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HomeMy WebLinkAbout2/26/2003 - STAFF REPORTS (5) February 19, 2003 The Honorable Mary Bono 404 Cannon House Office Building Washington, D.C. 20515-0544 Dear Congresswoman Bono: I am writing today about an issue I hope to work with you in addressing on behalf of our constituents in the City of Palm Springs. I am hopeful that this issue can be solved through the introduction of legislation that would correct a grave inequity faced by homeowners who live on hidian reservation or allotment land. As you know, a person who finances the purchase a home is permitted a tax deduction on the interest costs associated with the value of the home and the land on which it is situated. However, in the case of individuals who finance homes on Tribal trust land or a tribal allotment, interest associated with the cost of the home is deductible, but the corresponding ground lease payments are not allowed to be deducted. This inequity means costs of homes on Tribal and allotment land is more when compared equivalent homes on private land. The inequity depresses property values for homes located on leased Tribal and allotment land costing those who live on this land more money than some of their neighbors who can deduct interest paid on the home and land. This problem only exists on residential dwellings, not on commercial property. Commercial lease payments are deductible for businesses. It is my hope that you will introduce legislation that will also terminate this disparity between corrnnercial and private leases on Tribal land. This legislation would not only provide a level playing field for taxpayers in Palm Springs, it would benefit taxpayers living on Tribal or allotment land nationwide. Also, Tribes across the country could benefit from lowering the long term costs of property values, which in turn will attract new home owners to Tribal trust land. The City of Palm Springs urges you to introduce legislation to provide taxpayer equity by simply making the ground lease payment deductible as if it were an interest payment and we support you fully in your efforts on this issue. Should you need any additional information, please feel free to contact me at any time.