Document: 512 U.S. 61114 S.Ct. 2028129 L.Ed.2d 52 DEPARTMENT OF TAXATION AND FINANCE NEW YORK, et al., Petitionersv.MILHELM ATTEA & BROS., INC., etc., al. No. 93-377. Supreme Court of the United States Argued March 23, 1994. Decided June 13, Syllabus * Enrolled tribal members purchasing cigarettes on Indian reservations are exempt from a New York cigarette tax, but non-Indians making such purchases not. Licensed agents precollect tax by stamps and affixing them to packs in advance their first sale. Determining that large volume unstamped was being purchased reservations, petitioner department enacted regulations imposing recordkeeping requirements quantity limitations wholesalers selling untaxed reservation Indians. As relevant here, set quotas may sell tribes retailers, must approve each Wholesalers also ensure buyer holds valid state exemption certificate, keep records tax-exempt sales, make monthly reports petitioners, and, as licensed agents, taxes nonexempt sales. Respondent Bureau Affairs They filed separate suits court alleging were pre-empted federal Trader Statutes. The trial issued an injunction. Ultimately, Appellate Division upheld regulations, Appeals reversed, distinguishing this Court's decisions upholding imposed non-Indian purchasers cigarettes, see Moe v. Confederated Salish Kootenai Tribes Flathead Reservation, 425 463, 96 1634, 48 96; Washington Colville 447 134, 100 2069, 65 10, ground they involved regulating sales consumers whereas York's applied concluded Statutes, construed Warren Trading Post Arizona Tax Comm'n, 380 685, 85 1242, 14 165, deprived all power impose regulatory burdens traders, alternatively, if could minimal State's invalid because significant. Held: do not, face, violate Pp. ____. (a) Because respondents have made essentially facial challenge, case is confined those alleged defects inhere written, need not assess for purposes feature scheme might affect self-government or authority over affairs. P. (b) traders wholly immune regulation reasonably necessary assessment collection lawful taxes. Although broad language suggests immunity, proposition has been undermined subsequent (upholding law requiring retailers land collect non-Indians), part nonmembers extensive records), Oklahoma Comm'n Citizen Band Potawatomi Tribe Okla., 498 505, 111 905, 112 1112. These cases clear interest ensuring compliance with easily be evaded through reservations; outweighs tribes' modest offering customers who would ordinarily shop elsewhere. Thus, there more room area. In particular, these decided tailored non-Indians. It anomalous hold State bookkeeping enrolled wholesalers, often (c) does excessive traders. Respondents' objections setting preapprove deliveries provide no basis although possibility inadequate future challenge regulations' application. only persons certificates detailed demanding than comparable measures approved Colville. Moreover, precollection obligation placed same that, under Colville, retailers. States' arguments supporting its position improperly trading rejected. 81 N.Y.2d 417, 599 N.Y.S.2d 510, 615 N.E.2d 994, reversed. STEVENS, J., delivered opinion unanimous Court. G. Oliver Koppell, City, argued petitioners. Joseph E. Zdarsky, Buffalo, NY, Beth S. Brinkmann, Washington, DC, amicus curiae, special leave Justice STEVENS 1 Cigarette subject 56 cents per pack. purchase pay it. To prevent escaping imposes question presented whether program statutes governing trade 2 Article 20 Law possessed except "without power" tax. N.Y.Tax § 471(1) (McKinney 1987 Supp.1994). collects affix sale within State. full amount price stamped at steps distribution stream. Accordingly, "ultimate incidence liability [is] upon consumer." 471(2). Any person "willfully attempts any manner evade defeat" commits misdemeanor. 1814(a) 1987). 3 lacks sold own consumption, 475-481, 1642-1645, (1976), consumed stamped. On-reservation other Indians, however, legitimately taxation. See 160-161, 2084-2085, 10 (1980). 1988, Department Taxation Finance1 determined According affidavit submitted official Department's Audit Division, 1987-1988 would, exclusively tax-immune correspond consumption rate times higher average resident; 1988-1989, putative 32 statewide average. Record 244-246 (Affidavit Jamie Woodward). unlawful substantial revenues—now estimated $65 million year—the adopted issue case.2 4 recognize right "exempt nations tribes, qualified registered dealers" "purchase, which seller prepaid precollected pursuant article Law." N.Y.C.R.R. 336.6(a) (1992). non-exempt likewise escape taxation, limit established enforced alternative ways. A tribe enter into agreement "to regulate, license, control agreed [untaxed] cigarettes," obtain tribe's approval delivery retailer. 