In response to the needs of First Nations and taxpayers alike during the COVID-19 Pandemic, the FNTC has been working hard to ensure all First Nations have the flexibility needed to administer their tax systems while rapidly responding to the ongoing pandemic.

Effective May 21, 2020, the Commission approved the COVID-19 Pandemic Emergency Response Standards, 2020. These Standards amend several Commission Standards in response to the pandemic.

FMA First Nations

Facilitating Council Meetings Held by Videoconference or Teleconference

The Commission has amended Section 11 of the Standards for the Submission of Information Required under Section 8 of the Act, 2018 to make it easier to submit laws when council approved the law during a teleconference or videoconference.

When council meets by teleconference or videoconference, a First Nation may not able to submit an originally signed and dated law after the meeting. Under the revised standards, a certification letter may be provided as evidence that a law was duly enacted by a quorum of Council, and a certificate may be attached to the front of the law. The certification letter confirms a law was approved by Council, at a duly convened meeting conducted via teleconference or videoconference, with quorum present throughout. The certificate confirms that the document provided is a complete version of the duly enacted law.

FNTC has also developed an alternative enactment clause for use in the Annual Laws and Local Revenue Laws, which reflects the format of the meeting and specifies that a quorum of Council was present. For example:

THIS LAW IS HEREBY DULY ENACTED by the Council at a duly called and conducted Council meeting conducted by [videoconference OR teleconference] on ______________, 2020, at which the required quorum of __ councillors was present throughout.

Instructions for submitting an certified Local Revenue Law to the FNTC and copies of the FNTC Sample Certification Letter and Certificate can be obtained by contacting Tracey Simon, FMA Registrar at tsimon@fntc.ca.

FMA Registry

FNTC requires original laws be submitted to the Commission and placed in the Registry. We will remain flexible regarding the submission of original signed laws. We request all First Nations submit their duly enacted originally signed laws at their earliest convenience once it is safe to do so.

Open Houses and Public Meeting Required by the Standards May Be Held Remotely in 2020

We also understand that certain notification requirements, such as hosting open houses, public meetings, and taxpayer meetings are not currently safe. We have amended the Standards respecting Notices relating to Local Revenue Laws, 2018 to enable these notification requirements to be conducted via teleconference or videoconference during the 2020 year.

Enabling Rate Relief in 2020

For First Nations using CPI to set their rates, section 7 of the Standards for First Nation Annual Tax Rates Laws, 2017 has been amended. First Nations may provide tax relief by lowering their rates in 2020, and then setting their 2021 rates as though the 2020 rates had increased by CPI.

For those First Nations that typically set their rates using reference jurisdiction tax rates, section 8 of the Standards for First Nation Annual Tax Rates Laws, 2017 has been amended to enable First Nations to reduce their rates in 2020 to provide tax relief, while returning to reference jurisdiction rate setting for the 2021 year.

Enabling Zero-Interest Reserve Fund Borrowing

To stabilize annual local revenues and permit local service provision to remain unhindered, subsection 7.2 of the Standards for First Nation Property Taxation Laws, 2016 and section 8 of the Standards for First Nation Expenditure Laws, 2017 have been amended. A First Nation needing money to provide local services may borrow from a reserve fund, interest-free, for a maximum of 5 years. This change would require amending the property taxation law to enable the borrowing.

Amending Laws – Requesting Exemptions to Notice Periods and Notification Requirements

First Nations interested in implementing a mitigation measure or amending their property taxation law should contact their FNTC tax advisor, as amendments to property taxation laws are subject to the notification requirements pursuant to sections 6 and 8 of the FMA. To enable an expedient response by First Nation governments, the Commission will consider requests for exemptions from these requirements. FNTC has developed sample exemption request letters to support COVID-related amendments without requiring a First Nation to adhere to the 30-day notification period.

Proposed Federal Mitigation Support

The FNTC continues to await the development and implementation of a federal mitigation support program. In anticipation of an announcement by the federal government, the Commission has amended section 2 of the Standards for First Nation Expenditure Laws, 2017. A First Nation’s annual budget would be required to set out as revenues, any monies received through a federal tax deferral program. These monies would then be allocated as an expenditure in their annual expenditure law.

s. 83 First Nations

Facilitating Council Meetings Held by Videoconference or Teleconference

Many First Nation Councils are holding meetings by videoconference or teleconference. This may impede Council from submitting an originally signed and dated by-law after the meeting. FNTC has developed a by-law approval certification letter, which may be provided as evidence that a by-law was duly enacted by a quorum of council.  We have also developed a certificate to attach to the front of the by-law, which confirms that the document provided is a complete version of the duly enacted by-law.

