§ 677p TITLE 25—INDIANS Page 278

§ 677p. Tax exemption; exceptions and time limits; valuation for income tax on gains or

losses

No distribution of the assets made under the

provisions of this subchapter shall be subject to

any Federal or State income tax: Provided, That

so much of any cash distribution made hereinunder as consists of a share of any interest

earned on funds deposited in the Treasury of the

United States shall not by virtue of this subchapter be exempt from individual income tax

in the hands of the recipients for the year in

which paid. Property distributed to the mixedblood group pursuant to the terms of this subchapter shall be exempt from property taxes for

a period of seven years from August 27, 1954, unless the original distributee parts with title

thereto, either by deed, descent, succession,

foreclosure of mortgage, sheriff’s sale or other

conveyance: Provided, That the mortgaging,

hypothecation, granting of a right-of-way, or

other similar encumbrance of said property

shall not be construed as a conveyance subjecting said property to taxation under the provisions of this section. After seven years from August 27, 1954, all property distributed to the

mixed-blood members of the tribe under the provisions of this subchapter, and all income derived therefrom by the individual, corporation,

or other legal entity, shall be subject to the

same taxes, State and Federal, as in the case of

non-Indians; except that any corporation organized by the mixed-blood members for the purpose of aiding in the joint management with the

tribe and in the distribution of unadjudicated or

unliquidated claims against the United States,

all gas, oil, and mineral rights of every kind,

and all other assets not susceptible to equitable

and practicable distribution shall not be subject

to corporate income taxes. Any valuation for

purposes of Federal income tax on gains or

losses shall take as the basis of the particular

taxpayer the value of the property on the date

title is transferred by the United States pursuant to this subchapter.

(Aug. 27, 1954, ch. 1009, §17, 68 Stat. 876; Aug. 2,

1956, ch. 880, §3, 70 Stat. 936.)

AMENDMENTS

1956—Act Aug. 2, 1956, included within exception

clause provisions respecting exemption from corporate

income taxes.

§ 677q. Applicability of decedents’ estates laws to

individual trust property of mixed-blood

members

The laws of the United States with respect to

probate of wills, determination of heirship, and

the administration of estates shall apply to the

individual trust property of mixed-blood members of the tribe until Federal supervision is terminated. Thereafter, the laws of the several

States, Territories, possessions, and the District

of Columbia within which such mixed-blood

members reside at the time of their death shall

apply.

(Aug. 27, 1954, ch. 1009, §18, 68 Stat. 877.)

§ 677r. Indian claims unaffected

Nothing in this subchapter shall affect any

claim heretofore filed against the United States

by the tribe, or the individual bands comprising

the tribe.

(Aug. 27, 1954, ch. 1009, §19, 68 Stat. 877.)

§ 677s. Valid leases, permits, liens, etc., unaffected

Nothing in this subchapter shall abrogate any

valid lease, permit, license, right-of-way, lien, or

other contract heretofore approved.

(Aug. 27, 1954, ch. 1009, §20, 68 Stat. 877.)

§ 677t. Water rights

Nothing in this subchapter shall abrogate any

water rights of the tribe or its members.

(Aug. 27, 1954, ch. 1009, §21, 68 Stat. 877.)

§ 677u. Protection of minors, persons non compos

mentis, and other members needing assistance; guardians

For the purposes of this subchapter, the Secretary shall protect the rights of members of the

tribe who are minors, non compos mentis, or, in

the opinion of the Secretary, in need of assistance in conducting their affairs, by such means

as he may deem adequate, but appointment of

guardians pursuant to State laws, in any case,

shall not be required until Federal supervision

has terminated.

(Aug. 27, 1954, ch. 1009, §22, 68 Stat. 877.)

§ 677v. Termination of Federal trust; publication;

termination of Federal services; application

of Federal and State laws

Upon removal of Federal restrictions on the

property of each individual mixed-blood member

of the tribe, the Secretary shall publish in the

Federal Register a proclamation declaring that

the Federal trust relationship to such individual

is terminated. Thereafter, such individual shall

not be entitled to any of the services performed

for Indians because of his status as an Indian.

All statutes of the United States which affect

Indians because of their status as Indians shall

no longer be applicable to such member over

which supervision has been terminated, and the

laws of the several States shall apply to such

member in the same manner as they apply to

other citizens within their jurisdiction.

(Aug. 27, 1954, ch. 1009, §23, 68 Stat. 877.)

§ 677w. Presentation of development program for

full-blood group to eventually terminate Federal supervision

Within three months after August 27, 1954, the

business committee of the tribe representing the

full-blood group thereof shall present to the Secretary a development program calculated to assist in making the tribe and the members thereof selfsupporting, without any special Government assistance, with a view of eventually terminating all Federal supervision of the tribe and

its members.

(Aug. 27, 1954, ch. 1009, §24, 68 Stat. 877; Pub. L.

93–608, §1(15), Jan. 2, 1975, 88 Stat. 1969.)

AMENDMENTS

1975—Pub. L. 93–608 struck out requirement of an annual progress report, through the Secretary, by the