Document: 411 U.S. 145 93 S.Ct. 1267 36 L.Ed.2d 114 The MESCALERO APACHE TRIBE, Petitioner,v.Franklin JONES, Commissioner of the Bureau Revenue State New Mexico, et al. No. 71—738. Argued Dec. 12, 1972. Decided March 27, 1973. Syllabus Mexico may impose a nondiscriminatory gross receipts tax on ski resort operated by petitioner Tribe off-reservation land that leased from Federal Government under § 5 Indian Reorganization Act, 25 U.S.C. 465. Though 465 exempts acquired state and local taxation, neither provision nor federal-instrumentality doctrine bars taxing income land. But use seeks to personalty purchased out which, having been installed as permanent improvement at resort, became so intimately connected with itself be encompassed statutory exemption. Pp. 147—159. 83 N.M. 158, 489 P.2d 666, affirmed in part reversed part. George E. Fettinger, Alamogordo, N.M., for petitioner. John C. Cook, Santa Fe, respondents. Mr. Justice WHITE delivered opinion Court. 1 Mescalero Apache operates located outside boundaries Tribe's reservation. has asserted right certain used connection resort. Whether paramount federal law permits these taxes levied is issue presented this case. 2 home reservation lands Lincoln Otero Counties Mexico. Sierra Blanca Ski Enterprises, owned Tribe, adjacent was developed auspices Act 1934, 48 Stat. 984, amended, 461 seq.1 After feasibility study Affairs, equipment construction money provided loan 10 470, necessary United States Forest Service term 30 years. area borders but, exception some cross-country trails, no enterprise, its buildings or within existing 3 paid protest $26,086.47 State, pursuant sales law, N.M.Stat. Ann. 72—16—1 seq. (1953), based sale services tangible property.2 In addition, 1968 assessed compensating against amount $5,887.19 (plus penalties interest), purchase price materials construct two lifts N.M.Stat.Ann. 72—17—1 (1953). duly protested assessment sought refund paid. denied both claim Court Appeals affirmed. court held, essentially, had authority apply non-discriminatory enterprise property involved dispute, did not render instrumentality, constitutionally immune it, own terms, grant immunity here involved. 666 (1971). Supreme certiorari. 151, 659 We granted petition writ certiorari, 406 905, 92 1604, 31 815, consider are properly subject taxation. affirm reverse. 4 * At outset, we reject—as court—the broad assertion exclusive jurisdiction over all purposes therefore prohibited enforcing revenue laws any tribal '(w)hether off land.'3 Generalizations have become particularly treacherous. conceptual clarity Chief Marshall's view Worcester v. Georgia, 6 Pet. 515, 556—561, 8 L.Ed. 483 (1832), given way more individualized treatment particular treaties specific statutes, including statehood enabling legislation, they, taken together, affect respective rights States, Indians, Government. See McClanahan Tax Commission Arizona, 164, 1257, 129; Organized Village Kake Egan, 369 60, 71 73, 82 562, 568—569, 7 573 (1962). upshot repeated statements effect that, even reservations, applied unless such application would interfere self-government impair reserved law. Kake, supra, 75, 570; Williams Lee, 358 217, 79 269, 251 (1959); York ex rel. Ray Martin, 326 496, 499, 66 307, 308, 90 261 (1946); Draper 164 240, 17 107, 41 419 (1896). Even so, special absent cession other statutes permitting there satisfactory activities carried reservation, lays rest doubt respect holding taxation permissible congressional consent. conducted present different considerations. 'State Indians yet extensive . reservation.' U.S., S.Ct., 571. Absent express contrary, going beyond generally held otherwise applicable citizens State. See, e.g., Puyallup Department Game, 391 392, 398, 88 1725, 1728, 20 689 (1968); 75—76, 570—571; Tulee Washington, 315 681, 683, 62 862, 863, 86 1115 (1942); Shaw Gibson-Zahniser Oil Corp., 276 575, 333, 72 709 (1928); Ward Race Horse, 163 504, 16 1076, 244 That principle relevant State's it criminal laws, see 516, 1080, applies much resorts does fishing enterprises. supra. Enabling 557,4 reflects distinction between on- activities. Section provides people disclaim 'all title' 'owned tribes title which shall through same remain disposition absolute control Congress States.' expressly provides, 'nothing herein preclude said taxing, taxed, an Indian, save except confirmed Congress, but exempt (only) long extent prescribed hereafter prescribe.' It thus clear terms general power retained tax, forbade occurring 'outside reservation.'5 also reject 1934 rendered instrumentality sorts. McCulloch Maryland, Wheat. 