Document: 334 U.S. 717 68 S.Ct. 1223 92 L.Ed. 1676 WESTv.OKLAHOMA TAX COMMISSION. No. 489. Argued March 29, 30, 1948. Decided June 14, On Appeal from the Supreme Court of State Oklahoma. Mr. Frank T. McCoy, Pawhuska, Okl., for appellant. Messrs. R. F. Barry, Oklahoma City, and Joe M. Whitaker, Eufaula, appellee. Justice MURPHY delivered opinion Court. 1 This appeal concerns power to levy an inheritance tax on estate a restricted Osage Indian. Specifically, problem is whether property held in trust by United States benefit Indian may be included within taxable estate. 2 Charles West, Jr., was restricted, fullblood, unallotted, adult He died intestate 1940, resident No certificate competency ever issued him. Surviving him his mother, appellant herein, who full-blood The entire passed her as sole heir at law.1 3 Tax Commission entered order levying transfer net estate, valued $111,219.18. With penalties, total imposed $5,313.35. Appellant made timely objection inclusion certain items These formed bulk had been decedent States, acting through Secretary Interior. Act 28, 1906, 34 Stat. 539, amended, 41 1249, 45 1478, 52 1034. properties involved were follows: 4 (1) One 915/2520ths mineral headrights. item represented decedent's undivided interest oil, gas, coal other minerals under lands County, Oklahoma, said having reserved use Tribe 1906.2 5 (2) Surplus funds Treasury, representing accruals income 6 (3) Stocks bonds purchased name purchases with surplus accruing 7 (4) Trust hands Treasurer share proceeds sale Tribe's Kansas. 8 (5) Personal funds. 9 claimed that these immune state taxation virtue relevant provisions Constitutin , treaties laws States; hence Inheritance Transfer 1939, Title O.S.1941, §§ 989—989t, which authorized assessment invalid this respect. rejected contention affirmed, 199 Okl. —-, 193 P.2d 1017.DP It essential outset understand history nature arrangement whereby holds case. See Cohen, Handbook Federal Law (1945) 446—455. In 1866, Cherokee Nation Indians executed comprehensive treaty covering their various relationships. 14 799, 804. there agreed might settle friendly areas territory, including what now Oklahoma; previously conveyed Cherokees. further provided question fee simple tribes settled 'to common or members severalty decide.' 10 subsequently moved Territory County. 1883, pursuant 1866 treaty, Cherokees area 'in nevertheless Kansas Indians.' significant title land not time Osages; instead, received trustee Osages. Nor any distinction here between thereunder, legal both being transferred States. 11 Allotment Act, providing distribution properties, became effective. 539. Levindale Lead & Zinc Mining Co. v. Coleman, 241 432, 36 644, 60 1080. Provision allotment each tribal member 160-acre homestead, plus additional lands. allotted lands, § 7, set aside 'for individual tribe entitled thereto, heirs, provided.' homestead inalienable nontaxable 25 years during life allottee. however, years, except Interior issue competence adult, authorizing sell all lands; upon issuance such certificate, death allottee, become immediately taxable. 2, Seventh; Choteau Burnet, 283 691, 51 598, 75 1353. 12 Section stated covered period leases royalties approved then money due years;3 but segregated credited pro rata payable quarterly members. Royalties placed Treasury credit distributed same manner payments moneys trust. connection, it should noted so large Congress later limited amount could those without certificates competence; provision also investing bonds, stocks, etc.4 13 According 1906 statute, end 25-year 'the interests, moneys, herein shall absolute tribe, according role for, provided, deeds members, heirs have full control hereinbefore Seventh, 'shall owner land' expiration unless otherwise Congress. Moreover, interests deceased descend Oklahoma.' April 18, 1912, 37 86, 88, mentally incompetent will dispose 'any real, personal, mixed, funds, restrictions alienation removed,' accordance Such wills probated, before testator. 15 established statute has extended several times Congress, first 1946 (41 1249), 1958 (45 1478), finally 1984 (52 1034). last extension 'lands, hereafter supervision Indians, thereof, assigns, continue subject trusts until January 1, 1984, Congress.' 