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:
- 2005, c. 9, Preamble
- 2012, c. 19, s. 657
- 2018, c. 27, ss. 413(E), 414(E)
Marginal note:Short title
- 2005, c. 9, s. 1
- 2012, c. 19, s. 658
2 (1) The following definitions apply in this Act.
- 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)
- capital assets
capital assets includes capital infrastructure. (immobilisation)
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)
interest, in relation to reserve lands in Canada elsewhere than in Quebec, means any estate, right or interest of any nature in or to the lands, including any right to occupy, possess or use the lands, but does not include title to the lands that is held by her Majesty. (intérêt)
- 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 Crown-Indigenous Relations. (ministre)
- property taxation law
property taxation law means a law made under paragraph 5(1)(a). (texte législatif relatif à l’imposition foncière)
right, in relation to reserve lands in Quebec, means any right of any nature in or to the lands, including any right to occupy, possess or use the lands and any right of a lessee, but does not include title to the lands that is held by her Majesty. (droit)
- third-party management
third-party management means the management of a First Nation’s local revenues under section 53. (Version anglaise seulement)
Marginal note:Indian Act definitions
(2) Unless the context otherwise requires, words and expressions used in this Act and not otherwise defined have the same meaning as in the Indian Act.
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
(a) add or change the name of the band; or
(b) delete the name of the band, as long as there are no amounts owing by the band to the First Nations Finance Authority that remain unpaid.
Marginal note:For greater certainty
(4) For greater certainty, nothing in this Act shall be construed as requiring 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
- 2018, c. 27, ss. 385, 414(E)
- 2019, c. 29, s. 373
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.
- 2005, c. 9, s. 3
- 2018, c. 27, s. 413(E)
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.
- 2005, c. 9, s. 4
- 2018, c. 27, s. 414(E)
Marginal note:Local revenue laws
5 (1) Subject to subsections (2) to (5), sections 4 and 6 and any regulations made under paragraph 36(1)(d), the council of a First Nation may make laws
(a) respecting taxation for local purposes of reserve lands and interests or rights in reserve lands, including
(i) the assessment of the value of those lands and interests or 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 and interests or 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 or, in Quebec, prior claims or legal hypothecs on reserve lands and on interests or rights 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 or movable 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
(a) the day of coming into force set out in the law, and
(b) the day after it is approved by the First Nations Tax Commission.
(4) A law made under subparagraph (1)(a)(i) shall include
(a) an appeal procedure in respect of assessments, incorporating such procedures as are prescribed by regulation; and
(b) fixed rates of remuneration and fixed terms of office for any persons designated to decide the appeals.
(5) [Repealed, 2015, c. 36, s. 178]
(6) [Repealed, 2018, c. 27, s. 386]
Marginal note:Assignment of interest or right
(7) Despite the Indian Act or any instrument or act conferring an interest or right in reserve lands, if there are outstanding taxes payable under a law made under paragraph (1)(a) for more than two years, the First Nation may assign the interest or right 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
(9) The Statutory Instruments Act does not apply in respect of local revenue laws or laws made under section 9.
- 2005, c. 9, s. 5
- 2015, c. 36, s. 178
- 2018, c. 27, ss. 386, 414(E)
Marginal note:Notice of proposed laws
6 (1) At least 30 days — or any longer period fixed by a standard made under subsection 35(1) — before making a law under paragraph 5(1)(a), (a.1) or (c), including a law repealing or amending such a law, other than a law referred to in subsection 10(1), the council of a First Nation shall
(a) publish a notice of the proposed law in the First Nations Gazette;
(b) post the notice in a public place on the reserve lands of the First Nation; and
(c) send the notice, by mail or electronic means, to the First Nations Tax Commission.
(2) The First Nations Tax Commission may exempt a First Nation from the requirements of subsection (1) in respect of an amendment of a law if the Commission considers that the amendment is not significant.
Marginal note:Content of notice
(3) A notice referred to in subsection (1) shall
(a) describe the proposed law;
(b) state where a copy of the proposed law may be obtained;
(c) invite representations regarding the proposed law to be made, in writing, to the council within the period referred to in subsection (1); and
(d) if the council is to review the proposed law at a public meeting, state the time and place of the meeting.
Marginal note:Council to consider representations
(4) Before making a law under paragraph 5(1)(a), (a.1) or (c), the council of a First Nation shall consider any representations that were made in accordance with paragraph (3)(c) or at a meeting referred to in paragraph (3)(d).
- 2005, c. 9, s. 6
- 2015, c. 36, s. 179
- 2018, c. 27, s. 414(E)
Marginal note:Further representations
7 When the council of a First Nation sends a law made under paragraph 5(1)(a), (a.1) or (c), other than a law referred to in subsection 10(1), 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.
- 2005, c. 9, s. 7
- 2018, c. 27, s. 387
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 and interests or rights subject to the law;
(b) a description of the assessment practices to be applied to each class of land and 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 and any consultation undertaken by the council before making the law; and
(e) evidence that the law was duly made by the council.
(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)(a.1) or (c), when submitted to the First Nations Tax Commission for approval, shall be accompanied by
(a) a description of the notices that were given and any consultation undertaken by the council before making the law; and
(b) evidence that the law was duly made by the council.
Marginal note:Evidence law duly made
(4) A law made under any of paragraphs 5(1)(b) and (d) to (g) 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.
- 2005, c. 9, s. 8
- 2015, c. 36, s. 180
- 2018, c. 27, ss. 388, 414(E)
- Date modified: