Are oil and gas royalties on Indian land tax exempt for the recipients?

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Are oil and gas royalties on Indian land tax exempt for the recipients?

This is undivided Indian land that is now producing oil and gas revenues to the recipients, all being Native Americans, with the exception of the producers and the oil companies in charge of the monitoring, billing, etc.

2007-02-11 14:12:37 · 2 answers · asked by rexallen 3 in Business & Finance ➔ Taxes ➔ Other - Taxes

2 answers

http://209.85.165.104/search?q=cache:lUsI6vDFN28J:www.irs.gov/pub/irs-drop/rr56_342.pdf+IRS+Revenue+Ruling+56-342&hl=en&ct=clnk&cd=1&gl=us

IRS Revenue Ruling 56-342 Section 61

2007-02-11 16:14:22 · answer #1 · answered by jeff410 7 · 0⤊ 0⤋

I think there are different answers between federal taxes and state taxes. I do not believe the states can tax Native American commerce occurring on a federally recognized reserve. The feds though can.

2007-02-12 08:17:59 · answer #2 · answered by zudmelrose 4 · 0⤊ 0⤋