McClanahan v. State Tax Commission of Arizona

McClanahan v. State Tax Commission of Arizona was a case where the Arizona Supreme Court ruled that Native American tribes, like the Navajo Nation, are considered sovereign entities. This means they have the right to regulate their own members and lands, including taxing or not taxing sales made on reservations. The Court held that applying state sales tax on transactions conducted within Indian reservations infringes upon tribal sovereignty and was therefore unconstitutional. This decision reinforced the legal principle that Native American tribes have a recognized sovereign status, which limits the state's ability to enforce certain taxes on tribal lands and members.