455 U.S. 720 (1982)
United States v. New Mexico illustrated a critical moment in the legal discourse on federal preemption, specifically concerning the extent of state taxation authority over Indian tribes.
Does federal law preempt New Mexico’s imposition of taxes on non-Indian entities conducting business on Indian tribal lands?
Federal law preempts state taxation of non-Indians conducting business on reservation land unless explicitly authorized by Congress or when the state taxation does not interfere with tribal self-government or deprive the tribe of its jurisdiction.
The Supreme Court held that New Mexico’s taxation of non-Indian entities conducting business with Indian tribes was not preempted by federal law, as there was no express congressional intent to preclude such state taxes in the statutory or regulatory framework.
This case is significant for its establishment of the conditions under which state taxation within Indian country is permissible without federal preemption. It serves as a reference for navigating the intricate interplay among federal, state, and tribal authorities. The decision underscores the autonomous taxation powers states hold unless there is clear opposition or interference with federal objectives related to Indian tribes.