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White Mountain Apache Tribe v. Bracker | 448 U.S. 136 (1980)
Although Indian tribes are considered separate sovereigns, they’re located within the geographical boundaries of individual states. This can create jurisdictional conflict, as states often seek to regulate on-reservation activity. In White Mountain Apache Tribe versus Bracker, the Supreme Court considered whether a state tax on a reservation logging business would stay standing or fall to the axe of federal preemption.
The White Mountain Apache Tribe derived almost all its revenue from timber operations. The tribe organized the Fort Apache Timber Company, or FATCO, to manage the harvest, processing, and sale of timber. FATCO subcontracted with six logging companies. One of them, Pinetop, felled trees, cut them, and transported them to FATCO’s sawmill. Pinetop employed both tribal members and non-Indians and operated solely on the reservation.
Arizona sought to impose a motor-carrier license tax and a fuel tax on Pinetop. Pinetop paid the taxes under protest and then sued in state court, arguing that federal law preempted state taxes for activities conducted exclusively within the reservation. The tribe intervened as plaintiffs. The trial court ruled for the state, the Arizona Court of Appeals affirmed, and the Arizona Supreme Court declined review. The United States Supreme Court granted cert.
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