FNTC has also developed an alternative enactment clause for use in the Annual By-laws and Local Revenue By-Laws, which reflects the format of the meeting and specifies that a quorum of Council was present. For example:

THIS BY-LAW IS HEREBY DULY ENACTED by the Council at a duly called and conducted Council meeting conducted by [videoconference OR teleconference] on ______________, 2020, at which the required quorum of __ councillors was present throughout.

Instructions for submitting a certified Local Revenue By-law to the FNTC, copies of the FNTC Sample Certification Letter and the Certificate can be obtained by contacting Lilian Richards, S. 83 Registrar and Records Manager at lrichards@fntc.ca.

s. 83 Registry

FNTC requires original by-laws be submitted to the Commission and placed in the Registry. We will continue to be flexible regarding by-law submission, and request all First Nations submit their duly enacted originally signed by-laws once it is safe to do so.

Mitigation Measures

Many First Nations are considering providing taxpayer relief through mitigation measures such as deferrals, discounts, rate reductions and grants. If your First Nation wishes to discuss developing a mitigation measure, please contact your FNTC Advisor. Some measures, such as delayed tax notices may be implemented administratively. However, some measures may require amendments to property taxation by-laws.

Requesting Exemptions to Notice Periods and Notification Requirements

Amendments to property taxation by-laws are subject to notification requirements. In supporting First Nations to respond swiftly, the Commission will consider requests for exemption from the notification period. FNTC has developed a sample notification exemption request letter to support COVID-related amendments without the 30-day notification period.

The FNTC staff are working remotely and continue to provide technical assistance. Should you have any questions or concerns please contact your FNTC advisor. We are here to help.

November 7, 2019

(Coast Salish Territory, Vancouver, British Columbia) Today, ten First Nation organizations and institutions gathered in Vancouver to sign a Protocol on Cooperation and Communication. The signatories commit to coordinating their efforts to support capacity development in governance and governance administration in First Nation communities in British Columbia.

The protocol voices the pressing need to assist all First Nations in BC in moving beyond the existing fiscal relationship with the Crown and the delivery of delegated programs services.  The protocol also addresses the need for relevant and effective information sharing to support First Nations in key fiscal issues, capacity development, and exercising their inherent right of self-determination, self-government, including authorities and jurisdictions. The protocol will help support First Nations to drive fiscal discussions and develop capacity in a manner that supports the work of their respective First Nation governments.

The signatory organizations affirm their intentions to work together in a cooperative manner and to provide support for one another’s efforts to advance the recognition, respect and accommodation of Aboriginal Title and Rights, Treaty Rights and to improve the lives of First Nations people in British Columbia.

The Signatories include:

• British Columbia Assembly of First Nations
• The First Nations Summit
• The Union of BC Indian Chiefs
• The First Nations Financial Management Board
• The First Nations Tax Commission
• The First Nations Finance Authority
• The Lands Advisory Board
• The Aboriginal Financial Officers Association of BC
• The First Nations Public Service Secretariat
• The New Relationship Trust

 

QUOTES

British Columbia Assembly of First Nations

“I am pleased that BC AFN is joining this group of organizations committing to work together in support of increasing First Nations’ capacity in exercising their inherent rights of self-determination and self-government. As Chair of the Assembly of First Nations Chiefs Committee on Economic Development, one of my main priorities is supporting national and regional First Nations economic development organizations. I believe that we are stronger when we work together to advocate for inclusion of the inescapable economic component of Aboriginal Title.”

• Regional Chief Terry Teegee, BC Assembly of First Nations

First Nations Summit

“The First Nations Summit is pleased to sign this protocol committing to working together with our partner First Nation Leadership Council members, institutions and organizations. First Nations in BC have shown leadership in establishing many of these organizations, and we have a responsibility to collaborate to provide the best possible support for our First Nation communities. Capacity building is critical to our communities’ success – whether in pursuing self-government, economic development ventures, claiming their inherent rights to their lands and resources, or whatever else we want to achieve – and by working together, these institutions and organizations will better help them on their paths.”

