[Federal Register Volume 80, Number 122 (Thursday, June 25, 2015)]
[Notices]
[Pages 36556-36557]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-15588]
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DEPARTMENT OF THE INTERIOR
Bureau of Indian Affairs
[156A2100DD/AAKC001030/A0A501010.999900 253G]
HEARTH Act Approval of Mohegan Tribe of Indians of Connecticut
Regulations
AGENCY: Bureau of Indian Affairs, Interior.
ACTION: Notice.
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SUMMARY: On April 8, 2014, the Bureau of Indian Affairs (BIA) approved
the Mohegan Tribe of Indians of Connecticut leasing regulations under
the HEARTH Act. With this approval, the Tribe is authorized to enter
into the following type of leases without BIA approval: Business
leases.
FOR FURTHER INFORMATION CONTACT: Ms. Cynthia Morales, Office of Trust
Services--Division of Realty, Bureau of Indian Affairs; Telephone (202)
768-4166; Email: [email protected].
SUPPLEMENTARY INFORMATION:
I. Summary of the HEARTH Act
The HEARTH (Helping Expedite and Advance Responsible Tribal
Homeownership) Act of 2012 (the Act) makes a voluntary, alternative
land leasing process available to tribes, by
[[Page 36557]]
amending the Indian Long-Term Leasing Act of 1955, 25 U.S.C. 415. The
Act authorizes tribes to negotiate and enter into agricultural and
business leases of tribal trust lands with a primary term of 25 years,
and up to two renewal terms of 25 years each, without the approval of
the Secretary of the Interior. The Act also authorizes tribes to enter
into leases for residential, recreational, religious or educational
purposes for a primary term of up to 75 years without the approval of
the Secretary. Participating tribes develop tribal leasing regulations,
including an environmental review process, and then must obtain the
Secretary's approval of those regulations prior to entering into
leases. The Act requires the Secretary to approve tribal regulations if
the tribal regulations are consistent with the Department's leasing
regulations at 25 CFR part 162 and provide for an environmental review
process that meets requirements set forth in the Act. This notice
announces that the Secretary, through the Assistant Secretary--Indian
Affairs, has approved the tribal regulations for the Mohegan Tribe of
Indians of Connecticut.
II. Federal Preemption of State and Local Taxes
The Department's regulations governing the surface leasing of trust
and restricted Indian lands specify that, subject to applicable Federal
law, permanent improvements on leased land, leasehold or possessory
interests, and activities under the lease are not subject to State and
local taxation and may be subject to taxation by the Indian tribe with
jurisdiction. See 25 CFR 162.017. As explained further in the preamble
to the final regulations, the Federal government has a strong interest
in promoting economic development, self-determination, and tribal
sovereignty. 77 FR 72,440, 72447-48 (December 5, 2012). The principles
supporting the Federal preemption of State law in the field of Indian
leasing and the taxation of lease-related interests and activities
applies with equal force to leases entered into under tribal leasing
regulations approved by the Federal government pursuant to the HEARTH
Act.
Section 5 of the Indian Reorganization Act, 25 U.S.C 465, preempts
State and local taxation of permanent improvements on trust land.
Confederated Tribes of the Chehalis Reservation v. Thurston County, 724
F.3d 1153, 1157 (9th Cir. 2013) (citing Mescalero Apache Tribe v.
Jones, 411 U.S. 145 (1973)). In addition, as explained in the preamble
to the revised leasing regulations at 25 CFR part 162, Federal courts
have applied a balancing test to determine whether State and local
taxation of non-Indians on the reservation is preempted. White Mountain
Apache Tribe v. Bracker, 448 U.S. 136, 143 (1980). The Bracker
balancing test, which is conducted against a backdrop of ``traditional
notions of Indian self-government,'' requires a particularized
examination of the relevant State, Federal, and tribal interests. We
hereby adopt the Bracker analysis from the preamble to the surface
leasing regulations, 77 FR at 72,447-48, as supplemented by the
analysis below.
The strong Federal and tribal interests against State and local
taxation of improvements, leaseholds, and activities on land leased
under the Department's leasing regulations apply equally to
improvements, leaseholds, and activities on land leased pursuant to
tribal leasing regulations approved under the HEARTH Act. Congress's
overarching intent was to ``allow tribes to exercise greater control
over their own land, support self-determination, and eliminate
bureaucratic delays that stand in the way of homeownership and economic
development in tribal communities.'' 158 Cong. Rec. H. 2682 (May 15,
2012). The HEARTH Act was intended to afford tribes ``flexibility to
adapt lease terms to suit [their] business and cultural needs'' and to
``enable [tribes] to approve leases quickly and efficiently.'' Id. at
5-6.
Assessment of State and local taxes would obstruct these express
Federal policies supporting tribal economic development and self-
determination, and also threaten substantial tribal interests in
effective tribal government, economic self-sufficiency, and territorial
autonomy. See Michigan v. Bay Mills Indian Community, 134 S. Ct. 2024,
2043 (2014) (Sotomayor, J., concurring) (determining that ``[a] key
goal of the Federal Government is to render Tribes more self-
sufficient, and better positioned to fund their own sovereign
functions, rather than relying on Federal funding''). The additional
costs of State and local taxation have a chilling effect on potential
lessees, as well as on a tribe that, as a result, might refrain from
exercising its own sovereign right to impose a tribal tax to support
its infrastructure needs. See id. at 2043-44 (finding that State and
local taxes greatly discourage tribes from raising tax revenue from the
same sources because the imposition of double taxation would impede
tribal economic growth).
Just like BIA's surface leasing regulations, tribal regulations
under the HEARTH Act pervasively cover all aspects of leasing. See
Guidance for the Approval of Tribal Leasing Regulations under the
HEARTH Act, NPM-TRUS-29 (effective Jan. 16, 2013) (providing guidance
on Federal review process to ensure consistency of proposed tribal
regulations with Part 162 regulations and listing required tribal
regulatory provisions). Furthermore, the Federal government remains
involved in the tribal land leasing process by approving the tribal
leasing regulations in the first instance and providing technical
assistance, upon request by a tribe, for the development of an
environmental review process. The Secretary also retains authority to
take any necessary actions to remedy violations of a lease or of the
tribal regulations, including terminating the lease or rescinding
approval of the tribal regulations and reassuming lease approval
responsibilities. Moreover, the Secretary continues to review, approve,
and monitor individual Indian land leases and other types of leases not
covered under the tribal regulations according to the Part 162
regulations.
Accordingly, the Federal and tribal interests weigh heavily in
favor of preemption of State and local taxes on lease-related
activities and interests, regardless of whether the lease is governed
by tribal leasing regulations or Part 162. Improvements, activities,
and leasehold or possessory interests may be subject to taxation by the
Mohegan Tribe of Indians of Connecticut.
Dated: June 17, 2015.
Kevin K. Washburn,
Assistant Secretary--Indian Affairs.
[FR Doc. 2015-15588 Filed 6-24-15; 8:45 am]
BILLING CODE 4337-15-P