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  • FNTC: NEWS

Improvements to the FMA to Support Prosperity in First Nation Communities

OTTAWA, ONTARIO (April 1, 2016) The Minister of Indigenous and Northern Affairs, Carolyn Bennett, along with Chief Commissioner of the First Nations Tax Commission, C.T. (Manny) Jules, Executive Chair of the First Nations Financial Management Board, Harold Calla, and Chief Executive Officer of the First Nations Finance Authority, Ernie Daniels, today announced changes to the First Nations Fiscal Management Act (FNFMA) which will make it simpler for First Nations to access the regime, implement property taxation and lever financing for community economic and social development.

The amendments not only clarify and simplify various processes under the Act, they ultimately make it easier for First Nations to opt-in to the legislation, strengthening the regime and improving the investment climate on-reserve.

These amendments stem from recommendations and consultations with the three First Nations-led institutions established under the legislation – the First Nations Tax Commission (FNTC); the First Nations Financial Management Board (FNFMB); and the First Nations Finance Authority (FNFA) – as well as with First Nations scheduled to the Act, those interested in opting-in, taxpayers and other stakeholders.

Quick Facts
  • The Act has strong, sustained demand from First Nations wishing to participate in the regime. Currently, 177 First Nations have chosen to opt-in to the Act, with 86 collecting property tax, 62 having received FNFMB financial performance certification, and 52 accepted as FNFA borrowing members.
  • First Nations participating in the FNFMA have over $481 million in own source revenues, and have used these revenues to support over $250 million in FNFA loans to build houses, a school, green energy projects, refinance existing debt and to help pay for new capital infrastructure.
  • First Nations with property taxation jurisdiction under the FNFMA have collected over $250 million in property tax revenues, supporting vital services and infrastructure.
Quotes

“Ensuring First Nations can exercise core government functions in the area of fiscal management is critical to their participation in the Canadian economy. These changes to the legislation provide a solid foundation for a nation-to-nation relationship in which First Nations can invest in community infrastructure and economic development projects and improve their socio-economic future.”
The Honourable Carolyn Bennett, M.D., P.C., M.P., Minister of Indigenous and Northern Affairs

“Today’s announcement will mean even greater numbers of First Nations participating in the FMA, and perhaps more importantly, a greater number of First Nations systematically unshackling themselves from generations of government dependency. Whether judged by uptake, revenue-raised, or improved fiscal accountability, the FMA has been a complete game-changer for participating First Nation governments and their economies.”
C.T. (Manny) Jules, Chief Commissioner of the First Nations Tax Commission

“These amendments demonstrate that the FNFMA is a living piece of legislation that is being changed to reflect First Nations interests as the FMB proceeds with implementation across Canada”
Harold Calla, Executive Chair of the First Nations Financial Management Board

“The FNFA is extremely happy these important amendments to the FMA are being implemented. We are proud of the work we have done for First Nations borrowing under the FMA in the past four years and look forward to assisting many more First Nations realize economic success over the next decade.”
Ernie Daniels, CEO of the First Nations Finance Authority

Associated Links

First Nations Fiscal Management Act
First Nations Tax Commission
First Nations Financial Management Board
First Nations Finance Authority
First Nations scheduled to the FNFMA

1 April, 2016|

Legislative and regulatory amendments clear the path for First Nations to exercise their jurisdiction and build their economies under the FMA

KAMLOOPS, BRITISH COLUMBIA (April 1, 2016) Long awaited changes to the First Nations Fiscal Management Act (FMA) and its regulations came into effect today. With these First Nation-led amendments, it is expected that participation in the FMA (currently at 177 First Nations) and local revenues raised (nearly $50M annually) should significantly increase in the coming years.
The amendments help clarify and simplify various processes under the Act, including streamlining access to the FMA, thereby making it easier for First Nations to opt-in to the legislation. Other changes will reduce the administrative burden on participating First Nations, and strengthen investor and capital market confidence in the FMA.

“Today’s announcement will mean even greater numbers of First Nations participating in the FMA, and perhaps more importantly, a greater number of First Nations systematically unshackling themselves from generations of government dependency,” said Chief Commissioner Jules. “Whether judged by uptake, revenue-raised, or improved fiscal accountability, the FMA has been a complete game-changer for participating First Nation governments and their economies.”

Enacted by Parliament in 2005 with all-party support, the FMA provides 177 participating First Nations with revenue raising powers like property taxation, improved financial management, and access to low-cost long term financing for community needs and economic growth. This has translated into over $220 million raised in property tax, over 50 new financial management systems, and a $90 million debenture.

The First Nations Tax Commission, along with the First Nations Finance Authority and the First Nations Financial Management Board, have been seeking changes to the FMA since 2009. Key stakeholder groups like the First Nations Tax Administrators Association, the Canadian Property Tax Association and the Canadian Energy Pipeline Association have endorsed the much needed improvements to the FMA proposed by the Commission.

