FNTC: NEWS
The Impact of Urban Additions-to-Reserves on Municipal Taxes
Urban Additions-to-Reserves (ATRs) represent a powerful tool to help reduce the economic disparity between First Nations and the rest of Canada. Some of the most successful First Nations in Canada have reserves that are located adjacent to municipalities.
In December 2014, the FNTC completed research into the impact of urban ATRs on municipal property tax revenues.
The research was undertaken in response to some comments in reaction to the proposed revisions to the AANDC policy on ATRs and Reserve Creation from local government groups.
The following summarizes the findings in this report:
- The potential for municipalities to lose property tax revenues when a First Nation acquires land within a municipality and converts it to reserve status is either zero or small and where it is small it is more than offset by other fiscal benefits.
- Local governments in Manitoba and Saskatchewan are compensated by their provincial and/or federal governments for any reductions in property tax revenue not made up through service agreements under the TLE framework.
- Local governments in BC can enter into service agreements with the First Nation and receive property tax equivalent payment for the services they are selling and achieve cost savings by not selling services for which the property tax cost is higher.
- Investment on urban ATRs generates significant fiscal and economic benefits for First Nations and local governments. These benefits can be significantly higher than any possible tax loss.
Tax Loss Concerns
This research demonstrates that the more successful the urban ATR the better it is fiscally and economically for local and First Nation governments.
Urban ATR success requires a competitive investment climate, business grade infrastructure, good property rights, a strong tax system, and the legal and administrative framework to support markets.
The FNTC will continue to advance the recommendations it made to improve the urban ATR process, reduce the barriers to economic development on First Nation lands, and offer services to support to First Nations involved in urban ATRS related to property taxation, infrastructure financing, service agreement negotiations and administrative capacity development.
Federal Court upholds First Nation Property Taxation Jurisdiction
First Nations’ jurisdiction to enact property taxation laws, and the First Nations Tax Commission’s authority to review and approve these laws has been upheld in a recent decision from Justice Douglas Campbell of the Federal Court.
The case concerns the taxation of lands at a residential/resort community on Buffalo Point First Nation’s reserve at Lake of the Woods, in Manitoba. The Buffalo Point Cottage Owners Association brought the case because they were concerned about the transition from a fee for service arrangement to a system of property taxation.
The case dates back to 2010, when the Buffalo Point First Nation first began exploring the implementation of a tax regime. From 2010 to 2012 the First Nations Tax Commission met with the First Nation and the Cottagers several times to explain what implementing a tax regime entails, to review the procedures set out in the First Nations Fiscal Management Act (FMA), and to discuss potential impacts to the taxpayers. In early 2012 the First Nation passed its taxation laws, and submitted them to the Commission to review and approve. On June 25, 2012 the Commission approved the First Nation’s assessment, taxation, rates and expenditure laws.
The case was the first time the FMA (which came into force in 2006) or the Commission’s processes have been reviewed by a Court. The FMA is legislation designed to clarify and enhance First Nations’ taxation authorities. The Commission was created to support that jurisdiction, to take over the law approval function from the Minister, and to reconcile the interests of taxpayers with the responsibilities of Chiefs and Councils to govern the affairs of the Nation.
Justice Campbell noted that the First Nation had provided the Cottagers with a 48% reduction in their taxes in the 2012 tax year as a way to moderate the transition from a fee for service arrangement to a property taxation regime, and that tax rates going forward would be in line with the Commission’s Standards.
The Court also noted that there had been a high level of consultation and engagement with the Cottagers during the law development stage.
In the result, the Court recognized and respected the Commission’s mandate under the FMA. Justice Campbell dismissed the Cottagers’ arguments and found that the Commission’s decision to approve the First Nations’ laws was “reasonable in all respects.”
The Cottagers have appealed to the Federal Court of Appeal. A date for the hearing of the appeal has not yet been set.
