Laws: Cases and Codes : U.S. Code : Title 25 : Section 677p


   
U.S. Code as of: 01/19/04
Section 677p. Tax exemption; exceptions and time limits; valuation for income tax on gains or losses

      No distribution of the assets made under the provisions of this
    subchapter shall be subject to any Federal or State income tax:
    Provided, That so much of any cash distribution made hereinunder as
    consists of a share of any interest earned on funds deposited in
    the Treasury of the United States shall not by virtue of this
    subchapter be exempt from individual income tax in the hands of the
    recipients for the year in which paid. Property distributed to the
    mixed-blood group pursuant to the terms of this subchapter shall be
    exempt from property taxes for a period of seven years from August
    27, 1954, unless the original distributee parts with title thereto,
    either by deed, descent, succession, foreclosure of mortgage,
    sheriff's sale or other conveyance: Provided, That the mortgaging,
    hypothecation, granting of a right-of-way, or other similar
    encumbrance of said property shall not be construed as a conveyance
    subjecting said property to taxation under the provisions of this
    section. After seven years from August 27, 1954, all property
    distributed to the mixed-blood members of the tribe under the
    provisions of this subchapter, and all income derived therefrom by
    the individual, corporation, or other legal entity, shall be
    subject to the same taxes, State and Federal, as in the case of
    non-Indians; except that any corporation organized by the
    mixed-blood members for the purpose of aiding in the joint
    management with the tribe and in the distribution of unadjudicated
    or unliquidated claims against the United States, all gas, oil, and
    mineral rights of every kind, and all other assets not susceptible
    to equitable and practicable distribution shall not be subject to
    corporate income taxes. Any valuation for purposes of Federal
    income tax on gains or losses shall take as the basis of the
    particular taxpayer the value of the property on the date title is
    transferred by the United States pursuant to this subchapter.



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