TAXATION - EXEMPTION OF FEDERAL INSTRUMENTALITY -PROPERTY OF A GOVERNMENTAL AGENCY USED FOR NON-GOVERNMENTAL PURPOSE

Oklahoma attempted to tax property used by the lessee of restricted Indian land in producing oil and gas. It was argued that the property was not taxable because the lessee was a federal instrumentality, and Congress had not consented to its taxation. Held, property is not exempt from a non-discriminatory ad valorem state tax merely because it is the property of a federal instrumentality. There should be no exemption unless the taxation imposes a direct burden upon the exertion of a federal governmental power.

Taber v. Indian Territory Illuminating Oil Co., (U. S. 1937) 57 S. Ct. 334.