincing. true, out, well-established permit boundaries. equally true large, although truths pose case: Does law, roughly do, say, treaties governing diplomats organizations? Toll Moreno, 458 1, 14-15, 102 2977, 2984-2985, 73 563 (1982) (explaining local taxation). principles, themselves, answer. 45 concerned "line-drawing" problem. invalidates residents for, of, Tribe? acknowledge problem line drawing, exists irrespective where drawn here. And, (i.e., country), conduct Solicitor General out) represent effort recover proportionate share providing am convinced side seek prohibit. prohibits prohibit weaker link stronger 46 One final consideration strengthens conclusion reach. construe ambiguous believes "liberal claim," ante, says "obliged west." viewed historical context, seems primarily designed operates Mississippi—i.e., receive unless Regardless, affect "persons," "property," paid "within" "limits," Admittedly, quoted say effects sufficient bring prohibition, clearly residency (rather than, absolute prerequisite. circumstances, give benefit doubt. 47 literally, scope. reasons, believe bars join remainder opinion, respectfully point. syllabus constitutes prepared Reporter Decisions reader. Detroit Lumber Co., 200 321, 337, 282, 287, 50 499. recent encounters questions (1994); (1993); (1992); Citizen Potawatomi Okla., 498 505, 111 905, 1112 "Indian country," comprehends term, 1151, includes "formal informal reservations, communities, allotments, restricted States." 1991. addition complaint challenged vehicle Tribe-owned vehicles, purchases use, 3.2% beer warrants issued officers course litigation, apparently decided contest claims regarding taxes, withdrew warrants; sought review upheld application Commission, rate cents per fuel. 2-3; §§ 502, 502.2, 502.4, 502.6, 516, 520, 522 (gasoline); 502.1, 502.3, 502.5, 502.7, 522.1 (diesel fuel). noted: "In White Mountain Bracker, 448 136, 151 16, 2578, 2588 665 declined reservations encompassed 'on reservations.' court, 964, 972, Rule 14.1(a); 533, 1531, (1992). Lebron Railroad Passenger Corporation, 961, 964-965, 902 (1995) (reaching addressed within" certiorari advanced petition). determining confused cases non-Indians cited former type, (1980). App. 36a. resorted 142, 2075, Support focusing indicated arising analogous context Government's Fresno, 429 452, 459, 699, 703, 683 (1977) ("States Government."). measure Committee Substitute H.B. 45th Okla.Leg., 1st Sess. approved House Representatives March 1995, failed gain passage Senate during legislature's 1995 session. 1a-23a; Supplemental nonresidents, jurisdictions (1920) "may, does, exert sources"; derived [within State]"). sovereigns borders, sometimes elect so, commonly credit sovereigns. "[i]f foreign domiciliary taxpayer exempted, independent policy compelled jurisdictional considerations." (1987). "diplomats organizations," post, ____, speaks "treaties" wellsprings "an quite right. dominantly internal ground rules exemptions accorded governments organizations. return 893 Internal Revenue Code employer equivalent performing similar abroad. 893(a)(3); 15-16, 2985, (identifying genesis exemption); 393-394 (1990). narrow one. assert complain fails award suggests, potential disposition, "self-governance" question. Amicus 30, 18. interference plea lower foreclosed case. treaty, concluded became 1837. I, alliance entirely disinterested party. Squire Capoeman, 351 6, 611, 615, 883 (1956) ("[I]n life, governed remedial legislation, [Indians] citizens."); Hoptowit Commissioner, 709 F.2d 564 (CA9 1983) (rejecting employment); Jourdain 617 507 (CA8) curiam) (same), cert. denied, 449 839, 101 116, 66 computing employees' base, allowed itemized deduction. 164(a)(3). revenue.

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