August 30, 1979
Mr. Michael E. Sebastian
Buffalo County State's Attorney
Miller, Miller and Sebastian
Plankinton, South Dakota 57368
Official Opinion No. 79-29
Taxation of reservation land held by a non-Indian
Dear Mr. Sebastian:
You have requested an official opinion from this office based on the following facts:
FACTS:
We have recently been contacted concerning the taxation of Indian reservation land, land which is held and controlled by a non-Indian. There is a snag in the entire setting, however, that the land in question is not solely controlled by the aforesaid non-Indian; it is held in joint tenancy by the non-Indian and his Indian spouse.
Based upon the above facts you have asked the following questions:
QUESTIONS:
1. May Indian land, located on an Indian reservation, and held jointly by a non-Indian and an Indian, be taxed?
2. If Indian land is deeded to a non-Indian, who subsequently deeds it back to an Indian, would this deeded land remain on the tax rolls as taxable property or would it revert to a former tax-exempt status as Indian-owned land?
IN RE QUESTION NO. 1:
In my opinion the answer to your first question is that the land is taxable. It is apparent from your fact situation that the land involved is no longer held in trust status for an Indian by the United States Government. This being so, it is clear in my view that the land is taxable. United States v. Rickert, 188 U.S. 432, 23 S.Ct. 478, 47 L.Ed. 532 (1903); Lebo v. Griffith, 42 S.D. 198, 173 N.W. 840 (1919); article XXII § 2 of the South Dakota Constitution.
IN RE QUESTION NO. 2:
In my opinion the answer to your second question is that the property would remain on the tax rolls until the property would be returned to a “trust” status. This “trust” status is not automatically returned upon the purchase of the land by an Indian, but must be applied for from the United States Government. Once such a trust status is again retained, it would then appear that the land would not be taxable under the above-cited authorities.
Respectfully submitted,
Mark V. Meierhenry
Attorney General
MVM:DOC:In
