First Nations Fiscal Management Act

Marginal note:Local revenue laws

• 5 (1) Subject to 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), 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.

• Marginal note:Appeals

  (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.

• Marginal note:Application to competent court

  (5) The First Nation may apply to a court of competent jurisdiction for an order directing the person or entity named in the application to comply with a local revenue law, such as by

  • (a) refraining from doing anything that, in the opinion of the court, constitutes or is directed toward the contravention of that law; or

  • (b) doing anything that, in the opinion of the court, may prevent the contravention of that law.

• Marginal note:Collection — competent court

  (6) The First Nation may commence a proceeding in a court of competent jurisdiction to collect an amount owing to the First Nation under a local revenue law.

• Marginal note:Enforcement — Framework Agreement on First Nation Land Management Act

  (6.1) If a First Nation has adopted a land code as defined in subsection 2(2) of the Framework Agreement on First Nation Land Management Act or the council of a First Nation has enacted a First Nation law as defined in subsection 2(1) of that Act, the First Nation may use any enforcement measure — other than a measure for the investigation or prosecution of an offence punishable on summary conviction referred to in paragraph 19.1(a) of the Framework Agreement, as defined in subsection 2(1) of that Act — that is provided for in that land code or First Nation law to enforce a local revenue law.

• 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.