16 Application foregoing produces picture: Legal securities constituting corpus trustee. when took County transferred. adhered pertinent developed. Beneficial vested beneficiary least arising out corpus. And reversionary corpus, materialize only passes period. Bt ends, no over Globe Indemnity Bruce, Cir., 81 F.2d 143, 150. 17 Since 1819, McCulloch Maryland, Wheat, 316, 579, decided, taxation, expressly consents imposition liability. Van Brocklin Tennessee, 117 151, 670, 29 845; Allegheny 322 174, 64 908, 88 1209. immunity grows supremacy Government necessity able deal its own free interference embarrassment impose. supra; Wisconsin Central Railroad Price 133 496, 341, 33 687. 18 Rickert, 188 23 478, 47 532, rule apply where tribe. band Sioux actual possession neither nor permanent improvements thereon local ad valorem taxes. emphasized remained obvious execution protective policy toward wards, Indians. To thereon, congressional consent, would means employed accomplish beneficent objects relative dependent class individuals. convey allottees 'free charge incumbrances whatever.' If assessed unpaid, sold authorities. thus burdened discharge obligation unencumbered paying taxes year year. 19 Further application McCurdy 264 484, 44 345, 801. That case Tribe. recalled after three three-year them. sought place date delivery allottees. still date, passing deeds. reliance Rickert case, conclusion reached while Board Com'rs Fremont Wyo., 145 329; Thurston 143 287. 20 thought form decisions cases. Reference indicate very real direct effect title, similar applies, course, estates 989. Specific provisioni 989i 'Taxes levied remain lien paid.' if necessary satisfy tax. 989l. therefore possible unpaid try transferred, title. Complications arise validity lien. extent opposing seeing paid avoid 21 insofar depletion makes much smaller seen fit hold heirs. tapped repeatedly deaths result substantial decrease available distribution. 22 But our decision 319 1284, 87 1612, foreclosed cases situation. Among cash securities, freely alienated used approval We restriction, more, equivalent grant securities. express repudiation concept federal instrumentalities constitutionally exempt consequences. Helvering Mountain Producers Corporation, 303 376, 58 623, 82 907. foundation rested inapplicable. fail see difference purposes property. types same. Commissioners Creek Seber, 318 705, 717, 63 920, 926, 1094; Ramsey, 271 467, 471, 46 559, 560, 70 1039. Both devices purpose protecting found unable yet assume fully independent status instances; liens lead complications; depleted assure payment fact affords distinguishing characteristic standpoint addition, given indication whatever general are greater exemption than properties. Hence must disposition proceeding. 24 Implicit Court's refusal doctrine situation recognition rests basis different underlying An composed. Rather shifting economic benefits privilege transmitting receiving benefits. New York Helvering, 307 57, 60, 59 692, 693, 83 1104; Whitney Commission, 309 530, 538, 635, 638, 84 909. example, headright; he right receive annual At death, rights heir. incidents, rather themselves, question. setting, refinements immaterial. Whether consequence taxability transfer. permitting be, we noted, deplete create difficulties. normal intended consequences some affirmative way indicated burdens require liability, permits liability imposed. clear exempted they cannot purposes. involved, however. 26 considered points raised deem them merit. judgment below affirmed. 27 Affirmed. 28 CHIEF JUSTICE, FRANKFURTER DOUGLAS dissent. survived widow. she prohibited law inheriting part blood, matter dispute. A settlement widow apparently return giving up claim headright defined one court consists rights, above act (Act 539).' re Denison, D.C., 38 662, 664. Another definition: 'The period, participate bonuses headright.' 148, 149. Headrights transferable do pass bankruptcy. Taylor Tayrien, 884; Jones, 892. 1865 treay Great Little By terms Provisions carrying wave 1880, 291. 3, 1921, long sufficient $1,000 quarterly. Feb. 27, 1925, 43 1008. 24, 1938, 1034, excess $10,000 quarterly, less current income, exceed

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