§ 1620. — Taxation.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 43USC1620]
TITLE 43--PUBLIC LANDS
CHAPTER 33--ALASKA NATIVE CLAIMS SETTLEMENT
Sec. 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.
(Pub. L. 92-203, Sec. 21, Dec. 18, 1971, 85 Stat. 713; Pub. L. 94-204,
Sec. 13, Jan. 2, 1976, 89 Stat. 1154; Pub. L. 95-600, title V, Sec. 541,
Nov. 6, 1978, 92 Stat. 2887; Pub. L. 96-487, title IX, Sec. 904, title
XIV, Secs. 1407-1409, Dec. 2, 1980, 94 Stat. 2434, 2495, 2496; Pub. L.
99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095; Pub. L. 100-241,
Sec. 12(b), Feb. 3, 1988, 101 Stat. 1810; Pub. L. 102-415, Sec. 5, Oct.
14, 1992, 106 Stat. 2113.)
References in Text
The Alaska National Interest Lands Conservation Act, referred to in
subsec. (d)(1), is Pub. L. 96-487, Dec. 2, 1980, 94 Stat. 2371, as
amended. For complete classification of this Act to the Code, see Short
Title note set out under section 3101 of Title 16, Conservation, and
Tables.
The Johnson-O'Malley Act of April 16, 1934, as amended (25 U.S.C.
452), referred to in subsec. (e), is act Apr. 16, 1934, ch. 147, 48
Stat. 596, as amended, which is classified to sections 452 et seq., of
Title 25, Indians. For complete classification of this Act to the Code,
see Short Title note set out under section 452 of Title 25 and Tables.
Public Law 815, 81st Congress (64 Stat. 967), referred to in subsec.
(e), is act Sept. 23, 1950, ch. 995, as amended generally by Pub. L. 85-
620, title I, Sec. 101, Aug. 12, 1958, 72 Stat. 548, which was
classified generally to chapter 19 (Sec. 631 et seq.) of Title 20,
Education, prior to repeal by Pub. L. 103-382, title III, Sec. 331(a),
Oct. 20, 1994, 108 Stat. 3965. For complete classification of this Act
to the Code, see Tables.
Public Law 874, 81st Congress (64 Stat. 1100), referred to in
subsec. (e), is act Sept. 30, 1950, ch. 1124, 64 Stat. 1100, as amended,
popularly known as the Educational Agencies Financial Aid Act, which was
classified generally to chapter 13 (Sec. 236 et seq.) of Title 20, prior
to repeal by Pub. L. 103-382, title III, Sec. 331(b), Oct. 20, 1994, 108
Stat. 3965. For complete classification of this Act to the Code, see
Tables.
Amendments
1992--Subsec. (j). Pub. L. 102-415 struck out ``prior to December
18, 1991,'' after ``A real property interest distributed'' and
substituted ``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'' for ``Provided, That''.
1988--Subsec. (a). Pub. L. 100-241, Sec. 12(b)(1), inserted ``(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)'' after ``distributions''.
Subsec. (j). Pub. L. 100-241, Sec. 12(b)(2), (3), substituted
``Native Corporation'' for ``Village Corporation'' in two places and
``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.'' for ``That the shareholder receiving the homesite,
if the shareholder subdivides the land received, shall pay all Federal,
State, and local taxes which would have been incurred but for this
subsection, together with simple interest at six percent per annum
calculated from the date of receipt of the land to be paid to the
appropriate taxing authority.''
1986--Subsecs. (c), (i). Pub. L. 99-514 substituted ``Internal
Revenue Code of 1986'' for ``Internal Revenue Code of 1954'', which for
purposes of codification was translated as ``title 26'' thus requiring
no change in text.
1980--Subsec. (c). Pub. L. 96-487, Sec. 1408, inserted provision
requiring that fair value of such land or interest in land at time of
receipt be adjusted as provided in section 1016 of title 26 and proviso
defining the basis of any such land attributable to an interest in a
mine, well, other natural deposit, or block of timber.
Subsec. (d). Pub. L. 96-487, Sec. 904, designated existing provision
as par. (1), substituted ``Regional Corporation or corporation
established pursuant to section 1613(h)(3) of this title'' for
``Regional Corporation'', ``third parties or which are used solely for
the purposes of exploration shall'' for ``third parties shall'', ``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'' for ``after December 18, 1971'', and ``any
portion of such interest'' for ``leased or developed real property'' and
inserted ``which is leased or developed for purposes other than
exploration for so long as such portion is leased or being developed''
after ``laws of the State'', and added par. (2).
Subsec. (e). Pub. L. 96-487, Sec. 1409, substituted ``Native Group,
corporation organized under section 1613(h)(3) of this title, or
Village'' for ``Native Group, or Village'', ``(64 Stat. 967, 1100). So
long as there are no substantial'' for ``(64 Stat. 967, 1100), and so
long as there are also no substantial'', and ``such lands they shall
continue to receive wildland fire'' for ``such lands, continue to
receive forest fire''.
Subsec. (j). Pub. L. 96-487, Sec. 1407, added subsec. (j).
1978--Subsecs. (g) to (i). Pub. L. 95-600 added subsecs. (g) to (i).
1976--Subsec. (f). Pub. L. 94-204 added subsec. (f).
Section Referred to in Other Sections
This section is referred to in section 1636 of this title.
