In a 7-2 decision the U.S. Supreme Court held that, “Because Kansas’ motor fuel tax is a nondiscriminatory tax imposed on an off-reservation transaction between non-Indians, the tax is valid and poses no affront to the Nation’s sovereignty. The Bracker interest-balancing test does not apply to a tax that results from an off-reservation transaction between non-Indians.”

The Potawatomi Nation brought suit for declaratory and injunctive relief, challenging imposition of Kansas motor fuel excise tax (K.S.A. § 79-3408© (2003 Cum.Supp.)) on a non-Indian distributor that supplies fuel to a gas station operated by the Nation on reservation property. The United States District Court for the District of Kansas, 241 F. Supp. 2d 1295, granted summary judgment dismissing action. The Potawatomi Nation appealed. The Tenth Circuit Court of Appeals, 379 F.3d 979 reversed. The State of Kansas petitioned for certiorari which was granted.