Bill C-428 receives Royal Assent
NEWS RELEASE: December 17, 2014
KAMLOOPS, BRITISH COLUMBIA – Bill C-428, “An Act to Amend the Indian Act (Publication of By-laws) and to Provide for its Replacement” received Royal Assent on December 16. The First Nations Gazette has strongly supported this Private Members’ Bill since it was first introduced in 2012 because it provides needed changes to the Indian Act and underscores the importance of the First Nations Gazette (FNG) as a governance tool for First Nations. The FNG is published by the First Nations Tax Commission and the Native Law Centre of Canada, University of Saskatchewan.
“The changes to the Indian Act contained within the bill are a positive step forward and long overdue for a 21st century Canadian society,” said FNTC Chief Commissioner C.T. (Manny) Jules, who appeared before the Standing Senate Committee on Aboriginal Peoples on September 30 in support of the bill. “I would like to congratulate MP Rob Clarke, a member of the Muskeg Lake Cree Nation, on seeing the need and advancing these changes through his Private Member’s Bill.”
The mandate of the First Nations Tax Commission includes the approval of property tax laws passed by First Nations pursuant to the First Nations Fiscal Management Act (FMA). It also includes providing advice to the Minister of Aboriginal Affairs on the approval of property tax by-laws passed by First Nations pursuant to section 83 of the Indian Act, with the process clearly articulated in a Memorandum of Understanding between the FNTC and the Minister.
Bill C-428 does not change the requirement for Ministerial approval of section 83 by-laws or the mutual responsibilities within the MOU, However, the bill states that a by-law passed by First Nations pursuant to sections 81 or 85 will come into force on the day it is first published, effectively removing the Minister’s ability to disallow these by-laws. Further, the bill amends section 86 of the Indian Act by adding a new provision to deal with the publication of by-laws. It now includes the FNG as an option for First Nations to publish the by-laws they pass.
“The Gazette has become an indispensable tool for Aboriginal peoples, First Nation governments, non-members resident on-reserve, legal practitioners, all other levels of government, and all others involved with or affected by First Nation legislation,” said Native Law Centre of Canada Director Sakej Henderson. “The First Nations Gazette is ready to assist First Nations in meeting their by-law publication requirements, as we have done since 1997.”
The FNG provides free access to First Nation public notices, FMA laws, Indian Act s.83 by-laws and FNLMA land codes. Close to 200 First Nations currently use the FNG to post their laws, by-laws, and notices. With a searchable database that currently houses close to 3,000 items, the FNG has been supporting the legal voices of First Nations in Canada since 1997.
Notice: December 9 Presentation to the Standing Senate Committee on Aboriginal Peoples
FNTC’s Chief Commissioner will make another presentation to the Standing Senate Committee on Aboriginal Peoples on Tuesday, December 9 from 9:30 – 10:30 am to discuss challenges relating to First Nations infrastructure on reserves.
The meeting will be televised and available to view online at http://senate-senat.ca/webcast-e.asp.
On September 30th 2014, Chief Commissioner Jules appeared before the Standing Senate Committee on Aboriginal Peoples as it continued its hearings on Bill C-428, “An Act to Amend the Indian Act (Publication of By-laws) and to Provide for its Replacement”.
Presentation to the Standing Senate Committee on Aboriginal Peoples
Chief Commissioner’s presentation to the Standing Senate Committee on Aboriginal Peoples
On September 30th 2014, Chief Commissioner Jules appeared before the Standing Senate Committee on Aboriginal Peoples as it continued its hearings on Bill C-428, “An Act to Amend the Indian Act (Publication of By-laws) and to Provide for its Replacement”. Highlights of the Chief Commissioner’s presentation include support for the incremental changes to the Indian Act proposed by the bill, as well as the enhanced role the First Nations Gazette may play in the future, assisting First Nations meet the new by-law notification requirements.
To view the video, CLICK HERE and Chief Commissioner Jules’ presentation begins at 1:26:00
Indian Act Amendment Bill to continue: First Nations Gazette an effective and reliable option for First Nations
With the return of Parliament on September 15, the Senate Standing Committee on Aboriginal Peoples is set to begin its hearings on Bill C-428, officially known as “An Act to Amend the Indian Act (Publication of By-laws) and to Provide for its Replacement”. The Private Member’s bill is sponsored by Member of Parliament Rob Clarke (Desnethé-Missinippi-Churchill River), himself a member of the Muskeg Lake First Nation. Mr. Clarke described the changes proposed in his bill as “housekeeping in nature and are designed to remove the underbrush from the (Indian) Act.” Under Bill C-428, section 81 Indian Act by-laws could no longer be disallowed by the Minister of Aboriginal Affairs and Northern Development. Instead, First Nations would have the option of publishing their by-laws in a newspaper, on their own website, or in the First Nations Gazette (FNG). The First Nations Gazette has long been an effective and reliable option for First Nations. Launched on Aboriginal Day in 1997, and published in a partnership between the First Nations Tax Commission and the Native Law Centre, University of Saskatchewan, the Gazette has been recognized as the only national repository of its kind in Canada. The Gazette is available online (www.fng.ca), complete with a searchable database, which is updated daily, and includes a notifi cation component similar to Part I of the Canada Gazette. Today, over 180 First Nations use the Gazette, where more than 2,800 by-laws, laws and land codes are published. The Gazette provides direct access to First Nation citizens, leasehold and other residents living on reserve lands, electors, legal practitioners, and those with commercial and other interests in reserve land. FNG is a service provided by the FNTC. There is no cost for First Nations to use the Gazette. It is anticipated that the Senate hearings will begin at the end of September. Bill C-428 was fi rst introduced in the House of Commons in June 2012.
“Should it be the wish of Parliament to approve Bill C-428, the First Nations Gazette is ready to assist First Nations in meeting their requirements under this Act, should they choose this vehicle to do so.” – Commissioner Lester Lafond, Chairman of the First Nations Gazette Editorial Board.
CLEARING THE PATH: NEWS & SUCCESS STORIES
The Impact of Urban Additions-to-Reserves on Municipal Taxes
Urban Additions-to-Reserves (ATRs) represent a powerful tool to help reduce the economic disparity between First Nations and the rest of Canada. Some of the most successful First Nations in Canada have reserves that are located adjacent to municipalities.
In December 2014, the FNTC completed research into the impact of urban ATRs on municipal property tax revenues.
The research was undertaken in response to some comments in reaction to the proposed revisions to the AANDC policy on ATRs and Reserve Creation from local government groups.
The following summarizes the findings in this report:
- The potential for municipalities to lose property tax revenues when a First Nation acquires land within a municipality and converts it to reserve status is either zero or small and where it is small it is more than offset by other fiscal benefits.
- Local governments in Manitoba and Saskatchewan are compensated by their provincial and/or federal governments for any reductions in property tax revenue not made up through service agreements under the TLE framework.
- Local governments in BC can enter into service agreements with the First Nation and receive property tax equivalent payment for the services they are selling and achieve cost savings by not selling services for which the property tax cost is higher.
- Investment on urban ATRs generates significant fiscal and economic benefits for First Nations and local governments. These benefits can be significantly higher than any possible tax loss.
Tax Loss Concerns
This research demonstrates that the more successful the urban ATR the better it is fiscally and economically for local and First Nation governments.
Urban ATR success requires a competitive investment climate, business grade infrastructure, good property rights, a strong tax system, and the legal and administrative framework to support markets.
The FNTC will continue to advance the recommendations it made to improve the urban ATR process, reduce the barriers to economic development on First Nation lands, and offer services to support to First Nations involved in urban ATRS related to property taxation, infrastructure financing, service agreement negotiations and administrative capacity development.
Federal Court upholds First Nation Property Taxation Jurisdiction
First Nations’ jurisdiction to enact property taxation laws, and the First Nations Tax Commission’s authority to review and approve these laws has been upheld in a recent decision from Justice Douglas Campbell of the Federal Court.
