HEARTH Act Approval of Little Traverse Bay Bands of Odawa Indians Business, Agricultural, Residential, Wind and Solar Resource, and Wind Energy Evaluation Leases, 13300-13302 [2018-06229]
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Federal Register / Vol. 83, No. 60 / Wednesday, March 28, 2018 / Notices
daltland on DSKBBV9HB2PROD with NOTICES
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).
Similar to BIA’s surface leasing
regulations, Tribal regulations under the
HEARTH Act pervasively cover all
aspects of leasing. See 25 U.S.C.
415(h)(3)(B)(i) (requiring Tribal
regulations be consistent with BIA
surface leasing regulations).
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
Coquille Indian Tribe.
Dated: November 9, 2017.
John Tahsuda,
Principal Deputy Assistant Secretary—Indian
Affairs, Exercising the Authority of the
Assistant Secretary—Indian Affairs.
Editorial Note: This document was
received at The Office of the Federal Register
on March 23, 2018.
[FR Doc. 2018–06228 Filed 3–27–18; 8:45 am]
BILLING CODE 4337–15–P
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Jkt 244001
DEPARTMENT OF THE INTERIOR
Bureau of Indian Affairs
[189A2100DD/AAKC001030/
A0A501010.999900 253G]
Land Acquisitions: The Shawnee Tribe
Bureau of Indian Affairs,
Interior.
ACTION: Notice.
AGENCY:
The Secretary of the Interior
made a final agency determination to
acquire 102.98 acres, more or less, of
land near the City of Guymon, Texas
County, Oklahoma, in trust for the
Shawnee Tribe for gaming and other
purposes on January 19, 2018.
FOR FURTHER INFORMATION CONTACT: Ms.
Paula L. Hart, Director, Office of Indian
Gaming, Office of the Assistant
Secretary—Indian Affairs, MS–3657,
1849 C Street NW, Washington, DC
20240, telephone (202) 219–4066.
SUPPLEMENTARY INFORMATION: This
notice is published in the exercise of
authority delegated by the Secretary of
the Interior to the Assistant Secretary—
Indian Affairs by 209 Departmental
Manual 8.1, and is published to comply
with the requirements of 25 CFR
151.12(c)(2)(ii) that notice of the
decision to acquire land in trust be
promptly provided in the Federal
Register.
On January 19, 2018, the Secretary of
the Interior issued a decision to accept
approximately 102.98 acres, more or
less, of land near the City of Guymon,
Texas County, Oklahoma, (Site) in trust
for the Shawnee Tribe (Tribe), under the
authority of the Indian Reorganization
Act, 25 U.S.C. 5108. The Department
previously determined on January 19,
2017, that the Tribe is eligible to
conduct gaming on the Site pursuant to
Section 20 of the Indian Gaming
Regulatory Act, 25 U.S.C. 2719(b)(1)(A).
On March 3, 2017, the Governor of the
State of Oklahoma concurred with the
Department’s finding.
The Principal Deputy Assistant
Secretary—Indian Affairs, on behalf of
the Secretary of the Interior, will
immediately acquire title to the Guymon
Site in the name of the United States of
America in trust for the Tribe upon
fulfillment of Departmental
requirements. The 102.98 acres, more or
less, are located in Texas County,
Oklahoma, and are described as follows:
SUMMARY:
All that part of the Northwest Quarter
(NW/4) of the Southwest Quarter (SW/4) and
the South Half (S/2) of the Southwest Quarter
(SW/4) lying South of the South Right-ofWay line of U.S. Highway 54 in Section
Eleven (11), Township Two (2) North, Range
Fourteen (14) East, Cimarron Base and
PO 00000
Frm 00079
Fmt 4703
Sfmt 4703
Meridian, Texas County, Oklahoma, being
more particularly described in TRUE NORTH
bearings as follows:
Beginning at the Southwest Corner of the
SW/4 of said Section 11; thence N 00°18′19″
E, a distance of 1,291.19 feet to the
intersection between said West line of the
SW/4 and the South line of a tract of land
as described and filed in Book 983 at Page
434 in the Office of the Texas County Clerk;
thence along the South line of said tract as
filed in Book 983 at Page 434 for the
following seven (7) courses:
1. Thence S 89°36′25″ E, a distance of
41.40 feet;
2. Thence N 00°23′35″ E, a distance of 8.74
feet;
3. Thence with a curve turning to the Right
with an arc length of 81.63 feet, with a radius
of 162.00 feet, with a chord bearing of N
14°49′42″ E, with a chord length of 80.77 feet;
4. Thence N 29°15′47″ E, a distance of
211.01 feet;
5. Thence with a curve turning to the Left
with an arc length of 106.48 feet, with a
radius of 238.00 feet, with a chord bearing of
N 16°26′47″ E, with a chord length of 105.59
feet;
6. Thence N 24°40′53″ E, a distance of
179.39 feet;
7. Thence N 54°15′23″ E, a distance of
1,305.47 feet to a point common with the
West line of the NE/4 SW/4; Thence S
00°21′54″ W, along the West line of the NE/
4 SW/4, a distance of 1,270.87 feet to the
Southwest Corner thereof; thence S 89°45′32″
E, along the South line of the NE/4 SW/4, a
distance of 1,321.40 feet to the Southeast
Corner thereof; thence S 00°25′29″ W, along
the East line of the S/2 SW/4, a distance of
1,323.96 feet to the Southeast Corner thereof;
thence N 89°44′49″ W, along the South line
of the SW/4, a distance of 2,640.03 feet to the
True Point of Beginning, having an area of
102.98 Acres, more or less. Basis of Bearings
are True North. Said being described by
Obert D. Bennett, PLS. No. 1471 on October
6, 2014. Surface Only.
