Salt River Pima-Maricopa Indian Community v. Yavapai County

Plaintiff Salt River Pima-Maricopa Indian Community (“Community”) appeals from a summary judgment for the defendants Yavapai County and the State of Arizona. The Community argues that the district court erred by finding that Yavapai County could impose ad valorem real and personal property taxes on the property of the Phoenix Cement Company located off the reservation. We have jurisdiction, 28 U.S.C. § 1291 , and affirm.

FACTS & PRIOR PROCEEDINGS

In 1987, the Community, a recognized Indian tribe, purchased the Phoenix Cement plant for approximately $55,000,000. The plant is located approximately 100 miles from the reservation in Yavapai County, and, with only a single exception, its labor force and management is non-Indian. The cement produced by the plant is sold on the open market, including some sales on the reservation. Yavapai County collects real and personal property tax on the cement plant under authority of state law. The property is owned directly by the Community, not held in trust by the United States.

Under Arizona’s tax scheme, certain governmental entities are exempt from state taxation. Property owned by the federal government is exempt, as is property owned by…