The FNTC is a shared governance organization established in 2005 under the FMA. The FNTC provides direct regulatory oversight for First Nation property taxation under the FMA, and an advisory function for First Nation property taxation under the Indian Act. Its principal functions include: working with First Nations to develop their property tax jurisdiction, reviewing and approving First Nation laws made under the FMA, and reviewing and recommending for Ministerial approval First Nation by-laws made under section 83 of the Indian Act.

Improving First Nation Property Taxation

Access to the FMA
• The Minister of Indigenous and Northern Affairs, rather than Governor in Council, can amend the Schedule for First Nation participation. This will significantly reduce delays associated with adding new First Nations to the FMA Schedule.

Notification of FN Laws
• Shorter minimum period of notification of First Nation laws or amendments to laws (from 60 to 30 days).
• Elimination of the mandatory mail out requirement of notice to all members and taxpayers. First Nations can still choose a mail out or decide to use an alternative form of notification.
• Newspaper publication requirement eliminated. Replaced with notification in the First Nations Gazette (www.fng.ca).
• Gives FNTC the ability to develop standards for notification.

Submission of Laws for FNTC
• Representations to FN Council on proposed laws no longer need to be sent to FNTC.

Property Taxation
• Local revenue includes payments in lieu of taxation. Payments in lieu of taxation are typically made by federal and provincial governments or government entities like Crown Corporations.
• New fiscal power for collecting fees for water, sewer, waste management, animal control, recreation, and transportation, and other similar services.
• Clarifies that the recovery of costs for enforcement (including the costs of the seizure and sale of taxable property) are affirmed.

Annual Laws (Annual Rates and Expenditure Laws)
• Clarifies when annual laws need to be made by First Nations.
• Gives FNTC the ability to develop standards to facilitate the different timing requirements for First Nations when they are making annual laws.
• Clarifies the legislative authority for expenditure laws.

Local Revenue Account Management
• Clarifies that local revenues must be placed in local revenue account with a financial institution, and separate from other moneys of the First Nation.
• Provides that certain First Nations may opt for segment reporting on the local revenue account instead of conducting a separate audit.
In addition to the changes to the FMA, several regulations supporting First Nation property assessment and taxation have been amended. Developed in consultation with all stakeholders, these changes result in regulations that create efficiencies in the process, are smarter, and more responsive to First Nations and their taxpayers. Amendments of particular significance to tax administrators include:

Amendments to the Assessment Appeal Regulations
• Clarifies that non-practicing members of a law society can sit on the assessment appeal board.
• Eliminates the requirement that the assessor’s address be included in the assessment law.
• Reduces the period for a reconsideration of an assessment notice from 30 days to 21 days.
• Reduces the appeal timeline from 60 days to 45 days, the notice of hearing from 30 days to 10 days, and the commencement of a hearing from 90 days to 45 days.
• Provides for the Chair to provide documents to all parties in an appeal.
• Enables First Nations to set a timeframe for assessment review board decisions, provided the time is not less than 90 days from the hearing date.
• Clarifies the right to appeal a decision of the assessment review board, within 30 days of the board’s decision.

Amendments to the Assessment Inspection Regulations
• Enables First Nations to use assessment inspection processes that are used in the province, instead of the processes set out in the Assessment Inspection Regulations.

Amendments to the Taxation Enforcement Regulations
• Clarifies the content of the Tax Arrears Certificate, and when a Tax Arrears Certificate is required.

1 April, 2016|

Musqueam Indian Band Board of Review v Musqueam Indian Band

Earlier this year, the B.C. Court of Appeal released its decision Musqueam Indian Band Board of Review v. Musqueam Indian Band, in which it considered the interpretation of certain provisions of Musqueam’s Property Assessment Bylaw relating to restrictions placed on the use of land. The case may be of interest to taxing First Nations, as many First Nation property assessment laws and bylaws contain similar provisions.
The case came about as a “stated case” from the Band’s Board of Review, which was considering an assessment appeal brought by the Band. The Board of Review asked the Court to determine whether the assessor could properly consider the use of the property as a golf course in assessing the value of the property.
The answer to this question turned on the interpretation of section 26(3.2) of the Band’s Property Assessment Bylaw, which stated “the assessor may include in the factors that he considers under subsection (3), any restriction placed on the use of the land and improvements by the band.” The lease to the Golf and Country Club specifically provided that the property is to be used “only for a golf and country club.”
The Band argued that the assessor should not consider the lease restriction because that restriction was not “placed by the Band”, but rather was placed by the Crown as negotiator of the lease. Because of this, the assessed value should reflect the highest and best use of the property as though it were residential, and not its actual use as a golf and country club. The Shaughnessy Golf and Country Club’s position was that the restriction in the lease should be considered, because the Crown acts on behalf of the Band when negotiating and entering into a lease of reserve lands.
The Court of Appeal framed the key questions as follows: 1. Is there a “restriction” on the use of the Property; and 2. If so, was the restriction “placed by the band”?
The Court held that the lease does in fact restrict the use of the property to a golf and country club and that the Crown was acting on behalf of the band when it entered into the lease, thereby making the restriction in the lease one considered to be “placed by the band.” As a result, the assessor can take this restriction into account when determining actual value in accordance with the bylaw.

