§ 401 Indian General Welfare Benefits (Code Section 139E)

Programs that meet the following criteria for exemption under Code Section 139E shall be treated as non-taxable Assistance under the General Welfare Exclusion without the Applicant having to demonstrate individual need:

A. General Criteria for Qualification under Code Section 139E. Each payment made or service provided to or on behalf of a Tribal Member pursuant to an Approved Program under this Title shall be treated as non-taxable Assistance under the General Welfare Exclusion so long as the following criteria are met:

1. The Program is administered under specific requirements and does not discriminate in favor of the members of the governing body of the San Juan Southern Paiute Tribe;

2. Program benefits are available to any Member who meets such requirements;

3. Program benefits are for the “promotion of the general welfare”;

4. Program benefits are not Lavish or Extravagant”;

5. Program benefits are not compensation for services (past, present or future);

B. Ceremonial Activities. Any items of cultural significance, reimbursement of costs, or cash honorarium for participation in cultural or ceremonial activities for the transmission of Tribal culture shall not be treated as compensation for services.

[Legislative History: Enacted by Resolution No. 2018-72, 10/5/2018]

§ 402 Internal Revenue Service Safe Harbor Programs

Programs that meet the following general criteria for safe harbor treatment, and provide qualifying safe harbor benefits shall be treated as non-taxable Assistance under the General Welfare Exclusion without Applicant having to demonstrate individual need:

A. General Criteria for Safe Harbor Treatment, Each Safe Harbor Program shall satisfy the following criteria:

1. The benefit is provided under a specific Approved Program of the San Juan Southern Paiute Tribe;

2. The Program has written requirements specifying how Tribal Members may qualify for the benefit;

3. The benefit is available to any Tribal Member who satisfies the Program eligibility criteria subject to budgetary restraints;

4. The distribution of benefits from the Program does not discriminate in favor of the Tribal Council of the San Juan Southern Paiute Tribe;

5. The benefit is not compensation for services (past, present or future);

6. The benefit is not Lavish or Extravagant under the facts and circumstance, as determined by the Tribal Council.

B. The Approved Programs found in Chapters 2, 3, 4, 5 and 6 of this Title may provide benefits as a Safe Harbor Program. An Approved Program benefit may qualify for exclusion from gross income as a Safe Harbor Program even though the benefit is not expressly described in the parenthetical language, provided that it meets all other requirements of this Title and IRS Revenue Procedure 2014-35 (as it may be amended).

C. Other assistance or incentives may be provided by the Tribe to assist in the payment of other items or provide services that fit within the intent and purpose of the safe harbor but may not be identified explicitly in this Title, provided that (1) the expense is consistent with the purpose and intent of one or more of the safe harbor categories, and (2) all other criteria of the safe harbor and/or Code Section 139E are met.

[Legislative History: Enacted by Resolution No. 2018-72, 10/5/2018; Amended by Resolution No. 2019-03, 1/18/2019]

§ 403 Programs Meeting the General Test

Assistance Programs that that do not qualify for non-taxable treatment under Code Section 139E or under the IRS Safe Harbor, will nonetheless be treated as non-taxable if the Approved Program meets the General Test, as defined above, for treatment under the General Welfare Exclusion.

[Legislative History: Enacted by Resolution No. 2018-72, 10/5/2018]

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