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U.S. Code as of:
01/19/04
Section 1620. Taxation
(a) Fund revenues exemption; investment income taxable
Revenues originating from the Alaska Native Fund shall not be
subject to any form of Federal, State, or local taxation at the
time of receipt by a Regional Corporation, Village Corporation, or
individual Native through dividend distributions (even if the
Regional Corporation or Village Corporation distributing the
dividend has not segregated revenue received from the Alaska Native
Fund from revenue received from other sources) or in any other
manner. This exemption shall not apply to income from the
investment of such revenues.
(b) Shares of stock exemption
The receipt of shares of stock in the Regional or Village
Corporations by or on behalf of any Native shall not be subject to
any form of Federal, State or local taxation.
(c) Land or land interests exemption; basis for sale or other
disposition, adjustment; basis for interest in mine, well, other
natural deposit, or block of timber, adjustment
The receipt of land or any interest therein pursuant to this
chapter or of cash in order to equalize the values of properties
exchanged pursuant to section 1621(f) of this title shall not be
subject to any form of Federal, State, or local taxation. The basis
for determining gain or loss from the sale or other disposition of
such land or interest in land for purposes of any Federal, State,
or local tax imposed on or measured by income shall be the fair
value of such land or interest in land at the time of receipt,
adjusted as provided in section 1016 of title 26, as amended:
Provided, however, That the basis of any such land or interest
therein attributable to an interest in a mine, well, other natural
deposit, or block of timber shall be not less than the fair value
of such mine, well, natural deposit, or block of timber (or such
interest therein as the Secretary shall convey) at the time of the
first commercial development thereof, adjusted as provided in
section 1016 of title 26. For purposes of this subsection, the time
of receipt of land or any interest therein shall be the time of the
conveyance by the Secretary of such land or interest (whether by
interim conveyance or patent).
(d) Real property interests; exemption period for conveyance of
interests not developed or leased or interests used solely for
exploration, interests taxable; derivative revenues taxable;
exchanges; simultaneous exchanges
(1) Real property interests conveyed, pursuant to this chapter,
to a Native individual, Native Group, Village or Regional
Corporation or corporation established pursuant to section
1613(h)(3) of this title which are not developed or leased to third
parties or which are used solely for the purposes of exploration
shall be exempt from State and local real property taxes for a
period of twenty years from the vesting of title pursuant to the
Alaska National Interest Lands Conservation Act or the date of
issuance of an interim conveyance or patent, whichever is earlier,
for those interests to such individual, group, or corporation:
Provided, That municipal taxes, local real property taxes, or local
assessments may be imposed upon any portion of such interest within
the jurisdiction of any governmental unit under the laws of the
State which is leased or developed for purposes other than
exploration for so long as such portion is leased or being
developed: Provided further, That easements, rights-of-way,
leaseholds, and similar interests in such real property may be
taxed in accordance with State or local law. All rents, royalties,
profits, and other revenues or proceeds derived from such property
interests shall be taxable to the same extent as such revenues or
proceeds are taxable when received by a non-Native individual or
corporation.
(2) Any real property interest, not developed or leased to third
parties, acquired by a Native individual, Native Group, Village or
Regional Corporation, or corporation established pursuant to
section 1613(h)(3) of this title in exchange for real property
interests which are exempt from taxation pursuant to paragraph (1)
of this subsection shall be deemed to be a property interest
conveyed pursuant to this chapter and shall be exempt from taxation
as if conveyed pursuant to this chapter, when such an exchange is
made with the Federal Government, the State government, a municipal
government, or another Native Corporation, or, if neither party to
the exchange receives a cash value greater than 25 per centum of
the value of the land exchanged, a private party. In the event that
a Native Corporation simultaneously exchanges two or more tracts of
land having different periods of tax exemption pursuant to this
subsection, the periods of tax exemption for the exchanged lands
received by such Native Corporation shall be determined (A) by
calculating the percentage that the acreage of each tract given up
bears to the total acreage given up, and (B) by applying such
percentages and the related periods of tax exemption to the acreage
received in exchange.
(e) Public lands status of real property interests exempt from real
estate taxes for purposes of Federal highway and education laws;
Federal fire protection services for real property interests
without cost
Real property interests conveyed pursuant to this chapter to a
Native individual, Native group, corporation organized under
section 1613(h)(3) of this title, or Village or Regional
Corporation shall, so long as the fee therein remains not subject
to State or local taxes on real estate, continue to be regarded as
public lands for the purpose of computing the Federal share of any
highway project pursuant to title 23, as amended and supplemented,
for the purpose of the Johnson-O'Malley Act of April 16, 1934, as
amended (25 U.S.C. 452), and for the purpose of Public Laws 815 and
874, 81st Congress (64 Stat. 967, 1100). So long as there are no
substantial revenues from such lands they shall continue to receive
wildland fire protection services from the United States at no
cost.
