49 F. Supp. 3d 1095
S.D. Fla.2014Background
- Seminole Tribe of Florida sues Florida Dept. of Revenue challenging two taxes: Rental Tax on leases of tribal land and Utility Tax on electricity delivered to the Tribe on reservations.
- Florida assessed Rental Tax on Ark Hollywood and Ark Tampa leases; Tribe argues federal law prohibits collection of the Rental Tax.
- Florida imposes Utility Tax on gross receipts from utilities delivered to retail consumers; Tribe argues federal law prohibits collection on tribal land.
- Secretary of the Interior regulations under 25 C.F.R. § 162.017 state leaseholds on Indian land are not subject to state taxes; Secretary’s analysis is given weight.
- Court previously held Florida immune from suit under Eleventh Amendment but Stranburg proper defendant; case proceeds on cross-motions for summary judgment.
- Court holds federal law preempts or prohibits Rental Tax and prohibits Utility Tax as applied to the Seminole Tribe’s leases and reservations.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the Rental Tax is preempted or prohibited on tribal leases | Scola argues §465 prohibits state taxes on reservation lands | Stranburg argues tax is non-tribal privilege tax, not prohibited | Rental Tax prohibited by federal law |
| Whether federal regulations preempt state taxation of leases of restricted Indian land | Tribe relies on §415 regulations; comprehensive Interior analysis supports preemption | State interest in taxation; Chevron deference limited | Preemption established; Rental Tax impermissible |
| Whether Florida Utility Tax imposes legal incidence on Tribe or consumers | Tax falls on Tribe; direct tax on Tribe on reservation | Tax is passed to consumers; collection by utilities; not on Tribe | Legal incidence on consumer; Utility Tax impermissibly direct tax on Tribe |
Key Cases Cited
- Mescalero Apache Tribe v. Jones, 411 U.S. 145 (1973) (use tax on off-reservation improvements preempted?)
- White Mountain Apache Tribe v. Bracker, 448 U.S. 136 (1980) (preemption and interference with tribal functions analyzed together)
- Ramah Navajo Sch. Bd., Inc. v. Bureau of Revenue of N.M., 458 U.S. 832 (1982) (preemption and tribal taxation on reservation activities)
- Cotton Petroleum Corp. v. New Mexico, 490 U.S. 163 (1989) (federal backdrop and state taxation of Indian lands; different outcomes)
- Oklahoma Tax Comm’n v. Chickasaw Nation, 515 U.S. 450 (1995) (legal incidence and pass-through considerations; tribal taxation federal preemption)
- United States v. State Tax Comm’n of Mississippi, 421 U.S. 599 (1975) (tax scheme where suppliers collect and remit tax; incidence on consumers)
- Cal. State Bd. of Equalization v. Chemehuevi Indian Tribe, 474 U.S. 9 (1985) (pass-through collections not required to be explicit in statute)