A. This chapter shall comply with the Revenue Allocation Plan, be consistent with the Tribe’s policy to use net gaming revenues to promote tribal economic development, self-sufficiency and tribal government, and provide for the general welfare of members.

B. On June 3, 2014, following consultation with Indian tribal governments and others, the Internal Revenue Service (IRS) issued IRS Procedure 2014-35 entitled “Application of the General Welfare Exclusion to Indian Tribal Government Programs That Provide Benefits to Tribal Members,” providing guidance on the taxation of general welfare payments made by tribes to members and other persons.

C. On September 26, 2014, the Tribal General Welfare Exclusion Act of 2014 became law and established a new Internal Revenue Code section to apply the already existing general welfare tax exclusions to Indian tribes and payments received by tribal members, their spouses, their dependents, and other persons. Under this federal law, qualifying general welfare payments made to members and other persons related to Indian tribes are not taxable as gross income for the recipients.

D. It is in the best interests of both the Tribe and individual members to ensure that all benefits administered through the program are administered in accordance with this chapter and the guidance provided by the IRS.

E. It is further in the best interests of the Tribe and individual members to provide guidance through this chapter in order to ensure the program’s compliance with the Tribal General Welfare Exclusion Act and the guidance provided by the IRS.

F. In accordance with tribal self-determination principals, this chapter shall be interpreted in recognition of tribal jurisdiction, sovereign discretion, and the Tribe’s exclusive authority to budget for general welfare benefits and determine such programs and benefit levels in the design, development and administration of programs according to the unique circumstances, needs, customs, culture, traditions and government practices of Wilton Rancheria.

G. In accordance with the powers enumerated, this chapter is established to effectuate the Tribe’s right to administer the program for the benefit of its members and to ensure that such programs are administered in a manner such that tax burdens on the recipients of such benefits are minimized and in compliance with applicable laws, including but not limited to the federal Tribal General Welfare Exclusion Act. (Res. 2023-44 Exh. A; Res. 2023-18 Exh. A; Res. 2023-18 Exh. A)