AGO 97030.
Court | Nebraska |
Nebraska Attorney General Opinions
1997.
AGO 97030.
DATE: May 21, 1997SUBJECT: Immunity from State Taxation of Ho-Chunk, Inc., a
For-Profit Corporation Chartered Under the Winnebago Tribe of Nebraska Business
Code and Owned by the Winnebago Tribe of Nebraska.REQUESTED BY: M. Berri Balka State Tax
CommissionerWRITTEN BY: Don Stenberg, Attorney General L. Jay Bartel,
Assistant Attorney General
You have requested our opinion concerning whether a for-profit
corporation created and owned by the Winnebago Indian Tribe of Nebraska is
immune from taxation by the State of Nebraska based on activities conducted by
the corporation both on and off the Winnebago Tribe's Reservation.
I. FACTS
The corporation, Ho-Chunk, Inc., [the "Corporation" or "Ho-
Chunk"], is wholly-owned by the Winnebago Tribe of Nebraska [the "Tribe"]. The
Tribe is a federally-recognized Indian tribe organized and operating under a
Constitution approved by the Secretary of the Interior pursuant to the Indian
Reorganization Act of 1934, 25 U.S.C. § 476. The Tribe's governing body,
as provided in its Constitution, is its Tribal Council. The Tribal Council
consists of nine members elected by the eligible adult members of the Tribe.
The Tribe occupies reservation land in Nebraska and Iowa constituting the
Winnebago Indian Reservation [the "Reservation"].
In September 1994, the Tribal Council authorized the creation of
Ho-Chunk. Specifically, the Tribal Council: (1) adopted the Winnebago Tribe of
Nebraska Business Corporation Code [the "Code"], providing for the
incorporation of business corporations under the Tribe's law, including
corporations wholly-owned by the Tribe; (2) determined that it was in the best
interests of the Tribe to carry out its economic development activities through
a corporation wholly-owned by the Tribe; and (3) incorporated Ho-Chunk for this
purpose. Ho-Chunk is a resident of and maintains its corporate headquarters on
the Reservation.
Ho-Chunk has nine shares of outstanding stock owned by the Tribe.
Each member of the Tribal Council has the right to one vote on any Ho-Chunk
matter presented for a shareholder vote. All beneficial interests or rights in
Ho-Chunk other than voting rights are held by and for the Tribe. The Tribal
Council has authority to direct that Ho-Chunk distribute all or any portion of
its net income to the Tribe at any time.
The Board of Directors of Ho-Chunk consists of five members
selected by the Tribal Council, including two members required to be current
members of the Tribal Council, one other tribal member, and two members
experienced in business not required to be members of the Tribe (but who always
have been members of the Tribe). The directors, who serve for staggered
three-year terms, may be removed by the Tribal Council at any time with or
without cause.
In the Code and in the Articles of Incorporation of...
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