First Nations Fiscal Management Act

Marginal note:Local revenue laws

• 5 (1) Subject to subsections (2) to (6), 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, 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;

  • (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 in accord­ance with any procedures, prescribed by regulation, respecting the enforcement of laws made under paragraph (a) in respect of outstanding taxes or charges, 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, and

    • (v) the discontinuance of services;

  • (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.

• Marginal note:Appeals

  (4) A law made under paragraph (1)(a) 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.

• Marginal note:Third-party management

  (5) A property taxation law shall provide that, if the First Nations Financial Management Board gives notice to the first nation that third-party management of the first nation’s local revenues is required, the Board may act as agent of the first nation to fulfil any of the powers and obligations of the council under the property taxation law, this Act and any regulations made under this Act.

• 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

  (9) The Statutory Instruments Act does not apply in respect of local revenue laws or laws made under section 9.