Sealaska shareholders approved a resolution to establish the Sealaska Settlement Trust by a margin greater than three to one during the 2021 shareholder election. The trust frees Sealaska shareholders from paying federal income tax on their dividends. It will also reduce Sealaska’s tax obligation to the federal government in the future.
Full Answer
How did the settlement of Alaska establish claims to land?
The settlement established Alaska Native claims to the land by transferring titles to twelve Alaska Native regional corporations and over 200 local village corporations. A thirteenth regional corporation was later created for Alaska Natives who no longer resided in Alaska.
What was the Alaska Native Claims Act?
The settlement established Alaska Native claims to the land by transferring titles to twelve Alaska Native regional corporations and over 200 local village corporations. A thirteenth regional corporation was later created for Alaska Natives who no longer resided in Alaska. The act is codified as 43 U.S.C. 1601 et seq.
What is a settlement trust?
That publication, which was re-issued by Sealaska in 2001, describes Settlement Trusts as follows: “ Under the “1991’ law, a Native corporation may transfer some or all of its assets – such as surface land, stock and property – to a trust created just for the benefit of its shareholders.
Are Settlement Trusts the new option for ANCSA Corporations?
First, the Settlement Trust option for ANCSA Corporations (ANCs) is not new. There were 18 established by December 31 st 1999 [1] and over 30 are now in existence. [2] The tax incentives are new and they are substantial for the ANCs so in 2018 there is renewed interest in establishing these Trusts.
What was the main purpose of the ANCSA agreement?
ANCSA was intended to resolve long-standing issues surrounding aboriginal land claims in Alaska, as well as to stimulate economic development throughout Alaska.
What did the Alaska Native Claims Settlement Act say?
The 1971 Alaska Native Claims Settlement Act (ANCSA) directs the Bureau of Land Management (BLM) to convey 45.5 million acres of public land to village and regional Native corporations. Section 17(b) of ANSCA provided for the reservation of public access easements which are now commonly referred to as 17(b) easements.
Who signed the Alaska Native Claims Settlement Act?
President NixonOn December 18, 1971, Public Law 92-203, the "Alaska Native Claims Settlement Act," was signed into law by President Nixon. Public Law 92-203 was enacted by Congress to settle the claim of Alaska's native Indian Aleut and Eskimo population to aboriginal title to the land on which they have lived for generations.
When did Congress pass the Alaska Native Claims Settlement Act?
Alaska Native Claims Settlement Act Amendments of 1987 - Amends the Alaska Native Claims Settlement Act to authorize an Alaska native regional corporation, if authorized by an amendment to its articles of incorporation, to issue up to 100 shares of settlement common stock to certain natives who: (1) were born after ...
How much do Native Alaskans get paid?
When first issued in 1982, the annual dividend provided $1,000 for each Alaskan resident. Since then, the annual dividend has varied from a few hundred dollars to more than $2,000 per person. In addition, Alaska is the only state without a state income tax or a state sales tax.
Do Alaska Native corporations have sovereign immunity?
Even though Alaska Native corporations or regional associations are recognized as tribes for limited purposes, no court has ever found that these corporations or associations possess sovereign immunity from suit, because they do not possess key attributes of an independent and self-governing Indian tribe. Aleman v.
Do Native Alaskans get free land?
Answer: The federal and state agencies in Alaska do not offer free land. The State of Alaska's Department of Natural Resources however does have a Public Land Sale program and some other organizations in Alaska may occasionally offer land for sale to private citizens.
How much land do Alaska Native corporations own?
Alaska Native regional corporations are owned by over 140,000 Alaska Native shareholders and hold title to nearly 27 million acres of land across Alaska.
How many Alaska Native corporations are there?
There are over 200 village corporations, corresponding to the list of villages published in the text of ANCSA. Most corporations serve a single village, though some smaller villages have consolidated their corporations over the years.
How much land do Southeast Alaska Natives own?
The Tlingit, Haida and Tsimshian once owned and stewarded the 23 million acres of land and waterways of Southeast Alaska. In 1971, the U.S. Congress passed the Alaska Native Claims Settlement Act (ANCSA) as reparations to Indigenous homelands that were lost from the gradual process of statehood.
How many shareholders were enrolled initially after ansca passed?
Around 80,000 people of at least ¼ Alaska Native blood, living at the time of the passage of the Alaska Native Claims Settlement Act, became the shareholders in the ANCSA corporations. People could enroll under ANCSA based upon residency in 1971 or past residency, place of birth, or based on family heritage.
What happened to the 13th regional corporation?
The 13th Regional Corporation was involuntarily dissolved by the Division of Corporations, Business and Professional Licensing of the Alaska Department of Commerce, Community and Economic Development on December 31, 2013. This followed the resignation of the corporation's registered agent on May 22, 2013.
Why did Alaska Natives reject reservations?
They objected strenuously when Russia sold Alaska to the United States in 1867, arguing that they were the land's rightful owners. Most other Alaska Native groups were unaware of the transaction and land transfer between the two foreign nations.
Was the support of non Native Alaskans an important factor leading to the settlement of Alaska Native land claims?
Yes, the support of the non-Native Alaskans was an important factor in leading to the settlement of Alaska Natives claim land. Yes, this conclusion is consistent with the evidence in their learning block. Consider the following statement: ANCSA was a fair settlement for Alaska Natives.
What did the Organic Act 1912 establish?
In United States law, an organic act is an act of the United States Congress that establishes a territory of the United States and specifies how it is to be governed, or an agency to manage certain federal lands. In the absence of an organic law a territory is classified as unorganized.
Do Native Alaskans get free land?
Answer: The federal and state agencies in Alaska do not offer free land. The State of Alaska's Department of Natural Resources however does have a Public Land Sale program and some other organizations in Alaska may occasionally offer land for sale to private citizens.
Can a settlement trust defer income?
In the case of a contribution which consists of property other than cash, a Settlement Trust may elect to defer recognition of any income related to such property until the sale or exchange of such property, in whole or in part, by the Settlement Trust.
Can you deduct Alaska Native claims?
No deduction shall be allowed under this section with respect to any contributions made to a Settlement Trust which are in violation of subsection (a) (2) or (c) (2) of section 39 of the Alaska Native Claims Settlement Act ( 43 U.S.C. 1629e ).
Does a settlement trust have to include deductions in income?
Subject to subsection (g), a Settlement Trust shall include in income the amount of any deduction allowed under this section in the taxable year in which the Settlement Trust actually receives such contribution.
Does Native Corporation have to apply for each taxable year?
For each taxable year, a Native Corporation may elect to have this section apply for such taxable year on the income tax return or an amendment or supplement to the return of the Native Corporation, with such election to have effect solely for such taxable year.
Can a Native Corporation be revoked?
Any election made by a Native Corporation pursuant to this subsection may be revoked pursuant to a timely filed amendment or supplement to the income tax return of such Native Corporation.
Does a settlement trust have to apply for each taxable year?
For each taxable year, a Settlement Trust may elect to apply this subsection for any property described in paragraph (1) which was contributed during such year. Any property to which the election applies shall be identified and described with reasonable particularity on the income tax return or an amendment or supplement to the return of the Settlement Trust, with such election to have effect solely for such taxable year.
When was the Alaska Native Claims Settlement Act signed?
Jump to navigation Jump to search. The Alaska Native Claims Settlement Act ( ANCSA) was signed into law by President Richard Nixon on December 18, 1971, constituting at the time the largest land claims settlement in United States history. ANCSA was intended to resolve long-standing issues surrounding ...
How did the Alaska Native Settlement work?
The settlement established Alaska Native claims to the land by transferring titles to twelve Alaska Native regional corporations and over 200 local village corporations. A thirteenth regional corporation was later created for Alaska Natives who no longer resided in Alaska. The act is codified as 43 U.S.C. 1601 et seq.
How many acres did Alaska Natives have to choose?
Native and state land selection. Alaska Natives had three years from passage of ANCSA to make land selections of the 44 million acres (180,000 km 2) granted under the act. In some cases Native corporations received outside aid in surveying the land.
What was the purpose of the Alaska Statehood Act?
When Alaska became a state in 1959, section 4 of the Alaska Statehood Act provided that any existing Alaska Native land claims would be unaffected by statehood and held in status quo. Yet while section 4 of the act preserved Native land claims until later settlement, section 6 allowed for the state government to claim lands deemed vacant.
How many acres of land were owned by the federal government in Alaska in 1971?
ANCSA, together with section 6 of Alaska Statehood Act, which the new act allowed to come to fruition, affected ownership to about 148.5 million acres (601,000 km 2) of land in Alaska once wholly controlled by the federal government.
What section of the Statehood Act did the state government attempt to acquire?
The state government also attempted to acquire lands under section 6 of the Statehood Act that were subject to Native claims under section 4, and that were currently occupied and used by Alaska Natives.
Why did NASA provide satellite imagery to Native corporations?
NASA similarly provided satellite imagery to aid in Native corporations finding areas most suited for vegetation and their traditional subsistence culture. The imagery showed locations of caribou and moose, as well as forests with marketable timber. In total about 7 million acres (28,000 km 2) were analyzed for Doyon.
