Former Indian reservations in Oklahoma facts for kids

Oklahoma used to be divided into two main areas: Oklahoma Territory and Indian Territory. In Indian Territory, Native American nations had their own lands with clear borders. Before Oklahoma became a state in 1907, the U.S. government used a process called the allotment process. This process divided up the tribes' shared lands.

After this, areas called Tribal Jurisdictional Areas took the place of the old tribal governments. However, the Osage Nation was an exception. The Osage Nation Reaffirmation Act of 2004 confirmed that the Osage Nation still owns the mineral rights (like oil and gas) under their reservation. This is sometimes called their "Underground Reservation."

Since 1990, the United States Census has collected information about these tribal areas. These areas are based on the old boundaries from before Oklahoma became a state. Some of them even cross state lines.

In 2017, a court called the United States Court of Appeals for the Tenth Circuit made an important decision. They ruled that the reservation for the Muscogee (Creek) Nation was never officially ended by federal law. This ruling was part of a case known as Carpenter v. Murphy.

Then, in 2020, the highest court in the country, the U.S. Supreme Court, made another big decision in a case called McGirt v. Oklahoma. They ruled that the land set aside for the Muscogee (Creek) Nation in the 1800s is still considered Indian country.

History of Tribal Lands in Oklahoma

Before Oklahoma became a state in 1907, the U.S. Congress passed several laws. These laws, like the Oklahoma Organic Act and the Oklahoma Enabling Act, were meant to prepare Oklahoma to join the United States. However, these laws were often confusing. Sometimes they seemed to try and end the tribal governments and reservations in Oklahoma. Other times, they seemed to support them.

In 2017, the 10th U.S. Circuit Court of Appeals decided that at least one reservation, the modern Muscogee (Creek) Nation Reservation, was never truly dissolved. Congress also transferred almost all tribal lands. These lands went to individual tribal members, were sold to non-tribal members, or were held in trust by the federal government for the tribes.

By 1936, the U.S. government changed its approach to Native American tribes. The Oklahoma Indian Welfare Act helped to bring back the Indian nations within Oklahoma.

Congress tried to fix things further with the Omnibus Budget Reconciliation Act of 1993. This law offered special tax benefits for businesses operating within Indian reservations. Congress wanted these benefits to also apply in Oklahoma. So, they included "former Indian reservations in Oklahoma" in the legal definition of an Indian reservation. In 1997, these lands were defined as the "then-current jurisdictional areas" of Oklahoma Indian tribes.

Tax Benefits for Tribal Areas

In 1998, the IRS (the U.S. tax agency) set the boundaries for what they called "Former Indian Reservations in Oklahoma." For tax reasons, current and former lands owned by Native American tribes are treated like they are still Indian reservations. This is true even if the land is now owned by someone else. About two-thirds of Oklahoma is treated this way for tax purposes.

In 2010, the IRS also issued a memo about tribes in Oklahoma issuing special bonds to help with economic development.

Faster Tax Write-Offs

The U.S. tax code allows businesses to get faster tax write-offs (called accelerated depreciation) for certain property. This applies to property located on an Indian reservation, as defined above. Generally, these write-offs happen about three times faster than regular ones.

To get these faster write-offs, the property must meet certain rules:

• It must be used mainly for a business on an Indian reservation.
• It cannot be used or located outside the reservation regularly.
• It cannot be used for certain types of gaming (gambling).
• It cannot be residential rental property.
• It cannot be owned by someone who has to use a different tax system.
• It had to be put into use before January 1, 2008.

These faster write-off rules have been extended several times since they started.

Economic Growth Opportunities

A HUBZone is a special program from the Small Business Administration. It helps businesses that are located in areas that need more economic growth. These areas are called Historically Underutilized Business Zones. Any land within the boundaries of a federally recognized Indian Reservation, or a former Indian reservation in Oklahoma, is included in this program.

Government agencies are required to spend at least 3% of their money with main contractors located in HUBZones. This helps to support businesses in these areas.

Department of Defense Indian Incentive

The Department of Defense (DoD) has a program called the Indian Incentive Program. It gives a 5% rebate (money back) to a main contractor. This rebate is based on the total amount of money they pay to a subcontractor that is an Indian-Owned Economic Enterprise or Indian Organization.

To qualify, the organization must be at least 51% owned by a federally recognized tribe or one of its members.