Confederated Tribes of the Chehalis Reservation v. Thurston County Board of Equalization
2013 U.S. App. LEXIS 15578
| 9th Cir. | 2013Background
- Tribe purchases Grand Mound Property off-reservation in Thurston County, WA; seeks § 465 trust acquisition by Interior Department for tribe's benefit.
- Interior agrees to purchase and hold property in trust for Tribe in 2006; lease to CTGW LLC for Great Wolf Lodge, with Tribe owning 51% stake.
- Lease provides CTGW ownership of lodge structures for 25 years, with ownership to Tribe after term; buildings become tribe’s upon lease termination.
- Thurston County taxes the Lodge in 2007, arguing improvements are taxable since CTGW owns them, not the Tribe.
- District court grants summary judgment for County; Tribe and CTGW appeal to Ninth Circuit seeking tax exemption under § 465 and Mescalero precedent.
- Court must determine if § 465 exemption applies to permanent improvements on trust land, regardless of ownership of improvements.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does § 465 exempt permanent improvements on trust land from taxation? | Tribe/CTGW rely on Mescalero to exempt improvements. | County contends improvements may be taxable. | Yes; § 465 preempts taxes on permanent improvements. |
| Is Mescalero controlling despite ownership structure of improvements (CTGW vs. Tribe)? | Ownership form should not defeat immunity. | Ownership form could affect tax status. | Mescalero controls; immunity applies regardless of ownership form. |
| Is Bracker preemption applicable to this tax? | Bracker balancing supports preemption of state tax. | Permits Bracker analysis only for on-reservation transactions; not applicable here. | Bracker analysis unnecessary; Mescalero preempts the tax. |
| Can state or local authorities tax the Lodge during trust status? | Tax immunity during trust status bars taxation. | Tax may apply to improvements despite trust status. | Tax invalid under § 465 during the trust period. |
Key Cases Cited
- United States v. Rickert, 188 U.S. 432 (U.S. (1903)) (land exempt; immunity extended to improvements in some contexts)
- Mescalero Apache Tribe v. Jones, 411 U.S. 145 (U.S. (1973)) (perm. improvements on trust land immune from state taxes; § 465 exemption includes improvements)
- White Mountain Apache Tribe v. Bracker, 448 U.S. 136 (U.S. (1980)) (Bracker balancing test for preemption of state taxes on transactions with tribes)
- Agua Caliente Band of Mission Indians v. Riverside County, 442 F.2d 1184 (9th Cir. 1971) (possession interest taxation not necessarily barred by § 465; distinguishable from land/improvements tax)
- Fort Mojave Tribe v. County of San Bernardino, 543 F.2d 1253 (9th Cir. 1976) (holds possessory interest taxes not per se preempted)