Musqueam is currently seeking leave to appeal the decision to the SCC. The Commission is reviewing this decision with First Nation assessors, and considering any implications for the drafting of its sample property assessment laws. First Nations are encouraged to review their property assessment laws or bylaws to ensure they refl ect the First Nation’s intentions in respect of use restrictions included in leasing documents.

UPDATE: On October 29, 2015, the Supreme Court of Canada granted leave to appeal, and will hear the Musqueam Indian Band’s appeal from the decision of the British Columbia Court of Appeal.

2 November, 2015|

Ts’elxwéyeqw Tribe First Nations Communities to Tax Jointly-held Reserve

Nine Ch-ihl-kway-uhk Tribe Society First Nations communities are set to become the first in Canada to establish First Nation property taxation on a jointly-held reserve. Recently, the Ts’elxwéyeqw took an important step forward in asserting their tax jurisdiction over Grass IR #15, a 65 hectare reserve situated in Chilliwack, BC. The First Nation communities of Aitchelitz, Kwaw-kwaw-Apilt, Shxwhá:y Village, Skowkale, Skwah, Soowahlie, Squiala, Tzeachten, and Yakweakwioose each enacted a delegation law, delegating law making authority over the joint reserve to the Ch-ihlkway-uhk Tribe Society (CTS). The laws are expected to be reviewed for approval at the next meeting of the FNTC.
Under the FMA, delegation of authority laws enable First Nations to delegate their property tax law-making authority over a reserve, to another body. The laws can be used to achieve greater efficiencies, Nation-building, or in the case of the Tribe communities, to enable a single property tax administration for a shared reserve.
Once these delegation laws are approved, the CTS will be able to establish a property assessment law and a property taxation law specific to the jointly held reserve and begin to carry out property taxation, likely starting in the 2017 calendar year. Under a management agreement signed with CTS, the taxation revenue raised will be used to pay for administration costs and local services, with the balance invested in a reserve fund for future capital infrastructure expenditures which will increase the development potential of the reserve.
Chief Willy Hall of the Skowkale First Nation commented, “The process has taken some time, and isn’t over yet, but we are happy that cooperation and unity on all sides will soon lead to us exercising our joint taxing jurisdiction on the Grass reserve via our own society.
The FNTC estimates there are over seventy jointly-held reserves across Canada, and this groundbreaking work of the Ts’elxwéyeqw Tribe will serve as a prototype for other First Nations who wish to unlock property tax potential on their jointly-held lands.
1 October, 2015|

The Legacy of Chief Clarence Jules Sr. (January 6, 1926 – September 10, 2015)

Chief Clarence Jules Sr. was born in 1926 on the Kamloops Reserve and was raised on his father’s farm. He attended the Indian Residential School until he reached the ninth grade. While at the school he milked the cows and looked after the horses. When he was 14, he asked his father for a quarter to buy jeans. He was told to go get a job. He left school, worked haying for a rancher, milked cows by hand at a dairy, and spent seven years working at the Palmer Ranch.

In 1952, Chief Jules married Delores Casimir and continued to work on area ranches. They had nine children together. He worked as a range rider for the band, farmed hay and cattle and as stated in his induction to the BC Cowboy Hall of Fame in 2010 “always had a nice string of horses.”

He worked hard for his family. As he said about working on the range “The hours were kind of rough on my wife, though, I often had to get up at two and three in the morning.” Perhaps his most famous quote about working hard was “You can’t fix a flat tire by yelling at it.”

He was more, however, than a hardworking cowboy. As he said in 2010, “I think I was more of a Chief and Councillor than a cowboy.”

Chief Jules led the Kamloops Indian Band (now Tk’emlups te Secwepemc) from 1962-1971. He improved the irrigation system and started a band farm, hosted the founding meeting of the Union of BC Indian Chiefs in 1969 and advocated for First Nation owning their lands.

Perhaps his greatest legacy goes back to 1962 when his council passed a by-law to establish the Mount Paul Industrial Park – the first industrial park on First Nation lands. Chief Jules made sure the necessary infrastructure was built, and he personally convinced a number of businesses to invest and lease land on the reserve. His powers of persuasion must have been impressive, because securing a property right on Indian land in the 1960s was difficult. Lessees faced uncertainty about tenure, lease registration, tax liability, and local service provision; moreover, they had plenty of options on non-Indian lands. It is a testament to his vision that the Mount Paul Park has grown from 11 original businesses in 1964 to over 150 today, with annual sales of over $250 million. If there were a hall of fame for business deals, it would include Chief Clarence Jules, Sr.

