SB 855 impacts to tribal membersPublic Service Bulletin

November 5, 2018

Purpose of bulletin

To inform staff that pursuant to SB 855, beginning on or after January 1, 2018 income of tribal members of a federally recognized California Indian tribe living in California Indian country earned from any federally recognized California Indian country as defined in 18 U.S.C.1151, is exempt from California taxation. The exemption applies to "earned income" which includes wages, salaries, commissions, or professional fees, and other amounts received as compensation for personal services actually rendered. The exemption does not apply to "received income" (per capita income).

Background

Prior to SB 855, the income of tribal members of a federally recognized California Indian tribe living in California Indian country was exempt from California taxation only if earned from the tribal members' affiliated Indian Country.

Additional information

Enrolled tribal members who receive per capita income must still reside in their affiliated tribe's Indian country for the per capita income to be exempt from taxation. The table below clarifies the requirements for  earned income and received income:

Exemption requirements

Earned income (wages) Received income (per capita)
The individual must be an enrolled member of a federally recognized California Indian tribe. The individual must be an enrolled member of a federally recognized California Indian tribe.
The individual must live within any California Indian country. The individual must reside in affiliated tribe’s California Indian country.
The individual must earn reservation source income from California Indian country. The individual must receive reservation sourced income from the same California Indian country in which the individual lives and is an enrolled member.

Taxpayer inquiries

Refer enrolled members, tribal governments, or designated representatives, to our tribal hotline:

Phone
(916) 845-2790
Fax
(916) 843-2299
Tribal Hotline@FTB