The Oklahoma Supreme Court broke with 150 years of precedent when it held that Native Americans living and working on tribal land must pay state income tax, a Muscogee (Creek) Nation citizen told the US Supreme Court.
“By rejecting the settled rule that States categorically cannot tax the income of Indians like petitioner absent express congressional authorization, the decision below destabilizes the clear rules that govern States’ jurisdiction in this context,” Alicia Stroble said in a petition for review docketed Wednesday.
If the decision is left unchecked, Oklahoma’s approach could embolden other states to attempt new taxation of tribes and their citizens, and discourage tribes from raising their own revenue to avoid placing additional tax burdens on their members, Stroble argued.
Attorneys and advocates called for the Supreme Court to provide clarity after the Oklahoma court’s splintered July ruling.
The state justices refused to extend the US Supreme Court’s 2020 holding in McGirt v. Oklahoma—that the tribe’s reservation is Indian country—to bar the state from imposing income tax on those living and working there. The court sided with the Oklahoma Tax Commission, which argued that McGirt isn’t applicable because it’s a federal case involving a criminal statute.
Hundreds of tribal citizens filed tax protests with the commission after McGirt was decided. Stroble sought a refund of about $7,500 for tax years 2017-2019.
The parties agreed that the state could lose about $75 million a year if it could no longer tax the 200,000 tribal members on five eastern Oklahoma reservations. Stroble told the US Supreme Court that amount is a “drop in the bucket” for the state, but “matters a great deal” to tribal citizens.
Cooley LLP and Michael Parks in McAlester, Okla., represent Stroble.
The case is Stroble v. Okla. Tax Comm’n, U.S., No. 25-382, petition for review 9/29/25.
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