Chief Clarence Jules Sr. recognized very early that First Nations needed business on their lands and that the Indian Act system was getting in the way. When leasing was just starting on the Mount Paul Industrial Park he said, “We provide the services and the province collects the taxes. We should collect the taxes to pay for better services and infrastructure. Otherwise we can’t compete for business.” He was a very patient but determined man. It took twenty years for the federal government to catch up to him and pass the Kamloops Amendment of the Indian Act (Bill C-115) that gave Tk’emlups the property tax authority, largely due to his hard work and that of his son Manny. This created the modern First Nation tax system. During the White Paper consultations of 1968, he was asked about how the Indian Act should be changed. His answer is still relevant today:

“We feel that we are in a better position to judge the needs of our people than officials of the Department located in Ottawa. We point out that much of the dissatisfaction with the present Act arises from the lack of power and authority to Band Councils. To give just one illustration: We operate an Industrial Subdivision on part of our reserve and lease lots in the Sub-division to various individuals and companies. Before a lease can be granted not only must the Band Council pass its resolution but the lease is then routed through the Kamloops Indian Agency, then to the Vancouver office and finally to Ottawa. The same process is followed on the return trip.

We can document instances where months have gone by before a lease is finally issued. In many cases by the time the lease has been returned the lessee has gone elsewhere because people today require almost instantaneous decisions. These delays cost us money and we don’t like it. There must be a change to grant more power and authority to Indian Band Councils. After all, our Indian people elect us to represent them; they do not elect officials of the Indian Department.” (November 1968, Kelowna, BC)

His ability to build bridges between communities, people and governments created the foundation for over $2 billion in investment in First Nations and over $1 billion in taxes collected by First Nations across Canada. It has led to thousands of jobs and many agreements between First Nations and governments. As he said, “We are here, we should all live together.” In September 2009, he was honoured by the First Nations Tax Administrators Association for his contribution to First Nation taxation. This was a well-deserved honor. Many recognize that without his work, devotion to family and dedication to establishing First Nation jurisdiction there would be no First Nation tax system, no First Nations Tax Administrators Association and no First Nations Fiscal Management Act. His work has made a difference in many people’s lives. He loved people and they loved him because he was coming from a very special place. Nobody could ever forget the twinkle in his eye, and the relish in his chuckle, when he told a particularly good story. But they were never just stories. He treated everyone with honesty and respect and there was always a lesson or a helping hand. Thank you Chief Clarence Jules Sr. You will be dearly missed and never forgotten. Your legacy will live on.

Related to this story (external links):

Audio: Interview with Manny Jules, Jim Harrison Show, Radio NL (September 15, 2015)

Video: Funeral Held for Clarence Jules Senior, CFJC TV (September 16, 2015)

17 September, 2015|

AMA Formalizes Support to First Nations for Assessing Linear Property – MOU Signed with FNTC

EDMONTON, ALBERTA (July 14, 2015) The First Nations Tax Commission (FNTC) and the Alberta Ministry of Municipal Affairs (MA) signed a memorandum of understanding (MOU) to share information used to prepare assessments with First Nations in Alberta.

The MOU serves to provide a framework for understanding and cooperation in formalizing the approach to share information with First Nations who are implementing property taxation in Alberta. Specifically, the FNTC and the MA have agreed on a process for providing linear property information to First Nations for preparing property assessments on reserve lands. Linear properties include wells, pipelines and other utility properties such as power lines.

This MOU is an important step forward for First Nations who require access to information to administer their taxation system. MA collects information from a variety of sources to prepare assessments for off-reserve linear property. Under this framework MA will share relevant information with First Nations to assist First Nations in preparing their own assessments of linear property.

Accurate assessments and standards are a cornerstone of property taxation systems, where accurate assessments are based on the best available information. The information provided by MA will help First Nations produce linear property assessments consistent with off-reserve linear properties in Alberta. This MOU benefits First Nations in Alberta and their taxpayers. It will mean better information, transparency and administration for taxpayers and First Nation members. This means an improved investment climate on First Nation lands and potentially more employment for First Nation members and other Albertans and revenues for First Nation governments.

The First Nations Tax Commission is a Commission established under the First Nations Fiscal Management Act with a mandate, among other things; assist First Nations in the exercise of their jurisdiction with respect to property assessment and taxation on reserve lands and to build capacity in First Nations to administer their taxation systems.

The Ministry of Alberta Municipal Affairs’ responsibilities include assisting municipalities in the provision of local government in part by providing programs and services that help ensure Albertans are served by accountable and effective local governments and live in strong and safe communities.

