Are American Indians required to pay state income, sales and excise taxes?
An American Indian tribal member is not required to pay state income taxes on income earned on the reservation of the tribe in which the Indian is enrolled. Similarly, sales transactions occurring on the reservation between tribal members or between tribal members and the tribal government are not subject to state sales or excise taxes. Certain excise taxes such as the tax on liquor and cigarettes are collected by the state from the wholesale distributor. In these instances, the state refunds the amount of tax collected to the Indian tribal government on a per capita basis. Income earned by an American Indian off the reservation is subject to state income tax. Sales transactions to American Indians made off the reservation are subject to the applicable sales and excise taxes. Are American Indians required to pay local property taxes? Property taxes cannot be imposed on land held in federal trust status for an Indian tribe or an individual Indian. Land for which a fee patent has been is
