Current through September 9, 2024
(a)
In general. Income of an enrolled member of a federally recognized
tribe is exempt from Connecticut income tax as long as the member (i) resides
in Indian country and (ii) only has income that is derived from or connected
with sources within Indian country. Income of an enrolled member of a federally
recognized tribe is subject to Connecticut income tax in the same manner as if
the person were not an enrolled member if the member does not reside in Indian
country. See McClanahan v. State Tax Commission, 411 U.S. 164 (1973), White
Mountain Apache Tribe v. Bracker, 448 U.S. 136 (1980) and Oklahoma Tax
Commission v. Sac and Fox Nation, 508 U.S. , 124 L. Ed. 2d 30 (1993).
(b)
Unmarried member residing in Indian
country. Every enrolled member who is unmarried and who resides in
Indian country located within Connecticut-
(1)
all of whose Connecticut adjusted gross income is derived from or connected
with sources within Indian country, shall be exempt from Connecticut income
tax. Such member shall file a Connecticut income tax return and write "exempt
under section 12-702(c)(1)-3(b) " thereon.
(2) only some of whose Connecticut adjusted
gross income is derived from or connected with sources within Indian country,
shall be subject to Connecticut income tax. His or her Connecticut income tax
liability shall be determined by multiplying his or her Connecticut income tax
liability calculated as if he or she were not an enrolled member by a fraction,
the numerator of which is Connecticut adjusted gross income that is not derived
from or connected with sources within Indian country and the denominator of
which is Connecticut adjusted gross income. Such member shall write "subject to
tax under section 12-702(c)(1)-3(b) " on his or her Connecticut income tax
return.
(c)
Unmarried member not residing in Indian country. Every enrolled
member who is unmarried and who does not reside in Indian country, shall be
subject to Connecticut income tax in the same manner as if he or she were not
an enrolled member of a federally recognized tribe.
(d)
Member residing in Indian country
and married to nonmember. Every enrolled member residing in Indian
country and married to a person who is not an enrolled member shall file a
separate Connecticut income tax return or a joint Connecticut income tax return
in accordance with the provisions of section
12-702(c)(1)-1.
(1) If a joint Connecticut income tax return
is required or permitted to be filed and the enrolled member's spouse has no
income, and-
(A) all of the enrolled member's
Connecticut adjusted gross income is derived from or connected with sources
within Indian country, such member and his or her spouse shall be exempt from
Connecticut income tax. They shall file a joint Connecticut income tax return
and write "exempt under section 12-702(c)(1)-3(d)(1) " thereon.
(B) only some of the enrolled member's
Connecticut adjusted gross income is derived from or connected with sources
within Indian country, such member and his or her spouse shall be subject to
Connecticut income tax. Their Connecticut income tax liability shall be
determined by multiplying their Connecticut income tax liability calculated as
if neither of them were an enrolled member by a fraction, the numerator of
which is their Connecticut adjusted gross income that is not derived from or
connected with sources within Indian country and the denominator of which is
their Connecticut adjusted gross income. They shall write "subject to tax under
section 12-702(c)(1)-3(d)(1) " on their Connecticut income tax
return.
(2) If a joint
Connecticut income tax return is required or permitted to be filed and the
enrolled member's spouse has income, the enrolled member and his or her spouse
shall be subject to Connecticut income tax. Their Connecticut income tax
liability shall be determined by multiplying their Connecticut income tax
liability calculated as if neither of them were an enrolled member by a
fraction, the numerator of which is their Connecticut adjusted gross income
that is not derived from or connected with sources within Indian country and
the denominator of which is their Connecticut adjusted gross income. They shall
write "subject to tax under section 12-702(c)(1)-3(d)(2) " on their Connecticut
income tax return.
(3) If a
separate Connecticut income tax return is required to be filed, the provisions
of subsection (a) of this section shall apply to the enrolled member and the
provisions of § 12-702(c)(1)-1(a) shall apply to his or her
spouse.
(d)
Member
not residing in Indian country and married to nonmember. Every enrolled
member not residing in Indian country and married to a person who is not an
enrolled member shall be subject to Connecticut income tax in the same manner
as if neither of them were an enrolled member. Each shall file a separate
Connecticut income tax return or a joint Connecticut income tax return in
accordance with the provisions of §
12-702(c)(1)-1.
(e)
Member residing in Indian country
and married to member. Every enrolled member residing in Indian country
and married to an enrolled member of the same tribe shall file a separate
Connecticut income tax return or a joint Connecticut income tax return in
accordance with the provisions of §
12-702(c)(1)-1.
(1) If a joint Connecticut income tax return
is required or permitted to be filed by them, and-
(A) all of their Connecticut adjusted gross
income is derived from or connected with sources within Indian country, they
shall be exempt from Connecticut income tax. They shall file a joint
Connecticut income tax return and write "exempt under section
12-702(c)(1)-3(e)(1) " thereon.
(B)
only some of their Connecticut adjusted gross income is derived from or
connected with sources within Indian country, they shall be subject to
Connecticut income tax.
Their Connecticut income tax liability shall be determined by
multiplying their Connecticut income tax liability calculated as if neither of
them were an enrolled member by a fraction, the numerator of which is their
Connecticut adjusted gross income that is not derived from or connected with
sources within Indian country and the denominator of which is their Connecticut
adjusted gross income. They shall write "subject to tax under section
12-702(c)(1)-3(e)(1) " on their Connecticut income tax return.
(2) If a separate
Connecticut income tax return is required to be filed, and-
(A) all of a spouse's Connecticut adjusted
gross income is derived from or connected with sources within Indian country,
the spouse shall be exempt from Connecticut income tax. The spouse shall file a
separate Connecticut income tax return and write "exempt under section
12-702(c)(1)-3(e)(2) " thereon.
(B)
only some of a spouse's Connecticut adjusted gross income is derived from or
connected with sources within Indian country, the spouse shall be subject to
Connecticut income tax. The spouse's Connecticut income tax liability shall be
determined by multiplying his or her Connecticut income tax liability
calculated as if he or she were not an enrolled member by a fraction, the
numerator of which is his or her Connecticut adjusted gross income that is not
derived from or connected with sources within Indian country and the
denominator of which is his or her Connecticut adjusted gross income. The
spouse shall write "subject to tax under section 12-702(c)(1)-3(e)(2) " on his
or her Connecticut income tax return.
(f)
Member not residing in Indian
country and married to member. Every enrolled member not residing in
Indian country and married to an enrolled member of the same tribe shall be
subject to Connecticut income tax in the same manner as if neither of them were
an enrolled member. Each shall file a separate Connecticut income tax return or
a joint Connecticut income tax return in accordance with the provisions of
§
12-702(c)(1)-1.
(g)
Definitions. For purposes of
this section:
(1) "Enrolled member" means an
enrolled member of a federally recognized tribe.
(2) "Indian country" means Indian country, as
defined in
18 U.S.C. §
1151.
(3) "Derived from or connected with sources
within Indian country" is to be so construed so as to accord with the
definition of the term "derived from or connected with sources within this
state" set forth in Part II in relation to the adjusted gross income of a
nonresident individual.
(4)
"Connecticut adjusted gross income that is not derived from or connected with
sources within Indian country" means the difference remaining after Connecticut
adjusted gross income derived from or connected with sources within Indian
country is subtracted from Connecticut adjusted gross income.
(h) While this section pertains to
Section
12-702(c)(1)
of the general statutes, for purposes of supplementary interpretation, as the
phrase is used in Section
12-2
of the general statutes, the adoption of this section is authorized by Section
12-740(a)
of the general statutes.