What is a Native Corporation Settlement Trust?
An Alaska Native Corporation Settlement Trust provides Sealaska and its shareholders with significant tax advantages. Distributions to shareholders (referred to as “beneficiaries” under the trust) will not be subject to federal tax. Changes to federal tax law in 2017 allow Native corporations to make contributions to a settlement trust using ...
What is a sealaska settlement trust?
Under the Alaska Native Claims Settlement Act, Sealaska can set up a special entity called a “Settlement Trust” that is legally separate from the company and dedicated to providing benefits to shareholders and descendants. The purpose of a Settlement Trust is to provide for the health, education, cultural preservation and economic welfare ...
What happens if shareholders reject the Sealaska resolution?
If shareholders reject this resolution, business will continue as it is now. This means Sealaska will continue to pay a higher tax rate and shareholders will continue to pay income taxes on the dividends they receive. Essentially, this is money going to the federal government instead of into shareholders’ pockets.
What happens if you don't claim your trust distribution?
If a shareholder does not claim their trust distribution after five years, the money will go back into the trust. The money will then be invested or redistributed to other beneficiaries. It does not dissolve Sealaska stock.
Is a settlement trust subject to federal tax?
Shareholder distributions using the proposed settlement trust are not subject to federal income tax. Beneficiaries may still be subject to state tax, however. In Alaska and Washington, where the vast majority of our shareholders reside, there is no personal income tax, so distributions from the settlement trust will be 100% tax free.
Can Sealaska pay for scholarships?
This means that Sealaska could use the trust to pay other shareholder benefits (bereavement and scholarship benefits are two examples). Scholarships are awarded when qualifying shareholders apply, not on a per-share basis. The trust would keep funds for these payments separate from funds used for distributions.
What is an electing settlement trust?
The term “ electing Settlement Trust ” means a Settlement Trust which has made the election, effective for a taxable year, described in subsection (c).
What is surrender of Native Corporation?
For purposes of this section, the surrender of an interest in a Native Corporation or an electing Settlement Trust in order to accomplish the whole or partial redemption of the interest of a shareholder or beneficiary in such corporation or trust, or to accomplish the whole or partial liquidation of such corporation or trust , shall be deemed to be a transfer permitted by section 7 (h) of the Alaska Native Claims Settlement Act.
What is the per share loss adjustment factor?
The per share loss adjustment factor shall be the aggregate of all contributions to all electing Settlement Trusts sponsored by such Native Corporation made on or after the first day each trust is treated as an electing Settlement Trust expressed on a per share basis and determined as of the day of each such contribution.
When does paragraph 1 (B) apply to a trust?
paragraph (1) (B) shall be applied to such trust on and after the date of the transfer in the same manner as if the trust permitted dispositions of beneficial interests in the trust in a manner not permitted by such section 7 (h).
Can Native Corporation earnings be reduced?
The earnings and profits of the sponsoring Native Corporation shall not be reduced on account of any contribution to such Settlement Trust.
Can a settlement trust elect to have the provisions of this section apply to the trust and its beneficiaries?
A Settlement Trust may elect to have the provisions of this section apply to the trust and its beneficiaries .
Is Native Corporation stock taxable?
Third, as amounts distributed by the sponsoring Native Corporation with respect to its stock (within the meaning of section 301 (a)) during such taxable year and taxable to the recipient beneficiary as amounts described in section 301 (c) (1), to the extent of current or accumulated earnings and profits of the sponsoring Native Corporation as of the close of such taxable year after proper adjustment is made for all distributions made by the sponsoring Native Corporation during such taxable year.
Who is the author of the ANCSA settlement trust?
What Are ANCSA Settlement Trusts? Researched and written by Jenny Bell Jones with input from current and former DANSRD colleagues – Department of Alaska Native Studies and Rural Development
What is the purpose of a settlement trust?
The main purposes of the Settlement Trust are to promote the health, education and welfare of Native shareholders; preserve Native heritage and culture; and give greater protection to Native corporation lands .’. [4] In general, the Settlement Trust option appears to be a good one for ANCSA Corporations.
What are the benefits of a BBNC trust?
