- 18 -
effect on the outcome of Campbell I or has any effect on this
case. Regardless of petitioner’s failure to point to any
specific changes in the law, we find that none of the amendments
enacted after the decision in Campbell I has any bearing
whatsoever on the resolution of the issue in this case. We also
note that we specifically addressed the IGRA in our decision in
Campbell I. See Campbell v. Commissioner, T.C. Memo. 1997-502.
Petitioner sets forth several alternative arguments in this
case to support his contention that the per capita distributions
should not be subject to Federal income taxes that were not made
in Campbell I.14 One of those arguments, which petitioner
describes as his “primary argument”, is that “the United States
approved a Constitution and a Corporate Charter for the
* * * [tribe] in Minnesota. * * * These documents indicate that
14Petitioner also reiterated an argument he made in Campbell
I based on Squire v. Capoeman, 351 U.S. 1 (1956). Petitioner
asserted that under Squire v. Capoeman, supra at 4, income
“derived directly” from the land, including per capita
distributions, is exempt from taxation. Petitioner asserted that
a portion of the per capita distributions received was from
business income earned from operations other than gaming, such as
a restaurant, a buffet, two “snack-bars”, a gift shop, a tobacco
shop, a marina, and an RV park-campground. This exact argument
was the crux of petitioner’s argument in Campbell I, and we
decline to consider the argument a second time. See Campbell v.
Commissioner, T.C. Memo. 1997-502. In Campbell I, we
specifically considered Squire v. Capoeman, supra, and held:
“Income earned through the investment of capital or labor, such
as restaurants, motels, tobacco shops, and similar improvements
to the land, fails to qualify for the exemption * * *. Under the
rationale of these cases, the income derived from the operation
of a casino would not be derived directly from the land.”
(Citations omitted.).
Page: Previous 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 NextLast modified: May 25, 2011