Supreme Court Accepts Indian Gambling Case

WASHINGTON (AP) â€” The Supreme Court agreed Monday to settle whether Indian tribes, like states, are exempt from some gambling taxes. <br><br>Two Oklahoma Indian tribes and the Justice Department asked

Monday, January 22nd 2001, 12:00 am

By: News On 6

WASHINGTON (AP) â€” The Supreme Court agreed Monday to settle whether Indian tribes, like states, are exempt from some gambling taxes.

Two Oklahoma Indian tribes and the Justice Department asked the justices to resolve the question.

The issue concerns federal excise taxes on wagers, in this case the sale of pull-tab lottery cards that the tribes sell to finance a variety of tribal and reservation activities.

States are explicitly exempt from such taxes, and the Chickasaw Nation and Choctaw Nation tribes claim that they are also exempt.

Two federal appeals courts have recently come to opposite conclusions. The Oklahoma tribes appealed the decision of the 10th U.S. Circuit Court of Appeals, which said the tribes must pay.

The federal Indian Gaming Regulatory Act is not precise on the point, and the tribes claim that under established legal precedent, governments must interpret any ambiguity in tax laws in the light most favorable to the tribes.

The Justice Department countered that the principle applies to states in their tax disputes with Indian tribes, but not to the federal government.

``Unlike state governments, Congress has plenary authority to legislate over Indian affairs, and such authority unquestionably includes the power to impose federal taxes,'' Justice Department lawyers said.

The case is Chickasaw Nation v. U.S., 00-507.