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 coun-
try. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘American Indian Vet-
erans Pay Restoration Act of 2004’’.
SEC. 2. REMITTANCE TO CERTAIN INDIAN VETERANS OF 
AMOUNTS WITHHELD FROM MILITARY BASIC 
PAY FOR STATE INCOME TAX PURPOSES. 
(a) PAYMENT.—The Secretary concerned shall pay to 
each person who is a qualifying Indian veteran an amount 
equal to the amount of basic pay of that person withheld 
as State income tax as determined under subsection (c). 
The Secretary shall ensure that such payments are made 
as expeditiously as possible, subject to subsection (f). 
(b) QUALIFYING INDIAN VETERANS.—For purposes 
of this section, a qualifying Indian veteran is a person 
who— 
(1) is a member of a federally recognized In-
dian tribe; 
(2) is or was a member of the uniformed serv-
ices; and 
(3) while performing active service in the uni-
formed services, incurred State income tax with-
holding from basic pay for a period during which the 
legal domicile of that Indian was in Indian country. 
(c) DETERMINATION OF AMOUNT TO BE PAID.—The 
amount to be paid to any person under this section is the 
total amount of State income tax withholding from basic 
pay incurred by that person for periods during which the 
legal domicile of that person was in Indian country, re-
duced by any amount of such withholding previously recov-
ered by that person from the State with respect to which 
such withholding was made. Interest on any such with-
holding during any calendar year shall be allowed and paid 
(using the overpayment rate determined under section 
6621 of the Internal Revenue Code of 1986 and com-
pounded daily) from January 1 of the following calendar 
year to a date to be determined by the Secretary con-
cerned. Such date may precede the date of the refund 
check by not more than 30 days, whether or not such re-
fund check is accepted by the taxpayer after tender of 
such check to the taxpayer. The acceptance of such check 
shall be without prejudice to any right of the taxpayer to 
claim any additional payment and interest thereon. 
(d) SURVIVORS.—In the case of a qualifying Indian 
veteran who is deceased, the Secretary concerned shall 
make a payment under this section, upon receipt of an 
application under subsection (e), in the same manner as 
specified in section 1477 of title 10, United States Code, 
for the payment of a death gratuity under section 1475 
or 1476 of such title. 
(e) APPLICATIONS.—A person seeking a payment 
under this section shall submit to the Secretary concerned 
an application for such payment. Any such application 
shall be in such form and shall include such information 
as the Secretary may require, including information at-
testing to the status of such person as a Indian and attest-
ing to the domicile of such person, while a member of the 
uniformed services, in Indian country. Such application 
shall also include the applicant’s attestation that the 
amount of State income tax withholding for which the ap-
plication is submitted has not previously been recovered 
by that person from the relevant State. 
(f) FUNDING.—Payments under this section shall be 
made from amounts appropriated or otherwise made avail-
able for such purpose in appropriations Acts. There is au-
thorized to be appropriated for the purposes of this section 
the amount of $5,000,000. 
(g) RECOVERY FROM STATES.—When the Secretary 
concerned makes a payment under this section to any per-
son, the United States shall become subrogated to any 
claim of that person against a State for the amount so 
paid, and the Secretary shall seek to recover from that 
State the amount (including interest) so paid. The Sec-
retary shall have the right to recover such amount, by off-
set, from any amount otherwise payable by the Secretary 
to that State under any other program or activity. 
(h) DEFINITIONS.—In this section: 
(1) SECRETARY CONCERNED.—The term ‘‘Sec-
retary concerned’’ has the meaning given that term 
in section 101 of title 37, United States Code.