The U.S. Supreme Court case Oklahoma Tax Commission v. Citizen Band Potawatomi Indian Tribe of Oklahoma, 1990, revolved around the issue of tribal sovereignty and state taxation powers. The Citizen Band Potawatomi Indian Tribe operated a convenience store on tribal land in Oklahoma where they sold cigarettes to both tribe members and non-members without collecting state tax. The State of Oklahoma demanded payment for these taxes but the tribe refused, asserting their sovereign immunity from suit under federal law as an independent political entity. When taken to court, the Supreme Court ruled in favor of the tribe by a vote of 6-3 stating that unless Congress has authorized such a suit or if tribes have waived their immunity then states cannot force them to pay taxes on sales made within reservation lands even if those purchases are made by non-tribal members.

In the dissenting opinion for Oklahoma Tax Commission v. Citizen Band Potawatomi Indian Tribe of Oklahoma, Justice Stevens argued that the majority's decision to uphold tribal sovereign immunity in this case was inconsistent with previous rulings and historical context. He pointed out that while tribes do have a degree of sovereignty, it is not absolute and has been limited by Congress and courts over time. In his view, allowing tribes to engage in commercial activities outside their territory without being subject to state taxation laws would give them an unfair advantage over other businesses. Furthermore, he believed that such broad interpretation of tribal immunity could lead to potential abuses as it might encourage tribes to enter into business ventures solely for tax evasion purposes. Therefore, he disagreed with the majority's ruling which barred states from taxing sales made by Indian Tribes on reservation lands even when sold directly to non-tribal members.