Lummi Indian Tribe v. Whatcom County, Washington Barbara Cory, Treasurer of Whatcom County

5 F.3d 1355
CourtCourt of Appeals for the Ninth Circuit
DecidedDecember 23, 1993
Docket91-35622
StatusPublished
Cited by48 cases

This text of 5 F.3d 1355 (Lummi Indian Tribe v. Whatcom County, Washington Barbara Cory, Treasurer of Whatcom County) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lummi Indian Tribe v. Whatcom County, Washington Barbara Cory, Treasurer of Whatcom County, 5 F.3d 1355 (9th Cir. 1993).

Opinions

EUGENE A. WRIGHT, Circuit Judge:

The Lummi Indian Tribe appeals from summary judgment denying it declaratory and injunctive relief from the assessment and collection of Washington’s ad valorem property tax. The Tribe contends that its fee-patented reservation land is exempt from taxation because it was allotted to the Tribe únder the Treaty of Point'Elliott rather than the General Allotment Act, which permits such taxation. We disagree that reservation land should be treated differently because it was patented under a treaty. We affirm.

I

The Lummi Indian Reservation was created in 1855 by the Treaty of Point Elliott, a compact between the United States and numerous tribes and bands of Indians in northern Puget Sound. Under the terms of the Treaty, the Lummi ceded all rights to a significant section of Western Washington, in return for exclusive use of reservation lands. The Treaty also authorized the subdivision of the Reservation into parcels, which could be assigned or allotted to individuals or families.

In 1884, the government carried out the treaty terms, dividing 10,500 acres of the Reservation into 72 assignments or allotments and issuing fee patents, subject to restrictions on alienation and exempt from levy, sale and forfeiture. The taxability of four parcels, all now owned by the Tribe in fee patent status, is at issue in this case.

The first parcel is a portion of an original assignment made to Lewis Kichowilton. After his death, Kichowilton’s heirs divided his allotment among themselves, with the parcel at issue deeded to Mary George, a member of the Tribe. Upon George’s death, Irene Miller, a Canadian Indian, inherited the land. Because the United States had no supervisory responsibility over Miller, the Bureau of Indian Affairs issued an “Order Removing Restrictions,” allowing Miller to alienate the parcel. In the 1970s, the Tribe purchased it from a non-Indian owner.

The other three parcels were originally assigned to John A. Jones. In 1916, after determining that Jones was “fully competent and capable of transacting his own business,” [1357]*1357the Secretary of the Interior issued him a “Certificate of Competency:” See 25 U.S.C. § 372 (1988). It removed any restrictions on Jones’ ability to alienate the land. The Tribe purchased these parcels in the early 1980s.

Under state law, Whatcom County has levied and collected ad valorem property tax payments on these reservation fee lands. In May 1989, the Tribe filed suit, claiming that the tax violated federal law. It sought declaratory and injunctive relief; a refund of taxes, interest and penalties collected; and damages for civil rights violations under 42 U.S.C. § 1983. The parties filed cross motions for summary judgment. A magistrate judge entered summary judgment against the Tribe, finding that the case was controlled by our decision in Confederated Tribes and Bands of the Yakima Nation v. County of Yakima, 893 F.2d 1044, modified, 903 F.2d 1207 (9th Cir.1990), aff'd, — U.S. —, 112 S.Ct. 683, 116 L.Ed.2d 687 (1992). The Tribe timely appealed. We have jurisdiction under 28 U.S.C. § 1291.

II

In County of Yakima v. Confederated Tribes and Bands of the Yakima Indian Nation, — U.S. —, 112 S.Ct. 683, 116 L.Ed.2d 687 (1992), the Court held that the General Allotment Act of 18871 permitted Yakima County to impose an ad valorem tax on reservation land patented in fee under the Act and owned by reservation Indians or the Nation itself. The Court expressly refused to decide whether parcels patented under an act other than the General Allotment Act are also taxable. See Yakima Nation, — U.S. at —, 112 S.Ct. at 694. The Lummi contend that because their fee patents were issued under the Treaty of Point Elliott, rather than the General Allotment Act, Whatcom County may not tax the parcels.

We must decide one of the questions left open by Yakima Nation: whether reservation land should be treated differently because it was patented under a treaty. Because the Court in Yakima Nation focused on the Yakima’s ability to alienate their land, rather than on how it was allotted, we conclude that if the Lummi land is alienable, it is taxable.

A. Alienability as a Basis for Taxation

A state cannot tax reservation lands or reservation Indians unless Congress has “ ‘made its intention to [authorize state taxation] unmistakably clear.’ ” Id. at —, 112 S.Ct. at 688 (quoting Montana v. Blackfeet Tribe, 471 U.S. 759, 765, 105 S.Ct. 2399, 2402, 85 L.Ed.2d 753 (1985)). In Yakima Nation, the Court found an unmistakably clear intent to tax fee-patented land. It did not rely on section 6 of the General Allotment Act as Yakima County proposed,2 concluding instead that the land’s alienable status determines its taxability. See id. at —, 112 S.Ct. at 688-691. The Court made no distinction between fee land allotted by treaty and that allotted under the Act. Its interpretation of section 5 of the Act and the proviso to section 6 imply that no matter how the land became patented, it is taxable once restraints against alienation expire.

The Court found further support for this conclusion in its decision in Goudy v. Meath, 203 U.S. 146, 27 S.Ct. 48, 51 L.Ed. 130 (1906). In Goudy, a Puyallup Indian claimed exemption from real property taxation under the Treaty of December 26, 1854, which, like the Treaty of Point Elliott, was patterned [1358]*1358after the Treaty with the Omahas. 203 U.S. at 146, 27 S.Ct. at 48. The Treaty of the Omahas allowed the President to issue a restricted patent on allotted lands. Id. at 147, 27 S.Ct. at 50. The restrictions on alienation would remain until the state legislature, with Congressional consent, removed them. Id. The Court decided that once the land allotted under the treaty became alienable, it also became taxable. See id. at 150, 27 S.Ct. at 50. In so deciding, the Court relied in part on the General Allotment Act provisions that made an Indian subject to the state laws once restrictions on the land were removed. See id. at 149, 27 S.Ct. at 50.

The Yakima Nation Court approved Goudy’s holding, citing Goudy for the proposition that alienable land is taxable unless explicitly exempted:

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