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the Caponin case is no earthly good to you you pay a tax just like everybody else. There is a restricted free patent. It reads as if it were a patent that is free but there are restrictions on the sale of the land by the United States and it is under exactly the same limitation as is the 3rd kind of patent, the trust patent, but it is patented to the individual but the title is owned by the United States in trust for the individual. Class those last two together. They are the kind that were involved in the Caponin case. The Caponin case actually was a trust patent, but it would be no different had it been a restricted patent. You speak of trust or restricted patents. That is the kind of allotment which, if you own, you find some benefits in the Squire vs. Capemin case. But as I was saying, you lease somebody elses allotment, what you pay him in rental may be exempt in Squirevs.Camp. if its restricted or exempt. But what you make yourself off of it, you are taxable on. What land you go out and rent aside from your own allotment, the income that produces is taxable, what lands you go out and buy and work are taxable but any allotment that you get yourself or that you inherit, that keeps in the restricted or trust states, is free in the income that you take from it, is free from the income tax under the Squire vs. Caponim case and under the Bureau of Internal Revenue. I hope that clears it to some extent. It does give you a confused feeling.
Thank you John.
Question:  Does this exemption also apply to the gross deduction tax on minerals? The state gross deduction tax?
I believe in answer to that that the gross deduction tax would not be levelled against the Indian owner but against the oil company producing the mineral and the petroleum from the earth. As I understand this Capomin case this tax exemption applies only to the ownership of trust lands. I do not believe that a lessee unless he happened to be an Indian who was a restricted Indian himself and actually in the business of producing oil even that that is a far stretch of the imagination in my opinion but I don't believe that anyone else as an oil and gas lessee would be exempt under the terms of the decision of the Supreme Court and John, that is not a good anser, I hope you will clarify it. Thank you.

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---------- Reopened for Editing 2023-11-23 18:53:37 ---------- Reopened for Editing 2023-11-28 21:21:18 ---------- Reopened for Editing 2023-11-28 22:23:49