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11th Circuit Rules Indian Tribes Not Subject to Sales Tax on Commercial Real Estate Rentals

August 28, 2015 Business & Tax Blog Stamp Tax

The 11th Circuit Court of Appeals recently ruled that leases of commercial real estate within casinos owned by the Seminole Tribe of Florida to non-Indian corporations are not subject to Florida sales tax. Florida imposes sales tax on commercial rent payments. However, the Court of Appeals upheld the decision of the federal district court and found that Florida’s commercial rental tax, when applied to land on Indian reservations, is preempted by federal law. More specifically, the court ruled that the Indian Reorganization Act of 1934 prohibits state taxes on Indian land rights, including a tax on the lease of Indian land rights. The full opinion can be found here:

Michael J. Wilson