The US Supreme Court ruled in a split decision Tuesday that a provision in the 1855 Treaty between the Yakama Nation of Indians and the US preempts Washington state’s fuel tax.
The case before the court involved Cougar Den, a wholesale fuel importer incorporated under Yakama law. Cougar Den obtains fuel in Oregon and transports it using Washington state’s public highways, selling the product at gas stations located within the Yakama reservation. Because this transport of fuel involves public highways, the Washington State Department of Licensing argued that $3.6 million in state taxes, penalties and licensing fees were owed.
