Page 501 TITLE 25—INDIANS § 1721

original title effected thereby, all claims

against the United States, any State or subdivision thereof, or any other person or entity,

by any such Indian, Indian nation, or tribe of

Indians, arising subsequent to the transfer and

based upon any interest in or rights involving

such land or natural resources (including but

not limited to claims for trespass damages or

claims for use and occupancy), shall be regarded as extinguished as of the date of the

transfer.

(b) Exceptions

This section shall not apply to any claim,

right, or title of any Indian, Indian nation, or

tribe of Indians that is asserted in an action

commenced in a court of competent jurisdiction

within one hundred and eighty days of September 30, 1978: Provided, That the plaintiff in any

such action shall cause notice of the action to

be served upon the Secretary and the Governor

of the State of Rhode Island.

(Pub. L. 95–395, §13, Sept. 30, 1978, 92 Stat. 817.)

REFERENCES IN TEXT

The Trade and Intercourse Act of 1790, Act of July 22,

1790 (ch. 33, 1 Stat. 137), referred to in subsec. (a)(1), was

not classified to the Code. See sections 177, 179, 180, 193,

194, 201, 229, 230, 251, 263, and 264 of this title.

PART B—TAX TREATMENT

§ 1715. Exemption from taxation

(a) General exemption

Except as otherwise provided in subsections

(b) and (c) of this section, the settlement lands

received by the State Corporation shall not be

subject to any form of Federal, State, or local

taxation while held by the State Corporation.

(b) Income-producing activities

The exemption provided in subsection (a) of

this section shall not apply to any income-producing activities occurring on the settlement

lands.

(c) Payments in lieu of taxes

Nothing in this subchapter shall prevent the

making of payments in lieu of taxes by the

State Corporation for services provided in connection with the settlement lands.

(Pub. L. 95–395, title II, §201, as added Pub. L.

96–601, §5(a), Dec. 24, 1980, 94 Stat. 3498.)

EFFECTIVE DATE

Section 5(b) of Pub. L. 96–601 provided that: ‘‘The

amendment made by subsection (a) [enacting this part]

shall take effect on September 30, 1978.’’

§ 1716. Deferral of capital gains

For purposes of title 26, any sale or disposition

of private settlement lands pursuant to the

terms and conditions of the settlement agreement shall be treated as an involuntary conversion within the meaning of section 1033 of title

26.

(Pub. L. 95–395, title II, §202, as added Pub. L.

96–601, §5(a), Dec. 24, 1980, 94 Stat. 3499; amended

Pub. L. 99–514, §2, Oct. 22, 1986, 100 Stat. 2095.)

AMENDMENTS

1986—Pub. L. 99–514 substituted ‘‘Internal Revenue

Code of 1986’’ for ‘‘Internal Revenue Code of 1954’’ wherever appearing, which for purposes of codification was

translated as ‘‘title 26’’ thus requiring no change in

text.

SUBCHAPTER II—MAINE INDIAN CLAIMS

SETTLEMENT

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in title 20 section

1087uu–1.

§ 1721. Congressional findings and declaration of

policy

(a) Findings and declarations

Congress hereby finds and declares that:

(1) The Passamaquoddy Tribe, the Penobscot

Nation, and the Maliseet Tribe are asserting

claims for possession of lands within the State

of Maine and for damages on the ground that

the lands in question were originally transferred in violation of law, including, but without limitation, the Trade and Intercourse Act

of 1790 (1 Stat. 137), or subsequent reenactments or versions thereof.

(2) The Indians, Indian nations, and tribes

and bands of Indians, other than the Passamaquoddy Tribe, the Penobscot Nation, and the

Houlton Band of Maliseet Indians, that once

may have held aboriginal title to lands within

the State of Maine long ago abandoned their

aboriginal holdings.

(3) The Penobscot Nation, as represented as

of the time of passage of this subchapter by

the Penobscot Nation’s Governor and Council,

is the sole successor in interest to the aboriginal entity generally known as the Penobscot

Nation which years ago claimed aboriginal

title to certain lands in the State of Maine.

(4) The Passamaquoddy Tribe, as represented

as of the time of passage of this subchapter by

the Joint Tribal Council of the Passamaquoddy Tribe, is the sole successor in interest

to the aboriginal entity generally known as

the Passamaquoddy Tribe which years ago

claimed aboriginal title to certain lands in the

State of Maine.

(5) The Houlton Band of Maliseet Indians, as

represented as of the time of passage of this

subchapter by the Houlton Band Council, is

the sole successor in interest, as to lands within the United States, to the aboriginal entity

generally known as the Maliseet Tribe which

years ago claimed aboriginal title to certain

lands in the State of Maine.

(6) Substantial economic and social hardship

to a large number of landowners, citizens, and

communities in the State of Maine, and therefore to the economy of the State of Maine as

a whole, will result if the aforementioned

claims are not resolved promptly.

(7) This subchapter represents a good faith

effort on the part of Congress to provide the

Passamaquoddy Tribe, the Penobscot Nation,

and the Houlton Band of Maliseet Indians with

a fair and just settlement of their land claims.

In the absence of congressional action, these

land claims would be pursued through the

courts, a process which in all likelihood would

consume many years and thereby promote

hostility and uncertainty in the State of

Maine to the ultimate detriment of the Passa-