181271P.pdf   09/06/2019  Flandreau Santee Sioux Tribe  v.  Kristi Noem
   U.S. Court of Appeals Case No:  18-1271
   U.S. District Court for the District of South Dakota - Sioux Falls   
   [PUBLISHED] [Loken, Author, with Colloton and Kelly, Circuit Judges] 
   Civil case - Indian Gaming Regulatory Act. The Tribe failed to remit the 
   State of South Dakota's use tax on goods and services sold to nonmembers 
   at the Tribe's Casino and related store, and the State's Department of 
   Revenue denied the Tribe's applications for renewal of the alcoholic 
   beverage licenses issued to the casino and the store. The Tribe filed this 
   action alleging the imposition of the use tax on purchases by nonmembers 
   on reservation land was preempted by the Indian Gaming Regulatory Act and 
   that conditioning renewal of the Tribe's alcohol licenses on use tax 
   remittance violated 18 U.S.C. Sec. 1161. The district court concluded the 
   state could not collect the tax on the sale of amenities in the casino but 
   could collect the tax on sales of goods and services to nonmembers at the 
   store. The court further determined that the state could not condition 
   renewal of the liquor licenses on remittance of the taxes due on store 
   sales. Held: The Indian Gaming Regulatory Act does not expressly preempt 
   the imposition of the use tax on nonmember purchases throughout the casino 
   but under relevant Supreme Court precedent, the tax is preempted because 
   the revenues generated by the sales of the amenities contribute 
   significantly to the economic success of the Tribe's Category III gaming 
   at the casino, and imposition of the tax would be contrary to the Act's 
   broad policies of increasing tribal revenue and ensuring the tribes are 
   the primary beneficiaries of gaming revenue; the State may condition 
   renewal of the alcoholic beverage licenses on the Tribe's failure to remit 
   the validly imposed portions of the use tax, and the district court's 
   holding that it could not, is reversed. Judge Colloton, concurring in part 
   and dissenting in part.