I 

108TH CONGRESS 

2D SESSION H. R. 5275 

To provide for the remittance to certain Indian veterans of amounts withheld 

from military basic pay for State income tax purposes for periods of 

time those veterans were in active service and were domiciled in Indian 

country. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 7, 2004 

Mr. UDALL of New Mexico (for himself, Mr. GEORGE MILLER of California, 

Mr. RAHALL, and Mr. KILDEE) introduced the following bill; which was 

referred to the Committee on Armed Services 

A BILL 

To provide for the remittance to certain Indian veterans 

of amounts withheld from military basic pay for State 

income tax purposes for periods of time those veterans 

were in active service and were domiciled in Indian country. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘American Indian Vet5 erans Pay Restoration Act of 2004’’. 
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1 SEC. 2. REMITTANCE TO CERTAIN INDIAN VETERANS OF 

2 AMOUNTS WITHHELD FROM MILITARY BASIC 

3 PAY FOR STATE INCOME TAX PURPOSES. 

4 (a) PAYMENT.—The Secretary concerned shall pay to 

5 each person who is a qualifying Indian veteran an amount 

6 equal to the amount of basic pay of that person withheld 

7 as State income tax as determined under subsection (c). 

8 The Secretary shall ensure that such payments are made 

9 as expeditiously as possible, subject to subsection (f). 

10 (b) QUALIFYING INDIAN VETERANS.—For purposes 

11 of this section, a qualifying Indian veteran is a person 

12 who— 

13 (1) is a member of a federally recognized In14 dian tribe; 

15 (2) is or was a member of the uniformed serv16 ices; and 

17 (3) while performing active service in the uni18 formed services, incurred State income tax with19 holding from basic pay for a period during which the 

20 legal domicile of that Indian was in Indian country. 

21 (c) DETERMINATION OF AMOUNT TO BE PAID.—The 

22 amount to be paid to any person under this section is the 

23 total amount of State income tax withholding from basic 

24 pay incurred by that person for periods during which the 

25 legal domicile of that person was in Indian country, re26 duced by any amount of such withholding previously recov-
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1 ered by that person from the State with respect to which 

2 such withholding was made. Interest on any such with3 holding during any calendar year shall be allowed and paid 

4 (using the overpayment rate determined under section 

5 6621 of the Internal Revenue Code of 1986 and com6 pounded daily) from January 1 of the following calendar 

7 year to a date to be determined by the Secretary con8 cerned. Such date may precede the date of the refund 

9 check by not more than 30 days, whether or not such re10 fund check is accepted by the taxpayer after tender of 

11 such check to the taxpayer. The acceptance of such check 

12 shall be without prejudice to any right of the taxpayer to 

13 claim any additional payment and interest thereon. 

14 (d) SURVIVORS.—In the case of a qualifying Indian 

15 veteran who is deceased, the Secretary concerned shall 

16 make a payment under this section, upon receipt of an 

17 application under subsection (e), in the same manner as 

18 specified in section 1477 of title 10, United States Code, 

19 for the payment of a death gratuity under section 1475 

20 or 1476 of such title. 

21 (e) APPLICATIONS.—A person seeking a payment 

22 under this section shall submit to the Secretary concerned 

23 an application for such payment. Any such application 

24 shall be in such form and shall include such information 

25 as the Secretary may require, including information at-
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1 testing to the status of such person as a Indian and attest2 ing to the domicile of such person, while a member of the 

3 uniformed services, in Indian country. Such application 

4 shall also include the applicant’s attestation that the 

5 amount of State income tax withholding for which the ap6 plication is submitted has not previously been recovered 

7 by that person from the relevant State. 

8 (f) FUNDING.—Payments under this section shall be 

9 made from amounts appropriated or otherwise made avail10 able for such purpose in appropriations Acts. There is au11 thorized to be appropriated for the purposes of this section 

12 the amount of $5,000,000. 

13 (g) RECOVERY FROM STATES.—When the Secretary 

14 concerned makes a payment under this section to any per15 son, the United States shall become subrogated to any 

16 claim of that person against a State for the amount so 

17 paid, and the Secretary shall seek to recover from that 

18 State the amount (including interest) so paid. The Sec19 retary shall have the right to recover such amount, by off20 set, from any amount otherwise payable by the Secretary 

21 to that State under any other program or activity. 

22 (h) DEFINITIONS.—In this section: 

23 (1) SECRETARY CONCERNED.—The term ‘‘Sec24 retary concerned’’ has the meaning given that term 

25 in section 101 of title 37, United States Code. 
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1 (2) UNIFORMED SERVICES.—The term ‘‘uni2 formed services’’ has the meaning given that term in 

3 section 101 of title 37, United States Code. 

4 (3) INDIAN COUNTRY.—The term ‘‘Indian coun5 try’’ has the meaning given that term in subsections 

6 (a) and (b) of section 1151 of title 18, United States 

7 Code. 

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