Locating your business on tribal lands can provide many advantages. With a joint venture structure through a tribal industrial development authority, you can develop your business in a virtually tax free environment.

Specific benefits of locating an industrial site within a tribal jurisdiction include:

1. Replacement of federal and state income taxes with a 5% tribal tax.
2. There is no inventory tax on goods held for resale, otherwise in stock.
3. There is no sales tax exemption for machinery and equipment purchased and used in established manufacturing or processing plants; The sales tax is 3%.
4. The assessment ratio possessory interest tax in one tribal situation is $1.00 per acre plus a surcharge tax equal to 1% of the market value of the valuable improvements within a possessory interest. (A possessory interest is basically a leasehold interest.)
5. Under certain conditions, low interest financing for projects can be arranged through tribal industrial development entities, tribal banks and private sources of capital.
6. As there is no tribal corporate income tax, there is no need for an investment new jobs tax credit.
7. Property which is held in trust by the United States for the benefit of a tribal entity is generally exempt from all state ad valorem taxes on land and buildings as a matter of federal law.
8. General vocational training programs available in the community are also available for businesses operated within a tribal jurisdiction.

If you are interested in pursuing a tribal structure, S.O.L.F. can provide consulting services to your company. S.O.L.F. provides business development services which can facilitate negotiating a joint venture project through a tribal industrial development agency.

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