Daines-Cosponsored Indian Tax Bill Passes House

Press Release

The House of Representatives unanimously passed legislation cosponsored by Representative Steve Daines to ensure certain Indian tribal government programs and services provided to members are not taxed by the IRS, affirming sovereignty and self-determination for tribes.

The Tribal General Welfare Exclusion Act (H.R. 3043) would clarify Internal Revenue Service treatment of general welfare benefits provided by Indian tribes so that they are not subjected to federal income taxes -- similar to those provided by state or local governments.

The legislation came in response to a situation in which the IRS demanded information to perform an audit on a tribal program providing school supplies to children. In another incident, the IRS wanted to deem a wheelchair ramp built for a disabled tribal member a taxable benefit.

"The IRS shouldn't be taxing wheelchair ramps or auditing programs that provide backpacks to kids, draining resources that could otherwise be spent helping tribal members," Daines said. "The Tribal General Welfare Exclusion Act is commonsense legislation that gives tribes certainty when providing important services to their members and affirms sovereignty and self-determination for tribal nations."

H.R. 3043 also establishes a Tribal Advisory Committee to advise on the taxation of Indians and improves training and education for IRS field agents on federal Indian law.

The Daines-cosponsored legislation is supported by Montana tribes.

"Indian tribes should not be taxed for providing health care, education, housing or legal aid to those in need," Chippewa Cree Tribe Chairman Richard Morsette and Confederated Salish and Kootenai Tribes Chairman Ronald Trahan wrote in separate letters to Daines. "Your support for this legislation is greatly appreciated."

The Montana and Wyoming Tribal Leaders Council also supports the legislation.As a member of the House Natural Resources Subcommittee on Indian and Alaska Native Affairs and the Congressional Native American Caucus, Daines has been a strong advocate for Montana tribes.

He has been working to expand economic opportunities by helping tribes in southeastern Montana develop their coal resources.

Daines also introduced legislation to empower tribes and improve the implementation of the Land Buy-Back Program that was established through the landmark court settlement of Cobell v. Salazar.

He was one of 87 Republicans to vote in support of the Violence Against Women Act, which secured tribal jurisdiction over non-Indians for prosecutorial powers in cases of domestic violence and sexual assault.

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