A Muscogee citizen who works for her tribe and lives on its reservation still must pay income tax to Oklahoma, despite her tribal nation's redefinition as Indian Country after the McGirt case.
In an opinion dropped Tuesday, Oklahoma's Supreme Court ruled 6-3 that Alicia Stroble is not exempt from paying state income tax. The majority opinion cites the Oklahoma Tax Commission's argument that Stroble lived on non-trust, private land that was therefore not qualified as Indian Country.
The opinion also argues McGirt v. Oklahoma, the landmark U.S. Supreme Court case that expanded the Muscogee Nation's jurisdiction over tribal citizens, does not go beyond the Major Crimes Act.
"To date, the United States Supreme Court has not extended its ruling in McGirt to the State's civil or taxing jurisdiction," the majority writes. "And it is not this Court's place to do so."
Justices Douglas Combs, James Edmondson and Noma Gurich dissented. Combs argued that the Oklahoma Tax Commission had previously acknowledged, in the case of Oklahoma Tax Commission v. Sac & Fox Nation, that it lacked tax jurisdiction over Indian Country. Therefore, the prior ruling should be upheld.
"Insofar as the Tax Commission has directly linked-and, pursuant to constitutional principles, must link—the fate of its income tax regulation to the broad definition of 'Indian country,'" in existing caselaw, the dissenters wrote, "her victory is mandated."
Stroble had been protesting her state income taxes after the Oklahoma Tax Commission denied a 2020 tax exemption claim filed by her in the wake of the McGirt case, which ruled the Muscogee Nation had never been disestablished.
She argued that because she lived within the boundaries of the Muscogee Nation reservation, she was exempt from state income tax from 2017 to 2019. Her income also derived from the Nation.
Indigenous leaders say the decision is a blow to tribal sovereignty, but a win for Gov. Kevin Stitt. The governor issued a statement praising the majority opinion, which was supported by four of his appointees.
"Tribal governments, liberal groups, and some elected officials have pushed for special tax exemptions that would create a two-tiered system — one set of rules for tribal citizens and another for everyone else," Stitt said. "That's wrong. It would divide our state and weaken the public services every family relies on."
Muscogee Nation Principal Chief David Hill responded, writing he is disappointed. He said his tribe is considering future legal action.
"Ever since the McGirt ruling, we have seen Oklahoma state courts go through legal gymnastics to come up with results that are not in compliance with federal law and that do not even follow pre-McGirt state court precedent on the limits of state authority in Indian country. The Stroble ruling is another sad example of those antics," Hill wrote. "We know that this ruling could have broad implications for Indian Country, so we are carefully reviewing the decision with our legal team and preparing for the next steps."
The ruling comes after a nearly four-year legal battle.
This report was produced by the Oklahoma Public Media Exchange, a collaboration of public media organizations. Help support collaborative journalism by donating at the link at the top of this webpage.