Dated: March 12, 2018.
John Tahsuda,
Principal Deputy Assistant Secretary—Indian
Affairs Exercising the Authority of the
Assistant Secretary—Indian Affairs.
[FR Doc. 2018–06230 Filed 3–27–18; 8:45 am]
BILLING CODE 4337–15–P
DEPARTMENT OF THE INTERIOR
Bureau of Indian Affairs
[189A2100DD/AAKC001030/
A0A501010.999900]
HEARTH Act Approval of Little
Traverse Bay Bands of Odawa Indians
Business, Agricultural, Residential,
Wind and Solar Resource, and Wind
Energy Evaluation Leases
Bureau of Indian Affairs,
Interior.
ACTION: Notice.
AGENCY:
E:\FR\FM\28MRN1.SGM
28MRN1
Federal Register / Vol. 83, No. 60 / Wednesday, March 28, 2018 / Notices
On December 29, 2017, the
Bureau of Indian Affairs (BIA) approved
the Little Traverse Bay Bands of Odawa
Indians, Michigan (Tribe) leasing
regulations under the Helping Expedite
and Advance Responsible Tribal
Homeownership Act of 2012 (HEARTH
Act). With this approval, the Tribe is
authorized to enter into business,
agricultural, residential, wind and solar
resource, and wind energy evaluation
leases without further BIA approval.
FOR FURTHER INFORMATION CONTACT: Ms.
Sharlene Round Face, Bureau of Indian
Affairs, Division of Real Estate Services,
1849 C Street NW, MS–4642–MIB,
Washington, DC 20240, at (202) 208–
3615.
SUMMARY:
SUPPLEMENTARY INFORMATION:
daltland on DSKBBV9HB2PROD with NOTICES
I. Summary of the HEARTH Act
The HEARTH Act makes a voluntary,
alternative land leasing process
available to tribes, by amending the
Indian Long-Term Leasing Act of 1955,
25 U.S.C. 415. The HEARTH 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
(Secretary). The HEARTH 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
HEARTH Act requires the Secretary to
approve tribal regulations if the tribal
regulations are consistent with the
Department of the Interior’s
(Department) leasing regulations at 25
CFR part 162 and provide for an
environmental review process that
meets requirements set forth in the
HEARTH Act. This notice announces
that the Secretary, through the Assistant
Secretary—Indian Affairs, has approved
the tribal regulations for the Little
Traverse Bay Bands of Odawa Indians,
Michigan.
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
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20:30 Mar 27, 2018
Jkt 244001
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, 72,447–48
(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)). Similarly, section 465
preempts state taxation of rent payments
by a lessee for leased trust lands,
because ‘‘tax on the payment of rent is
indistinguishable from an impermissible
tax on the land.’’ See Seminole Tribe of
Florida v. Stranburg, No. 14–14524,
*13–*17, n.8 (11th Cir. 2015). 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 nonIndians 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 selfgovernment,’’ 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
PO 00000
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Fmt 4703
Sfmt 4703
13301
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).
Similar to BIA’s surface leasing
regulations, tribal regulations under the
HEARTH Act pervasively cover all
aspects of leasing. See 25 U.S.C.
415(h)(3)(B)(i) (requiring tribal
regulations be consistent with BIA
surface leasing regulations).
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 Little Traverse
Bay Bands of Odawa Indians, Michigan.
E:\FR\FM\28MRN1.SGM
28MRN1
13302
Federal Register / Vol. 83, No. 60 / Wednesday, March 28, 2018 / Notices
Dated: December 29, 2017.
John Tahsuda,
Principal Deputy Assistant Secretary—Indian
Affairs, Exercising the Authority of the
Assistant Secretary—Indian Affairs.
Editorial Note: This document was
received at the Office of the Federal Register
on March 23, 2018.