14 July, 2015|
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  • CLEARING THE PATH: NEWS & SUCCESS STORIES

Improvements to the FMA to Support Prosperity in First Nation Communities

OTTAWA, ONTARIO (April 1, 2016) The Minister of Indigenous and Northern Affairs, Carolyn Bennett, along with Chief Commissioner of the First Nations Tax Commission, C.T. (Manny) Jules, Executive Chair of the First Nations Financial Management Board, Harold Calla, and Chief Executive Officer of the First Nations Finance Authority, Ernie Daniels, today announced changes to the First Nations Fiscal Management Act (FNFMA) which will make it simpler for First Nations to access the regime, implement property taxation and lever financing for community economic and social development.

The amendments not only clarify and simplify various processes under the Act, they ultimately make it easier for First Nations to opt-in to the legislation, strengthening the regime and improving the investment climate on-reserve.

These amendments stem from recommendations and consultations with the three First Nations-led institutions established under the legislation – the First Nations Tax Commission (FNTC); the First Nations Financial Management Board (FNFMB); and the First Nations Finance Authority (FNFA) – as well as with First Nations scheduled to the Act, those interested in opting-in, taxpayers and other stakeholders.

Quick Facts
  • The Act has strong, sustained demand from First Nations wishing to participate in the regime. Currently, 177 First Nations have chosen to opt-in to the Act, with 86 collecting property tax, 62 having received FNFMB financial performance certification, and 52 accepted as FNFA borrowing members.
  • First Nations participating in the FNFMA have over $481 million in own source revenues, and have used these revenues to support over $250 million in FNFA loans to build houses, a school, green energy projects, refinance existing debt and to help pay for new capital infrastructure.
  • First Nations with property taxation jurisdiction under the FNFMA have collected over $250 million in property tax revenues, supporting vital services and infrastructure.
Quotes

“Ensuring First Nations can exercise core government functions in the area of fiscal management is critical to their participation in the Canadian economy. These changes to the legislation provide a solid foundation for a nation-to-nation relationship in which First Nations can invest in community infrastructure and economic development projects and improve their socio-economic future.”
The Honourable Carolyn Bennett, M.D., P.C., M.P., Minister of Indigenous and Northern Affairs

“Today’s announcement will mean even greater numbers of First Nations participating in the FMA, and perhaps more importantly, a greater number of First Nations systematically unshackling themselves from generations of government dependency. Whether judged by uptake, revenue-raised, or improved fiscal accountability, the FMA has been a complete game-changer for participating First Nation governments and their economies.”
C.T. (Manny) Jules, Chief Commissioner of the First Nations Tax Commission

“These amendments demonstrate that the FNFMA is a living piece of legislation that is being changed to reflect First Nations interests as the FMB proceeds with implementation across Canada”
Harold Calla, Executive Chair of the First Nations Financial Management Board

“The FNFA is extremely happy these important amendments to the FMA are being implemented. We are proud of the work we have done for First Nations borrowing under the FMA in the past four years and look forward to assisting many more First Nations realize economic success over the next decade.”
Ernie Daniels, CEO of the First Nations Finance Authority

Associated Links

First Nations Fiscal Management Act
First Nations Tax Commission
First Nations Financial Management Board
First Nations Finance Authority
First Nations scheduled to the FNFMA

1 April, 2016|

Legislative and regulatory amendments clear the path for First Nations to exercise their jurisdiction and build their economies under the FMA

KAMLOOPS, BRITISH COLUMBIA (April 1, 2016) Long awaited changes to the First Nations Fiscal Management Act (FMA) and its regulations came into effect today. With these First Nation-led amendments, it is expected that participation in the FMA (currently at 177 First Nations) and local revenues raised (nearly $50M annually) should significantly increase in the coming years.
The amendments help clarify and simplify various processes under the Act, including streamlining access to the FMA, thereby making it easier for First Nations to opt-in to the legislation. Other changes will reduce the administrative burden on participating First Nations, and strengthen investor and capital market confidence in the FMA.

“Today’s announcement will mean even greater numbers of First Nations participating in the FMA, and perhaps more importantly, a greater number of First Nations systematically unshackling themselves from generations of government dependency,” said Chief Commissioner Jules. “Whether judged by uptake, revenue-raised, or improved fiscal accountability, the FMA has been a complete game-changer for participating First Nation governments and their economies.”

Enacted by Parliament in 2005 with all-party support, the FMA provides 177 participating First Nations with revenue raising powers like property taxation, improved financial management, and access to low-cost long term financing for community needs and economic growth. This has translated into over $220 million raised in property tax, over 50 new financial management systems, and a $90 million debenture.

The First Nations Tax Commission, along with the First Nations Finance Authority and the First Nations Financial Management Board, have been seeking changes to the FMA since 2009. Key stakeholder groups like the First Nations Tax Administrators Association, the Canadian Property Tax Association and the Canadian Energy Pipeline Association have endorsed the much needed improvements to the FMA proposed by the Commission.

