Tribal Tax Resources
Many tribal businesses are eligible for federal and state tax exemptions on income and expenses for investors, owners, and employees.
The State of Michigan signed a tax agreement that benefits many members whose principal residence is within specific agreement areas. Members living in the agreement areas are exempt from state income tax. They also receive state tax discounts on many purchases.
The agreement applies to the Michigan sales tax (6% of retail price), use tax (6% of purchase price), motor fuel tax, cigarette tax and the single business tax. Members are also entitled to an annual income tax refund check, which is 4 percent of adjusted gross income, and must be filed when filing your income taxes. (Use tax form 4013.)
Tribal governments, as whole or majority owners, can form business corporations that also are exempt from income taxes. State governments do not have the authority to tax tribal governments or the businesses of individuals living on tribal land when the income originates from tribal land resources. This includes state property and income taxes. However, states may tax the income of Native Americans who live outside tribal lands even though their income comes from business carried out inside the tribal land.
Businesses that operate on tribal lands may depreciate property used within the tribal lands at an accelerated rate. This reduces the property tax liability of businesses and creates an incentive to invest in businesses on Native American lands.
Investment Tax Credit or New Market Tax Credits may be available for capital investments on tribal lands; this provides tax credits of up to 39 percent of the entire amount of investment.
Indian Wages and Insurance Tax Credits may be available for employers hiring qualified employees living on tribal lands; this tax credit is worth up to 20 percent of wages and health insurance for qualified employees.
Trust Land Maps
Residential Tax Agreement Maps