On Nov. 22, 2000, the United States Justice Department issued a memo declaring that the taxation and withholding of state income taxes from active duty military pay of Native Americans domiciled on their reservation was impermissible. The United States Department of Defense began mandatory Arizona income tax withholding on all active duty military pay on Sept. 1, 1993 and continued withholding Arizona income tax through Dec. 31, 2005.
Beginning Jan. 1, 2006, Arizona no longer taxed active duty military pay and therefore discontinued state income tax withholding on this type of income.
The Native American Veterans Income Tax Settlement Fund was established on July 1, 2016 to refund Arizona income tax erroneously withheld from Native Americans who served in the military while claiming tribal land as their domicile from Sept. 1, 1993 through Dec. 31, 2005. During the 2017 Arizona legislative session House Bill 2158 was introduced to amend the original legislation when it was discovered the Department of Defense may have withheld Arizona income tax prior to Sept. 1, 1993.
Effective Aug. 9, 2017, refunds may be claimed for years 1977 through 2005.
FIND OUT MORE INFORMATION
Native American Veteran Income Tax Settlement Forms
|Form Number||Form Name||Get Form|
|NASF||Native American Veterans Income Tax Settlement Fund Claim||Download Form|
|NASF-D||Claim For Refund on Behalf of Deceased Native American Veteran||Download Form|
|NASF-RS||Native American Veterans Income Tax Settlement Fund Claim Residency Statement||Download Form|
Please Note: Claimants who do not have their DD-214 must include a completed Federal Form SF-180 with their Native American Settlement Fund application.