Marginal note:Further representations

7. When the council of a first nation sends a property taxation law or a law made under paragraph 5(1)(c) to the First Nations Tax Commission for its approval, the council shall

• (a) provide a copy of the law to any persons who made representations under paragraph 6(3)(c); and

• (b) invite those persons to make written representations to the Commission within 30 days after the day on which they receive the copy of the law.

Marginal note:Information accompanying property taxation law

• 8. (1) A property taxation law — including an amendment of a property taxation law — shall, when submitted to the First Nations Tax Commission for approval, be accompanied by

  • (a) a description of the lands, interests or rights subject to the law;

  • (b) a description of the assessment practices to be applied to each class of land, interest or right;

  • (c) information regarding services to be provided from local revenues, existing service agreements and any service agreement negotiations under way at the time the law was made;

  • (d) a description of the notices that were given, any consultation undertaken by the council before making the law and copies of any written representations received by the council; and

  • (e) evidence that the law was duly made by the council.

• Marginal note:Exemption

  (2) The First Nations Tax Commission may exempt a first nation from the requirements of subsection (1) in respect of an amendment of a property taxation law if the Commission considers that the amendment is not significant.

• Marginal note:Accompanying information

  (3) A law made under paragraph 5(1)(c), when submitted to the First Nations Tax Commission for approval, shall be accompanied by

  • (a) a description of the notices that were given, any consultation undertaken by the council before making the law and copies of any written representations received by the council; and

  • (b) evidence that the law was duly made by the council.

• Marginal note:Evidence law duly made

  (4) A law made under paragraph 5(1)(b), (d) or (e) that is submitted to the First Nations Tax Commission for approval shall be accompanied by evidence that it was duly made by the council.

• Marginal note:Additional information on request

  (5) At the request of the First Nations Tax Commission, a first nation shall provide any documents that the Commission requires in order to

  • (a) review a local revenue law;

  • (b) determine that the law was made in accordance with this Act, the regulations or any standards made under subsection 35(1); or

  • (c) perform any of its other functions under this Act.

Marginal note:Financial administration laws

• 9. (1) Subject to subsections (2) and (3), the council of a first nation may make laws

  • (a) respecting the financial administration of the first nation; and

  • (b) delegating to any person or body its powers to make laws under paragraph (a).

• Marginal note:Approval required

  (2) A law made under subsection (1) by a borrowing member, including any amendment of such a law, does not have any force or effect until it is approved by the First Nations Financial Management Board.

• Marginal note:Coming into force

  (3) A law made under subsection (1) comes into force on the latest of

  • (a) the day on which it is made,

  • (b) the day of coming into force set out in the law, and

  • (c) in the case of a law or amendment made by a borrowing member, the day after it is approved by the First Nations Financial Management Board.

• Marginal note:Evidence law duly made

  (4) A law made under subsection (1) that is submitted to the First Nations Financial Management Board for approval shall be accompanied by evidence that it was duly made by the council.

• Marginal note:Additional information on request

  (5) At the request of the First Nations Financial Management Board, a first nation shall provide any documents that the Board requires in order to

  • (a) review a financial administration law submitted to the Board;

  • (b) determine that the law was made in accordance with this Act, the regulations or any standards made under subsection 55(1); or

  • (c) perform any of its other functions under this Act.

Marginal note:Annual rate and expenditure laws

10. A council of a first nation that makes a property taxation law shall, at least once each year at a time prescribed by regulation, make

• (a) a law under paragraph 5(1)(a) setting the rate of tax to be applied to the assessed value of each class of lands, interests or rights; and

• (b) a law under paragraph 5(1)(b) establishing a budget for the expenditure of revenues raised under the property taxation law.

Marginal note:No repeal by borrowing members

• 11. (1) A borrowing member shall not repeal a property taxation law.

• Marginal note:Priority to Authority

  (2) A law made under paragraph 5(1)(b) by a borrowing member shall not authorize the expenditure of local revenues unless the borrowing member’s budget provides for the payment of all amounts payable to the First Nations Finance Authority during the budget period.

• Marginal note:Financial commitment

  (3) The borrowing member shall, in every year, reserve such local revenues as are required to ensure that all amounts authorized to be paid to the First Nations Finance Authority in the year are actually paid in that year.

