National Congress of American Indians (NCAI) recently passed a resolution which calls upon its members and member Tribes to urge Congress to reimburse eligible Native American Service members who were illegally taxed by their state of residence while on active duty.
According to Federal tax laws, Native Americans who reside and work on federal reservations are not subject to pay income tax. However, our Native American service members have been taxed by the state in which the reservation is located for the past 24 years. It was only as early as nine years ago that any attempt to address this issue was made.
New Mexico Representative, Tom Udall, sponsored the American Indian Veterans Pay Restoration Act of 2004 which failed due to a lack of support. In 2009, New Mexico began to refund state income taxes withheld from service members who claimed the reservation at their home while serving.
According to NCAI, the new resolution will be the policy until it is either withdrawn or modified by a subsequent resolution.
For more information, Native American service members and their families can contact the NCAI at:
1516 P Street, N.W.
Washington, DC 20005