If the only actual benefits to Trust beneficiaries are tax free distribution payments, occasional educational benefits, elders benefits and assistance with funeral potlatches, then these benefits are the same as what most shareholders currently receive with the exception of tax exempt distributions. If distributions from the Trust are always made in the form of cash to beneficiaries, rather than used for some of the things the BBNC Settlement Trust envisions, then it is up to those beneficiaries how the money is spent. That money may or may not be spent to “promote the health, education and welfare of the beneficiaries of the Trust and preserve the heritage and culture of Alaska Natives’. A less obvious but longer term benefit to beneficiaries is the protection that assets acquire once they are a part of the Trust and can no longer be used by the ANC in ways that may incur risk. This does not mean that there is no risk involved with the kinds of investments a Trust can make but risk will be much lower as long as the Trust is managed responsibly.
Does an ANC endow a trust?
If an ANC endows a Trust this does not prevent it from making more contributions later on. Under the new tax law, the Corporation makes those contributions to the Trust pre-tax, and then the Trust pays tax at a lower rate. If the Corporation pays dividends to shareholders those dividends are subject to taxation.
Is a settlement trust a good option for ANCSA?
In general, the Settlement Trust option appears to be a good one for ANCSA Corporations. It is one that has long been under-utilized for various reasons involving tax structure. Those who want to learn more about this, and the tax law changes, should review a very recent article by Bruce Edwards entitled “The 2017 Tax Act and Settlement Trusts’. [5] The new tax law allows Settlement Trusts to be funded on a pre-tax rather than an after tax basis, as has been the case since 1988, so this is a good incentive for the Corporations as it will give them a substantial tax-break.
Can land be transferred to a settlement trust?
If land is placed into the Settlement Trust it cannot then be conveyed to another party. Shareholders will not vote on the transfer of assets from the ANC to the Trust UNLESS the ANC is going to transfer all or substantially all of its assets. The ANC cannot take back assets after it has contributed them.
Can a settlement trust go under?
A Settlement Trust cannot operate a businesses and cannot “go under’ as a result of a joint venture the ANC is involved in failing.
Overview
The Alaska Native Claims Settlement Act (ANCSA) was signed into law by President Richard Nixon on December 18, 1971, constituting at the time the largest land claims settlement in United States history. ANCSA was intended to resolve long-standing issues surrounding aboriginal land claims in Alaska, as well as to stimulate economic development throughout Alaska.
The settlement established Alaska Native claims to the land by transferring titles to twelve Alask…
Background
When Alaska became a state in 1959, section 4 of the Alaska Statehood Act provided that any existing Alaska Native land claims would be unaffected by statehood and held in status quo. Yet while section 4 of the act preserved Native land claims until later settlement, section 6 allowed for the state government to claim lands deemed vacant. Section 6 granted the state of Alas…
Effect of land conveyances
In 1971, barely one million acres of land in Alaska were in private hands. ANCSA, together with section 6 of Alaska Statehood Act, which the new act allowed to come to fruition, affected ownership to about 148.5 million acres (601,000 km ) of land in Alaska once wholly controlled by the federal government. That is larger by 6 million acres (24,000 km ) than the combined areas of Maine, Vermont, New Hampshire, Massachusetts, Rhode Island, Connecticut, New York, New Jersey,
Native and state land selection
Alaska Natives had three years from passage of ANCSA to make land selections of the 44 million acres (180,000 km ) granted under the act. In some cases Native corporations received outside aid in surveying the land. For instance, Doyon, Limited (one of the 13 regional corporations) was helped by the Geophysical Institute of the University of Alaska. The Institute determined which land contained resources such as minerals and coal. NASA similarly provided satellite imagery t…
Criticism of ANCSA
There was largely positive reaction to ANCSA, although not entirely. The act was supported by Natives as well as non-Natives, and likewise enjoyed bipartisan support. Natives were heavily involved in the legislative process, and the final draft of the act used many AFN ideas.
Some Natives have argued that ANCSA has hastened cultural genocide of Alaska Natives. Some Natives critiqued ANCSA as an illegitimate treaty since only tribal leaders were involved and the …
Selected provisions of ANCSA
• Native claims in Alaska were extinguished by means of section 4 of ANCSA.
• In exchange for abrogating Native claims, approximately one-ninth of the state's land plus $962.5 million were distributed to more than 200 local Alaska Native "village corporations" established under section 8, in addition to 12 land-owning for-profit Alaska Native "regional corporations" and a non-land-owning thirteent…
See also
• Alaska National Interest Lands Conservation Act
• Alaska Statehood Act
• Alaska Native Allotment Act
• Alaska Land Transfer Acceleration Act
Bibliography
• Borneman, Walter R. Alaska: Saga of a Bold Land. Harper Perennial. (2004)
• Dombrowski, Kirk. Against Culture: Development, Politics, and Religion in Indian Alaska U of Nebraska Press. (2001)
• Haycox, Stephen. Alaska: An American Colony. University of Washington Press. (2006)