SILETZ NewS
Confederated Tribes of Siletz Indians
Vol. 42, No. 10
October 2014
Siletz News
Confederated Tribes of
Siletz Indians
P.O. Box 549
Siletz, OR 97380-0549
Presorted
First-Class
Mail
U.S. Postage
Paid - Permit
No. 178
Salem, OR
Delores Pigsley,
Tribal Chairman
Brenda Bremner,
General Manager
and Editor-in-Chief
Courtesy photo by Ann Goddard
Ian Kelley carries the eagle staff as nightfall approaches on the first day of this year’s Run to the Rogue. See more photos on pages 9-12.
Congress passes Tribal General welfare exclusion Act, which bans taxes
on health care, education, housing and legal aid provided by Tribes
WASHINGTON – On Sept. 18, the
U.S. Senate passed H.R. 3043, the Tribal
General Welfare Exclusion Act, by unani-
mous consent. On Sept. 16, the measure
passed the House of Representatives by
voice vote.
The Tribal General Welfare Exclusion
Act will fully recognize that Indian Tribes
– as sovereign nations – are responsible
for making certain their government pro-
grams and services best fit the needs of
their citizens, just as other local govern-
ments across the country do.
For years, Indian Tribes have been
taxed for providing health care, educa-
tion, housing or legal aid to those in need.
Local and state governments throughout
the United States frequently offer such
services to those who need assistance, but
the people receiving help are not taxed
by the IRS.
The path to this legislation began in
2005 when the Internal Revenue Service
Office of Tribal Governments began
an aggressive audit campaign against
Tribes, finding that programs and services
provided by Tribal governments to their
citizens were a form of taxable income
and imposing penalties against Tribes for
failing to issue 1099 forms.
Even though no federal, state or local
government programs were subject to the
same taxation, the IRS grew increasingly
strict, alleging that backpacks provided
to schoolchildren or travel provided to
Elders for health care were a form of
taxable income.
As these audits spread from Tribe to
Tribe, Tribal leaders became increasingly
unified and vigorously opposed.
The IRS responded with guidance in
Revenue Procedure 2014-35 that set up
a series of “safe harbors” for Tribal pro-
grams and services. The guidance is very
helpful, but Tribal leaders have remained
concerned that IRS field offices have been
inconsistent in recognizing Tribal govern-
ment status and receive little training.
Once signed into law, the Tribal Gen-
eral Welfare Exclusion Act will:
•
•
•
•
•
Mandate Tribal government pro-
grams, services and benefits autho-
rized or administered by Tribes for
Tribal citizens, spouses and depen-
dents are excluded from income as a
“general welfare exclusion”
Clarify that items of cultural signifi-
cance (e.g., paying someone to lead
sacred Indian ceremonies) or cash
honoraria provided by Tribal govern-
ments shall not represent compensa-
tion for services and shall be excluded
from taxable income
Direct the Secretary of Treasury to
require education and training of IRS
field agents on federal Indian law
and the unique legal treaty and trust
relationship between the government
and Tribes
Establish a Tribal Advisory Com-
mittee within the Treasury to advise
the secretary on matters of Indian
tax policy
Temporarily suspend all audits and
examinations of Tribal governments
•
•
and members until the education and
training measures are completed
Authorize the secretary to waive any
penalties or interest imposed on Indian
Tribal governments or members
Direct the secretary that any ambi-
guities in applying this act shall be
resolved in favor of Tribal govern-
ments and deference shall be given to
Tribal governments for the programs
administered and authorized by the
Tribe to benefit the general welfare
H.R. 3043 was sponsored in the
House by Representatives by Devin
Nunes (R-CA). The Senate companion
bill, S. 1507, was sponsored by Sen. Heidi
Heitkamp (D-ND) and Sen. Jerry Moran
(R-KS).
According to the National Congress of
American Indians, this is a statement to the
work of Tribal leaders over the years that
See welfare on page 4