A non-Indian owned power plant on the Fort Mojave Reservation must pay property taxes to the state, the Arizona Court of Appeals ruled on April 16.

Calpine Construction Finance Co. signed a 50-year lease with the Fort Mojave Tribe to operate a plant on trust land. The court said the facility is subject to state taxes because it is fully owned by a non-Indian company.

"In general, a state cannot tax property located on a reservation that is owned by an Indian tribe or an individual Indian," Judge Patrick Irvine wrote in the unanimous opinion. "Property owned by a non-Indian, however, is taxable."

The state Department of Revenue assessed the property at $88 million in 2003 and $122.9 million in 2004.

Get the Story:
Companies on reservations owe taxes (Capitol Media Services 4/25)

Arizona Appeals Court Decision:
Calpine v. Arizona Department of Revenue (April 16, 2009)