(f) Stocks of Regional and Village Corporations exempt from estate
taxes; period of exemption
Until January 1, 1992, stock of any Regional Corporation
organized pursuant to section 1606 of this title, including the
right to receive distributions under subsection 1606(j) of this
title, and stock of any Village Corporation organized pursuant to
section 1607 of this title shall not be includable in the gross
estate of a decedent under sections 2031 and 2033, or any successor
provisions, of title 26.
(g) Resource information or analysis; professional or technical
services
In the case of any Native Corporation established pursuant to
this chapter, income for purposes of any form of Federal, State, or
local taxation shall not be deemed to include the value of -
(1) the receipt, acquisition, or use of any resource
information or analysis (including the receipt of any right of
access to such information or analysis) relating to lands or
interests therein conveyed, selected but not conveyed, or
available for selection pursuant to this chapter;
(2) the promise or performance by any person or by any Federal,
State, or local government agency of any professional or
technical services relating to the resources of lands or
interests therein conveyed, selected but not conveyed, or
available for selection pursuant to this chapter, including, but
not limited to, services in connection with exploration on such
lands for oil, gas, or other minerals; and
(3) the expenditure of funds, incurring of costs, or the use of
any equipment or supplies by any person or any Federal, State, or
local government agency, or any promise, agreement, or other
arrangement by such person or agency to expend funds or use any
equipment or supplies for the purpose of creating, developing, or
acquiring the resource information or analysis described in
paragraph (1) or for the purpose of performing or otherwise
furnishing the services described in paragraph (2): Provided,
That this paragraph shall not apply to any funds paid to a Native
Corporation established pursuant to this chapter or to any
subsidiary thereof.
This subsection shall be effective as of December 18, 1971, and,
with respect to each Native Corporation, shall remain in full force
and effect for a period of twenty years thereafter or until the
Corporation has received conveyance of its full land entitlement,
whichever first occurs. Except as set forth in this subsection and
in subsection (d) of this section all rents, royalties, profits,
and other revenues or proceeds derived from real property interests
selected and conveyed pursuant to sections 1611 and 1613 of this
title shall be taxable to the same extent as such revenues or
proceeds are taxable when received by a non-Native individual or
corporation.
(h) Date of incorporation as date of trade or business; ordinary
and necessary expenses
(1) Notwithstanding any other provision of law, each Native
Corporation established pursuant to this chapter shall be deemed to
have become engaged in carrying on a trade or business as of the
date it was incorporated for purposes of any form of Federal,
State, or local taxation.
(2) All expenses heretofore or hereafter paid or incurred by a
Native Corporation established pursuant to this chapter in
connection with the selection or conveyance of lands pursuant to
this chapter, or in assisting another Native Corporation within or
for the same region in the selection or conveyance of lands under
this chapter, shall be deemed to be or to have been ordinary and
necessary expenses of such Corporation, paid or incurred in
carrying on a trade or business for purposes of any form of
Federal, State, or local taxation.
(i) Personal Holding Company Act exemption
No Corporation created pursuant to this chapter shall be
considered to be a personal holding company within the meaning of
section 542(a) of title 26 prior to January 1, 1992.
(j) Shareholder homesites
A real property interest distributed by a Native Corporation to a
shareholder of such Corporation pursuant to a program to provide
homesites to its shareholders, shall be deemed conveyed and
received pursuant to this chapter: Provided, That alienability of
the Settlement Common Stock of the Corporation has not been
terminated pursuant to section 1629c of this title: Provided
further, That the land received is restricted by covenant for a
period not less than ten years to single-family (including
traditional extended family customs) residential occupancy, and by
such other covenants and retained interests as the Native
Corporation deems appropriate: Provided further, That the land
conveyed does not exceed one and one-half acres: Provided further,
That if the shareholder receiving the homesite subdivides such
homesite, he or she shall pay all Federal, State, and local taxes
that would have been incurred but for this subsection together with
simple interest at 6 per centum per annum calculated from the date
of receipt of the homesite, including taxes or assessments for the
provision of road access and water and sewage facilities by the
conveying corporation or the shareholder.
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