States' Power To Levy Tax On Mineral Rights Not Limited By MMDR Act; Royalty Not Tax: Supreme Court Holds By 8 :1

The Supreme Court ruled that states have the authority to levy taxes on mineral rights independently of the Mines and Minerals (Development and Regulation) Act (MMDR Act). The Court clarified that while the MMDR Act regulates the grant and terms of mining leases and royalties, it does not limit a state’s power to impose taxes on mineral rights. This ruling emphasized that royalties are distinct from taxes, with the former being compensation for resource extraction, while the latter is a fiscal measure imposed by the state. This decision reinforces states' autonomy in tax matters related to mineral rights beyond federal regulation.