Legal Document

458 U.S. 832 102 Supreme Court Reporter 3394 73 United States Reports Lawyer’s Edition 2d Series KF101.8 U54 1174 RAMAH NAVAJO SCHOOL BOARD, INC., et al., Appellantsv.BUREAU OF REVENUE NEW MEXICO. Number 80-2162. Argued April 28, 1982. Decided July 2, Syllabus Held: Federal law pre-empts New Mexico's tax imposed on the gross receipts that appellant non-Indian construction company received from tribal school board for of a Indian children reservation. White Mountain Apache Tribe versus Bracker, 448 136, 100 2636, 65 742, controlling. Pp. 836-847. (a) In view federal and interests arising Congress' broad power to regulate affairs under Commerce Clause, Article I, § 8, cl. 3, semi-autonomous status tribes, exercise state authority over commercial activity an reservation may be pre-empted by law, or it interfere with tribe's ability its sovereign functions. Traditional notions sovereignty, recognition encouragement such sovereignty in congressional Acts promoting independence economic development, inform pre-emption analysis. Ambiguities should construed generously, preemption is not limited those situations where Congress has explicitly announced intention pre-empt activity. 837-839. (b) statutes (particularly Self-Determination Education Assistance Act) reflect policy encouraging development Indian-controlled institutions reservation, detailed regulations governing Bureau Affairs wide-ranging monitor review subcontracting agreements between organization, which viewed as general contractor, firm actually constructs facilities. The direction supervision provided comprehensive regulatory scheme schools leave no room additional burden sought Mexico. There merit contention merely because do specifically express this authority. interest asserted State relating providing services contractor activities off legitimate justification whose ultimate falls organization. Nor State's purpose imposing pursuant desire increase revenues sufficient justify burdens thereby regulating creation maintenance educational opportunities self-sufficiency area education. 839-845. (c) Pre-emption analysis need modified applying new approach relying Clause. Existing type case provides guidance courts also allows more flexible consideration federal, state, at issue. Pp.845-846 95 N.M. 708, 625 Pacific Reporter, 2nd 1225, reversed remanded. Michael KF135 P2 Gross, Santa Fe, N. M., appellants. Louis KF105 F3 Claiborne, Washington, D. C., amicus curiae, special Court. Jan Unna, appellees. Justice MARSHALL delivered opinion 1 case, we address question whether receives Mexico Appeals held was permissible. Because decision below inconsistent 2578, 665 (1980) (White Mountain), reverse. 2 * Approximately 2,000 members Ramah Navajo Chapter live trust allotment lands located west central attended small public high near until closed facility 1968. there were other reasonably close forced either abandon their education attend boarding far 1970, exercised Tribal Code, Title 10, 51 (1969), established own order remedy situation. Appellant School Board, Incorporated (the Board), organized nonprofit corporation operated exclusively Chapter. Board "tribal organization" within meaning 25 Code KF62 450b(c), 88 Statutes-at-Large 2204. With funds (BIA) Tribe, abandoned facility, thus creating first independent modern times.1 3 1972, successfully solicited design Pub. L. 92-369, 86 510. then contracted BIA hired architect. 1974, actual built land. Funding series appropriations earmarked purpose.2 contract specified building project, but could subcontract work third parties. further any agreement would have include certain clauses pricing, wages, bonding, like, must approved BIA. 4 bids contractors school, two firms. Each included cost bids, although itemized separately. Lembke Construction (Lembke) low bidder awarded contract. pay all "taxes required law." began facilities 1974 continued five years. During time, paid and, standard industry practice, reimbursed full amount paid. Before second executed 1977, clause inserted into recognizing litigate validity entitled refund. 5 Both protested imposition tax. 1978, after exhausting administrative remedies, they filed refund action against appellee Revenue District At time trial, parties stipulated had payments $232,264.38 receive might awarded. 6 trial court entered judgment Revenue. After noting "legal incidence" fell firm, rejected appellants' arguments regulation impermissible sovereignty. affirmed. 1225 (1980). Although acknowledging concluded preempted did unlawfully petition rehearing light Court's intervening decisions Mountain, supra, Central Machinery Arizona Tax Comm'n, 160, 2592, 684 denied petition, stating only involve "a pervasive regulation" "federal similar trader statutes." App. Juris. Statement 36. initially granting discretionary review, quashed writ improvidently granted. 