PRIA, Government Policy, Made Personal

Summary

Protects certain tribal payments and trust accounts from federal and state income taxes. It covers four kinds of money: per-person payments or trust funds under a plan approved under this chapter; funds that on January 12, 1983 were to be paid per person or held in trust under a plan approved by Congress before that date; funds paid under Congressional plans approved after December 31, 1981 but before January 12, 1983 (and things bought with those funds); and payments from the State of Minnesota to the Bois Forte Band or the Grand Portage Band under agreements where the bands limited hunting and fishing rights in land ceded under the Treaty of September 30, 1854. This also includes any interest or investment income earned while the money is held in trust, including when held for a minor. Those funds and their interest must not be taxed by the federal or state governments. They also must not be counted as income or resources when deciding Social Security benefits or other federal or federally assisted program benefits. The one exception is per-person payments over $2,000, which can be counted for other federal programs.

Title 25, §1407

Indians, Source: USLM XML via OLRC

None of the funds which—

(1)are distributed per capita or held in trust pursuant to a plan approved under the provisions of this chapter, or

(2)on January 12, 1983, are to be distributed per capita or are held in trust pursuant to a plan approved by the Congress prior to January 12, 1983,

(3)were distributed pursuant to a plan approved by Congress after December 31, 1981 but prior to January 12, 1983, and any purchases made with such funds, or

(4)are paid by the State of Minnesota to the Bois Forte Band of Chippewa Indians or the Grand Portage Band of Lake Superior Chippewa Indians, or both, pursuant to the agreements of each Band to voluntarily restrict tribal rights to hunt and fish in territory cede under the Treaty of September 30, 1854 (10 Stat. 1109), including all interest accrued on such funds during any period in which such funds are held in a minor’s trust,

including all interest and investment income accrued thereon while such funds are so held in trust, shall be subject to Federal or State income taxes, nor shall such funds nor their availability be considered as income or resources nor otherwise utilized as the basis for denying or reducing the financial assistance or other benefits to which such household or member would otherwise be entitled under the Social Security Act [42 U.S.C. 301 et seq.] or, except for per capita shares in excess of $2,000, any Federal or federally assisted program.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Social Security Act, referred to in text, is act Aug. 14, 1935, ch. 531, 49 Stat. 620, which is classified generally to chapter 7 (§ 301 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see section 1305 of Title 42 and Tables.

Amendments

2014—Par. (4). Pub. L. 113–290 substituted “or the Grand Portage Band of Lake Superior Chippewa Indians, or both, pursuant to the agreements of each Band” for “pursuant to the agreements of such Band”. 2000—Par. (4). Pub. L. 106–568 added par. (4). 1983—Pub. L. 97–458 amended section generally. Prior to amendment, section read as follows: “None of the funds distributed per capita or held in trust under the provisions of this chapter shall be subject to Federal or State income taxes, and the per capita payments shall not be considered as income or resources when determining the extent of eligibility for assistance under the Social Security Act”.

§1407 Tax Exemption; Resources Exemption Limitation