The case concerns the taxation of lands at a residential/resort community on Buffalo Point First Nation’s reserve at Lake of the Woods, in Manitoba. The Buffalo Point Cottage Owners Association brought the case because they were concerned about the transition from a fee for service arrangement to a system of property taxation.
The case dates back to 2010, when the Buffalo Point First Nation first began exploring the implementation of a tax regime. From 2010 to 2012 the First Nations Tax Commission met with the First Nation and the Cottagers several times to explain what implementing a tax regime entails, to review the procedures set out in the First Nations Fiscal Management Act (FMA), and to discuss potential impacts to the taxpayers. In early 2012 the First Nation passed its taxation laws, and submitted them to the Commission to review and approve. On June 25, 2012 the Commission approved the First Nation’s assessment, taxation, rates and expenditure laws.
The case was the first time the FMA (which came into force in 2006) or the Commission’s processes have been reviewed by a Court. The FMA is legislation designed to clarify and enhance First Nations’ taxation authorities. The Commission was created to support that jurisdiction, to take over the law approval function from the Minister, and to reconcile the interests of taxpayers with the responsibilities of Chiefs and Councils to govern the affairs of the Nation.
Justice Campbell noted that the First Nation had provided the Cottagers with a 48% reduction in their taxes in the 2012 tax year as a way to moderate the transition from a fee for service arrangement to a property taxation regime, and that tax rates going forward would be in line with the Commission’s Standards.
The Court also noted that there had been a high level of consultation and engagement with the Cottagers during the law development stage.
In the result, the Court recognized and respected the Commission’s mandate under the FMA. Justice Campbell dismissed the Cottagers’ arguments and found that the Commission’s decision to approve the First Nations’ laws was “reasonable in all respects.”
The Cottagers have appealed to the Federal Court of Appeal. A date for the hearing of the appeal has not yet been set.
Bill C-428 receives Royal Assent
NEWS RELEASE: December 17, 2014
KAMLOOPS, BRITISH COLUMBIA – Bill C-428, “An Act to Amend the Indian Act (Publication of By-laws) and to Provide for its Replacement” received Royal Assent on December 16. The First Nations Gazette has strongly supported this Private Members’ Bill since it was first introduced in 2012 because it provides needed changes to the Indian Act and underscores the importance of the First Nations Gazette (FNG) as a governance tool for First Nations. The FNG is published by the First Nations Tax Commission and the Native Law Centre of Canada, University of Saskatchewan.
“The changes to the Indian Act contained within the bill are a positive step forward and long overdue for a 21st century Canadian society,” said FNTC Chief Commissioner C.T. (Manny) Jules, who appeared before the Standing Senate Committee on Aboriginal Peoples on September 30 in support of the bill. “I would like to congratulate MP Rob Clarke, a member of the Muskeg Lake Cree Nation, on seeing the need and advancing these changes through his Private Member’s Bill.”
The mandate of the First Nations Tax Commission includes the approval of property tax laws passed by First Nations pursuant to the First Nations Fiscal Management Act (FMA). It also includes providing advice to the Minister of Aboriginal Affairs on the approval of property tax by-laws passed by First Nations pursuant to section 83 of the Indian Act, with the process clearly articulated in a Memorandum of Understanding between the FNTC and the Minister.
Bill C-428 does not change the requirement for Ministerial approval of section 83 by-laws or the mutual responsibilities within the MOU, However, the bill states that a by-law passed by First Nations pursuant to sections 81 or 85 will come into force on the day it is first published, effectively removing the Minister’s ability to disallow these by-laws. Further, the bill amends section 86 of the Indian Act by adding a new provision to deal with the publication of by-laws. It now includes the FNG as an option for First Nations to publish the by-laws they pass.