96 17, 627 412 (1981). We noted probable jurisdiction. 454 1079, 631, 70 612 II 7 recent years, often confronted difficult problem reconciling "the plenary residents borders Indians living reservations." McClanahan 411 164, 165, 93 1257, 1258, 36 129 (1973). definitive formula resolving activities, recently identified relevant tribal, considered determining particular violates law. See U.S., 141-145, S.Ct., 2582-2584. Atlantic 8 recognized arise tribes. 142, 2583. These tend erect "independent related" barriers reservation: Ibid. (citing, inter alia, Warren Trading Post 380 685, 85 1242, 14 165 (1965); supra; Williams Lee, 358 217, 79 269, 251 (1959)). As explained : 9 "The are either, standing alone, can basis holding inapplicable undertaken members. They related, however, important ways. right self-government ultimately dependent subject Congress. Even so, traditional so deeply engrained our jurisprudence 'back-drop,' . vague ambiguous enactments always measured." 143, 2583 (quoting 172, 1262). 10 exercising examined given appropriate weight. controlled "mechanical absolute conceptions sovereignty"; requires particularized examination interests. 145, 2584. reflects related interests, standards developed areas. Id., 143-144, 2583-2584. Instead, governs inquiry. id., n. 2583, 10. Relevant treaties policies underlie them historical traditions independence." 144-145, 2584-2585. result, ambiguities 150-151, 2583-2584, 2587-2588. 11 applied these principles application motor carrier license use fuel taxes logging company's found harvesting timber precluded taxes. 148, 2586. Secretary Interior (Secretary) promulgated developing " 'Indian forests people self-sustaining communities.' 147, 2585 Regulations 141.3(a)(3) (1979)). Under regulations, involved virtually every aspect production marketing timber. 145-148, 2585-2586. particular, extensively regulated contractual relationship non-Indians working bidding procedure, set mandatory terms contract, contracts Secretary. 2585. 12 "threaten overriding objective guaranteeing will 'receive benefit whatever profit [the forest] capable yielding. .' 149, 2586 undermine Secretary's carry out his obligations fees rates sale timber, impede "Tribe's comply sustained-yield management 149-150, 2586-2587. Balanced intrusion scheme, raise revenue" 150, 2587. context, insufficient sphere heavily Government. B 13 This indistinguishable respects Mountain. financing both pervasive. Government's concern traced back Tribe.3 Since enacted numerous empowering provide See, e.g., Snyder Act, 42 208 (1921), 13; Johnson-O'Malley 48 596 (1934), 452 seq.; Navajo-Hopi Rehabilitation 64 44 (1950), 631 2203 (1975), 450 seq. (Self-Determination Act). early focus efforts concentrated children, 1970's shifted toward Weekly Comp. Pres. Doc. 894, 899-900 (1970) (Message President Nixon). been codified Financing Act 77, 1451 seq., most notably Act. declares "major national goal quantity quality permit compete excel life areas choice, achieve measure self-determination essential social well-being." 2203, forth 450a(c). achieving goal, expressly "parental community control process crucial importance people." 450(b)(3). 15 Section 450k empowers promulgate accomplish purposes 2212, 450k. Pursuant authority, respecting "school previously private now tribes tribally organizations." 274.1 274.2 (1981).4 Specifically, conduct preliminary on-site inspections, prepare estimates project cooperation 274.22 approve architectural engineering connection project. 274.32(c) addition, empower require contain terms, ranging bonding scales, 41 14H-70.632 (1981), preferential treatment workers. 274.38 Finally, ensure fulfilling statutory obligations, organization maintain records inspection. 274.41 16 autonomous least pre-emptive Mountain.5 Government through taxation Board. burden, nominally falling necessarily impedes clearly expressed "quality quantity" depleting available schools.6 17 argues argument foreclosed precedents. flatly argument. 2586-2587 (citing (1959); Kennerly Montana, 400 423, 91 480, 27 507 (1971)). nothing unique nature laws different 18 does seek assess return governmental functions who bear paying Having declined take responsibility intended education—a "left duties responsibilities." 691, 1246.7 specific, arguably specific advanced interest, organization.8 Furthermore, confer substantial benefits fail see how contracting firm.9 compensate privilege engaging business." N.M.Stat.Ann. §§ 7-9-3(F) 7-9-4(A) source levy "privilege doing business" bestowed 19 amounts than revenues. purpose, 2586, education.10 precludes "stands obstacle accomplishment objectives Congress." Hines Davidowitz, 312 52, 67, 61 399, 404, L.Ed. 581 (1941). Contract 20 Solicitor General, brief behalf States, suggests modify rely dormant hold on-reservation involving resident tribe presumptively beyond reach even absence regulation, placing demonstrate condoned justified compelling protect legitimate, generalized collect revenue. He adopting preferable several reasons: addressing issues, reducing case-by-case decisions; avoid tension created focusing pervasiveness principal barrier assertions when primary encourage self-government; place higher articulate taxing transaction assisting taxed transaction. 21 believe necessary adopt approach—the existing cases sufficiently sensitive many concerns General. clearer rules presumptions promote simplifying litigation, precedents announcing scope allow consistently admonished "construed generously comport [Indian] 144, 2584; 174-175, 13, 1263; 690-691, 1245. guiding principle helps relieve emphasizing self-determination. admit disappointment apparently gave short shrift area, cannot presume follow letter spirit future. III 22 sum, preclude case. Accordingly, reversed, remanded proceedings opinion. 23 It ordered. 24 REHNQUIST, whom WHITE STEVENS join, dissenting. today reproves failing heed precedents, much disappointed parent rebuke wayward child.1 & N Dec. Immigration Nationality Decisions think deserves rebuke; seems me faithfully, coherently, itself. result evidently finds quite salutary matter policy, "indistinguishable" considerably mark, "pervasively regulated" largely free regulation. accords greater immunity accorded three months ago precise issue here. 26 presented occupied times past, destined demand attention again sees fit articulate, follow, consistent predictable rule insistent extent reservations borders. dominant trend treating nondiscriminatory pre-emption, intent. framework, tradition stands discriminatory taxes, otherwise serves guide ascertainment will. (1980), trend.2 Thus, assertion members, invalidated challenged basis, 151, 15, 2587, 15. some instances invalid infringes 'the make ruled them.' 220, But apart rare attempts residual govern "tradition sovereignty" "backdrop" effect assessed. 28 pays homage promptly bestows favors analytical framework tribe, appears paramount consideration. Such shift necessary, purported reliance withstand superficial scrutiny. 29 "[t]his Mountain." Ante, 839. statement inaccurate. attempt apply operations business very taxation. repeatedly emphasized comprehensiveness relied. 30 "Under exercises literally daily present organization] contractor] Bureau; indeed, record shows drafted employees cutting, hauling, marking contractor]. decides matters cut, trees felled, roads used, hauling equipment employ, speeds travel, width, length, height, weight loads. 31 Affairs. On Fort Reservation Forestry Department repair construct roads. A percentage contractor's] expended purposes, maintained separate personnel variety tasks road maintenance." 147-148, 32 conclude, ipso facto, preempted. found, considerable specifics, assessment obstruct policies." 33 "At level, threaten (1979). Underlying program rests assuring profits derived sales inure expenses incurred 34 "In wide range determinations committed concerning setting respect reviews approves Tribe's contractors, sets rendered Government, determines stumpage Tribe. Most reviewing writing agents predict determine proper allocation expenses, including costs. throw factors calculus, diminishing profitability enterprise potential contractors. 35 "Finally, adversely affect noted, thinks "indistinguishable "[f]ederal pervasive." relies construction, taxed. detail procedures construction. 37 quotes part, ante, 840-841, "is give approval obtaining organizations. ." (1981) (emphasis added). explain obtain, complete, file forms funding services. 274.12-274.18. observes, 841, authorize disapprove plans specifications well let treated subcontracts establishing hiring preference Indians. 274.38. And access auditing purposes. 274.41. That regulations. 38 "contracted" convey Board's "subcontract" contractor. played role selection supervising school. concludes little grant process, 841. simply agree. 39 More important, next sentence "[t]he leaves Board." 841-842. constitutes sum total engaged mandate policy. careful analysis, ipse dixit. realistic concluding "pervasive" scheme. seeks money eligible organizations establishes contract-approval mechanism means attempting put earmarked.3 40 reading demonstrates single, determinative factor fact increased financial constructing Whether bookkeeping irrelevancy, "impedes 'quality quantity' schools." 842 recognizes legal incidence asserts "in significant fall though company." 844, 8. indeed note Tribe." footnote immediately following sentence, ignored, declared: "Of course, itself mean pre-empted, Moe Salish Kootenai Tribes, 425 463 [96 1634, 96] (1976), makes clear. Our based 43 Despite references supposed "comprehensive pervasive" chosen bar Lembke's principally imposes indirect recognized, undeniably immunity. Washington Confederated Tribes Colville Reservation, 447 134, 156, 2069, 2082, ("Washington infringe 'make them,' deprive currently receiving"); 463, 481-482, 1645, (1976) (upholding cigarette consumer); Mescalero Jones, 156-157, 1267, 1274-1275, 114 (1973) (refusing imply despite enterprise).4 form doctrine applicable affirmative indication intend suit. Until today, mere impose endeavor indication. disagree embody institutions. leap infer null void. perfectly conceivable favored education, contemplated costs end normal fashion. cement labor. submitted requests faulted stretch possible, woefully inadequate interfering prerogatives IV 45 ago, compensating one circumstance: "when itself, agency instrumentality closely connected realistically entities, insofar being concerned." Mexico, 455 720, 735, 1373, 1382, 71 580 (1982). reaching conclusion, "immunity conferred shoulders entire levy." 734, 1382. If valid, absent action, long entities States." 738, 1384.5 46 entity And, evident taxable completely board. Were plain upheld reaches conclusion effort build funds. "exists sufferance complete defeasance," Wheeler, 435 313, 323, 98 1086, 55 303 (1978), enjoyed dependent.6 47 For reasons, dissent judgment. Message Affairs, Nixon referred assume "notable exampl[e]" 899 (1970). 93-245, 87 1073 (amending 93-120, 431 earmark appropriated facility); 93-404, 810 (1974); 94-165, 89 985 (1975); 95-74, 293 (1977). VI 1868 Treaty 669, "[i]n insure civilization entering treaty, necessity admitted." become effective initial contracts, requirements 596, event, subsequent BIA, Lembke, accounting two-thirds signed date agreements. REHNQUIST outlined above "do[es] taxed." Post, 851. fails explain, distinguishes struck down Arizona's tax, gasoline, licenses, highways, timber." find similarly impeding Lembke. REHNQUIST's somehow compatible "are labor," post, 855, Surely, part Yet impeded "guaranteeing yielding,' dissent's amounted less 1% annual produced operation. Here, continues press Appellee us impute awareness bills facilities, supra. Brief 21-22. strains arguing same architects prepared bid bid. However, indicated, prospective bidders "all law," specify line item. Supra, 835. Therefore, clear, disputes contention, ever absolutely made aware existence wary inferring intent alter force Cf. TVA Hill, 437 153, 189-191, 2279, 2299-2300, 57 117 (1978). Of prevent boundaries. Indeed, authorizes enter willing 2214, 458. if actively seeking constructing, provide, adequate children. invites test, contexts, significant. 2079-2080, (1980); (1976). company. Given here, decline fostering Indian-run institutions, indirectly done statutes, 200, 261 jurisdiction farm machinery notwithstanding undoubtedly off-reservation seller. Presumably, reimburse unpersuaded suggest way evidence introduced Indians, services, conceded saves approximately $380,000 having 95, 105-106, 108. "Although future." 846. Nevertheless, General suggested affecting operation "principle sovereignty." Amicus Curiae 17-24. suggestion urged, rejected, proved appealing ignores distinctions example, latter corporation, harvest reservation; conducted whatsoever. 139, 2581. throughout enjoying dismisses "[p]resumably, Lembke." 9. "presumptions," substitute assessing strongest taxpayer recipient 157, 2083, To relevant, inverted ought apply. Another distinction relevant. exploitation natural resources devoted beneficial enjoyment 90% generated enterprises operations. 138, diminish, income preservation welfare, No endeavor, estimated cost. immunity, steadfastly refused reference due process. (1982) (state contractors); County Fresno, 429 452, 97 699, 50 683 (1977) Government); York 326 572, 66 310, 90 (1946) (federal government); Michelin Tire Corporation Wages, 423 276, 535, 495 imports exports). possible exception rule: arguable serving procurement agent associated lack purchase, sale—in real symbolic sense—a purchasing incorporated structure." 1386. acted purports rest "generalized supremacy." 730, 1380. critical question, what examine exceeded limits Supremacy Clause before invalidate applied. demonstrates, invoked showing federally supported endeavor. immunities derive precisely source—the supremacy law—I inexplicable. "With abandonment notion economic—as opposed legal—incidence becomes designed insulate effects taxation." 11, 1383, 11.

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