First Nations Tax Commission – Commission de la fiscalitè des premières nations
Proponent First Nations and the FNTC work to create a First Nation Cannabis Tax and Regulation option

Proponent First Nations and the FNTC work to create a First Nation Cannabis Tax and Regulation option

The FNTC has been working with proponent First Nations to advance a First Nation cannabis tax option since March 2017. The FNTC made proposals about this option in April 2017 to the Minister of Justice and in August 2017 to the Department of Finance. First Nations have been seeking greater support for this option over the last several months.

On February 28, 2018 the Chief Commissioner made a presentation to the Senate Committee on Aboriginal Peoples who were reviewing Bill C-45 to suggest specific amendments to enable First Nation cannabis tax and regulatory jurisdiction.

“The lack of First Nation inclusion in the cannabis tax framework is a missed opportunity for the federal government to demonstrate its commitment to a nation-to-nation relationship. First Nation cannabis tax jurisdiction is an opportunity to use First Nation tax jurisdiction to address the potential grey market manufacture and sale of cannabis, as has happened with tobacco.” – C.T. (Manny) Jules, FNTC Chief Commissioner

The proposal was well received by the Senate Committee and has gained positive support from interested First Nations. The FNTC advanced suggested wording for amendments to create a First Nation cannabis tax option.

The FNTC and proponent First Nations are seeking to achieve several broad objectives with these amendment proposals, including:

Enable a First Nation cannabis tax framework that:

  1. Generates revenues for interested First Nations to support health, education, infrastructure and regulatory requirements associated with cannabis manufacturing, distribution, sales and consumption on First Nations lands,
  2. Provides a framework to support an improved jurisdiction-based fiscal relationship for interested First Nations, and
  3. Recognizes and effectively implements First Nations government jurisdiction within the Canadian federation.

Enable a First Nation cannabis tax and regulatory framework that is harmonized with the proposed federal and provincial frameworks for interested First Nations, that:

  1. Enables a harmonized FMA cannabis excise tax for interested First Nations,
  2. Enables a harmonized cannabis FNGST for interested First Nations,
  3. Enables cannabis regulations (including licensing and associated fees) for interested First Nations,
  4. Enables agreements between interested First Nations and interested provinces with respect to harmonized PST and possible harmonized cannabis tax regulation and enforcement on First Nation lands, and
  5. Provides options for First Nations to create regulatory frameworks on their lands for cannabis that are parallel those implemented by the provinces. In this regard, it is anticipated that First Nations may choose to tie into and apply certain aspects of provincial frameworks on their lands, for administrative efficiency.

There are four distinct elements to the proposed amendments to develop a First Nation cannabis tax option:

FMA Amendments – These proposed amendments would enable First Nation fiscal powers associated with cannabis excise, FNGST and licensing. They would also enable efficient revenue collection mechanisms and ensure that these additional revenues could be used to support long term infrastructure financing.

Excise Act, 2001 Amendments – These proposed amendments would provide an orderly transition to cannabis taxation for interested First Nation and ensure the efficient collection and payment of these revenues to participating First Nations.

FNGST Act Amendments – These proposed amendments would provide an option for interested First Nations to include FNGST revenues in the FMA to coordinate with other cannabis tax revenues and to ensure the efficient collection of these revenues.

Cannabis Act (Bill C-45) Amendments – These proposed amendments would ensure the First Nations cannabis tax and regulation options are enabled in this legislation. These proposed amendments would also ensure that First Nation cannabis tax and regulation option could be efficiently coordinated and potentially harmonized with other governments through agreements and regulations.


IN THE MEDIA

November 9, 2018
The Lawyer’s Daily: First Nations authority over cannabis hazy, legal experts say

November 2, 2018
Vancouver Sun: Chilliwack First Nation writes its own cannabis law 
Chilliwack’s cannabis retail shop is operating on First Nations land, under a cannabis law passed by the Kwaw-Kwaw-A-Pilt band.

October 16, 2018
The Walrus Talks: The Walrus Talks Cannabis in Ottawa 

October 7, 2018
The Globe and Mail: First Nations making deals to secure a piece of the cannabis pie
Part of series: Cannabis laws and regulations

October 4, 2018
Windspeaker: Lack of excise tax revenues cuts First Nations out of legal cannabis industry
Cannabis is a multi-billion-dollar industry that’s going to be growing up and we need to be able to have a portion of that.” — Manny Jules, chief commissioner of the First Nations Taxation Commission

September 10, 2018
The Star Vancouver: First Nations, cities both want share of coming weed taxes as B.C. renews reconciliation pact
Manny Jules, Chief Commissioner of the First Nations Tax Commission, speaks to city and Indigenous leaders at the Union of B.C. Municipalities annual convention in Whistler, B.C.

September 5, 2018
Policy Options: How First Nations might share in excise duties, and the decision to apply the duties to medical cannabis, are two policy areas worth watching.

June 15, 2018
National Post: ‘One of the greatest paradoxes’- Indigenous communities grapple with the costs and benefits of legal weed
Bill C-45 is testing whether Trudeau can make good on one signature promise, to legalize cannabis, without losing ground on another — advancing reconciliation.

June 7, 2018
Nelligan O’Brien Payne: Marijuana In First Nations Communities – What Law Will Apply?
The Federal Government is on track to legalize marijuana later this year, with Bill C-45 making its way through the Senate.

May 22, 2018
Policy Options: Feds must allow First Nations to tax, regulate cannabis
The exclusion of Indigenous governments from the proposed cannabis regime seems incongruous with the PM’s support for a nation-to-nation relationship.

May 3, 2018
CBC News Network: Senators want cannabis bill delayed to address Indigenous Issues 
The Senate’s committee on Aboriginal peoples wants the legalization of cannabis to be delayed for up to a year. Senators say more time is needed to create policies on issues for Indigenous groups like health, taxation and education campaigns.

May 1, 2018
CBC News: Senators recommend delaying cannabis bill for a year to address Indigenous issues
First Nations say their governments will face new social challenges from legal cannabis.

March 8, 2018
CBC News: First Nations demanding a cut of cannabis tax after pot legalization
148-page pot bill silent on role Indigenous communities will play under proposed legal framework.

March 8, 2018
Global News Radio 640 Toronto: First Nations fighting for cut of cannabis tax after legislation 
Tasha speaks with Chief commissioner and one of the creators of the First Nations Tax Commission, Manny Jules about marijuana tax.

March 8, 2018
ON Point with Alex Pierson: First Nations would like a cut of cannabis tax after pot is legalized
Alex Pierson speaks with Chief Commissioner of First Nations Manny Jules about the potential challenges with Bill C-45 and getting First Nations involved in the conversation.

February 28, 2018
CPAC: In Committee from the Senate of Canada – Aboriginal Peoples 
Senators continue their study on Bill C-45, the government’s legislation to legalize marijuana, as it relates to the Indigenous peoples of Canada. Appearing before the committee are the First Nations Tax Commission’s Chief Commissioner C.T. (Manny) Jules, the Indigenous Peoples Cannabis Association’s Executive Director Bill Robinson, and the Oneida Nation of the Thames’ Chief Randall Phillips.

Close Menu