Coeur d'Alene Tribe officials were celebrating on Tuesday afternoon, when the state Senate overwhelmingly passed a bill forbidding counties from taxing tribal government land.

The bill now only requires Gov. Butch Otter's signature to become law. The legislation would end years of confusion over whether Kootenai County can assess and tax the tribe's property.

"This is a new day in tribal-state relations," stated Tribe Chair Chief Allan. "The legislature really stepped up to help us solve this ongoing issue."

Under House Bill 140, property on federally recognized tribal reservations would be exempt from property taxation in Idaho.

While the legislation only affects a few counties, Kootenai included, it addresses an issue that has been a burden for several years.

In 2006, several Idaho counties started taxing tribal owned land that had never been taxed before.

Total property taxes levied on the five tribes' lands last year came to $300,000.

The Coeur d'Alene Tribe's portion of that was $200,000.

Tribes have insisted they should be treated like other government entities in Idaho, which are exempt from paying property tax.

Lawmakers on Tuesday agreed, as the bill passed 33-2 in the Senate.

"I'm almost embarrassed the Legislature hasn't fixed this for tribes in Idaho sooner," said Sen. Bob Nonini, R-Coeur d'Alene, who spoke in favor of the bill on Tuesday.

The House passed the bill in February.

The Coeur d'Alene Tribe has been discussing the matter with Kootenai County for years.

The county commissioners recently waived more than $400,000 in taxes levied on tribal land for half of 2009, and all of 2010-2012.

"This clarifies it for the county," said Tribe spokeswoman Heather Keen of the bill. "Our discussions were about past taxes, and this clarifies that in the future, counties won't be able to levy any taxes going forward."

County Commissioner Dan Green said the bill takes much responsibility off the county.

"It relieves us of a decision if the Tribe was planning on bringing forward this issue in subsequent years," Green said.