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16th Feb 2018 | by: FNTC

Policy for First Nation Tax Rates By-laws and Policy for First Nation Expenditure By-laws

Property Tax By-laws, including annual rates and expenditure by-laws, made under section 83 of the Indian Act are subject to Ministerial approval.  A Memorandum of Understanding (MOU) between the FNTC and the Minister of Indian Affairs and Northern Development provides for the FNTC to review and recommend section 83 by-laws for ministerial approval.

Policies established by the Commission further the policy objectives expressed in the MOU, including to ensure the integrity of the First Nations property taxation system and to promote a common approach to real property taxation nationwide.

As a matter of policy, the FNTC seeks public input prior to introducing or significantly amending its policies. This input is critical in developing policies that are acceptable and effective for participating First Nations and their taxpayers.

The proposed amendments to the Policy for First Nation Tax Rates By-laws and the Policy for First Nation Expenditure By-laws reflect changes required to ensure that these policies properly reflect the FNTC Rates Law and Expenditure Law Standards to the extent possible.

Policy for First Nations Tax Rates By-laws, 2018 (Rates By-law Policy).

The Rates By-law Policy sets out the requirements that should be met for First Nation annual tax rates by-laws enacted under section 83 of the Indian Act and is used by the Commission in its review and recommendation of First Nations’ annual tax rates by-laws.

The proposed Rates By-law Policy makes changes intended to reflect the provisions addressed in the FMA Rates Law Standards, which are also relevant to First Nation taxation under section 83.

The proposed changes include:

  • – corrections to references, particularly to the Property Taxation By-law Policy;
  • – additional provisions setting the requirement for First Nations to provide notice of annual tax rates by-laws;
  • – a new section 11 to include in the notice materials a description of the justification for additional tax rate increases sought under section 8.1(a) or (b);
  • – a new section 12 setting the timing for making annual tax rates by-laws on or before July 31 of the taxation year to which the by-law applies;
  • – a new section 13 setting the timing for Saskatchewan First Nations making annual tax rates by-laws on or before August 31 of the taxation year to which the by-law applies; and
  • – other changes to reflect applicable changes in wording to the Standards for First Nation Rates Laws, 2017.

The changes to the Rates By-law Policy are proposed to ensure section 83 policies are consistent with FMA standards to the extent possible.

 

Policy for First Nations Expenditure By-laws, 2018 (Expenditure By-law Policy).

The Expenditure By-law Policy sets out the requirements that should be met for First Nation Expenditure By-laws enacted under section 83 of the Indian Act and is to be used by the Commission in its review and recommendation of First Nations’ by-laws for ministerial approval.

The proposed Expenditure By-law Policy makes changes intended to reflect the provisions addressed in the FMA Expenditure Law Standards, which are also relevant to First Nation taxation under section 83.

The proposed changes include:

  • – the capture of payments-in-lieu of taxation in local revenues;
  • – a new provision to segregate local improvement tax revenue (subsection 2.2);
  • – a new provision to exclude the following amounts from the contingency amount calculation: transfer to reserve funds, transfers from capital reserve to the current year budget and revenues from local improvement taxes (subsection 2.4);
  • – a new provision to establish a reserve fund for local improvement tax revenue (subsection 9.1);
  • – a new section 10 requiring First Nations, prior to submitting an annual expenditure law to the Commission for review and approval, to give notice of its annual expenditure by-law
    • – by posting a copy of the by-law on the FNG or on the First Nation’s website; or
    • – by holding a public meeting at which taxpayers may meet with the tax administrator or members of Council to discuss the proposed by-law.
  • – a new section 11 exempting Standing Expenditure By-laws from the notification requirements while establishing notice requirements over annual budgets;
  • – a new section 12 setting the timing for making annual expenditure by-laws on or before July 31 of the taxation year to which the by-law applies and providing an exemption for Saskatchewan First Nations, so that annual expenditure by-laws must be made on or before August 31 of the taxation year to which the by-law applies; and
  • – other changes to reflect applicable changes in wording to the Standards for First Nation Expenditure Laws, 2017.

The changes to the Expenditure By-law Policy are proposed to ensure section 83 policies are consistent with FMA standards to the extent possible.

The FNTC is seeking public input in respect of these proposed Policies. For more information, please contact the FNTC at mail@fntc.ca or by telephone at (250) 828-9857.

Electronic versions of the proposed Policies are available by clicking the link below:

 

 

 

Please direct your written comments on or before March 16, 2018 to:

First Nations Tax Commission

321-345 Chief Alex Thomas Way

Kamloops BC  V2H 1H1

Telephone: (250) 828-9857

Fax: (250) 828-9858

 

Email: mail@fntc.ca

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