A Nebraska town within the boundaries of an Indian reservation is subject to the reservation’s tribal tax on liquor sales, according to a United States Supreme Court ruling.
The court reached a unanimous decision, upholding lower court rulings against the city of Pender.
The Supreme Court ruled Congress did not restrict the jurisdiction of the Omaha Indian Reservation, when in 1882, it allow the Omaha Tribe to sell segments of its reservation to outsiders.
The Omaha Tribe approved a 10% sales tax on liquor sales in 2006. It attempted to collect the tax from Pender retailers, who filed suit.
Nebraska officials argued that virtually none of the residents of the town were members of the Omaha Tribe and the tribe had not asserted its jurisdiction over Pender for more than a century.