Chemehuevi Indian Tribe v. California State Board of Equalization

MEMORANDUM AND ORDER

BACKGROUND

The Chemehuevi Indian Tribe (“Tribe”) commenced this action by filing a complaint for declaratory and injunctive relief on December 15, 1977. The California State Board of Equalization (“Board”) had previously determined that the Tribe owed the state amounts totaling $11,702.95 for taxes that it allegedly should have collected from non-Indian purchasers of cigarettes on the reservation, including interest and penalties on the taxes owed. The Board then issued a “withhold notice” asking that the Bank of America withhold from the Tribe’s funds twice the amount of the claimed delinquency. It also recorded liens against all tribal property and assets located in San Bernardino and Los Angeles Counties, including property held in trust for the Tribe by the United States, and had a warrant issued to the Sheriff of Los Angeles County directing him to seize and sell such tribal assets as may be necessary to satisfy the claimed liens. After the Tribe filed its complaint, the Board filed a counterclaim for the amount of taxes allegedly owing from the Tribe.

The court granted a preliminary injunction on January 19, 1978 prohibiting the Board from collecting…