Indian trust lands

From the 2024 DOR Tax Exemption Study

82.29A.130(6-7) - Indian trust lands Description All leasehold interests in Indian lands by any Indian or Indian tribe for property held in trust by the U.S. are exempt from the leasehold excise tax. Leases by non-Indians are exempt when the contract rent paid is greater than or equal to 90% of fair market rental value. Purpose Federal law prohibits the taxation of trust lands of enrolled Indians. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $2.584 $2.610 $2.654 $2.701 Local Taxes $2.267 $2.289 $2.328 $2.369 Repeal of State taxation of nontribal members is not prohibited but could lead to litigation. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $1.957 $2.654 $2.701 Local Taxes $0.000 $1.717 $2.328 $2.369 Assumptions - This repeal takes effect July 1, 2024, and impacts nine months of collections in fiscal year 2025. - Growth rate mirrors the leasehold excise tax growth rate reflected in the Economic and Revenue Forecast Council's March 2023 forecast. - Market rents will grow similarly to market values. Data Sources - Department of Revenue, Leasehold excise tax data - Economic a