First Nations Fiscal Management Act (FMA)
The FMA is First Nation-led legislation that affirms First Nation jurisdiction for an array of fiscal powers; these include:
- Property taxation on First Nations lands, including
- Assessment of property, the requisition of information to assess a property and the inspection of property.
- Setting tax rates to be applied to the assessed value of property;
- Collection of taxes for the provision of services to property;
- Taxation of business activities;
- Imposing development cost charges; and
- Property Transfer tax.
- Authorizing the expenditure of local revenues;
- Establishing procedures by which the interests of taxpayers may be represented to Council;
- Authorizing the borrowing of money from the First Nations Finance Authority;
- Providing for the enforcement of laws in respect of outstanding taxes or charges, and
- Delegation of law-making power.
First Nations tend to establish real property taxes first, and then consider building on that established framework with additional local revenue laws such as a development cost charges law, a property transfer tax law and a business activity tax law. First Nation tax authorities levy and collect real property taxes in the same manner as local governments throughout Canada. First Nation real property tax systems base taxation on a property assessment, use market value assessment methods, use professional assessors, and set rates based on a budget. Procedures for assessment appeals and tax enforcement in First Nation tax systems are also similar to local government approaches. Under the framework of the FMA, a First Nation creates its real property taxation system by making two laws: a First Nation Property Taxation Law and a First Nation Property Assessment Law. A First Nation must have both of these laws in place before it can levy and collect property taxes. The property assessment law establishes the property assessment system. It provides for the appointment of an assessor, creates the timelines for conducting assessments, sets out the rules for determining assessed values of properties, establishes property classes for assessment purposes, and provides for an independent assessment review board to consider and determine assessment appeals. The property taxation law establishes how taxes are levied and what property interests are taxable, sets out the duties of the tax administrator, establishes the timelines and requirements for creating the tax roll and sending tax notices, sets out any exemptions from taxation, provides for the imposition of penalties and interest on unpaid taxes, and outlines the enforcement and collection mechanisms available to the First Nation. Taxation laws enacted under the FMA must comply with all statutory requirements, any regulations made under the FMA and any standards established by the FNTC. Sample property taxation laws, consistent with the Act, regulations, and FNTC standards are found below.
Property assessment and taxation laws are part of a group of laws called “local revenue laws” that a First Nation can pass under the FMA. These laws not only establish the legal authority to collect real property tax, but they also establish the administrative framework for a First Nation’s taxation system. First Nations tend to establish real property taxes first, and then consider building on that established framework with additional local revenue laws such as a development cost charges law, a property transfer tax law and a business activity tax law. The FNTC has established Standards for the Form and Content of First Nation Property Assessment Laws, and Standards for the Form and Content of First Nation Property Taxation Laws. Sample laws have been developed for each region in order to enable harmonization with provincial approaches where appropriate. The Standards, regulations, sample laws, sample notices, and other documentation are available below.
- Standards for First Nation Property Assessment Laws
- Standards for First Nation Property Taxation Laws
- Standards for the Submission of Information Required Under Section 8 of the Act
- First Nations Assessment Appeal Regulations (SOR/2007-241)
- First Nations Assessment Inspection Regulations (SOR/2007-242)
- First Nations Taxation Enforcement Regulations (SOR/2007-243)
- First Nations Property Assessment and Taxation (Railway Rights-of-Way) Regulations (SOR/2007-277)
- Sample FMA Taxation and Assessment Law Development Workplan (PTAX)
- Sample Representation Plan for Proposed Laws (PTAX)
- Sample Notice of Proposed Local Revenue Laws (PTAX)
- Sample BCR Approving Laws for Undertaking (PTAX)
- Sample Letter re: Submission of Information Required under Section 8 of the FMA (PTAX)
- Sample s7 Letter re: Further Representation to FNTC (PTAX)
- Sample Property Assessment Law (AB)
- Annotated Sample Property Assessment Law (AB)
- Sample Property Taxation Law (AB)
- Annotated Sample Property Taxation Law (AB)
- Sample Property Assessment Law (BC)
- Annotated Sample Property Assessment Law (BC)
- Sample Property Taxation Law (BC)
- Annotated Sample Property Taxation Law (BC)
- Sample Property Assessment Law (MB)
- Annotated Sample Property Assessment Law (MB)
- Sample Property Taxation Law (MB)
- Annotated Sample Property Taxation Law (MB)
- Sample Property Assessment Law (NB)
- Annotated Sample Property Assessment Law (NB)
- Sample Property Taxation Law (NB)
- Annotated Sample Property Taxation Law (NB)
- Sample Property Assessment Law (NS)
- Annotated Sample Property Assessment Law (NS)
- Sample Property Taxation Law (NS)
- Annotated Sample Property Taxation Law (NS)
- Sample Property Assessment Law (ON)
- Annotated Sample Property Assessment Law (ON)
- Sample Property Taxation Law (ON)
- Annotated Sample Property Taxation Law (ON)
- Standards Establishing Criteria for Approval of Borrowing Laws
- Standards for the Form and Content of Borrowing Laws
- Sample Notice of Proposed Local Revenue Law (Long-Term Borrowing)
- Sample BCR Approving Law for Undertaking (Long-Term Borrowing)
- Sample Letter re: Submission of Information Required under s8 (Long-Term Borrowing)
- Sample Borrowing Agreement Law
- Sample Long-Term Capital Borrowing Law
- Sample Long-Term Refinancing Borrowing Law
- Standards for First Nation Business Activity Tax Laws – Accommodation Operator
- Sample Business Activity Tax Law – Accommodation Operator
- Standards for First Nation Business Activity Tax Laws – Well Drilling (AB)
- Sample Business Activity Tax Law – Well Drilling (AB)
- providing, constructing, altering or expanding sewage, water, stormwater and transportation facilities, and
- providing and improving park and recreation land
As part of a First Nation’s development of a DCC law, the First Nation must undertake a number of planning steps to determine the types of services that will be required, the scope of the projects, and the DCC charge for each service, as this information will inform the law development process. The capital costs used to determine the DCC’s to be levied must be supported by a long-term capital plan, regional growth strategy, official community plan, or other regional development plan. The FNTC has established Standards for the Form and Content of First Nation Development Cost Charges Laws. The Standards, sample law, sample notices, and other documentation are available below.
- Standards for First Nation Property Transfer Tax Laws
- Sample Letter re: Submission of Information Required under s8 (PTT)
- Sample Property Transfer Tax Law (BC)
- Annotated Sample Property Transfer Tax Law (BC)
- Sample Property Transfer Tax Law (ON)
- Annotated Sample Property Transfer Tax Law (ON)
- Webinar: Property Transfer Tax Under the FMA
- Standards for First Nation Fee Laws, 2017
- Standards for the Submission of Information Required under s8
- Sample Specific Service Fee Law
- Standards for First Nation Taxpayer Representation to Council Laws
- Standards for the Submission of Information Required under s8
- Sample Taxpayer Representation to Council Law
- First Nations Taxpayer Relations Policy
- Procedures Respecting the Approval of First Nation Local Revenue Laws
- Dispute Resolution Policy
- Public Input Policy
- Policy Respecting the First Nations Fiscal Management Act Law Registry (2019)
- Policy Respecting Publication in the First Nations Gazette
- First Nations Gazette Style Guide
- First Nations Local Revenue Law Review Regulations
- First Nations Tax Commission Review Procedures Regulations (SOR/2007-239)
- First Nations Tax Commissioner Appointment Regulations (SOR/2006-243)