336.7(c)(1). absence agreement—and apparently none date—the itself limits permitted based "probable demand" consumers. 336.7(d)(1). 5 calculates either two If "regulates, licenses controls reservation," will rely evidence concerning local demand cigarettes. 336.7(d)(2)(i).3 Otherwise, fixes multiplying "New [cigarette] capita" number affected tribe. §§ 336.7(d)(1), (d)(2)(ii). Each wholesaler retailer Department; "based orders received agent [i.e., wholesaler] quantities related probable territory" Ibid.4 Retailers sent "Tax Exemption Coupons" entitling allotment gives copies coupons delivery, forwards one Department. Brief Petitioners 12-13; App. 44-45. withhold "are been" violating 336.7(d)(6), cancel noncomplying 336.6(d)(3), (e)(5). 6 wish tax-free intends distribute consumers, takes reservation, certificate.5 Reservation "qualified consumers," time "certificate individual exemption" written identity purchases. 336.6(e)(2), (g)(1).6 7 Wholesale distributors authorizing stamps, 336.7(b)(2), 336.7(e). reflecting 336.6(g)(3-4). scheme, unsurprisingly, restrictions cigarettes—i.e., wholesalers. II 8 Respondents Interior (BIA) Before enforcement went effect, Albany County preempted 25 U.S.C. 261 seq. After affirmed, Milhelm Attea Bros., Inc. Dept. Finance York, 164 App.Div.2d 300, 564 491 (1990), denied review, we granted certiorari, vacated judgment remanded further consideration light our decision 1112 (1991), 502 ----, 926, 117 99 On remand, 181 210, 585 847 (1992), 994 (1993). 9 distinguished holding require (1980), N.Y.2d, 425, N.Y.S.2d, 513, N.E.2d, 997. Appeals' view, significantly different apply Ibid. Co. 165 (1965), 426-427, 513-514, 997-998. Even Traders, alternatively held, nevertheless "impose significant wholesaler." Id., 427, 514, 998. "dictate can Indians direct whom trade." "requires wholesale prepay excess predetermined maximum respect retailers." We 510 114 380, 126 329 (1993), now reverse. III 11 one. reviewing kind, rest consequences while possible, means predictable. For example, contest factual accuracy initial calculations particular 244-248; rather, all. Therefore, present assume allocations sufficiently generous satisfy legitimate demands smoke respects well, confine ourselves written. 12 second limitation review flows nature respondents' challenge. Their claim interferes federally protected activities goods While effect inquiry, Post, U.S., 691, S.Ct., 1245-1246, us Here confront narrower inconsistent IV 13 Throughout Nation's history, Congress authorized "sweeping" "comprehensive regulation" tribes. 687-689, 1244-1245. An exercise Congress' "regulate Commerce . Tribes," Const., Art. I, 8, cl. 3, Statutes fraud abuses Central Machinery 448 160, 163-164, 2592, 2594-2595, 684 provision principally relied Appeals, 1876 captioned "Power appoint Indians," states: "The Commissioner shall sole rules he deem just proper specifying kind prices Indians." 19 Stat. 200, 261.7 15 held prevented income gross proceeds dealing "apparently all-inclusive regulations" them, stated, "would seem themselves sufficient show taken business so fully hand remains laws additional traders." 690, 1245. Arizona's extent frustrate evident congressional purpose burden Acts promulgated Acts." 1246. Co., 163-166, 2594-2596 (tax farm machinery 261). 16 valid, "undermined" proposition. Machinery, 172, 2599-2600 (Powell, dissenting). Moe, Montana required noted smokeshop proprietor's competitive advantage depended "on purchaser willing flout his legal Without simple expedient having purchasers, it violations latter class go virtually unchecked." 482, 1645-1646. contrast fell directly trader, non-Indians—whom had 483, 1646. Montana's "requirement validly non-Indians" "minimal designed avoid likelihood payment concededly tax." 17 comprehensive transactions. rejected "principles law, stated terms pre-emption, self-government, otherwise, authorize thus market taxation normally elsewhere." 155, 2082. failed meet showing "not preventing fraudulent transactions." 2084.8 California Bd. Equalization Chemehuevi Tribe, 474 9, 11-12, 106 289, 290, 88 (1985) (per curiam ). 