Marginal note:Legal capacity of first nations

12. For greater certainty, for the purposes of Part 4, a borrowing member has the capacity to contract and to sue and be sued.

Marginal note:Local revenue account

• 13. (1) Local revenues of a first nation shall be placed in a local revenue account, separate from other moneys of the first nation.

• Marginal note:Restriction on expenditures

  (2) Local revenues may be expended only under the authority of a law made under paragraph 5(1)(b).

• Marginal note:Balanced budget

  (3) Expenditures provided for in a law made under paragraph 5(1)(b) shall not exceed the local revenues estimated for the year in which those expenditures are to be made, less any deficit accumulated from prior years.

Marginal note:Audit

• 14. (1) The local revenue account shall be audited at least once each calendar year and reported on separately from other accounts.

• Marginal note:Access to report

  (2) The audit report of the local revenue account shall be made available to

  • (a) the members of the first nation;

  • (b) any other persons who have an interest in, or the right to occupy, possess or use, the first nation’s reserve lands;

  • (c) the First Nations Tax Commission, the First Nations Financial Management Board and the First Nations Finance Authority; and

  • (d) the Minister.

Marginal note:Non-application of certain provisions

15. Paragraphs 83(1)(a) and (d) to (g) and section 84 of the Indian Act and any regulations made under paragraph 73(1)(m) of that Act do not apply to a first nation.

PART 2FIRST NATIONS TAX COMMISSION

Interpretation

Marginal note:Definitions

16. The following definitions apply in this Part.

“Commission”

« Commission »

“Commission” means the First Nations Tax Commission.

“taxpayer”

« contribuable »

“taxpayer” means a person paying tax under a property taxation law.

Establishment and Organization of Commission

Marginal note:Commission

• 17. (1) There is hereby established a commission, to be known as the First Nations Tax Commission, consisting of 10 commissioners, including a Chief Commissioner and Deputy Chief Commissioner.

• Marginal note:Capacity, rights, powers and privileges

  (2) The Commission has the capacity, rights, powers and privileges of a natural person, including the capacity to

  • (a) enter into contracts;

  • (b) acquire, hold and dispose of property or an interest in property;

  • (c) raise, invest or borrow money; and

  • (d) sue and be sued.

Marginal note:When agent of Her Majesty

• 18. (1) The Commission is an agent of Her Majesty only for the approval of local revenue laws.

• Marginal note:Savings

  (2) For the purpose of subsection (1), the issuance of a certificate referred to in paragraph 32(2)(b) is deemed not to be an approval of a local revenue law.

Marginal note:Appointment of Chief Commissioner

• 19. (1) On the recommendation of the Minister, the Governor in Council shall appoint a Chief Commissioner and Deputy Chief Commissioner.

• Marginal note:Tenure

  (2) The Chief Commissioner and Deputy Chief Commissioner hold office during good behaviour for a term not exceeding five years, subject to removal by the Governor in Council at any time for cause.

Marginal note:Appointment of commissioners

• 20. (1) On the recommendation of the Minister, the Governor in Council shall appoint four commissioners to hold office during good behaviour for a term not exceeding five years, subject to removal by the Governor in Council at any time for cause.

• Marginal note:Appointment of commissioners

  (2) On the recommendation of the Minister, the Governor in Council shall appoint three additional commissioners — one of whom shall be a taxpayer using reserve lands for commercial, one for residential and one for utility purposes — to hold office during good behaviour for a term not exceeding five years, subject to removal by the Governor in Council at any time for cause.

• Marginal note:Appointment of additional commissioner

  (3) A body prescribed by regulation shall appoint an additional commissioner to hold office during pleasure for a term not exceeding five years.

• Marginal note:Staggered terms

  (4) In determining the term of appointment of commissioners, the Governor in Council shall endeavour to ensure that the terms of no more than three commissioners expire in any one calendar year.

• Marginal note:Qualifications

  (5) The Commission shall be composed of men and women from across Canada, including members of first nations, who are committed to the development of a system of first nations real property taxation and who have the experience or capacity to enable the Commission to fulfil its mandate.