Gila River Indian Community v. Paul Waddell, as Director of the Department of Revenue of the State of Arizona

The Gila River Indian Community (the Tribe) appeals the district court’s dismissal of its action for declaratory and injunctive relief. The Tribe sought to enjoin Paul Waddell, in his capacity as Director of the Arizona Department of Revenue (the State), from imposing a tax on the sale of tickets and concessionary items in connection with the sporting and cultural activities that take place on the Gila Reservation. The Tribe claimed that the doctrines of federal preemption and tribal sovereignty preclude the State from levying taxes on entertainment events occurring wholly on reservation property. The district court dismissed the Tribe’s suit for failure to state a claim. We reverse.

I.

We accept the allegations of fact found in the Tribe’s complaint as true for purposes of reviewing the dismissal of its action for failure to state a claim. Abramson v. Brownstein, 897 F.2d 389, 391 (9th Cir.1990). The Tribe consists of the confederated Pima and Maricopa Tribes of Indians and enjoys official status under the Indian Reorganization Act of 1934, 25 U.S.C. § 461 et seq. (1988). Pursuant to that Act, the Secretary of the Interior has approved the Tribe’s constitution and bylaws. The…