[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4895 Introduced in House (IH)]

103d CONGRESS
  2d Session
                                H. R. 4895

To provide for the tax treatment of income and transactions relating to 
 the Catawba Indian Tribe of South Carolina Land Claims Settlement Act 
                                of 1993.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             August 3, 1994

  Mr. Spratt introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To provide for the tax treatment of income and transactions relating to 
 the Catawba Indian Tribe of South Carolina Land Claims Settlement Act 
                                of 1993.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. TAX TREATMENT REGARDING THE CATAWBA INDIAN TRIBE OF SOUTH 
              CAROLINA LAND CLAIMS SETTLEMENT ACT OF 1993.

    Section 16 of the Catawba Indian Tribe of South Carolina Land 
Claims Settlement Act of 1993 (107 Stat. 1137) is amended to read as 
follows:

``SEC. 16. TAX TREATMENT OF INCOME AND TRANSACTIONS.

    ``(a) In General.--Subject to the provisions of subsection (b) and 
notwithstanding any provision of the State Act, the Settlement 
Agreement, or this Act (including any amendment made under section 
15(f)), nothing in this Act, the State Act, or the Settlement 
Agreement--
            ``(1) shall amend or alter the Internal Revenue Code of 
        1986, as amended, or any rules or regulations promulgated 
        thereunder, or
            ``(2) shall affect the treatment under such Code of any 
        person or transaction other than by reason of the restoration 
        of the trust relationship between the United States and the 
        Tribe.
    ``(b) Exceptions.--
            ``(1) Private funds.--Any private payments made to settle 
        claims under this Act may be treated, at the election of the 
        taxpayer, as either a payment in settlement of litigation or a 
        charitable contribution for Federal income tax purposes.
            ``(2) Land conveyances.--Any conveyance of land under 
        section 14 of this Act by a private land owner to the Secretary 
        for the Expanded Reservation shall be deemed to be an 
        involuntary conversion within the meaning of section 1033 of 
        the Internal Revenue Code of 1986.
            ``(3) Per capita payments.--No funds distributed per capita 
        pursuant to section 11(h) of this Act shall be subject at the 
        time of distribution to Federal, State, and local income taxes; 
        however, income subsequently earned on shares distributed to 
        Members shall be subject to the same Federal income taxes as 
        other persons in the State of South Carolina would pay.
            ``(4) Income from sale of artifacts.--Income earned by 
        Members from the sale of Catawba Indian pottery and artifacts, 
        whether on or off the Reservation, which are made by Members, 
        shall be exempt from Federal income taxes.
            ``(5) Estate taxes.--Members shall be liable for payment 
        for all estate and inheritance taxes, except, however, that the 
        undistributed share of any member in the Catawba Per Capita 
        Payment Trust Fund shall be exempt from Federal estate and 
        inheritance taxes.''.

SEC. 2. EFFECTIVE DATE.

    The amendment made by section 1 shall take effect as of October 27, 
1993.
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