Mescalero Apache Tribe v. Jones
Encyclopedia
Mescalero Apache Tribe v. Jones, 411 U.S. 145
(1973), was a case in which the Supreme Court of the United States
held that a state could tax tribal, off-reservation business activities but could not impose a tax on tribal land, which was exempt from all forms of property taxes.
Apache
Tribe, doing business as the Sierra Blanca Ski Enterprises, run a ski resort in New Mexico
, outside of the boundaries of the Mescalero Apache Reservation. New Mexico wanted to tax the gross receipts from the business and to tax improvements made to the land owned by the tribe and used for the resort. The tribe paid approximately US$32,000 under protest and sought a refund. The New Mexico State Commissioner of Revenue denied the claim and the New Mexico Court of Appeals
affirmed. The New Mexico Supreme Court
declined to hear the case and the tribe appealed to the United States Supreme Court
, which granted certiorari
to hear the case.
delivered the opinion of the court. White found that if the tribe conducted off-reservation business they were liable for the corporate income taxes of New Mexico. The taxes on improvements to the land however were a different matter. Under the Indian Reorganization Act
, , land acquired for tribes is to be held in trust for the tribe by the United States Department of the Interior
and is exempt from state property taxes, including those that New Mexico sought for improvements to the land. The lower court decision was affirmed as to the income taxes and reversed as to the property taxes.
dissented. He would have held that the tribal ski resort was a federal instrumentality and that the state had no authority to impose a corporate income tax.
Case citation
Case citation is the system used in many countries to identify the decisions in past court cases, either in special series of books called reporters or law reports, or in a 'neutral' form which will identify a decision wherever it was reported...
(1973), was a case in which the Supreme Court of the United States
Supreme Court of the United States
The Supreme Court of the United States is the highest court in the United States. It has ultimate appellate jurisdiction over all state and federal courts, and original jurisdiction over a small range of cases...
held that a state could tax tribal, off-reservation business activities but could not impose a tax on tribal land, which was exempt from all forms of property taxes.
Background
The MescaleroMescalero
Mescalero is an Apache tribe of Southern Athabaskan Native Americans. The tribe is federally recognized as the Mescalero Apache Tribe of the Mescalero Apache Reservation in southcentral New Mexico...
Apache
Apache
Apache is the collective term for several culturally related groups of Native Americans in the United States originally from the Southwest United States. These indigenous peoples of North America speak a Southern Athabaskan language, which is related linguistically to the languages of Athabaskan...
Tribe, doing business as the Sierra Blanca Ski Enterprises, run a ski resort in New Mexico
New Mexico
New Mexico is a state located in the southwest and western regions of the United States. New Mexico is also usually considered one of the Mountain States. With a population density of 16 per square mile, New Mexico is the sixth-most sparsely inhabited U.S...
, outside of the boundaries of the Mescalero Apache Reservation. New Mexico wanted to tax the gross receipts from the business and to tax improvements made to the land owned by the tribe and used for the resort. The tribe paid approximately US$32,000 under protest and sought a refund. The New Mexico State Commissioner of Revenue denied the claim and the New Mexico Court of Appeals
New Mexico Court of Appeals
The New Mexico Court of Appeals is the intermediate-level appellate court for the state of New Mexico.-Jurisdiction:The court has general appellate jurisdiction over the state district courts and certain state agencies...
affirmed. The New Mexico Supreme Court
New Mexico Supreme Court
The New Mexico Supreme Court is the highest court in the U.S. state of New Mexico. It is established and its powers defined by Article VI of the New Mexico Constitution...
declined to hear the case and the tribe appealed to the United States Supreme Court
Supreme Court of the United States
The Supreme Court of the United States is the highest court in the United States. It has ultimate appellate jurisdiction over all state and federal courts, and original jurisdiction over a small range of cases...
, which granted certiorari
Certiorari
Certiorari is a type of writ seeking judicial review, recognized in U.S., Roman, English, Philippine, and other law. Certiorari is the present passive infinitive of the Latin certiorare...
to hear the case.
Opinion of the Court
Justice Byron WhiteByron White
Byron Raymond "Whizzer" White won fame both as a football halfback and as an associate justice of the Supreme Court of the United States. Appointed to the court by President John F. Kennedy in 1962, he served until his retirement in 1993...
delivered the opinion of the court. White found that if the tribe conducted off-reservation business they were liable for the corporate income taxes of New Mexico. The taxes on improvements to the land however were a different matter. Under the Indian Reorganization Act
Indian Reorganization Act
The Indian Reorganization Act of June 18, 1934 the Indian New Deal, was U.S. federal legislation that secured certain rights to Native Americans, including Alaska Natives...
, , land acquired for tribes is to be held in trust for the tribe by the United States Department of the Interior
United States Department of the Interior
The United States Department of the Interior is the United States federal executive department of the U.S. government responsible for the management and conservation of most federal land and natural resources, and the administration of programs relating to Native Americans, Alaska Natives, Native...
and is exempt from state property taxes, including those that New Mexico sought for improvements to the land. The lower court decision was affirmed as to the income taxes and reversed as to the property taxes.
Dissent
Justice William O. DouglasWilliam O. Douglas
William Orville Douglas was an Associate Justice of the United States Supreme Court. With a term lasting 36 years and 209 days, he is the longest-serving justice in the history of the Supreme Court...
dissented. He would have held that the tribal ski resort was a federal instrumentality and that the state had no authority to impose a corporate income tax.