Shareholders of the NANA Regional Native Corporation voted on Nov. 16 to establish a shareholder trust, which means dividends from the corporation will be tax-free.
The corporation has more than 14,000 shareholders, primarily of Inupiaq descent. Each year, they receive dividends from the corporation based on the number of shares they have with the company; last year’s amount was $10.50 a share.
NANA President and CEO Wayne Westlake says that shareholders had to pay taxes on their dividends prior to 2011. After that, the depletion value of the Aqqaluk Pit at Red Dog Mine and a low business performance from the corporation resulted in dividends small enough to avoid tax liability.
Westlake says recent business gains made the dividends tax-eligible again, surprising shareholders.
“Over the last few years, increased royalties and the performance of the business operations have resulted in shareholders having to report and pay taxes on their dividends,” Westlake said.
Instead of being dispersed through NANA directly, the dividends will be distributed through the new trust. Under the new federal tax laws passed during the Trump administration, NANA can contribute to the trust as a pre-tax investment. Additionally, the trust will be taxed at a lower rate, saving NANA money.
About 86 percent of shareholders voted in support of the trust. Westlake says NANA decided to hold the special shareholder meeting in Selawik instead of one of the larger urban centers of Alaska.
“We want to be able to make important decisions within our communities here in the region,” Westlake said, “and having the special meeting here in Selawik provided that opportunity, as well as Selawik being one of our larger communities.”
Westlake says about 40 other Alaska Native corporations have established trusts. This is the second for NANA, the first being the NANA Elders Settlement Trust in 2008, which provides benefits to shareholders over the age of 65.
Wesley Early covers Anchorage life and city politics for Alaska Public Media. Reach him at wearly@alaskapublic.org and follow him on X at @wesley_early. Read more about Wesley here.