“The Gazette has become an indispensable tool for Aboriginal peoples, First Nation governments, non-members resident on-reserve, legal practitioners, all other levels of government, and all others involved with or affected by First Nation legislation,” said Native Law Centre of Canada Director Sakej Henderson. “The First Nations Gazette is ready to assist First Nations in meeting their by-law publication requirements, as we have done since 1997.”
The FNG provides free access to First Nation public notices, FMA laws, Indian Act s.83 by-laws and FNLMA land codes. Close to 200 First Nations currently use the FNG to post their laws, by-laws, and notices. With a searchable database that currently houses close to 3,000 items, the FNG has been supporting the legal voices of First Nations in Canada since 1997.
Notice: December 9 Presentation to the Standing Senate Committee on Aboriginal Peoples
FNTC’s Chief Commissioner will make another presentation to the Standing Senate Committee on Aboriginal Peoples on Tuesday, December 9 from 9:30 – 10:30 am to discuss challenges relating to First Nations infrastructure on reserves.
The meeting will be televised and available to view online at http://senate-senat.ca/webcast-e.asp.
On September 30th 2014, Chief Commissioner Jules appeared before the Standing Senate Committee on Aboriginal Peoples as it continued its hearings on Bill C-428, “An Act to Amend the Indian Act (Publication of By-laws) and to Provide for its Replacement”.
Presentation to the Standing Senate Committee on Aboriginal Peoples
Chief Commissioner’s presentation to the Standing Senate Committee on Aboriginal Peoples
On September 30th 2014, Chief Commissioner Jules appeared before the Standing Senate Committee on Aboriginal Peoples as it continued its hearings on Bill C-428, “An Act to Amend the Indian Act (Publication of By-laws) and to Provide for its Replacement”. Highlights of the Chief Commissioner’s presentation include support for the incremental changes to the Indian Act proposed by the bill, as well as the enhanced role the First Nations Gazette may play in the future, assisting First Nations meet the new by-law notification requirements.
To view the video, CLICK HERE and Chief Commissioner Jules’ presentation begins at 1:26:00
Indian Act Amendment Bill to continue: First Nations Gazette an effective and reliable option for First Nations
With the return of Parliament on September 15, the Senate Standing Committee on Aboriginal Peoples is set to begin its hearings on Bill C-428, officially known as “An Act to Amend the Indian Act (Publication of By-laws) and to Provide for its Replacement”. The Private Member’s bill is sponsored by Member of Parliament Rob Clarke (Desnethé-Missinippi-Churchill River), himself a member of the Muskeg Lake First Nation. Mr. Clarke described the changes proposed in his bill as “housekeeping in nature and are designed to remove the underbrush from the (Indian) Act.” Under Bill C-428, section 81 Indian Act by-laws could no longer be disallowed by the Minister of Aboriginal Affairs and Northern Development. Instead, First Nations would have the option of publishing their by-laws in a newspaper, on their own website, or in the First Nations Gazette (FNG). The First Nations Gazette has long been an effective and reliable option for First Nations. Launched on Aboriginal Day in 1997, and published in a partnership between the First Nations Tax Commission and the Native Law Centre, University of Saskatchewan, the Gazette has been recognized as the only national repository of its kind in Canada. The Gazette is available online (www.fng.ca), complete with a searchable database, which is updated daily, and includes a notifi cation component similar to Part I of the Canada Gazette. Today, over 180 First Nations use the Gazette, where more than 2,800 by-laws, laws and land codes are published. The Gazette provides direct access to First Nation citizens, leasehold and other residents living on reserve lands, electors, legal practitioners, and those with commercial and other interests in reserve land. FNG is a service provided by the FNTC. There is no cost for First Nations to use the Gazette. It is anticipated that the Senate hearings will begin at the end of September. Bill C-428 was fi rst introduced in the House of Commons in June 2012.
“Should it be the wish of Parliament to approve Bill C-428, the First Nations Gazette is ready to assist First Nations in meeting their requirements under this Act, should they choose this vehicle to do so.” – Commissioner Lester Lafond, Chairman of the First Nations Gazette Editorial Board.