Hatch Seeks Exemption for Mixed-Blood Utes

Hatch Seeks Exemption for Mixed-Blood Utes | 1994

Published: July 1, 1994, 12:00 a.m. MDT

By Deseret News, Lee Davidson, Washington Correspondent

Sen. Orrin Hatch, R-Utah, is trying to help mixed-blood Ute Indians regain tax-exempt status on their share of some tribal mineral assets.

He introduced a bill Thursday that would overturn a 10th Circuit Court of Appeals decision that agreed with government assertions that the exemptions had lapsed.Hatch says Congress intended such exemptions to be permanent when in 1954, it ended federal supervision over tribes and divided their property among members.

Because many of the Utes' assets of oil, gas and other minerals could not be easily divided, Congress treated them as stock to be distributed over the years and a corporation was set up to administer that for mixed-blood Utes.

When the Internal Revenue Service tried to tax proceeds saying exemptions had lapsed in 1961, members sued - but eventually lost.

"Historically with regard to all settlements between the federal government and numerous Indian nations, the proceeds from settlements have been exempt," Hatch said.

"This bill clarifies the intent of Congress and simply restores the tax status of the mixed-blood members of the tribe."

The bill is co-sponsored by Sens. Bob Bennett, R-Utah; Daniel Inouye, D-Hawaii; and John McCain, R-Ariz.

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Affiliated Ute Citizens of the State of Utah

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