Atkinson Trading Co. v. Shirley
Atkinson Trading Co. v. Shirley
Opinion of the Court
delivered the opinion of the Court.
In Montana v. United States, 450 U.S. 544 (1981), we held that, with limited exceptions, Indian tribes lack eivü authority over the conduct of nonmembers on non-Indian fee land within a reservation. The question with which we are presented is whether this general rule applies to tribal attempts to tax nonmember activity occurring on non-Indian fee land. We hold that it does and that neither of Montana’s exceptions obtains here.
In 1916, Hubert Richardson, lured by the possibility of trading with wealthy Gray Mountain Navajo cattlemen, built the Cameron Trading Post just south of the Little Colorado River near Cameron, Arizona. G. Richardson, Navajo Trader 136-137 (1986). Richardson purchased the land
Richardson’s “drafty, wooden store building and four small, one-room-shack cabins overlooking the bare river canyon,” Richardson, supra, at 135, have since evolved into a business complex consisting of a hotel, restaurant, cafeteria, gallery, curio shop, retail store, and recreational vehicle facility. The current owner, petitioner Atkinson Trading Company, Inc., benefits from the Cameron Trading Post’s location near the intersection of Arizona Highway 64 (which leads west to the Grand Canyon) and United States Highway 89 (which connects Flagstaff on the south with Glen Canyon Dam to the north). A significant portion of petitioner’s hotel business stems from tourists on their way to or from the Grand Canyon National Park.
In 1992, the Navajo Nation enacted a hotel occupancy tax, which imposes an 8 percent tax upon any hotel room located within the exterior boundaries of the Navajo Nation Reservation. See 24 Navajo Nation Code §§ 101-142 (1995), App. to Pet. for Cert. 102a-124a. Although the legal incidence of the tax falls directly upon the guests, the owner or operator of the hotel must collect and remit it to respondents, members of the Navajo Tax Commission. §§ 104,107. The nonmember guests at the Cameron Trading Post pay approximately $84,000 in taxes to respondents annually.
Petitioner’s challenge under Montana to the Navajo Nation’s authority to impose the hotel occupancy tax was rejected by both the Navajo Tax Commission and the Navajo
Although the Court of Appeals agreed with petitioner that our cases in this area "did make an issue of the fee status of the land in question,” id., at 1256, it nonetheless concluded that the status of the land as “fee land or tribal land is simply one of the factors a court should consider” when determining whether civil jurisdiction exists, id., at 1258 (citing 18 U. S. C. § 1151). Relying in part upon our decision in Merrion v. Jicarilla Apache Tribe, 455 U.S. 130 (1982), the court “complemented]” Montana’s framework with a “case-by-case approach” that balanced the non-Indian fee status of the land with “the nature of the inherent sovereign powers the tribe is attempting to exercise, its interests, and the impact that the exercise of the tribe’s powers has upon the nonmember interests involved.” 210 F. 3d, at 1255, 1257, 1261. The Court of Appeals then likened the Navajo hotel occupancy tax to similar taxes imposed by New Mexico and Arizona, concluding that the tax fell under Montana’s first exception because a “consensual relationship exists in that the nonmember guests could refrain from the privilege of lodging within the confines of the Navajo Reservation and therefore remain free from liability for the [tax].” 210 F. 3d, at 1263 (citing Buster v. Wright, 135 F. 947, 949 (CA8 1905)). The dissenting judge would have applied Montana without “any language or ‘factors’ derived from Merrion” and concluded that, based upon her view of the record, none of the Montana exceptions applied. 210 F. 3d, at 1269 (Briscoe, J., dissenting).
We granted certiorari, 531 U.S. 1009 (2000), and now reverse.
Tribal jurisdiction is limited: For powers not expressly conferred upon them by federal statute or treaty, Indian tribes
Although we extracted from our precedents “the general proposition that the inherent sovereign powers of an Indian tribe do not extehd to the activities of nonmembers of the tribe,” 450 U. S., at 565, we nonetheless noted in Montana two possible bases for tribal jurisdiction over non-Indian fee land. First, “[a] tribe may regulate, through taxation, licensing, or other means, the activities of nonmembers who enter consensual relationships with the tribe or its members, through commercial dealings, contracts, leases, or other arrangements.” Ibid. Second, “[a] tribe may . . . exercise civil authority over the conduct of non-Indians on fee lands within its reservation when that conduct threatens or has some direct effect on the political integrity, the economic security, or the health or welfare of the tribe.” Id., at 566. Applying these precepts, we found that the nonmembers at issue there had not subjected themselves to “tribal civil jurisdiction” through any agreements or dealings with the Tribe and that hunting and fishing on non-Indian fee land did not “imperil the subsistence or welfare of the Tribe.” Ibid. We therefore held that the Crow Tribe’s regulations could not be enforced.
