South Point Energy Center LLC v. Ador

Summary

The court held that the Indian Reorganization Act does not expressly preempt Arizona's ad valorem property tax on a power plant owned by a non-Indian lessee when the lease gives the lessee ownership of the improvements. The court distinguished the federal tax-immunity principles applicable to Indian-owned property and concluded that the Plant was not among the trust-owned lands or rights exempt under the Act. It vacated the relevant portions of the court of appeals' decision and remanded for consideration of implied preemption under the Bracker balancing framework.