I
104TH CONGRESS
1ST SESSION
H. R. 2239
To amend section 17 of the Act of August 27, 1954 (25 U.S.C. 677p),
relating to the distribution and taxation of assets and earnings, to
clarify that distributions of rents and royalties derived from assets held
in continued trust by the Government, and paid to the mixed-blood
members of the Ute Indian tribe, their Ute Indian heirs, or Ute Indian
legatees, are not subject to Federal or State taxation at the time of
distribution, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
AUGUST 4, 1995
Mr. ORTON introduced the following bill; which was referred to the Committee
on Resources, and in addition to the Committee on Ways and Means, for
a period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the com-
mittee concerned
A BILL
To amend section 17 of the Act of August 27, 1954 (25
U.S.C. 677p), relating to the distribution and taxation
of assets and earnings, to clarify that distributions of
rents and royalties derived from assets held in continued
trust by the Government, and paid to the mixed-blood
members of the Ute Indian tribe, their Ute Indian heirs,
or Ute Indian legatees, are not subject to Federal or
State taxation at the time of distribution, and for other
purposes.
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 ‘‘Mixed-Blood Ute In-
dian Tax Status Act’’.
SEC. 2. TAXES ON DISTRIBUTIONS.
Section 17 of the Act of August 27, 1954 (68 Stat.
868; 25 U.S.C. 677p) is amended to read as follows:
‘‘SEC. 17. TAXES ON DISTRIBUTIONS.
‘‘(a) DISTRIBUTION OF ASSETS.—
‘‘(1) TAX STATUS.—Except as provided in para-
graph (2), the distribution of rents and royalties de-
rived from real estate, or the oil, gas, or mineral in-
terests contained therein, held in trust by the United
States made under the provisions of this Act, either
directly or through the Ute Distribution Corpora-
tion, to the mixed-blood members of the tribe, their
Ute Indian heirs, or their Ute Indian legatees, shall
not, at the time of such distribution, be subject to
any Federal or State income tax.
‘‘(2) EXCEPTION FOR CASH DISTRIBUTION.—
Any cash distribution made under this Act that con-
sists of a share of any interest earned on funds de-
posited in the Treasury of the United States shall
not by virtue of this Act be exempt from individual
income tax in the hands of the recipients for the
year in which paid.
‘‘(3) REAL PROPERTY.—
‘‘(A) INITIAL 7-YEAR PERIOD.—
‘‘(i) Subject to clause (ii), real prop-
erty distributed to the mixed-blood mem-
bers of the tribe pursuant to this Act shall
be exempt from property taxes for a period
of 7 years commencing August 27, 1954.
‘‘(ii) The tax exemption provided for
in clause (i) shall not apply if the original
distributee parts with title to the real prop-
erty, either by deed, descent, succession,
foreclosure of mortgage, sheriff’s sale, or
other conveyance. A conveyance under the
preceding sentence does not include a
mortgage, hypothec, right-of-way, or other
similar encumbrance.
‘‘(B) AFTER 7 YEARS.—Real property and
income derived therefrom, distributed to the
mixed-blood members of the tribe, their heirs
and legatees, under this Act, shall, after August
27, 1961, be subject to the same taxes, Federal
and State, as in the case of non-Indians.
‘‘(4) TAX STATUS FOR THE UTE DISTRIBUTION
CORPORATION.—
‘‘(A) IN GENERAL.—The Ute Distribution
Corporation shall not be subject to Federal or
State corporate income taxes.
‘‘(B) SUCCESSOR CORPORATION.—For the
purpose of this section, the term ‘Ute Distribu-
tion Corporation’ includes any successor to such
corporation, organized by the mixed-blood mem-
bers of the tribe to—
‘‘(i) jointly manage, with the tribe,
unadjudicated 
or 
unliquidated 
claims
against the United States; and
‘‘(ii) distribute to mixed-blood mem-
bers of the tribe, their Ute Indian heirs, or
their Ute Indian legatees, income derived
from oil, gas, and mineral rights, and all
other assets not susceptible to equitable
and practicable distribution.
‘‘(5) BASIS.—The basis for determining gain or
loss for income tax purposes for real property dis-
tributed under this Act shall be the fair market
value of the real property on the date the title to
such real property was transferred by the United
States pursuant to this Act.
‘‘(b) REFUNDS.—
‘‘(1) IN GENERAL.—
‘‘(A) UNLIQUIDATED CLAIMS.—An unliqui-
dated claim against the United States shall in-
clude any Federal income tax, penalty, or inter-
est paid by the mixed-blood members of the
tribe, their Ute Indian heirs, or Ute Indian
legatees, with respect to distributions of income
derived from oil, gas, and mineral rights, and
all other assets not susceptible to equitable dis-
tribution, received by such members, heirs, or
legatees after August 27, 1961, pursuant to the
Act of August 27, 1954 (68 Stat. 868; 25
U.S.C. 677p).
‘‘(B) EXCEPTION.—Cash distributions con-
sisting of a share of any interest earned on
funds deposited in the Treasury of the United
States shall not constitute an unliquidated
claim for the purposes of this subsection.
‘‘(2) PROCEDURE.—A claim described in para-
graph (1) shall be payable in full by the United
States to a mixed-blood member of the tribe, a Ute
Indian heir, or a Ute Indian legatee, upon the filing
of a claim or suit for refund under chapter 65 of the
Internal Revenue Code of 1986.