[FR Doc. 2018–06229 Filed 3–27–18; 8:45 am]
BILLING CODE 4337–15–P
DEPARTMENT OF THE INTERIOR
[18XD0120AF/DT20000000/DST000000/
241A/T0110100]
Tribal Information Sessions
Office of the Special Trustee for
American Indians (OST), Interior.
ACTION: Announcement of Tribal
information sessions.
AGENCY:
This notice announces two
telephonic Tribal information sessions
pertaining to the consolidation of OST’s
Office of Appraisal Services and the
Office of Valuation Services into a new
Appraisal and Valuation Services
Office, located within the existing Office
of Policy, Management and Budget.
DATES: Consultation sessions will be
held by phone on Tuesday, April 24,
from 1:00 p.m. to 2:30 p.m. EST, and
Wednesday, April 25, 2018, from 9:00
a.m. to 10:30 a.m. EST. See the
SUPPLEMENTARY INFORMATION section
below for the call-in numbers and
participant codes.
ADDRESSES: This information is also
posted at www.doi.gov/OST/ITARA.
FOR FURTHER INFORMATION CONTACT: Mr.
Eldred Lesansee, AVSO Associate
Deputy Director at AVSO_Info@
ios.doi.gov or (505) 816–1602.
SUPPLEMENTARY INFORMATION:
daltland on DSKBBV9HB2PROD with NOTICES
SUMMARY:
Background
In June 2016, Congress passed the
Indian Trust Asset Reform Act (ITARA),
Public Law 114–178. Title III, Section
305(a) of ITARA requires that appraisals
and valuations of Indian trust property
be administered by a single bureau,
agency, or other administrative entity
within the Department by December 22,
2017. Currently, the Office of Appraisal
Services (OAS), within the Office of the
Special Trustee for American Indians
(OST), conducts appraisals of Indian
trust property, while the Office of
Valuation Services (OVS) conducts
appraisals of non-Indian trust property,
as well as mineral evaluations for Indian
and non-Indian property.
In 2016, the Department held ten
consultation sessions and a listening
session with Tribes in various locations
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20:30 Mar 27, 2018
Jkt 244001
throughout the United States regarding
Sections 303, 304, and 305 of ITARA,
and held an open period for the
submission of written comments.
During consultation, the Department
sought input on six options for the
consolidation of appraisals and
valuations and invited Tribes to suggest
additional options.
New Appraisals and Valuation Services
Office (AVSO)
The Department conducted an
inventory and analysis of the OAS’s
current functions, and then assessed
options for the future of those functions.
After careful consideration of feedback
from Tribes and individuals, and close
collaboration with our internal
stakeholders, the Department decided to
consolidate OAS and OVS into a single
office: the Appraisals and Valuation
Services Office (AVSO), to be located in
the existing Office of Policy,
Management and Budget. On March 19,
2018, Secretary Zinke signed Secretarial
Order No. 3363 consolidating appraisal
and evaluation functions for trust
property into the AVSO. The
efficiencies garnered from
administration by a single entity will
enhance the Department’s ability to
improve the delivery of appraisal and
minerals evaluation services to our
clients.
The Department is hosting two
information sessions for Tribes on this
action to consolidate the OAS and OVS
into a new AVSO.
Tribal Information Sessions Call-In
Information
The toll-free call-in number for the
sessions are as follows:
• April 24, 2018: (877) 918–1345,
participant code 8512946.
• April 25, 2018: (877) 918–1345,
participant code 8512946.
Authority: E.O. 13175, 65 FR 67250, and
Section 2 of the Reorganization Plan No. 3 of
1950 (64 Stat. 1262).
Jerold Gidner,
Principal Deputy Special Trustee for
American Indians.
[FR Doc. 2018–06183 Filed 3–27–18; 8:45 am]
BILLING CODE 4334–63–P
DEPARTMENT OF THE INTERIOR
Bureau of Land Management
[LLMT926000–18X–L14400000.BJ0000;
MO#4500118801]
Notice of Proposed Filing of Plats of
Survey: Montana
AGENCY:
Bureau of Land Management,
Interior.
PO 00000
Frm 00081
Fmt 4703
Sfmt 4703
ACTION:
Notice of proposed official
filing.
The plat of survey for the land
described in this notice is scheduled to
be officially filed 30 calendar days after
the date of this publication in the BLM
Montana State Office, Billings, Montana.
The survey, which was executed at the
request of the BLM, is necessary for the
management of these lands.
DATES: A person or party who wishes to
protest this decision must file a notice
of protest in time for it to be received
in the BLM Montana State Office no
later than 30 days after the date of this
publication.
ADDRESSES: A copy of the plat may be
obtained from the Public Room at the
BLM Montana State Office, 5001
Southgate Drive, Billings, Montana
59101, upon required payment. The plat
may be viewed at this location at no
cost.