316, 579 (1819). intergovernmental-immunity once vogue variety contexts, affairs, consistently bar lessees of, product from, restricted individual Indians. theory Government's realizing maximum return wards. This approach survive; rise decline affairs described reflected Helvering Mountain Producers 303 376, 58 623, 907 (1938); Oklahoma Comm'n 319 598, 63 1284, 87 1612 (1943); Texas Co., 336 342, 69 561, 721 (1949), where cut bone proposition proceeds them were—as matter constitutional law—automatically Rather, 'to immunize think Constitution absence action' '(t)he question whether extended situations like essentially legislative character.' 365—366, 574. requires counsels us recognize business venture instrumentality. felt address provide deemed desirable. There is, therefore, invitation projects undertaken instrumentalities automatically Unquestionably, new policy aimed put halt loss allotment. gave Secretary Interior create were encouraged revitalize their adoption constitutions bylaws creation chartered corporations, conduct economic tribe.6 As true case before us, tribe taking advantage might generate substantial revenues education social welfare people.7 So viewed, serves function role affairs. 'mere fact used, among others, instrument effecting purpose relieve taxation.' Choctaw, & Gulf R. Co. Mackey, 256 531, 536, 582, 583, 65 1076 (1921). Henderson Bridge Kentucky, 166 150, 154, 532, 533, 953 (1897). 9 intent rehabilitate Indian's life give him chance develop initiative destroyed century oppression paternalism.' H.R.Rep.No.1804, 73d Cong., 2d Sess., (1934). S.Rep.No.1080, Senator Wheeler, floor, it: 'This bill get away bureaucratic Department, further property; hands either council corporation organized Indians.' 78 Cong.Rec. 11125. Representative Howard explained that: 11 'The program self-support civic experience management combined education, will permit increasing numbers enter white world footing equal competition.' Id., 11732.8 12 strip historic control.9 But, context unrealistic conclude conceived enterprises 'virtually arm Government.' Employment 385 355, 359—360, 464, 467, 414 (1966). Cf. Clallam County 263 341, 44 121, 68 328 (1923). On aim disentangle official bureaucracy. Court's decision demonstrates reach 1728. What (1928), here. taxability consent accumulated royalties allotted lands. Alienation federally restricted. rejecting barred doctrine,10 then Stone wrote unanimous Court: 13 'What governmental free though provided, cannot determined apart character legislation creating them. 14 15 early affecting immediate object closest government lives property. first principal need they should shielded alike improvidence spoliation others ultimate independent responsible status owners.. 'In sense permitted taxable process emancipation assumption responsibility citizenship, not, process. (t)o hold inconsistent one very creation, educate ..' 578—581, 335. 18 accordingly resurrect expansive version rejected modern times. II 19 claims must rejected. remains considered scope specifically afforded Act. A. part, 'any acquired' 'shall name trust acquired, taxation.'11 face, statute land, derived use. exemption 'lands' may, light purposes, construed support Squire Capoeman, 351 1, 76 611, 100 883 (1956); cf. Superior Bath House McCarroll, 312 176, 61 503, 85 (1941).12 guidance, courts ordinarily imply exemptions simply because derived, source, tax. 21 repeatedly implication. rule acts others. If intends prevent levying estate applying citizens, say plain words. Such conclusion can dubious inferences.' 606—607, 1288. 6, 614. 'definitely expressed' exemption, royalty oil although source Choteau Burnet, 283 691, 696—697, 51 600—601, 75 1353 (1931). well Government, pro rata share tribe's mineral resources. Leahy Treasurer, 297 420, 56 507, 80 771 (1936). Lessees (1949). 22 face 465, reason forbids taxes. Nor history conclusion. noted, several explicit provisions encompassing communities dropped bills preceded Wheeler-Howard bill. n. 9, Similarly, predecessor embodied dealt only reservations additions reservations. Hearings 11. Here, carrying anticipated §§ 476 477 Act.13 These designed encourage 11732. context, ordinary businesses throughout to. encompass collection Mexico's B 23 condlusion imposed lifts. According Stipulation Facts, personal 'permanently attached realty.' improvements tax-exempt certainly ad valorem Rickert, 188 432, 441—443, 478, 481—482, 47 532 (1903). extends jurisdictional basis Henneford Silas Mason 300 577, 57 524, 81 814 (1937); McLeod J. Dilworth 322 327, 330, 64 1023, 1025, 1304 (1944). recognized 'use' 'bundle privileges make up ownership' and, sense, least, upon itself. 527. simple City Detroit, 355 466, 474, 424 (1958), companion cases; Sullivan 395 169, 89 1648, 182 (1969). relieving latter burdens former. 'Every urged show improvements.' 442, 482. 24 judgment Affirmed 26 DOUGLAS, whom BRENNAN STEWART concur, dissenting 27 Art. I, '(t)o regulate Commerce Tribes' exceedingly one. liquor cases reached areas normally police States. Perrin 232 34 387, 691. gained breadth experiences induced treat wards Nation. Gritts Fisher, 224 640, 642—643, 32 580, 581, 928; Thomas, 151 585, 426, 429, 38 276; McGowan, 302 535, 538, 286, 287, 410. enacted varied decade decade. U.S.Dept. Interior, Law 94—138 revision monumental work, Handbook prepared Felix S. Cohen published 1940. 