Key Takeaways
- Criminal Was Just the Beginning: McGirt addressed major crimes jurisdiction. The practical impacts on taxation, regulation, and civil disputes are still being worked out—often through negotiation rather than litigation.
- Both Systems Apply: Operating in Indian Country doesn't mean state law disappears. It means understanding where tribal authority exists and building relationships with both sovereigns.
- Opportunity, Not Just Compliance: Oklahoma's tribal nations are major economic engines. Businesses that understand how to work within this environment have access to partnerships and markets that others don't.
The Muscogee (Creek) Nation's reservation was never disestablished. That's what the Supreme Court held in McGirt v. Oklahoma in 2020, and it's since been applied to the Cherokee, Chickasaw, Choctaw, and Seminole Nations. The practical result is that much of eastern Oklahoma—including most of Tulsa—is Indian Country for purposes of federal law.
For businesses, this created a lot of urgent questions and not many immediate answers. Four years later, we have a clearer picture of what actually changed and what it means for companies operating within tribal boundaries.
What McGirt Did (And Didn't Do)
The decision itself addressed criminal jurisdiction under the Major Crimes Act (18 U.S.C. § 1153). It didn't directly resolve taxation, civil regulation, or which courthouse handles business disputes. Those questions have been working themselves out through a combination of litigation, legislation, and negotiation ever since. For a foundational explanation of the decision itself and its scope, see our article on McGirt and Oklahoma's tribal reservations.
The common misunderstanding is that McGirt means state law no longer applies within reservation boundaries. That's not how it works. Civil jurisdiction involves a layered analysis—who the parties are, what type of land is involved, what kind of authority is being exercised. The answer is rarely "only tribal law applies" or "only state law applies." It's usually more complicated than that.
What McGirt did do is force everyone to take seriously a legal reality that had been ignored for decades. The reservations were never terminated. The treaties were never abrogated. The question now is how governments and businesses operate within that reality — a reality that isn't new but is only now being acknowledged.
Taxation: The Practical Impact
Tax questions are where most businesses first encounter post-McGirt complexity. If you're operating within reservation boundaries, you may have obligations to both the state and the tribe—depending on what you're doing, how you're doing it, and what agreements exist.
The Oklahoma Tax Commission and tribal governments have negotiated compacts addressing motor fuel taxes, tobacco taxes, and other specific areas. These agreements vary by tribe and continue to evolve. What applied last year may not apply next year; what applies with one tribe may not apply with another.
The practical guidance is to get specific advice for your specific situation. General statements about what "post-McGirt taxation" looks like aren't very useful because the answer depends on details that vary from business to business. What type of goods or services you sell, where your operations are physically located, whether your customers include tribal members, and whether your business is located on trust land versus fee land all affect the analysis. A business that operates primarily in Tulsa's urban core faces different questions than a business operating on trust land in a rural part of the reservation.
Regulatory Questions
Beyond taxation, businesses face questions about permits, licensing, environmental compliance, and employment law. Which government's permits do you need? Which agency inspects your facility? Whose employment laws govern your workforce?
The answers depend on factors including land status. Trust land and restricted land carry different jurisdictional implications than fee land within reservation boundaries. The type of business matters. The parties involved matter. And often, the practical answer involves working with multiple regulatory bodies rather than trying to determine which one has exclusive authority.
This is messier than the pre-McGirt world where businesses could generally assume state law applied and operate accordingly. But it reflects the legal reality that always existed, even when it was being ignored. The practical approach is to identify which regulatory bodies have jurisdiction over your specific operations and proactively engage with both state and tribal authorities rather than guessing which one applies and hoping you guessed correctly.
Forum Selection and Dispute Resolution
If you're entering contracts with tribal entities or doing business that might generate disputes within Indian Country, you need to think carefully about where those disputes will be resolved.
Forum selection clauses matter more than they used to. A clause specifying state court may or may not be enforceable depending on what the dispute involves and who the parties are. Tribal court jurisdiction exists for many matters, and tribal courts are legitimate judicial systems with their own procedures and substantive law.
Smart contracts address this reality explicitly. They specify not just a forum but also choice of law, dispute resolution procedures, and how jurisdictional questions will be handled if they arise. Contracts drafted before McGirt that assumed state court was the only relevant forum may create problems if disputes actually develop. Businesses that regularly operate within reservation boundaries should consider whether tribal court may have jurisdiction over certain disputes — and plan accordingly.
The Relationship Dimension
Here's what the purely legal analysis misses: Oklahoma's tribal nations are major economic participants. They operate casinos, yes, but also healthcare systems, manufacturing facilities, construction companies, and diversified business portfolios. They're employers, customers, partners, and competitors.
Businesses that approach post-McGirt Oklahoma as a compliance problem—how do we minimize tribal involvement?—are missing the point. The businesses that thrive are the ones that build genuine relationships with tribal governments and tribal enterprises, understanding that working constructively within overlapping jurisdictions creates opportunities.
This isn't just feel-good advice. Tribal nations control significant resources and have economic development priorities that create real opportunities for companies willing to do the work. Companies that can navigate the jurisdictional complexity while building trust end up on bid lists, in partnership discussions, and at tables where business gets done.
What Hasn't Settled Yet
Some questions remain genuinely unsettled. Litigation continues in federal courts over specific jurisdictional issues. State-tribal compacts continue to be negotiated and renegotiated. Federal legislation may address some areas. The landscape in 2030 will look different than it does today.
For businesses, this means building flexibility into how you operate. Rigid structures that assume jurisdictional questions will be resolved one particular way may become liabilities if the resolution goes differently. Adaptability matters.
The Long View
McGirt wasn't a disruption to the legal order. It was a recognition that the legal order had been something other than what Oklahoma assumed for a century. The treaties establishing reservations were valid. They were never properly terminated. The Supreme Court said so.
For businesses, this means operating in a state where tribal sovereignty is real and consequential. That requires different skills than operating in a state where tribal presence is marginal. It requires understanding multiple legal systems, building relationships across governmental lines, and accepting that complexity is the permanent condition, not a temporary disruption.
Companies that have figured this out are already doing well in eastern Oklahoma. The ones still waiting for "clarity" may be waiting a long time. At Addison Law, we help businesses and tribal nations navigate the overlapping jurisdictional landscape that McGirt confirmed. If your business operates within reservation boundaries and you need strategic guidance, contact us for a consultation.
Frequently Asked Questions
Does McGirt affect businesses outside of reservation boundaries?
Directly, no. But businesses that operate across Oklahoma — especially those with customers, employees, or supply chains in eastern Oklahoma — may encounter jurisdictional complexity when reservation boundaries come into play.
Do businesses on tribal reservations need tribal business licenses?
Potentially. Many tribes require businesses operating within their jurisdictions to obtain tribal business licenses, pay tribal taxes, or comply with tribal regulations. The specific requirements depend on the tribe and the nature of the business activity.
How does McGirt affect commercial contracts in Oklahoma?
Contracts involving activities on tribal land may implicate tribal jurisdiction for disputes. Businesses should consider choice of law and forum selection clauses that address which jurisdiction governs the agreement and where disputes will be resolved.
Is this going to get reversed by Congress or the courts?
The core holding — that major reservations in Oklahoma were never disestablished — is settled law. While specific jurisdictional questions will continue to be litigated, businesses should plan around this reality rather than waiting for it to change.
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