Assented to 2005-03-23
An Act to provide for real property taxation powers of first nations, to create a First Nations Tax Commission, First Nations Financial Management Board and First Nations Finance Authority and to make consequential amendments to other Acts
Whereas the Government of Canada has adopted a policy recognizing the inherent right of self-government as an aboriginal right and providing for the negotiation of self-government;
Whereas this Act is not intended to define the nature and scope of any right of self-government or to prejudge the outcome of any self-government negotiation;
Whereas the creation of national aboriginal institutions will assist first nations that choose to exercise real property taxation jurisdiction on reserve lands;
Whereas economic development through the application of real property tax revenues and other local revenues to support borrowing on capital markets for the development of public infrastructure is available to other governments in Canada;
Whereas real property taxation regimes on reserves should recognize both the interests of on-reserve taxpayers and the rights of members of first nations communities;
Whereas first nations led an initiative that resulted in 1988 in an amendment to the Indian Act so that their jurisdiction over real property taxation on reserve could be exercised and the Indian Taxation Advisory Board was created to assist in the exercise of that jurisdiction;
Whereas, in 1995, the First Nations Finance Authority Inc. was incorporated for the purposes of issuing debentures using real property tax revenues and providing investment opportunities;
Whereas, by 1999, first nations and the Government of Canada recognized the benefits of establishing statutory institutions as part of a comprehensive fiscal management system;
And whereas first nations have led an initiative culminating in the introduction of this Act;
NOW, THEREFORE, Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
Marginal note:Short title
- 2005, c. 9, s. 1;
- 2012, c. 19, s. 658.
- borrowing member
borrowing member means a first nation that has been accepted as a borrowing member under subsection 76(2) and has not ceased to be a borrowing member under section 77. (membre emprunteur)
council has the same meaning as council of the band in subsection 2(1) of the Indian Act. (conseil de la première nation)
- first nation
first nation means a band named in the schedule. (première nation)
- First Nations Finance Authority
First Nations Finance Authority means the corporation established under section 58. (Administration financière des premières nations)
- First Nations Financial Management Board
First Nations Financial Management Board means the board established under subsection 38(1). (Conseil de gestion financière des premières nations)
- First Nations Gazette
First Nations Gazette means the publication published under section 34. (Gazette des premières nations)
- First Nations Statistical Institute
First Nations Statistical Institute[Repealed, 2012, c. 19, s. 659]
- First Nations Tax Commission
First Nations Tax Commission means the commission established under subsection 17(1). (Commission de la fiscalité des premières nations)
- local revenue law
local revenue law means a law made under subsection 5(1). (texte législatif sur les recettes locales)
- local revenues
local revenues means moneys raised under a local revenue law and payments made to a first nation in lieu of a tax imposed by a law made under paragraph 5(1)(a). (recettes locales)
Minister means the Minister of Indian Affairs and Northern Development. (ministre)
- property taxation law
property taxation law means a law made under paragraph 5(1)(a). (texte législatif relatif à l’imposition foncière)
- third-party management
third-party management means the management of a first nation’s local revenues under section 53.
Marginal note:Indian Act definitions
Marginal note:Amendments to schedule
(3) At the request of the council of a band, the Minister may, by order, amend the schedule in order to
Marginal note:For greater certainty
(4) For greater certainty, nothing in this Act shall be construed as requiring capital infrastructure or capital assets for the provision of local services on reserve lands to be located on reserve lands.
- 2005, c. 9, s. 2;
- 2012, c. 19, s. 659;
- 2015, c. 36, s. 177.
Marginal note:Aboriginal and treaty rights
3 For greater certainty, nothing in this Act shall be construed so as to abrogate or derogate from any existing aboriginal or treaty rights of the aboriginal peoples of Canada under section 35 of the Constitution Act, 1982.
PART 1First Nations Fiscal Powers
Marginal note:Financial administration laws
4 The council of a first nation may not make a law under paragraph 5(1)(d) until the council has made a law respecting the financial administration of the first nation under paragraph 9(1)(a) and that law has been approved by the First Nations Financial Management Board.
Marginal note:Local revenue laws
(a) respecting taxation for local purposes of reserve lands, interests in reserve lands or rights to occupy, possess or use reserve lands, including
(i) the assessment of the value of those lands, interests and rights, the requisition of any information necessary to conduct the assessment and the inspection, in accordance with procedures prescribed by regulation, for assessment purposes of any reserve lands that are subject to taxation for local purposes,
(ii) a mechanism to establish tax rates and apply them to the assessed value of those lands, interests and rights,
(iii) taxation for the provision of services in respect of reserve lands,
(iv) the taxation of business activities on reserve lands, and
(v) the imposition of development cost charges;
(a.1) respecting the charging of fees for the provision of services or the use of facilities on reserve lands, or for a regulatory process, permit, licence or other authorization, in relation to water, sewers, waste management, animal control, recreation and transportation, as well as any other similar services;
(b) authorizing the expenditure of local revenues;
(c) respecting procedures by which the interests of taxpayers may be represented to the council;
(d) respecting the borrowing of money from the First Nations Finance Authority, including any authorization to enter into a particular borrowing agreement with that Authority;
(e) subject to any conditions and procedures prescribed by regulation, respecting the enforcement of laws made under paragraphs (a) and (a.1) in respect of outstanding taxes, charges or fees, including
(i) the creation of liens on reserve lands and interests in reserve lands,
(ii) the imposition and recovery of interest and penalties on an amount payable pursuant to a law made under that paragraph, where the amount is not paid when it is due, and the rate of interest or the amount of the penalty, as the case may be,
(iii) subject to subsection (7), the seizure, forfeiture and assignment of interests or rights in reserve lands,
(iv) the seizure and sale of personal property located on reserve lands, other than property located in a dwelling,
(v) the discontinuance of services, and
(vi) the recovery of costs that are incurred by the first nation for the enforcement of those laws;
(f) delegating to any person or body any of the council’s powers to make laws under any of paragraphs (a) to (e); and
(g) delegating to the First Nations Financial Management Board any other of the council’s powers that are required to give effect to a co-management arrangement entered into under section 52 or to give effect to third-party management of the first nation’s local revenues.
Marginal note:Approval required
(2) A law made under subsection (1) does not have any force or effect until it is approved by the First Nations Tax Commission.
Marginal note:Coming into force
(3) A law made under subsection (1) comes into force on the later of
(4) A law made under subparagraph (1)(a)(i) shall include
(5) [Repealed, 2015, c. 36, s. 178]
Marginal note:Special levy
(6) A property taxation law of a borrowing member shall provide that the borrowing member must make a law under paragraph (1)(a) in order to recover amounts payable under paragraph 84(5)(b).
Marginal note:Assignment of right or interest
(7) Notwithstanding the Indian Act or any instrument conferring a right or interest in reserve lands, if there are outstanding taxes payable pursuant to a law made under paragraph (1)(a) for more than two years, the first nation may assign the right or interest in accordance with the conditions and procedures prescribed by regulation.
Marginal note:Judicial notice
(8) In any proceedings, judicial notice may be taken of a local revenue law.
Marginal note:Statutory Instruments Act
- 2005, c. 9, s. 5;
- 2015, c. 36, s. 178.
- Date modified: