TBL Chapter 9

1. Distinction Between Legislative Powers
  • Power to Tax and Regulate:
    • This refers to the legislative function responsible for creating rules, establishing guidelines, collecting revenues, and regulating conduct within a jurisdiction.
  • Power to Adjudicate:
    • This is the judicial function of resolving disputes, interpreting laws, and administering justice within the framework of legal authority.
2. Federal Government's Power to Tax Tribal Entities
  • Tribal Governments and Tribal People:
    • Tribal governments and some of their corporations are non-taxable by the federal government.
    • However, some businesses operating within tribal jurisdictions may be subject to certain taxes, and Native individuals do pay taxes.
  • Tax Status:
    • Indian tribes are considered tax exempt or non-taxable entities.
3. Taxability of Tribal Payments
  • Statement:
    • True: Tribal per capita payments from gaming activities are taxable to individual Indian persons, while general welfare payments are not taxable since 2019. Tribal members are subject to gaming taxes just like everyone else.
4. Tax Exempt Status of Allotted Lands
  • Income from Trust/Allotted Lands:
    • Yes, income derived from allotted lands is considered tax exempt under federal law. However, the federal government will state in writing if there's a specific tax.
5. States' Power to Tax in Indian Country
  • Overview:
    • Generally, states cannot impose taxes on Native Americans within Indian Country, unless Congress has stated otherwise.
    • States have limited power in this aspect because taxes must align with treaties, tribal sovereignty, and federal law.
    • Native Americans may still be taxed for activities carried out off the reservation.
    • Non-Indians are subject to state taxes even on a reservation.
6. Motor Fuel Excise Taxes Rule
  • Case Reference:
    • The book referenced McClanahan v. Arizona State Tax Commission as a reasoning for the ruling, which stated that the state may not tax Indians for motor fuel on Indian land.
    • In Oklahoma Tax Commission v. Chickasaw Nation, the ruling established guidelines for the application of motor fuel excise taxes concerning tribal lands and activities, further influenced by precedents like McClanahan v. Arizona State Tax Commission.
7. Preemption of State Taxation by Federal Law
  • Statement:
    • Yes, unless Congress has stated otherwise, states are preempted by federal law and policy from taxing reservation income earned by tribal members who are domiciled on a tribal reservation. This means Indians working on a reservation will generally not receive a state tax on their paycheck.
8. Taxability of Allotted Land Held in Fee
  • Statement:
    • Yes, if allotted land is held in fee simple, it is considered individually owned, not federally, and is thus subject to state taxation.
9. State Taxation in Washington v. Confederated Tribes of Colville Indian Reservation
  • Case Conclusion:
    • Yes, in this case, state taxation of non-member Indians was upheld by the court because it found the state had a stronger interest with a non-member than the tribe did.
10. Tribal Taxation and Sovereign Status
  • Statement:
    • Yes, tribal taxation is a permitted governmental activity. Tribes gain sovereignty by establishing their own taxation systems, and the government says they have an inherent right to do so.
    • Furthermore, yes, tribal taxation is common among tribes as a means of raising revenue.
11. Federal Regulation and Indian Country
  • Statement:
    • Yes, the government has authority over tribal powers and can modify or change them, as federal regulation of Indian Country is part of the plenary power granted to Congress over tribal affairs.
12. Applicability of Title VII of the Civil Rights Act
  • Statement:
    • No, Title VII of the Civil Rights Act is not applicable to Indian tribes, as this provision supports the protection of tribal sovereignty.
13. State Authority to Regulate Indian Country
  • Conclusion:
    • No, states do not have the authority to regulate within Indian Country. Tribes are considered sovereign dependent nations that are under control of the federal government.
    • However, states may have some authority within tribal matters, but only if granted explicitly by Congress.
14. Montana Rule and Its Exceptions
  • Montana Rule Overview:
    • A tribe may regulate, through taxation, licensing, or other means, the activities of nonmembers who enter consensual relationships with the tribe or its member, through commercial dealings, contracts, leases, or other arrangements.
  • Exceptions:
    1. A tribe retains the right to regulate the conduct of nonmembers on its land.
    2. A tribe can assert jurisdiction over nonmembers who engage in activities that have direct economic impacts on the tribe.
15. Rule on the Regulation of Liquor in Indian Country
  • Overview:
    • The regulation of liquor sales in Indian Country allows tribes to implement their own laws and regulations, provided they comply with specific federal stipulations regarding liquor control. This typically means tribes can choose to regulate or prohibit the sale of alcohol within their jurisdictions. [Note: Exact legislative texts and references should be checked for specifics if required for academic citation or legal accuracy.]