Case Summary
Issue:
Whether an American Indian Tribe may enjoin a State from imposing a tax on the receipt of motor fuel by off-reservation distributors who sell motor fuel to the Tribe and pass some or all of the tax on to the Tribe in the price charged to the Tribe?
Plaintiff:
Prairie Band of the Potawatomi Nation
Defendant:
Joan Wagnon, Secretary, Kansas Department of Revenue
Amicus Curiae:
National Association of Convenience Stores, Petroleum Marketers Association of America, and Society of Independent Gasoline Marketers of America, represented by MSLF
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Case History
The State of Kansas imposes a tax on the first receipt of motor fuels by distributors who, in selling that motor fuel, are not prevented from increasing the price of the fuel by some or all of the amount of the tax. Some of these distributors sell to the Prairies Band of the Potawatomi Nation (a federally recognized Indian Tribe), which runs a casino on its reservation in Jackson County, Kansas. The Tribe also runs a convenience store and gasoline station.
The Tribe filed suit in Kansas federal district court to bar Kansas from imposing the tax on distributors who sell to the Tribe. The court held for Kansas, ruling that the law was not preempted by federal law and did not interfere with the Tribe’s sovereign right to self-government. The Tenth Circuit reversed on both issues. The U.S. Supreme Court agreed to review the decision of the U.S. Court of Appeals for the Tenth Circuit on February 28, 2005.
On May 12, 2005, the State of Kansas filed its brief on the merits and the National Association of Convenience Stores, Petroleum Marketers Association of America, and Society of Independent Gasoline Marketers of America filed their amici curiae brief. On July 14, 2005, the Tribe filed its response brief. Oral arguments took place on October 3, 2005.