The framework set forth in Montana “broadly addressed the concept of ‘inherent sovereignty.’ ” Strate v. A-l Contractors, 520 U. S. 438, 453 (1997) (quoting Montana, sufra, at 563). In Strate, we dealt with the Three Affiliated Tribes’ assertion of judicial jurisdiction over an automobile accident involving two nonmembers traveling on a state highway within the reservation. Although we did not question the ability of tribal police to patrol the highway, see 520 U. S., at 456, n. 11, we likened the public right-of-way to non-Indian fee land because the Tribes lacked the power to
Citing our decision in Merrion, respondents submit that Montana and Strate do not restrict an Indian tribe’s power to impose revenue-raising taxes.
Merrion, however, was careful to note that an Indian tribe’s inherent power to tax only extended to '“transactions occurring on trust lands and significantly involving a tribe or its members.’” 455 U.S., at 137 (emphasis added) (quoting Washington v. Confederated Tribes of Colville Reservation, 447 U.S. 134, 152 (1980)). There are undoubtedly parts of the Merrion opinion that suggest a broader scope for tribal taxing authority than the quoted language above.
Respondents argue that both petitioner and its hotel guests have entered into a consensual relationship with the Navajo Nation justifying the imposition of the hotel occupancy tax.
The consensual relationship must stem from “commercial dealing, contracts, leases, or other arrangements,” Montana, 450 U. S., at 565, and a nonmember’s actual or potential receipt of tribal police, fire, and medical services does not create the requisite connection. If it did, the exception would swallow the rule: All non-Indian fee lands within a reservation benefit, to some extent, from the “advantages of a civilized society” offered by the Indian tribe. Merrion, supra, at 187-138 (internal quotation marte and citation omitted). Such a result does not square with our precedents; indeed, we implicitly rejected this argument in Strata,
Montana’s consensual relationship exception requires that the tax or regulation imposed by the Indian tribe have a nexus to the consensual relationship itself. In Strate, for example, even though respondent A-l Contractors was on the reservation to perform landscaping work for the Three Affiliated Tribes at the time of the accident, we nonetheless held that the Tribes lacked adjudicatory authority because the other nonmember “was not a party to the subcontract, and the [Tjribes were strangers to the accident.” 520 U. S., at 457 (internal quotation marks and citation omitted). A nonmember’s consensual relationship in one area thus does not trigger tribal civil authority in another — it is not “in for a penny, in for a Pound.” E. Ravenseroft, The Canterbury Guests; Or A Bargain Broken, act v, sc. 1. The hotel occupancy tax at issue here is grounded in petitioner’s relationship with its nonmember hotel guests, who can reach the Cameron Trading Post on United States Highway 89 and
Although the Court of Appeals did not reach Montana's second exception, both respondents and the United States argue that the hotel occupancy tax is warranted in light of the direet effects the Cameron Trading Post has upon the Navajo Nation. Again noting the Navajo Nation’s provision of tribal services and petitioner’s status as an “Indian trader,” respondents emphasize that petitioner employs almost 100 Navajo Indians; that the Cameron Trading Post derives business from tourists visiting the reservation; and that large amounts of tribal land surround petitioner’s isolated property.
Indian tribes are “unique aggregations possessing attributes of sovereignty over both their members and their territory,” but their dependent status generally precludes extension of tribal eivil authority beyond these limits. United States v. Mazurie, 419 U.S. 544, 557 (1975). The Navajo Nation’s imposition of a tax upon nonmembers on non-Indian fee land within the reservation is, therefore, presumptively invalid. . Because respondents have failed to establish that the hotel occupancy tax is commensurately related to any consensual relationship with petitioner or is necessary to vindicate the Navajo Nation’s political integrity, the presumption ripens into a holding. The judgment of the Court of Appeals for the Tenth Circuit is accordingly
Reversed.
We also noted that nearly 90 million acres of non-Indian fee land had been acquired as part of the Indian General Allotment Act, 24 Stat. 388, as amended, 25 U. S. C. §331 et seq., which authorized the issuance of patents in fee to individual Indian allottees who, after holding the patent for 25 years, could then transfer the land to non-Indians. Although Congress repudiated the practice of allotment in the Indian Reorganization Act, 48 Stat. 984, 25 U. S. C. §461 et seq., we nonetheless found significant that Congress equated alienation “with the dissolution of tribal affairs and jurisdiction.” Montana, 450 U. S., at 559, n. 9. We thus concluded that it “defie[d] common sense to suppose that Congress would intend that non-Indians purchasing allotted lands would become subject to tribal jurisdiction.” Ibid.
See also South Dakota v. Bourland, 508 U.S. 679 (1993); Brendale v. Confederated Tribes and Bands of Yakima Nation, 492 U.S. 408 (1989).
Respondents concede that regulatory taxes fall under the Montana framework. See 450 U.S., at 565 (“A tribe may regulate, through taxation, ... the activities of nonmembers”).
Merrion v. Jicarilla Apache Tribe, 455 U.S. 130 (1982), for example, referenced the decision of the Court of Appeals for the Eighth Circuit in Buster v. Wright, 135 F. 947 (1905). But we have never endorsed Buster’s statement that an Indian tribe’s “jurisdiction to govern the inhabitants of a country is not conditioned or limited by the title to the land which they occupy in it.” Id., at 951. Accordingly, beyond any guidance it might provide as to the type of consensual relationship contemplated by the first exception of Montana v. United States, 450 U.S. 544, 566 (1981), Buster is not an authoritative precedent.