The FNTC is a shared governance organization established in 2005 under the FMA. The FNTC provides direct regulatory oversight for First Nation property taxation under the FMA, and an advisory function for First Nation property taxation under the Indian Act. Its principal functions include: working with First Nations to develop their property tax jurisdiction, reviewing and approving First Nation laws made under the FMA, and reviewing and recommending for Ministerial approval First Nation by-laws made under section 83 of the Indian Act.

Improving First Nation Property Taxation

Access to the FMA
• The Minister of Indigenous and Northern Affairs, rather than Governor in Council, can amend the Schedule for First Nation participation. This will significantly reduce delays associated with adding new First Nations to the FMA Schedule.

Notification of FN Laws
• Shorter minimum period of notification of First Nation laws or amendments to laws (from 60 to 30 days).
• Elimination of the mandatory mail out requirement of notice to all members and taxpayers. First Nations can still choose a mail out or decide to use an alternative form of notification.
• Newspaper publication requirement eliminated. Replaced with notification in the First Nations Gazette (www.fng.ca).
• Gives FNTC the ability to develop standards for notification.

Submission of Laws for FNTC
• Representations to FN Council on proposed laws no longer need to be sent to FNTC.

Property Taxation
• Local revenue includes payments in lieu of taxation. Payments in lieu of taxation are typically made by federal and provincial governments or government entities like Crown Corporations.
• New fiscal power for collecting fees for water, sewer, waste management, animal control, recreation, and transportation, and other similar services.
• Clarifies that the recovery of costs for enforcement (including the costs of the seizure and sale of taxable property) are affirmed.

Annual Laws (Annual Rates and Expenditure Laws)
• Clarifies when annual laws need to be made by First Nations.
• Gives FNTC the ability to develop standards to facilitate the different timing requirements for First Nations when they are making annual laws.
• Clarifies the legislative authority for expenditure laws.

Local Revenue Account Management
• Clarifies that local revenues must be placed in local revenue account with a financial institution, and separate from other moneys of the First Nation.
• Provides that certain First Nations may opt for segment reporting on the local revenue account instead of conducting a separate audit.
In addition to the changes to the FMA, several regulations supporting First Nation property assessment and taxation have been amended. Developed in consultation with all stakeholders, these changes result in regulations that create efficiencies in the process, are smarter, and more responsive to First Nations and their taxpayers. Amendments of particular significance to tax administrators include:

Amendments to the Assessment Appeal Regulations
• Clarifies that non-practicing members of a law society can sit on the assessment appeal board.
• Eliminates the requirement that the assessor’s address be included in the assessment law.
• Reduces the period for a reconsideration of an assessment notice from 30 days to 21 days.
• Reduces the appeal timeline from 60 days to 45 days, the notice of hearing from 30 days to 10 days, and the commencement of a hearing from 90 days to 45 days.
• Provides for the Chair to provide documents to all parties in an appeal.
• Enables First Nations to set a timeframe for assessment review board decisions, provided the time is not less than 90 days from the hearing date.
• Clarifies the right to appeal a decision of the assessment review board, within 30 days of the board’s decision.

Amendments to the Assessment Inspection Regulations
• Enables First Nations to use assessment inspection processes that are used in the province, instead of the processes set out in the Assessment Inspection Regulations.

Amendments to the Taxation Enforcement Regulations
• Clarifies the content of the Tax Arrears Certificate, and when a Tax Arrears Certificate is required.

1 April, 2016|

Musqueam Indian Band Board of Review v Musqueam Indian Band

Earlier this year, the B.C. Court of Appeal released its decision Musqueam Indian Band Board of Review v. Musqueam Indian Band, in which it considered the interpretation of certain provisions of Musqueam’s Property Assessment Bylaw relating to restrictions placed on the use of land. The case may be of interest to taxing First Nations, as many First Nation property assessment laws and bylaws contain similar provisions.
The case came about as a “stated case” from the Band’s Board of Review, which was considering an assessment appeal brought by the Band. The Board of Review asked the Court to determine whether the assessor could properly consider the use of the property as a golf course in assessing the value of the property.
The answer to this question turned on the interpretation of section 26(3.2) of the Band’s Property Assessment Bylaw, which stated “the assessor may include in the factors that he considers under subsection (3), any restriction placed on the use of the land and improvements by the band.” The lease to the Golf and Country Club specifically provided that the property is to be used “only for a golf and country club.”
The Band argued that the assessor should not consider the lease restriction because that restriction was not “placed by the Band”, but rather was placed by the Crown as negotiator of the lease. Because of this, the assessed value should reflect the highest and best use of the property as though it were residential, and not its actual use as a golf and country club. The Shaughnessy Golf and Country Club’s position was that the restriction in the lease should be considered, because the Crown acts on behalf of the Band when negotiating and entering into a lease of reserve lands.
The Court of Appeal framed the key questions as follows: 1. Is there a “restriction” on the use of the Property; and 2. If so, was the restriction “placed by the band”?
The Court held that the lease does in fact restrict the use of the property to a golf and country club and that the Crown was acting on behalf of the band when it entered into the lease, thereby making the restriction in the lease one considered to be “placed by the band.” As a result, the assessor can take this restriction into account when determining actual value in accordance with the bylaw.