SUMMARY:
Josh
Alexander, BLM Chief Cadastral
Surveyor for Montana; telephone: (406)
896–5123; email: jalexand@blm.gov.
Persons who use a telecommunications
device for the deaf (TDD) may call the
Federal Relay Service (FRS) at (800)
877–8339 to contact the above
individual during normal business
hours. The FRS is available 24 hours a
day, 7 days a week, to leave a message
or question with the above individual.
You will receive a reply during normal
business hours.
SUPPLEMENTARY INFORMATION: The lands
surveyed are:
FOR FURTHER INFORMATION CONTACT:
Principal Meridian, Montana
T. 1 N., R. 14 W.
Sec. 26.
A person or party who wishes to
protest an official filing of a plat of
survey identified above must file a
written notice of protest with the BLM
Chief Cadastral Surveyor for Montana at
the address listed in the ADDRESSES
section of this notice. The notice of
protest must identify the plat(s) of
survey that the person or party wishes
to protest. The notice of protest must be
received in the BLM Montana State
Office no later than the scheduled date
of the proposed official filing for the
plat(s) of survey being protested; if
received after regular business hours, a
notice of protest will be considered filed
the next business day. A written
statement of reasons in support of the
protest, if not filed with the notice of
protest, must be filed with the BLM
Chief Cadastral Surveyor for Montana
within 30 calendar days after the notice
of protest is received.
E:\FR\FM\28MRN1.SGM
28MRN1
]]>Agencies
[Federal Register Volume 83, Number 60 (Wednesday, March 28, 2018)]
[Notices]
[Pages 13300-13302]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-06229]
-----------------------------------------------------------------------
DEPARTMENT OF THE INTERIOR
Bureau of Indian Affairs
[189A2100DD/AAKC001030/A0A501010.999900]
HEARTH Act Approval of Little Traverse Bay Bands of Odawa Indians
Business, Agricultural, Residential, Wind and Solar Resource, and Wind
Energy Evaluation Leases
AGENCY: Bureau of Indian Affairs, Interior.
ACTION: Notice.
-----------------------------------------------------------------------
[[Page 13301]]
SUMMARY: On December 29, 2017, the Bureau of Indian Affairs (BIA)
approved the Little Traverse Bay Bands of Odawa Indians, Michigan
(Tribe) leasing regulations under the Helping Expedite and Advance
Responsible Tribal Homeownership Act of 2012 (HEARTH Act). With this
approval, the Tribe is authorized to enter into business, agricultural,
residential, wind and solar resource, and wind energy evaluation leases
without further BIA approval.
FOR FURTHER INFORMATION CONTACT: Ms. Sharlene Round Face, Bureau of
Indian Affairs, Division of Real Estate Services, 1849 C Street NW, MS-
4642-MIB, Washington, DC 20240, at (202) 208-3615.
SUPPLEMENTARY INFORMATION:
I. Summary of the HEARTH Act
The HEARTH Act makes a voluntary, alternative land leasing process
available to tribes, by amending the Indian Long-Term Leasing Act of
1955, 25 U.S.C. 415. The HEARTH 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
(Secretary). The HEARTH 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 HEARTH
Act requires the Secretary to approve tribal regulations if the tribal
regulations are consistent with the Department of the Interior's
(Department) leasing regulations at 25 CFR part 162 and provide for an
environmental review process that meets requirements set forth in the
HEARTH Act. This notice announces that the Secretary, through the
Assistant Secretary--Indian Affairs, has approved the tribal
regulations for the Little Traverse Bay Bands of Odawa Indians,
Michigan.
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, 72,447-48 (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)). Similarly, section 465 preempts state
taxation of rent payments by a lessee for leased trust lands, because
``tax on the payment of rent is indistinguishable from an impermissible
tax on the land.'' See Seminole Tribe of Florida v. Stranburg, No. 14-
14524, *13-*17, n.8 (11th Cir. 2015). 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).
Similar to BIA's surface leasing regulations, tribal regulations
under the HEARTH Act pervasively cover all aspects of leasing. See 25
U.S.C. 415(h)(3)(B)(i) (requiring tribal regulations be consistent with
BIA surface leasing regulations). 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
Little Traverse Bay Bands of Odawa Indians, Michigan.
[[Page 13302]]
Dated: December 29, 2017.
John Tahsuda,
Principal Deputy Assistant Secretary--Indian Affairs, Exercising the
Authority of the Assistant Secretary--Indian Affairs.
Editorial Note: This document was received at the Office of the
Federal Register on March 23, 2018.
[FR Doc. 2018-06229 Filed 3-27-18; 8:45 am]
BILLING CODE 4337-15-P
