First Nations Tax Commission – Commission de la fiscalitè des premières nations

Webinar: Property Transfer Tax Under the FMA

In the above webinar, FNTC Legal Counsel Marie Potvin breaks down property transfer tax under the FMA into seven essential topics, including defining PTT, provincial regimes, PTT under the FMA, implementation, administrative requirements, law development and next steps. Below are some highlights.

What is PTT?

PTT is a tax that is levied each time a property is transferred from one person to another. It is paid by the purchaser or “transferee” of the property. PTT is collected at the time of registration of the transfer in the land title registry.

PTT Under the FMA

The FMA provides for expanded First Nation local revenue powers. PTT falls within the “general” property tax power under s. 5(1)(a) of the FMA.

Key Elements of FMA PTT include:

  • FMA PTT is tax on the interest in land that is levied at the time of transfer. Provincially, PTT tends to be characterized as a “transaction tax” on the transfer of land.
  • The amount of tax payable is determined by applying the tax rate (or rates) to the fair market value of the interest that is being transferred.
  • FMA PTT is paid by the purchaser (or “transferee”) of the property.
  • FMA PTT is collected at time of registration and is levied each time a leasehold property is transferred.

Law Development

PTT laws must be developed in compliance with the FMA, regulations and the Commission Standards.  The First Nation must comply with the public input process requirements in section 6 and 7 of the FMA, as well as the additional requirements set out in the Notice Standards. Once notice is completed, the First Nation enacts the PTT law and submits it for Commission approval.

Next Steps

If considering PTT…

  • Contact the Commission to discuss PTT revenue potential.
  • Review and evaluate the administrative requirements for PTT.
  • Consider arranging for the Commission to provide a PTT presentation to Chief and Council, as well as senior staff.

Once decided to proceed with law development…

  • Contact the Commission for a law development grant application.
  • Develop a law development work plan in conjunction with the Commission.
  • Retain legal counsel to assist in law development.
  • Download the sample PTT law for your province (Visit FMA toolkit page).
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