We find misplaced the Court of Appeals’ reliance upon 18 U. S. C. §1151, a statute conferring upon Indian tribes jurisdiction over certain criminal acts occurring in “Indian country,” or “all land within the limits of any Indian reservation under the jurisdiction of the United States Government, notwithstanding the issuance of any patent, and, including rights-of-way running through the reservation.” See also Duro v. Reina, 495 U.S. 676, 680, n. 1 (1990). Although § 1151 has been relied upon to demarcate state, federal, and tribal jurisdiction over criminal and civil matters, see DeCoteau v. District County Court for Tenth Judicial Dist., 420 U.S. 425, 427, n. 2 (1975) ("While §1151 is concerned, on its face, only
At least in the context of non-Indian fee land, we also find inapt the Court of Appeals’ analogy to state taxing authority. Our reference in Merrion to a State’s ability to tax activities with which it has a substantial nexus was made in the context of describing an Indian tribe’s authority over tribal land. See 455 U.S., at 137-138 (citing Exxon Corp. v. Department of Revenue of Wis., 447 U.S. 207, 228 (1980); Japan Line, Ltd. v. County of Los Arpeles, 441 U.S. 434, 445 (1979)). Only full territorial sovereigns enjoy the “power to enforce laws against all who come within the sovereign's territory, whether citizens or aliens,” and Indian tribes “can no longer be described as sovereigns in this sense.” Duro v. Reina, supra, at 685.
Because the legal incidence of the tax falls directly upon the guests, not petitioner!, it is unclear whether the Tribe’s relationship with petitioner is at all relevant. We need not, however, decide this issue since the hotel occupancy tax exceeds the Tribe’s authority even considering petitioner’s contacts with the Navajo Nation.
The Navajo Tribal Fire Department has responded to a fire at the Cameron Trading Post. See App. to Pet. for Cert. 57a.
The Navajo Nation charges for its emergency medical services (a flat call-out fee of $800 and a mileage fee of $6.25 per mile). See App. 127-129.
See Reply Brief for Petitioners 13-14 and Brief for United States as Amicus Curiae 29 in Strate v. A-l Contractors, O. T. 1996, No. 95-1872.
Although the regulations do not “predude” the Navajo Nation from imposing upon “Indian traders” such “fees or taxes [it] may deem appropriate,” the regulations do not contemplate or authorize the hotel occupancy tax at issue here. 25 GFR § 141.11 (2000).
The record does not reflect the amount of non-Indian fee land within the Navajo Nation. A 1995 study commissioned by the United States Department of Commerce states that 96.3 percent of the Navajo Nation’s 16,224,896 acres is tribally owned, with allotted land comprising 762,749 acres, or 4,7 percent, of the reservation. See Economic Development Administration, V. Tiller, American Indian Reservations and Indian Trust Areas 214 (1995). The 1990 Census reports that that 96.6 percent of residents on the Navajo Nation are Indian. Joint Lodging 182. The Cameron Chapter of the Navajo Nation, in which petitioner’s land lies, has a non-Indian population of 2.3 percent. See id., at 181.
Although language in Merrion referred to taxation as “necessary to tribal self-government and territorial management,” 455 U.S., at 141, it did not address assertions of tribal jurisdiction over non-Indian fee land. Just as with Montana’s first exception, incorporating Merrion’s reasoning here would be tantamount to rejecting Montana’s general rule. In Strate v. A-1 Contractors, 520 U.S. 438, 459 (1997), we stated that Montana’s second exception “can be misperceived.” The exception is only triggered by nonmember conduct that threatens the Indian tribe; it does not broadly
Justice Stevens’ opinion in Brendale sets out in some detail the restrictive nature of “dosed area” surrounding the non-Indian fee land. See 492 U. S., at 438-441. Pursuant to the powers reserved it in an 1855 trealy with the United States, the Yakima Nation dosed this forested area to the public and severely limited the activities of those who entered the land through a “courtesy permit system.” Id., at 439 (internal quotation marks and dtation omitted). The record here establishes that, save a few natural areas and parks not at issue, the Navajo Reservation is open to the general public. App. 61.
See Strate v. A-1 Contractors, supra, at 447, n. 6 (noting that the Yakima Nation ‘detained zoning authority .. . only in the dosed area”); Duro v. Reina, 495 U.S., at 688 (noting that zoning “is vital to the maintenance of tribal integrity and self-determination”).
Concurring Opinion
concurring.
If we are to see coherence in the various manifestations of the general law of tribal jurisdiction over non-Indians, the source of doctrine must be Montana v. United States, 450 U.S. 544 (1981), and it is in light of that case that I join the Court’s opinion. Under Montana, the status of territory within a reservation’s boundaries as tribal or fee land may have much to do (as it does here) with the likelihood (or not) that facts will exist that are relevant under the exceptions to Montana’s “general proposition” that “the inherent sover
Reference
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- ATKINSON TRADING CO., INC. v. SHIRLEY Et Al.
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