Business | Law | Trust

Attorney suggests tax refunds due under new BIA leasing rule

Thursday, May 2, 2013

An attorney who is an expert on tax issues says a new Bureau of Indian Affairs regulation could lead to millions of dollars in tax refunds.

The BIA rule went into effect in January after more than a year of development by the Obama administration. It bars state and local taxation of non-tribal entities on leased Indian land.

Troy Van Dongen, who chairs the California State Bar Association’s State and Local Tax Committee, said the regulation is retroactive. Entities that paid state or local taxes in the past should be able to seek refunds, he said.

"People who own property that are affected by the new regulation, they should file claims for a refund going back as far as they can," Van Dongen told The Palm Springs Desert Sun.

The Desert Water Agency in California is hoping to avoid that situation with a lawsuit against the BIA. The agency provides service to customers that are located on land leased from the Agua Caliente Band of Cahuilla Indians and claims it could lose $7 million a year in tax revenue as a result of the new rule.

The Agua Caliente Band was not named in the suit.

Get the Story:
Experts: Tribal tax rule change a big deal (The Palm Springs Desert Sun 5/2)

Relevant Documents:
Complaint: Desert Water Agency v. DOI (March 29, 2013)

Federal Register Notice:
Residential, Business, and Wind and Solar Resource Leases on Indian Land (December 5, 2012)

BIA Documents:
Fact Sheet | Q&A | Comparison of Existing and New Regulations | Final Rule