ยง 104 General Welfare Doctrine
A. The Internal Revenue Service recognizes that Assistance by a Tribal government to Tribal Members under a legislatively provided social benefit program for the promotion of the general welfare of the Tribe are excludable from the gross income of those Tribal Members who receive such Assistance. In addition, the Internal Revenue Service, in IRS Revenue Procedure 2014-35, provided for safe harbor programs under which, if approved and in writing, a need would be presumed and benefits would be excluded.
B. The Assistance authorized by this Title is intended to qualify for such favorable tax treatment under the General Welfare Doctrine to the fullest extent permitted at law.
C. All amounts budgeted by the Tribe for Assistance shall remain general assets of the Tribe until such payments are disbursed.
D. The welfare assistance payment arrangements authorized by this Title may be funded by gaming revenues collected by the Tribe pursuant to the San Juan Southern Paiute and State of Arizona Compact of 2003, and shall be limited to funds appropriated by the Tribal Council for such purposes.
E. The general welfare benefits covered by this Title are intended to qualify for favorable tax treatment under the General Welfare Exclusion to the fullest extent permitted by law. Without limitation, the following benefits shall be treated as non-taxable under this Title: (1) benefits that satisfy the requirements for exemption under Code Section 139E, (2) benefits that are provided under an IRS Safe Harbor Program, (3) benefits that qualify for exclusion under the IRS General Test, or (4) benefits that meet another express exemption under the Code, such as the exemption provided for Tribal medical expenses under Code Section 139(D), or that meet other recognized exemptions including, for example, resource or land-based exemptions under 25 U.S.C. Sections 117a-b, 1407 and 1408.
[Legislative History: Enacted by Resolution No. 2018-72, 10/5/2018]