Cross v. Commissioner
United States Tax Court
Petitioners, members of the Puyallup Indian Nation, operate a smokeshop on land held in trust by the United States under the provisions of the Medicine Creek Treaty of 1854 and the General Allotment Act of 1887. Held, income derived from the smokeshop is taxable because it is neither "directly derived" from the underlying trust land, nor expressly exempted from taxation by any statute or treaty.
Read the full summary
Petitioners, members of the Puyallup Indian Nation, operate a smokeshop on land held in trust by the United States under the provisions of the Medicine Creek Treaty of 1854 and the General Allotment Act of 1887. Held, income derived from the smokeshop is taxable because it is neither "directly derived" from the underlying trust land, nor expressly exempted from taxation by any statute or treaty. Held, further, smokeshop income allocable to the fair rental value of the unimproved land upon which the smokeshop sits is not income "directly derived" from the trust land within the meaning of…
1Opinion of the Court
OPINION
Wilbur, Judge:
In these consolidated cases, respondent determined the following deficiencies and additions to tax in petitioners’ Federal income taxes:
Sec. 6653(a)1 Docket No. Petitioner Year Deficiency addition to tax
11879-78 Silas V. and 1976 $27,233 $1,362 Millie Cross
11880-78 Silas A. and 1976 542 27 Francine V. Cross
After concessions, the only issue remaining for our decision is whether income earned by an enrolled member of the Puyallup Indian Nation from the operation of a smokeshop upon land held in trust by the United States is subject to Federal income taxation.2
This case was…
2Cases cited26 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Mescalero Apache Tribe v. JonesSupreme Court of the United States · 1973
- Squire v. CapoemanSupreme Court of the United States · 1956
- Federal Power Commission v. Tuscarora Indian NationSupreme Court of the United States · 1960
- Elk v. WilkinsSupreme Court of the United States · 1884
21 more not listed; retrieve them via the Exa API.
3Cited by24 opinions
- Dillon v. United StatesCourt of Appeals for the Ninth Circuit · 1986
- Dillon v. United StatesCourt of Appeals for the Ninth Circuit · 1986
- Rickard v. CommissionerUnited States Tax Court · 1987
- Cabazon Indian Casino v. Internal Revenue Service (In Re Cabazon Indian Casino)United States Bankruptcy Appellate Panel for the Ninth Circuit · 1986
- Charles E. v. United StatesUnited States Court of Claims · 1986
19 more not listed; retrieve them via the Exa API.