Courts likely will block Oklahoma from imposing income taxes on tribal citizens who live and work on their nations’ reservations, according to the state’s top law official.

Attorney General Gentner Drummond said Tuesday that he believes tribes are in the right — not the state — in a pivotal legal fight over Oklahoma’s ability to tax tribal citizens on tribal reservations. The areas regained legal standing after a landmark U.S. Supreme Court decision in 2020. Federal law limits state authority over tribal citizens on tribal lands.

In the current dispute, a Muscogee Nation employee and citizen, Alicia Stroble, has argued Oklahoma cannot tax her since she lives within the Muscogee Reservation. But Gov. Kevin Stitt and the state contend Oklahoma still has the power to tax Stroble and other tribal citizens.

The case is being decided by the Oklahoma Supreme Court and likely will be appealed to the nation’s highest court. The decision could affect hundreds or thousands of tribal citizens.

“When (the) Stroble (case) ultimately works its way through the court system, I think that the tribal position is correct,” Drummond told a crowd of tribal leaders and lawyers.

His remarks came at the start of the Sovereignty Symposium, an annual conference focused on tribal law issues. The decades-old forum was designed to promote understanding between state and tribal representatives. Several speakers acknowledged, however, that tensions are currently running through state-tribal relations, particularly those overseen by Stitt.

Negotiating on a government-to-government basis could help resolve problems in ways that benefit everybody, the attorney general and others said. Drummond, who often opposes Stitt’s stance on tribal matters, said he would support compacting with tribes over income taxes.

“We have no limits on what we can do as partners, especially when you redefine the stakes,” he said. “Presently, the state of Oklahoma negotiates with a tribe on a zero-sum basis. So if the tribe wins, the current concept is the state loses. We know that’s not true.”

Abegail Cave, a spokesperson for Stitt, said the governor also had been invited to speak at the symposium but could not attend because of his schedule.

She said Stitt would like to see Oklahoma eliminate income taxes altogether, but until then, he does not believe a person’s “race, heritage or political affiliation” should determine their tax liability.

“The attorney general’s stance is in stark contrast to the constitutional principles our state and nation were built on,” she wrote in an email.

Hershel Gorham, the lieutenant governor of the Cheyenne and Arapaho Tribes based in Concho, said he believes the tax dispute is a settled matter under federal law.

“If you work for your nation, your income’s derived from your nation, and you live on your reservation land, you’re exempt from state income tax,” he said. “What’s the issue? But here we are.”

He suggested Oklahoma leaders look to other states with tribal reservations for a blueprint to follow on how to share power and responsibilities on those lands. He pointed to California, Wyoming, Minnesota, New Mexico and Arizona as examples.

Gorham took issue with Stitt’s approach to working with tribes, particularly blanket letters sent by the governor to tribal leaders. In May, Stitt sent a letter to tribal leaders that contained his proposal for a model car tag compact.

Tribes have different population bases and different needs, so one-size-fits-all approaches do not work, Gorham said.

“You would not give a size 4X shirt to someone that wears a size medium,” he said.

Cave said Stitt is making good faith efforts to negotiate with tribal leaders to resolve his public safety concerns tied to tribal tags.

“He has been clear about what he thinks is best for the state and he has publicly invited all tribal leaders to come and discuss compacts,” she said. “The governor is grateful for those that have and sent a letter that outlined his preferred terms in the hopes that more would engage in discussions.”

Stitt has repeatedly said Oklahoma police officers do not have access to information about vehicles with tribal tags except for Chickasaw and Choctaw nation plates. Yet most tribal nations upload their plate information to a law enforcement database used statewide.

Chuck Hoskin Jr., the principal chief of the Cherokee Nation in Tahlequah, said Stitt has frequently made incorrect claims about tribal nations in his five years in office, impeding forward progress.

“We’re spending too much time not dealing with the same set of facts,” he said. “And we’re spending too much time trying to find solutions to problems that don’t exist.”

Leaders of Oklahoma City University, which hosted the symposium, said they hope to promote understanding between tribal and state tribal governments through a new institute devoted to tribal sovereignty.

Oklahoma City Mayor David Holt, who is also dean of the university’s law school, announced the initial plans for the Tribal Sovereignty Institute on Tuesday. He said the university will hire a director for the institute over the next year and grow its reach after that person starts.

“It has great potential, but to even begin exploring that potential, we have to get started,” he said.

Molly Young covers Indigenous affairs. Reach her at mollyyoung@gannett.com or 405-347-3534.

This article originally appeared on Oklahoman: Oklahoma AG calls for income tax compacts with tribes