< Back to H.R. 2239 (104th Congress, 1995–1996)

Text of the Mixed-Blood Ute Indian Tax Status Act

This bill was introduced on August 4, 1995, in a previous session of Congress, but was not enacted. The text of the bill below is as of Aug 4, 1995 (Introduced).

Source: GPO

HR 2239 IH

104th CONGRESS

1st Session

H. R. 2239

To amend section 17 of the Act of August 27, 1954 (25 U.S.C. 677p), relating to the distribution and taxation of assets and earnings, to clarify that distributions of rents and royalties derived from assets held in continued trust by the Government, and paid to the mixed-blood members of the Ute Indian tribe, their Ute Indian heirs, or Ute Indian legatees, are not subject to Federal or State taxation at the time of distribution, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

August 4, 1995

Mr. ORTON introduced the following bill; which was referred to the Committee on Resources, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned


A BILL

To amend section 17 of the Act of August 27, 1954 (25 U.S.C. 677p), relating to the distribution and taxation of assets and earnings, to clarify that distributions of rents and royalties derived from assets held in continued trust by the Government, and paid to the mixed-blood members of the Ute Indian tribe, their Ute Indian heirs, or Ute Indian legatees, are not subject to Federal or State taxation at the time of distribution, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ‘Mixed-Blood Ute Indian Tax Status Act’.

SEC. 2. TAXES ON DISTRIBUTIONS.

    Section 17 of the Act of August 27, 1954 (68 Stat. 868; 25 U.S.C. 677p) is amended to read as follows:

‘SEC. 17. TAXES ON DISTRIBUTIONS.

    ‘(a) DISTRIBUTION OF ASSETS-

      ‘(1) TAX STATUS- Except as provided in paragraph (2), the distribution of rents and royalties derived from real estate, or the oil, gas, or mineral interests contained therein, held in trust by the United States made under the provisions of this Act, either directly or through the Ute Distribution Corporation, to the mixed-blood members of the tribe, their Ute Indian heirs, or their Ute Indian legatees, shall not, at the time of such distribution, be subject to any Federal or State income tax.

      ‘(2) EXCEPTION FOR CASH DISTRIBUTION- Any cash distribution made under this Act that consists of a share of any interest earned on funds deposited in the Treasury of the United States shall not by virtue of this Act be exempt from individual income tax in the hands of the recipients for the year in which paid.

      ‘(3) REAL PROPERTY-

        ‘(A) INITIAL 7-YEAR PERIOD-

          ‘(i) Subject to clause (ii), real property distributed to the mixed-blood members of the tribe pursuant to this Act shall be exempt from property taxes for a period of 7 years commencing August 27, 1954.

          ‘(ii) The tax exemption provided for in clause (i) shall not apply if the original distributee parts with title to the real property, either by deed, descent, succession, foreclosure of mortgage, sheriff’s sale, or other conveyance. A conveyance under the preceding sentence does not include a mortgage, hypothec, right-of-way, or other similar encumbrance.

        ‘(B) AFTER 7 YEARS- Real property and income derived therefrom, distributed to the mixed-blood members of the tribe, their heirs and legatees, under this Act, shall, after August 27, 1961, be subject to the same taxes, Federal and State, as in the case of non-Indians.

      ‘(4) TAX STATUS FOR THE UTE DISTRIBUTION CORPORATION-

        ‘(A) IN GENERAL- The Ute Distribution Corporation shall not be subject to Federal or State corporate income taxes.

        ‘(B) SUCCESSOR CORPORATION- For the purpose of this section, the term ‘Ute Distribution Corporation’ includes any successor to such corporation, organized by the mixed-blood members of the tribe to--

          ‘(i) jointly manage, with the tribe, unadjudicated or unliquidated claims against the United States; and

          ‘(ii) distribute to mixed-blood members of the tribe, their Ute Indian heirs, or their Ute Indian legatees, income derived from oil, gas, and mineral rights, and all other assets not susceptible to equitable and practicable distribution.

      ‘(5) BASIS- The basis for determining gain or loss for income tax purposes for real property distributed under this Act shall be the fair market value of the real property on the date the title to such real property was transferred by the United States pursuant to this Act.

    ‘(b) REFUNDS-

      ‘(1) IN GENERAL-

        ‘(A) UNLIQUIDATED CLAIMS- An unliquidated claim against the United States shall include any Federal income tax, penalty, or interest paid by the mixed-blood members of the tribe, their Ute Indian heirs, or Ute Indian legatees, with respect to distributions of income derived from oil, gas, and mineral rights, and all other assets not susceptible to equitable distribution, received by such members, heirs, or legatees after August 27, 1961, pursuant to the Act of August 27, 1954 (68 Stat. 868; 25 U.S.C. 677p).

        ‘(B) EXCEPTION- Cash distributions consisting of a share of any interest earned on funds deposited in the Treasury of the United States shall not constitute an unliquidated claim for the purposes of this subsection.

      ‘(2) PROCEDURE- A claim described in paragraph (1) shall be payable in full by the United States to a mixed-blood member of the tribe, a Ute Indian heir, or a Ute Indian legatee, upon the filing of a claim or suit for refund under chapter 65 of the Internal Revenue Code of 1986.

      ‘(3) WAIVER OF LIMITATIONS-

        ‘(A) IN GENERAL- Any provision of the Act of August 27, 1954, the Internal Revenue Code of 1986, or other Federal law relating to--

          ‘(i) limitations on claims or suits for refund;

          ‘(ii) the amounts refundable pursuant to claims or suits for refund; or

          ‘(iii) any interest payable on any tax, penalty, and interest refundable,

        is waived to the extent necessary to refund pursuant to this section any income tax, penalty, or interest paid after August 27, 1961.

        ‘(B) INTEREST- A refund pursuant to this subsection shall include interest calculated from the date that such income tax, penalty, or interest was paid to the Federal Government, at the interest rate applicable to refunds of Federal income taxes on the date of enactment of this Act.’.