The US House has unanimously passed a bill ensuring that certain tribal government programs and services won't be taxed by the I.R.S.
The “Tribal General Welfare Exclusion Act” was drawn up in response to an I.R.S request to perform an audit on a tribal program providing school supplies to children. In another incident, the agency wanted to deem a wheelchair ramp for a disabled tribal member a taxable benefit.
Henry Cage is a council member of the Oregon's Lummi Nation and Taxation Committee Chair of the Affiliated Tribes of Northwest Indians.
Cage says the IRS was excessively taxing critical tribal programs and services, including student scholarships, eldercare services and powwows.
If the bill eventually gets President Obama's signature, according to Cage, tribal members won't notice immediate financial gain.
"But they will understand that it took a lot to get the IRS to back off on what they were trying to do to tax everything the tribe was doing to serve its people," Cage says. "So they really won't see (monetary gain), but it could have been a worse case scenario where they would have been filling out 1099's for the rest of their lives."
The measure also establishes a tribal advisory committee to improve training and cultural education for IRS field agents on federal Indian law. Cage believes that's an important element because he says many people from outside Indian Country have no idea how to work with tribal nations.
The bill unanimously passed the U.S House and is supported by Montana's tribes.
