What is per capita distribution?
Indian tribes that conduct gaming activities on a California reservation may use gaming profits for the general welfare of the tribe and its members. The law allows tribes to distribute gaming income to each member (per capita) of the tribe after tribal obligations are met or accounted for. Whether or not the per capita payments are taxable by California depends on where the tribal member lives. Keep in mind that per capita income is subject to federal tax regardless of where tribal members reside. 18. I have California Indian clients that are married, and live in the wife’s tribe’s Indian country. Is the husband’s per capita distribution from his tribe exempt from tax? No. The wife’s income is exempt from tax, but the husband must live in his own tribe’s Indian country for his income to be exempt from California taxation.
