OKLAHOMA CITY, Okla – The Oklahoma Supreme Court has issued its decision in the Stroble Tax case. As previously reported, the Oklahoma Supreme Court heard oral arguments in Stroble v. Oklahoma Tax Commission in January, 2024.
The court ruled in a 7-3 decision that Stroble is not entitled to a state income tax exemption. According to the ruling:
The issue presented is whether the State has jurisdiction to impose income taxes on a tribal member who resides and works for the tribe within the boundaries of the tribe’s reservation as recognized in McGirt. McGirt declared the reservation status of the land at issue. See id. at 913, 937. The United States Supreme Court determined that because the land was reservation land, it constituted “Indian country” for purposes of the Major Crimes Act, 18 U.S.C. §§ 1151, 1153. Therefore, the State was without jurisdiction to prosecute certain crimes committed by an Indian on the reservation. Stroble is asking this Court to extend McGirt to civil and regulatory law–to find the State is without jurisdiction to tax the income of a tribal member living and working on the tribe’s reservation. This we cannot do.
Oklahoma Governor Kevin Stitt issued a statement on the decision:
This is a big win for the future of Oklahoma. From day one, I’ve fought to make sure every Oklahoman is treated equally.
Tribal governments, liberal groups, and some elected officials have pushed for special tax exemptions that would create a two-tiered system — one set of rules for tribal citizens and another for everyone else. That’s wrong. It would divide our state and weaken the public services every family relies on.
This ruling makes it clear that attempts to expand McGirt into civil and tax matters have no basis in the law. We are one Oklahoma. And as long as I’m Governor, we aren’t going backwards.
Muscogee Creek Nation Principal Chief David Hill also issued a statement:
The Muscogee Nation is disappointed in the Oklahoma Supreme Court’s ruling today in Stroble v. Oklahoma Tax Commission departing from well-settled law originally recognized by the United States Supreme Court over 50 years ago and that is inconsistent with the State’s own administrative tax rules. Ever since the McGirt ruling, we have seen Oklahoma state courts go through legal gymnastics to come up with results that are not in compliance with federal law and that do not even follow pre-McGirt state court precedent on the limits of state authority in Indian country. The Stroble ruling is another sad example of those antics. We know that this ruling could have broad implications for Indian Country, so we are carefully reviewing the decision with our legal team and preparing for the next steps. While it is important to remember that the Muscogee Nation cannot provide legal advice on individual tax cases to citizens, the Nation will remain diligent in coordination and communication of what our response will be.
