Arizona Department of Revenue v. Blaze Construction Co.

In United States v. New Mexico, 455 U. S. 720 (1982), we held that a State generally may impose a nondiscriminatory tax upon a private company’s proceeds from contracts with the Federal Government. This case asks us to determine whether that same rule applies when the federal contractor renders its services on an Indian reservation. We hold that it does.

I

Under the Federal Lands Highways Program, 23 U. S. C. §204, the Federal Government finances road construction and improvement projects on federal public roads, including Indian reservation roads. Various federal agencies oversee the planning…