The Oneida Nation must pay property taxes on land that hasn't been taken into trust, the 2nd Circuit Court of Appeals ruled today in a lengthy and somewhat confusing ruling.

The tribe initially contested millions of dollars in taxes owed to Oneida County and Madison County. The 2nd Circuit sided with the tribe in an April 2010 ruling.

The counties appealed and the U.S. Supreme Court agreed to hear the case. But before oral arguments took place, the tribe agreed to waive its sovereign immunity for foreclosure proceedings, prompting another ruling from the 2nd Circuit.

"The OIN has affirmatively disclaimed any reliance on the doctrine of tribal sovereign immunity from suit, and it thereby abandoned its declaratory claims against the counties to the extent that they depended on such immunity," the decision stated.

However, the 2nd Circuit agreed that the tribe does not have to pay interest or penalties on taxes that accrued prior to March 29, 2005. That was the day the Supreme Court -- in Sherrill v. Oneida Nation -- ruled that the tribe must go through the land-into-trust process before asserting sovereignty over its properties.

Up until that day, the law in the 2nd Circuit was that the tribe didn't have to pay property taxes at all. During the extremely complex litigation -- which included another trip to the Supreme Court -- the counties conceded this point.

"Despite this apparent inconsistency, we agree with the OIN that the counties have forfeited their arguments in opposition to the OIN's argument that it is not liable for interest or penalties on taxes or related assessments that accrued prior to March 29, 2005," the decision stated.

Following the Supreme Court's March 29, 2005, ruling, the tribe submitted a land-into-trust application to the Bureau of Indian Affairs. The Bush administration agreed to take about 13,000 acres in trust but the decision is on hold due to litigation from the counties and other parties.

The ruling comes just three days after the Supreme Court declined to hear the tribe's land claim. The 2nd Circuit ruled that the tribe waited too long to file suit.

2nd Circuit Decision:
Oneida Nation v. Madison County (October 20, 2011)

Original 2nd Circuit Decision:
Oneida Nation v. Madison County and Oneida County (April 27, 2010)

Sherrill v. Oneida Nation Supreme Court Decision:
Syllabus | Opinion [Ginsburg] | Concurrence [Souter] | Dissent [Stevens]

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