Post by Okwes on Mar 7, 2008 13:36:31 GMT -5
Bill to refund taxes to American Indian veterans
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SANTA FE — Thousands of American Indian veterans stand to receive
refunds of state personal income taxes taken out of their paychecks
while they served in the military.
Gov. Bill Richardson signed a bill Tuesday to create a settlement fund
in the state treasury to pay back taxes unjustly withheld from active
military personnel. The bill, sponsored by Sen. John Pinto, D-Tohatchi,
also instructs the secretary of Veterans Services to count American
Indian veterans owed refunds and the amount owed.
"The state government illegally taxed veterans," Pinto said. "The
veterans want their money back."
Pinto had no estimate of the number of veterans unjustly taxed, but the
number probably reaches into the thousands, he said. All veterans
serving between 1942 and 1978 and surviving dependents are eligible for
refunds.
"The purpose of the bill is to investigate how many veterans have been
charged taxes," he said. "By the 2009 (legislative) session, we hope to
have those numbers."
Refunds may top $300 million, said Raymond Jim, a Vietnam combat veteran
and president of the Shiprock Agency Veterans Organization. Jim
testified last month on behalf of the bill, which passed through both
the Senate and the House unopposed.
"The Taxation and Revenue Department knew it did not have jurisdiction
to assess state income tax on Indian tribal members' wages and salary,"
he said. "We are asking for legislation and a settlement to avoid a
lawsuit with the Taxation and Revenue Department."
Jim said nearly 4,000 veterans have ties to the Navajo Nation, and many
of those veterans are homeless. With expected refunds as large as
$40,000 for career soldiers, some veterans finally will be able to
afford homes.
Passage of the bill may have a domino effect on other American Indian
tribes whose veterans were illegally taxed in other states, Jim said.
Potential challenges may arise, however, when veterans try to prove
their identity or military service, said Louis Izels, a Vietnam veteran
and member of the Disabled American Veterans.
"Veterans have to have their discharge records to claim the refunds," he
said. "Many of them from World War II didn't even have Social Security
numbers."
Izels was drafted in 1967, and said he received $68 per month in cash.
"I didn't even know I was being taxed," he said. "There was no
paperwork, no pay stubs."
Veterans groups and representatives from the Taxation and Revenue
Department will begin discussions next month to identify veterans and
surviving dependents, Jim said. The bill calls for the secretary of
Veterans Services to report in October the estimated appropriations
needed to pay the settlement.
>
SANTA FE — Thousands of American Indian veterans stand to receive
refunds of state personal income taxes taken out of their paychecks
while they served in the military.
Gov. Bill Richardson signed a bill Tuesday to create a settlement fund
in the state treasury to pay back taxes unjustly withheld from active
military personnel. The bill, sponsored by Sen. John Pinto, D-Tohatchi,
also instructs the secretary of Veterans Services to count American
Indian veterans owed refunds and the amount owed.
"The state government illegally taxed veterans," Pinto said. "The
veterans want their money back."
Pinto had no estimate of the number of veterans unjustly taxed, but the
number probably reaches into the thousands, he said. All veterans
serving between 1942 and 1978 and surviving dependents are eligible for
refunds.
"The purpose of the bill is to investigate how many veterans have been
charged taxes," he said. "By the 2009 (legislative) session, we hope to
have those numbers."
Refunds may top $300 million, said Raymond Jim, a Vietnam combat veteran
and president of the Shiprock Agency Veterans Organization. Jim
testified last month on behalf of the bill, which passed through both
the Senate and the House unopposed.
"The Taxation and Revenue Department knew it did not have jurisdiction
to assess state income tax on Indian tribal members' wages and salary,"
he said. "We are asking for legislation and a settlement to avoid a
lawsuit with the Taxation and Revenue Department."
Jim said nearly 4,000 veterans have ties to the Navajo Nation, and many
of those veterans are homeless. With expected refunds as large as
$40,000 for career soldiers, some veterans finally will be able to
afford homes.
Passage of the bill may have a domino effect on other American Indian
tribes whose veterans were illegally taxed in other states, Jim said.
Potential challenges may arise, however, when veterans try to prove
their identity or military service, said Louis Izels, a Vietnam veteran
and member of the Disabled American Veterans.
"Veterans have to have their discharge records to claim the refunds," he
said. "Many of them from World War II didn't even have Social Security
numbers."
Izels was drafted in 1967, and said he received $68 per month in cash.
"I didn't even know I was being taxed," he said. "There was no
paperwork, no pay stubs."
Veterans groups and representatives from the Taxation and Revenue
Department will begin discussions next month to identify veterans and
surviving dependents, Jim said. The bill calls for the secretary of
Veterans Services to report in October the estimated appropriations
needed to pay the settlement.