From Staff Reports
From Staff Reports
TULSA — The Osage Nation will seek rehearing by the U.S. Tenth Circuit Court of Appeals following the court’s decision last Friday to rule in favor of the Oklahoma Tax Commission. The Nation plans to file its motion for rehearing within 30 days.
The Osage Nation contends it has a federally recognized reservation which makes its tribal members living and working within the boundaries of the reservation, under federal law, exempt from paying state income taxes. The Oklahoma Tax Commission says the reservation was disestablished, but fails to identify clear language in any act of Congress which supports that claim.
“The Osage reservation is crucially important politically, socially, culturally and economically for the Osages, and we will stand firm in defending our rights,” Osage Nation Chief Jim Gray said.
The Nation employs over 1,600 people in Oklahoma, with a payroll of over $62 million.
“In this case, the court departed from precedent and glossed over uncontroverted evidence provided by our counsel and established new law based on theories and opinions of a handful of historians. Acts of Congress specific to the Osage clearly recognize the Osage Nation has a reservation, and that has never changed.”
Chief Gray also points out that the negative economic impact this decision could have on the State of Oklahoma far outweighs any benefit to the state.
“The state might view this as an opportunity to continue collecting tax revenue from Osage citizens, but the minimal amount of money at issue in this case is vastly exceeded by the economic losses to the state that will ensue should this decision stand Gray said. “The state has handled this matter very recklessly and apparently without consideration of the true impact to Oklahoma’s economy.”
In reference to the court’s handling of the case, Chief Gray warned all federally-recognized tribal governments within the jurisdiction of the court that the 10th Circuit is no longer bound by precedent. “They’re operating under new rules and all tribes had best take notice. By establishing new law and not following precedent, their own and that of the Supreme Court, the 10th Circuit court has signaled that every tribe with a reservation is at risk,” Gray said. “The same thing could happen to them so we are hopeful that the Tenth Circuit will reconsider its decision and remain faithful to established federal law.”
