Senate Bill 1283 would return 25 percent of all sales tax generated from American Indian reservations back to the tribes each month. The money would be spent on infrastructure and community development, including road and building construction.
The other 75 percent would go to counties that are home to the reservations.
If the measure becomes law, it would likely mean fewer tax dollars for the state’s general fund.
Republican Sen. Chester Crandell and Democratic Rep. Albert Hale are pushing the measure through the Republican-led Legislature. Both say current tax law is inequitable.
Reservations generated $39.5 million in sales tax last year. That money funds the state and local governments.