28 seq., various mind, ones most being, first, equip themselves devices organization, forming into corporations,' second, establish system financial credit 1. 29 Loans made agency satisfactory. 4. precluded loans set $10 million revolving-credit fund incorporated tribes. industry established Service. makes seems irrelevant me While lease technically 'acquired tribe,' concedes arrangement sufficient bring interest And respecting comes down 'such rights' 5. I start premise Senate Report forth endorsement President Roosevelt 'a standard dealing wards.' S.Rep., 3. Article 1852 Treaty Apaches guardian respects wards: 'For consideration faithful performance stipulations contained, Apache's donations, presents, implements, adopt liberal humane measures deem meet proper.' 980. obviously effort extend benefit philosophy permeating articulated Marshall 556, 483: 'From commencement our government, passed trade intercourse Indians; nations, rights, manifest firm afford protection stipulate.' 33 noted Warren Trading Post Comm'n, 380 685, 1242, 165, immunities related stated case, occurred controlling reason, 'but rather exercise 8, trading comprehensive room legislate subject.' 691 18, 1246. powers 'over wide non-Indians,' subject, course, limitations Bill Rights. 24. One illustration shown already cited. deal here, however, 'tribal property'—a leasehold adjoining designate single definite legal institution, range important variations exist.' 590—591. magic word 'reservation.' 'reservation' nonetheless 'Indian country.' 'Congress alone determine manner country's guardianship out,' id., immaterial what tract called. 539, 288. 35 attempted base offers job opportunities, higher living, community stability, preservation culture, orientation commercial maturity. tribal-developed enterprise. interferes project. being tool aid tribe, taxed without Congress. 'lands 5, indeed, states 'in acquired.' convincing 'rights' than net those rights. thought ambiguous, resolve ambiguity favor tribe. Carpenter Shaw, 280 363, 367, 50 122, 74 'Doubtful expressions resolved weak defenseless who nation, dependent good faith.' 883, doubts Indian. course unlike private entrepreneur 907, relies, plainly instrumentality—authorized financed starting ventures. relation 1612, raised inheritance could property, created implication 721, relied Court, merely lessee immunized paying production excise petroleum produced Those if outsider immunity. corporate funds distinguished 'organized solely carry objectives, corporations organized' now 852 853. 37 my view, 1936, adopted constitution, 476. asserts 'no (gross tax) charged rentals, lift tickets, food beverages.' Brief Petitioner 16. A corresponding appears XXI, 2. treaty 979, acknowledges 'exclusively jurisdiction, .,' alter obvious admission legislation. 67—68, 566—567, (1962), cited therein. Dept. 129—132 Law, editorial direction Cohen, printed 1940 (hereinafter Law); Comment, Tribal Self-Government 70 Mich.L.Rev. 955 (1972). For examples 983—985. Collier, Gleaming Way 149, 129—149 11727, 11731—11732 (remarks Rep. Howard); H.R. 7902, Committee 37, 65—67 (1934) Hearings). 7902 2755 (respectively 2437 2440), act 'as administration Affairs,' correspondingly, 'be liable done community.' Title 4(i). 'Nothing rendering subdivision thereof Tit. memorandum accompanied bills, '(a)s agency, 25. discarded along accompanying communities. H.R.Rep. 1804, 6. do read history, suggesting intended remove traditional enjoyed reading finds Cohen's treatise, 852—853, believe broader thrust his statement—that 'attempt types taxes' still direct burden instrumentality' supported discussions particularized contexts. 872—873, 864—873. non-Indian lessee, Gillespie Oklahoma, 257 501, 42 171, 338 (1922), overruled decades after Shaw. mandated intergovernmental immunity, result altered statute, do. Board Comm'rs Seber, 318 705, 920, 1094 (1943). 'acquired' tribe.' Solicitor General pointed out, 'it meaningless forest, convey Tribe.' amicus curiae 13. perhaps suggested virtue (1958); James Dravo Contracting 134, 208, 155 Capoeman imposition capital gains timber logged timberland (located reservation). constituted 'the major value'—if practical value—of apply, Allotment 1887 large measure frustrated. 10, 617. relying 'relatively contemporaneous unofficial writings' 616, declined interpret later find ward manner. contrast Squire, nothing fundamentally unclear record actually 477. Charters, Constitutions By-Laws Tribes North America, pt. III, pp. 13—15 (G. Fay ed. 1967). 476, gives Council corporation, XI, practice regulations, entities apparently merged respects. CFR 91.2; 973. event, turn form chooses business.

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