55.02.010 Definitions

In construing the provisions of this title, the following words and phrases shall have the meanings designated in this section unless a different meaning is expressly provided or the context provides otherwise.

(a) "Assistance" Any Program benefits or payments that qualify for tax free treatment under the General Welfare Exclusion.

(b) "Beneficiary" Any person or persons entitled to receive Assistance in accordance with specific Program guidelines. Programs designed to qualify for exemption IRS Code Section 139E may benefit Members, spouses of a Member, and/or Dependents of a Member. Programs designed to meet the Safe Harbor may benefit any Member or Qualified Nonmember.

(c) "Code" means the Internal Revenue Code of 1986, as amended.

(d) "Compensation" for services should reflect that qualifying Programs are not disguised employment. However, this shall not prevent the Tribe from structuring Programs with community service ties so long as such ties are consistent with the General Welfare Exclusion. For example, Programs similar to the Workforce Investment Act may include tax free Assistance.

(e) "Constitution" means the Constitution of the Turtle Mountain Band of Chippewa Indians.

(f) "General Welfare Exclusion" Assistance shall be treated as non-taxable so long as it satisfies the requirements for exclusion under IRS Code Section 139E, it is provided under a Safe Harbor Program, or it meets the General Test.

(g) "General Test" – Assistance will be treated as meeting the General Test under the General Welfare Exclusion if the benefits are: (1) paid by or on behalf of an Indian Tribe (2) under a social benefit program, (3) based on either needs of the Indian community itself or upon individual needs of the recipient (which need not be financial in nature), and (4) are not Compensation for services or per capita payments.

(h) "Lavish" or "Extravagant" Except as otherwise required for compliance with final guidance issued under Code Section 139E following consultation, lavish and extravagant shall be determined by the Tribal Council in its sole discretion based on all facts and circumstances, taking into account needs unique to the Tribe as well as the social purpose being served by the particular Assistance at hand.

(i) "Title" means the General Welfare Title.

(j) "Pay" or "paid" or "payment" means pay or reimburse in whole or in part.

(k) "Program" or "Approved Program" means any program established by or under authority of the Tribal Council, including any program authorized through the annual budget process, to provide Assistance hereunder. A program shall not fail to be treated as an Indian tribal government Program solely by reason of the Program being established by tribal custom or government practice.

(l) "Promotion of the general welfare" or "Social benefit" should reflect a goal or goals established by and in the sole discretion of the Tribal Council for the promotion of the general welfare of the Tribe, for example, in furtherance of tribal self-determination, culture and tradition.

(m) "Qualified Nonmember" means a spouse, former spouse, legally recognized domestic partner or former domestic partner, ancestor, descendant, or Dependent of a member of the Tribe. Individual Tribal Programs may, but are not required to, cover Qualified nonmembers.

(n) Reservation" means the reservation of the Turtle Mountain Band of Chippewa Indians or, if the context so permits, any other Indian reservation as defined in Internal Revenue Code Section 162(j).

(o) "Safe Harbor Program" shall refer to a Program that meets the safe harbor requirements set forth herein and IRS Revenue Procedure 2014-35, as the same may hereafter be amended. Need shall be presumed for Assistance provided under a Safe Harbor Program.

(p) "Service area" has the same meaning as in 25 C.F.R. Section 20.100.

(q) "Service unit area" means an area designated for purposes of administration of Indian Health Service programs under 42 C.F.R. Section 136.21(l).

(r) "Self-determination" should be construed broadly to reflect traditional health, education and welfare programs as well as unique cultural and traditional based programs and economic development. See, e.g., PLR 199924026 (tax free business grants in part to promote on reservation employment).

(s) "Spouse" shall be determined in accordance with Tribal laws, customs and traditions.

(t) "Tribal Council" or "Council" means the Turtle Mountain Band of Chippewa Indians Tribal Council.