A. Native Americans have had a long history of serving their country through active duty in the armed forces of the United States during periods of both war and peace and have made great sacrifices in serving their country through active duty in the military during periods of war and peace.

B. Native American veterans domiciled within the boundaries of their tribal lands or their spouse's tribal lands during their periods of active military service may have been exempt from paying state personal income taxes on their military income, but may have had state personal income taxes withheld from their military income.

C. Native American veterans now are barred by the state statute of limitations from claiming refunds of state personal income taxes that may have been withheld from their military income when they were domiciled within the boundaries of their tribal lands or their spouse's tribal lands during the period of their active military duty, and even if not barred by the statute of limitations, the passage of time extending to decades will make it difficult for many Native American veterans to meet strict standards of proof that they are entitled to a refund of withheld state personal income taxes.

D. It is incumbent upon the state to ensure that it was not unjustly enriched by the withholding of state personal income taxes from Native American veterans who were domiciled within the boundaries of their tribal lands or their spouse's tribal lands during the period of their active military duty, and the state should implement a feasible means of refunding to Native American veterans any state personal income taxes that were withheld from military income while they were domiciled within the boundaries of their tribal lands or their spouse's tribal lands during the period of their active military duty.

History: Laws 2008, ch. 89, § 1; 2009, ch. 289, § 1.

The 2009 amendment, effective June 19, 2009, in Subsection B, after "veterans domiciled", deleted "on" and added "within the boundaries of their tribal lands or their spouse's tribal lands" and after "personal income taxes", deleted "improperly"; in Subsection C, in two places, before "withheld", deleted "improperly"; and between "military income" and "and even if not barred", added new language; in Subsection D, in two places, before "withheld", deleted "improperly"; between "Native American veterans" and "and the state should implement", added new language; and after "withheld from military", added the remainder of the sentence.