Musqueam is currently seeking leave to appeal the decision to the SCC. The Commission is reviewing this decision with First Nation assessors, and considering any implications for the drafting of its sample property assessment laws. First Nations are encouraged to review their property assessment laws or bylaws to ensure they refl ect the First Nation’s intentions in respect of use restrictions included in leasing documents.

UPDATE: On October 29, 2015, the Supreme Court of Canada granted leave to appeal, and will hear the Musqueam Indian Band’s appeal from the decision of the British Columbia Court of Appeal.

2 November, 2015|

Ts’elxwéyeqw Tribe First Nations Communities to Tax Jointly-held Reserve

Nine Ch-ihl-kway-uhk Tribe Society First Nations communities are set to become the first in Canada to establish First Nation property taxation on a jointly-held reserve. Recently, the Ts’elxwéyeqw took an important step forward in asserting their tax jurisdiction over Grass IR #15, a 65 hectare reserve situated in Chilliwack, BC. The First Nation communities of Aitchelitz, Kwaw-kwaw-Apilt, Shxwhá:y Village, Skowkale, Skwah, Soowahlie, Squiala, Tzeachten, and Yakweakwioose each enacted a delegation law, delegating law making authority over the joint reserve to the Ch-ihlkway-uhk Tribe Society (CTS). The laws are expected to be reviewed for approval at the next meeting of the FNTC.
Under the FMA, delegation of authority laws enable First Nations to delegate their property tax law-making authority over a reserve, to another body. The laws can be used to achieve greater efficiencies, Nation-building, or in the case of the Tribe communities, to enable a single property tax administration for a shared reserve.
Once these delegation laws are approved, the CTS will be able to establish a property assessment law and a property taxation law specific to the jointly held reserve and begin to carry out property taxation, likely starting in the 2017 calendar year. Under a management agreement signed with CTS, the taxation revenue raised will be used to pay for administration costs and local services, with the balance invested in a reserve fund for future capital infrastructure expenditures which will increase the development potential of the reserve.
Chief Willy Hall of the Skowkale First Nation commented, “The process has taken some time, and isn’t over yet, but we are happy that cooperation and unity on all sides will soon lead to us exercising our joint taxing jurisdiction on the Grass reserve via our own society.
The FNTC estimates there are over seventy jointly-held reserves across Canada, and this groundbreaking work of the Ts’elxwéyeqw Tribe will serve as a prototype for other First Nations who wish to unlock property tax potential on their jointly-held lands.
1 October, 2015|

The Legacy of Chief Clarence Jules Sr. (January 6, 1926 – September 10, 2015)

Chief Clarence Jules Sr. was born in 1926 on the Kamloops Reserve and was raised on his father’s farm. He attended the Indian Residential School until he reached the ninth grade. While at the school he milked the cows and looked after the horses. When he was 14, he asked his father for a quarter to buy jeans. He was told to go get a job. He left school, worked haying for a rancher, milked cows by hand at a dairy, and spent seven years working at the Palmer Ranch.

In 1952, Chief Jules married Delores Casimir and continued to work on area ranches. They had nine children together. He worked as a range rider for the band, farmed hay and cattle and as stated in his induction to the BC Cowboy Hall of Fame in 2010 “always had a nice string of horses.”

He worked hard for his family. As he said about working on the range “The hours were kind of rough on my wife, though, I often had to get up at two and three in the morning.” Perhaps his most famous quote about working hard was “You can’t fix a flat tire by yelling at it.”

He was more, however, than a hardworking cowboy. As he said in 2010, “I think I was more of a Chief and Councillor than a cowboy.”

Chief Jules led the Kamloops Indian Band (now Tk’emlups te Secwepemc) from 1962-1971. He improved the irrigation system and started a band farm, hosted the founding meeting of the Union of BC Indian Chiefs in 1969 and advocated for First Nation owning their lands.

Perhaps his greatest legacy goes back to 1962 when his council passed a by-law to establish the Mount Paul Industrial Park – the first industrial park on First Nation lands. Chief Jules made sure the necessary infrastructure was built, and he personally convinced a number of businesses to invest and lease land on the reserve. His powers of persuasion must have been impressive, because securing a property right on Indian land in the 1960s was difficult. Lessees faced uncertainty about tenure, lease registration, tax liability, and local service provision; moreover, they had plenty of options on non-Indian lands. It is a testament to his vision that the Mount Paul Park has grown from 11 original businesses in 1964 to over 150 today, with annual sales of over $250 million. If there were a hall of fame for business deals, it would include Chief Clarence Jules, Sr.

