Term: 2018
Docket: 16-1498
Washington State Department Of Licensing v. Cougar Den Inc.
- Pro
16-1498 WASHINGTON DEPT. OF LICENSING V. COUGAR DEN, INC. DECISION BELOW: 392 P.3d 1014 CERT. GRANTED 6/25/2018 QUESTION PRESENTED: An 1855 treaty between the United States and the Yakama Indian Nation provides members of the tribe "the right, in common with citizens of the United States, to travel upon all public highways." In a series of cases, the Ninth Circuit has rejected claims that this language exempts the Yakama from taxes or state fees on off-reservation commercial activities, holding instead that the language is limited to securing for tribal members a right to travel on public highways without paying a fee for that use or obtaining state approval. In this case, however, the Washington Supreme Court interpreted the treaty far more broadly, holding that it implicitly prohibits states from taxing "any trade, traveling, and importation" by the Yakama, even off-reservation, "that requires the use of public roads." The court therefore held that the treaty preempts Washington from imposing wholesale fuel taxes on Respondent Cougar Den, a Yakama-owned fuel distributor that imports millions of gallons of fuel into Washington annually for sale to the general public. The question presented is: Whether the Yakama Treaty of 1855 creates a right for tribal members to avoid state taxes on off-reservation commercial activities that make use of public highways. LOWER COURT CASE NUMBER: 92289-6
The U.S. Supreme Court case Washington State Department of Licensing v. Cougar Den Inc., 2018, revolved around a dispute between the state of Washington and Cougar Den, a fuel company owned by a member of the Yakama Nation tribe. The issue at hand was whether or not the state could impose taxes on fuel imported by Cougar Den from out-of-state for sale within the Yakama reservation. The court ruled in favor of Cougar Den based on an 1855 treaty between the United States and Yakama Nation that granted members "the right to travel upon all public highways." This ruling interpreted this clause as exempting tribal members from certain types of taxation related to highway usage - in this case, tax on transported goods like fuel.
In the dissenting opinion for Washington State Department of Licensing v. Cougar Den Inc., Justice Brett Kavanaugh, joined by Justices Clarence Thomas and Samuel Alito, argued that the Yakama Treaty did not exempt Cougar Den from paying fuel import taxes to Washington state. They contended that the treaty's 'right to travel' provision was intended only to protect tribal members’ movement across traditional routes for purposes such as trade or hunting; it did not grant a broad exemption from generally applicable state laws like tax regulations. The majority’s interpretation, they claimed, stretched this right too far beyond its historical context and purpose. Furthermore, they pointed out that other tribes with similar treaties have been subject to state taxation without objection in past cases.
