Salt River Pima-Maricopa Indian Community v. State of Arizona Paul Waddell, Director of the Arizona Department of Revenue

Plaintiff Salt River Pima-Maricopa Indian Community (“Community”) appeals from a summary judgment for the defendants, the State of Arizona and the Director of the Arizona Department of Revenue, Paul Wad-dell (“Arizona” or “State”). The Community argues that the district court erred by holding that the State may collect taxes on sales and rental transactions on the Indian reservation with non-Indians. We affirm.

FACTS & PRIOR PROCEEDINGS

This case concerns the collection of taxes by Arizona on sales and rentals by non-Indian businesses selling products and services to non-Indians on the Community’s reservation. The Community consists of the confederated Pima and Maricopa Tribes of Indians and enjoys official status as a tribe under the Indian Reorganization Act of 1934, 25 U.S.C. § 461 et seq.

A shopping mall, known as the Scottsdale Pavilions, is located on land within the Community’s reservation. The land is held in trust by the United States for individual allottees and is leased under two separate lease agreements to a non-Indian land developer, Vestar Development Company. The leases were subject to approval by the Secretary of the Interior. The leases provide that the…