Chief Clarence Jules Sr. recognized very early that First Nations needed business on their lands and that the Indian Act system was getting in the way. When leasing was just starting on the Mount Paul Industrial Park he said, “We provide the services and the province collects the taxes. We should collect the taxes to pay for better services and infrastructure. Otherwise we can’t compete for business.” He was a very patient but determined man. It took twenty years for the federal government to catch up to him and pass the Kamloops Amendment of the Indian Act (Bill C-115) that gave Tk’emlups the property tax authority, largely due to his hard work and that of his son Manny. This created the modern First Nation tax system. During the White Paper consultations of 1968, he was asked about how the Indian Act should be changed. His answer is still relevant today:

“We feel that we are in a better position to judge the needs of our people than officials of the Department located in Ottawa. We point out that much of the dissatisfaction with the present Act arises from the lack of power and authority to Band Councils. To give just one illustration: We operate an Industrial Subdivision on part of our reserve and lease lots in the Sub-division to various individuals and companies. Before a lease can be granted not only must the Band Council pass its resolution but the lease is then routed through the Kamloops Indian Agency, then to the Vancouver office and finally to Ottawa. The same process is followed on the return trip.

We can document instances where months have gone by before a lease is finally issued. In many cases by the time the lease has been returned the lessee has gone elsewhere because people today require almost instantaneous decisions. These delays cost us money and we don’t like it. There must be a change to grant more power and authority to Indian Band Councils. After all, our Indian people elect us to represent them; they do not elect officials of the Indian Department.” (November 1968, Kelowna, BC)

His ability to build bridges between communities, people and governments created the foundation for over $2 billion in investment in First Nations and over $1 billion in taxes collected by First Nations across Canada. It has led to thousands of jobs and many agreements between First Nations and governments. As he said, “We are here, we should all live together.” In September 2009, he was honoured by the First Nations Tax Administrators Association for his contribution to First Nation taxation. This was a well-deserved honor. Many recognize that without his work, devotion to family and dedication to establishing First Nation jurisdiction there would be no First Nation tax system, no First Nations Tax Administrators Association and no First Nations Fiscal Management Act. His work has made a difference in many people’s lives. He loved people and they loved him because he was coming from a very special place. Nobody could ever forget the twinkle in his eye, and the relish in his chuckle, when he told a particularly good story. But they were never just stories. He treated everyone with honesty and respect and there was always a lesson or a helping hand. Thank you Chief Clarence Jules Sr. You will be dearly missed and never forgotten. Your legacy will live on.

Related to this story (external links):

Audio: Interview with Manny Jules, Jim Harrison Show, Radio NL (September 15, 2015)

Video: Funeral Held for Clarence Jules Senior, CFJC TV (September 16, 2015)

17 September, 2015|

AMA Formalizes Support to First Nations for Assessing Linear Property – MOU Signed with FNTC

EDMONTON, ALBERTA (July 14, 2015) The First Nations Tax Commission (FNTC) and the Alberta Ministry of Municipal Affairs (MA) signed a memorandum of understanding (MOU) to share information used to prepare assessments with First Nations in Alberta.

The MOU serves to provide a framework for understanding and cooperation in formalizing the approach to share information with First Nations who are implementing property taxation in Alberta. Specifically, the FNTC and the MA have agreed on a process for providing linear property information to First Nations for preparing property assessments on reserve lands. Linear properties include wells, pipelines and other utility properties such as power lines.

This MOU is an important step forward for First Nations who require access to information to administer their taxation system. MA collects information from a variety of sources to prepare assessments for off-reserve linear property. Under this framework MA will share relevant information with First Nations to assist First Nations in preparing their own assessments of linear property.

Accurate assessments and standards are a cornerstone of property taxation systems, where accurate assessments are based on the best available information. The information provided by MA will help First Nations produce linear property assessments consistent with off-reserve linear properties in Alberta. This MOU benefits First Nations in Alberta and their taxpayers. It will mean better information, transparency and administration for taxpayers and First Nation members. This means an improved investment climate on First Nation lands and potentially more employment for First Nation members and other Albertans and revenues for First Nation governments.

The First Nations Tax Commission is a Commission established under the First Nations Fiscal Management Act with a mandate, among other things; assist First Nations in the exercise of their jurisdiction with respect to property assessment and taxation on reserve lands and to build capacity in First Nations to administer their taxation systems.

The Ministry of Alberta Municipal Affairs’ responsibilities include assisting municipalities in the provision of local government in part by providing programs and services that help ensure Albertans are served by accountable and effective local governments and live in strong and safe communities.

14 July, 2015|
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