More trouble is brewing and confusion reigns because of the controversial Supreme Court verdict in the McGirt case, which restored reservation status to massive parts of Oklahoma.

Last month, the Oklahoma Supreme Court got a case involving a case in which Warehouse Market, Inc., should pay sales tax to the State of Oklahoma and also to the Muscogee (Creek) Nation.

What?

Instead of deciding what is right or wrong, the Oklahoma Supreme Court sent the case back down to district court. The argument was that it was a tax problem that had to be decided administratively by the Oklahoma Tax Commission and not the state courts.  A lower court had dismissed the Muscogee (Creek) Nation because of its sovereign immunity and the Supreme Court decided the dispute had become a tax protest and should be handled by the OTC.

In 2018, the Creek Nation sent a letter to Warehouse Market telling them that the tribe intended to start collecting a tribal tax on sales at the Cox Cash Saver Cost Plus Store. That store is located on tribal land in Okmulgee.

The store was current in sending sales tax to the state  but the letter threatened fines, ending of licenses and maybe even forced closure if it didn’t pay sales tax to the state and the tribe.

A district judge ruled for Warehouse Market until the Tax Commission and tribe could solve this dispute. And Warehouse Market has filed a federal lawsuit to straighten out this mess.

Here’s what happened.

The Oklahoma Supreme Court chickened out an pushed this decision back to the Tax Commission.

In light of the McGirt decision, the Creeks could prevail and be the ones who collect the sales tax on their land.

Most of the City of Tulsa is now “their land” and that could have a gigantic impact on payment of property taxes and sales taxes. It could bankrupt state government.

In any case, there probably will be higher taxes for Oklahomans

The U.S. Congress, the federal government and the courts had better straighten this out before it causes severe damage to Oklahomans.

 Otherwise, it could get a lot stickier very quickly.