Also attach the following completed forms, which show your reservation and nonreservation income:
You should file following the current tax year's return due date (generally April 15 or the extended due date October 15).
In place of the certification form, the tribal government can submit a list on behalf of all enrolled members who live on the reservation. Call our tribal hotline for submission details.
Tribal Consultation Policy
Our Tribal Consultation Policy will be posted here by December 31, 2016.
No current notices.
Indian country is all:
- Land within an Indian reservation under jurisdiction of the United States (U.S.) government including the rights-of-way running through the reservation.
- Dependent Indian communities within the U.S. borders under the U.S. government’s jurisdiction.
- Indian allotments, to where Indian titles exist, including the rights-of-way that run through the allotments.
Even if you live in Indian country, you're still a California resident.
Refer to 18 U. S. C. 1151 for additional details.
Per Capita Distribution
Indian tribes that conduct gaming activities on a California reservation may use gaming profits for all tribe members’ general welfare. The law allows tribes to distribute gaming income to each tribal member (per capita) after meeting or accounting for tribal obligations. The tribal member’s residence determines whether or not California taxes the per capita payments.
Reservation Source Income
In response to several court cases and questions, we examined the issue of whether “reservation source income” should be interpreted as income paid by any employer (public or private) and earned by a tribal member while that member is physically located within the geographic borders of the reservation, or more narrowly limited to income earned on the reservation and paid only by a tribal payer. After reviewing legal authority, we determined income earned for services performed on the reservation by tribal members who live on their tribe’s reservation is tax-exempt, whether it is paid by the tribe or by a third party.
Legal Ruling 2015-1
Legal Ruling 2015-1 provides guidance regarding factors we’ll use to determine whether a tribal member resides on or off the reservation.
Revenue Procedure 2014-35
Revenue Procedure 2014-35 explains the application of the general welfare exception to tribal government programs. Because Internal Revenue Code (IRC) Section 61 provides that gross income includes income in all forms, the Internal Revenue Service previously concluded that certain government benefits may be excluded from “income” provided they meet the general welfare exception.
Payments must include all the following requirements to meet the general welfare exception:
- Be made pursuant to a governmental program.
- Be for the promotion of the general welfare.
- Not represent compensation for services.
This Revenue Procedure considers the “unique circumstances of Indian tribes and tribal governments” and provides specific details under which the exception applies to tribal government programs.
As California conforms to IRC Section 61 under Revenue and Taxation Code Section 17071, we follow Revenue Procedure 2014-35 to apply the general welfare exception for purposes of tribal government programs to tribal members.
Past Consultation Sessions
09/18/2013 - Tribal Leaders Consultation Session and Interested Parties Meeting Report
07/14/2015 - Tribal Leaders Consultation Session and Interested Parties Meeting Report