18 Potawatomi, sovereign immunity barred Oklahoma's suit against recover owed convenience store owned Tribe. response protest Tribe's recognized "right without remedy," 912, explained remedies existed collectors, damage actions officers agreements added "States course seizing off [447 U.S.,] 161-162 [100 2085-2086], assessing supplied stores." V This another "reconcile plenary residents borders semi-autonomous status living reservations." McClanahan 411 164, 93 1257, 1258, 36 129 (1973). Resolution conflicts depend "rigid rule[s]" "mechanical absolute conceptions sovereignty," instead "a particularized inquiry state, federal, interests stake, determine whether, specific context, law." White Mountain Apache Bracker, 136, 142, 145, 2578, 2583, 2585, 665 Cotton Petroleum Corp. Mexico, 490 163, 176, 109 1698, 1707, 104 209 (1989). enforce—which falls merely retailed stands markedly footing organizations, "value generated involving 156-157, 2083. "balance interests," Rice Rehner, 463 713, 720, 103 3291, 3296, 77 961 (1983), area leaves others. 21 dealt most claims interference sovereignty,9 reasoning requires rejection submission bars state-imposed book-keeping members, including stores operated themselves, similar (as case) not.10 Such ruling well perverse consequence casting greater very protect. Just sovereignty completely preclude enlisting assist taxes, bar reasonable purpose. evading sense reduces offered unlimited goods; weighty engaged transactions 22 found "imposed 2595. That characterization circumvention "concededly lawful" 482-483, lends support contrary conclusion, conclusion course, answer striking down scheme—namely, VI 23 vigorously object wholesaler's mechanism. persuaded, stanch illicit flow early stream "reasonably necessary" method "preventing transactions," "polices evasion [New York's] unnecessarily intruding core interests." 162, 2085. justification avoiding By quota sought dictate "the 261. remain free many wish, whatever price. adequate, neither nor destined consumption. application unwilling assume, respondents, underestimate associated requirement order render facially invalid. procedure should prove unduly burdensome absent wrongful withholding delay approval-problems addressed when arise. 2084 (burden challenger). 24 produce maintain interfere trading. eligible n. supra. Indeed, typically involves comparatively small large-volume transactional probably less onerous simply therefore disagree way "impose[d] 998 (emphasis added). Again assuming ample regime prepayment entitled. States, affirmance, agrees addition provisions disapproved attacks invades BIA's "sole authority" understand anything establish identifying already At stage, refuse certification trader stultify economies refusing new assures "virtually automatic" Reply (citing 336.6(f)(1) (1992)). 26 objects establishing "trade territories" allocating reservation's overall among retail outlets. Depending how circumstances, problems some proceeding. However, record before furnishes evaluating problem. Agreements between resolve purely hypothetical.11 Possible allocation necessarily threaten harm respondent whose main lies however ultimately allocated. 27 conclude 28 ordered. syllabus constitutes prepared Reporter Decisions reader. Detroit Lumber 200 321, 337, 282, 287, 50 L.Ed. 499. petitioners James W. Wetzler, Tribunal York. refer collectively effort gasoline reservations. Herzog Bros. Trucking, 69 536, 516 179, 508 914 (1987) (finding law), remanded, 487 1212, 108 2861, 101 898 (1988), remand 72 536 416, 533 255 (1988). cites examples "records previous relating near enrollment, statistical evidence, etc." 336.7(d)(2)(i) determines consultation undertaken regulate cigarettes; territory information disposal." 336.7(d)(3)(ii). 336.6(d)(1), 6(f)(1); 336.7(b)(1). display certificate purchase, sign invoice 336.6(g)(1). consumer" member "who boundaries Indian's use (i.e., resale) reservation." 336.6(b)(1)(ii). fitness satisfaction so, 262, President prohibit introduction country revoke licenses, 263, penalties unauthorized trading, 264. BIA codified CFR 140.1-140.26 described record-keeping follows: operators both taxable nontaxable operator dollar With retain inspection names affiliations, made, dates addition, unless personally known identification card." 159, 2084. fact, obligated Wash., 446 F.Supp. 1339, 1347 (ED Wash.1978). Federal Government, approximately 125 64 61 Amicus Curiae 2, 1. Seneca Nation argues treaties insofar allow occurring lands. 18-26; 21-24. address contention, differs Appeals. Parcel Service, Mitchell, 451 56, 60, 1559, 1562-1563 67 732 (1981).

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