• Robert Phillips, Political Executive, First Nations Summit

Union of BC Indian Chiefs

“The Protocol on Cooperation and Communication will help establish a unified, powerful network of Indigenous support and governance in British Columbia. With the recent introduction of legislation to implement the United Nations Declaration on the Rights of Indigenous Peoples, it is paramount that we continue to build upon the momentum to advance Indigenous self-determination and capacity development. “

• Grand Chief Stewart Phillip, President, Union of BC Indian Chiefs

First Nations Financial Management Board

“We appreciate the spirit of cooperation and communication this action symbolizes.
More so, we recognize our responsibility to provide support to one another’s efforts and join this movement to advance the recognition, respect and accommodation of Aboriginal Title and Rights, and Treaty Rights. Fueled by our resilient aspirations, this is a time for our people to persevere until we have discharged our duties, not only to our communities, but to the many generations yet to come.”

• Harold Calla, Executive Chair, First Nations Financial Management Board

First Nations Tax Commission

“This protocol demonstrates that we are collectively committed to sharing best practices and successes and helping First Nations achieve greater environmental, economic and fiscal sustainability. Together we will make a fundamental change for our people, a change towards greater jurisdiction and greater independence.”

• T Manny Jules, Chief Commissioner, First Nations Tax Commission

First Nations Finance Authority

“FNFA is please to be a party to this agreement and look forward to working with our partners to move the needle for our communities. Through better cooperation and communication we can make positive impacts to help our communities achieve sustainable success.”

• Ernie Daniels, President & CEO, First Nations Finance Authority

First Nations Lands Advisory Board

“The Lands Advisory Board is pleased to work with other First Nation Support agencies to coordinate efforts to maximize much needed professional services, advocacy and resources to First Nation governments.  The process of decolonization has to be undertaken on the terms of, and at a pace determined by First Nations.  We have to be ready to respond in a coordinated and efficient manner.”

• Robert Louie, Chair, Lands Advisory Board

Aboriginal Financial Officers Association of BC

“Support from Indigenous institutions is a critical component of self-determination for Indigenous peoples. Given the current agendas of both the federal and provincial governments, this is an important time for Indigenous institutional development in order to support what First Nations communities have been working to reclaim for generations. AFOA BC is pleased to be entering into this protocol agreement with its partner organizations and institutions and commits to continuing to deliver capacity support based on the needs of communities, as we have done for more than 20 years.”

• Barbara Joe, Board Director, Aboriginal Financial Officers Association of BC

First Nations Public Service Secretariat

“The United Nations Declaration on the Rights of Indigenous Peoples, which the Government of Canada has endorsed, and the Province of BC has recently introduced legislation to implement, provides for Indigenous peoples right to self-determination and to the right to the improvement of their economic and social conditions. This cannot be achieved without First Nation-driven organizations and institutions working together to support strong governance and investments in capacity in our communities.”

• Jehan Casey, Director, First Nations Public Service Secretariat

New Relationship Trust

“The New Relationship Trust (NRT) recognizes the importance of the Protocol on Cooperation and Communication to our organization.  The NRT was created to provide capacity development support to First Nations in BC, and we do so without duplicating or replacing existing government or First Nations programs. As a signatory to the Protocol, we will remain committed to working with our partners to develop initiatives and services that meet the needs of our communities.”

• Chief David Jimmie, Vice-Chair, New Relationship Trust

 

 

Watch as FNTC Legal Counsel Marie Potvin introduces the FMA service tax law. This brief but informative webinar outlines:

Service Tax Laws & the FMA

The FMA includes a specific First Nation law-making power for the “taxation for the provision of services in respect of reserve lands.” Using this power, first Nations can levy a service tax to pay the costs of providing service – related infrastructure to reserve lands. The First Nation borrows the funds required to build the infrastructure, and then levies the service tax for a fixed number of years in order to repay all or a portion of the borrowing costs.

A broad range of infrastructure can be provided through service tax, including water, sewer, transportation infrastructure and recreation facilities.

The benefits of using a service tax include

• needed infrastructure can be built up front to facilitate development,
• service taxes are in addition to general real property tax revenues,
• service taxes can be used as security for borrowing from the First Nations Finance Authority,
• taxpayers can have confidence that all of the service tax revenues collected are used only for the cost of providing the specific infrastructure.

 Planning for Service Tax Laws

Planning for a new service tax law includes the following steps:

• Define the project,
• Estimate the cost,
• Determine the construction schedule,
• Determine cost recovery method and term of tax, and
• Taxpayer engagement.

 Service Tax Law Development

The service tax law creates the legal and administrative framework for levying and collecting the service tax. Generally, a First Nation will develop a service tax law for each service tax it will levy.

The FNTC provides a sample service tax law for use and adaptation by First Nations. First Nation service tax laws require a public input process in accordance with the FMA and the FNTC Standards Respecting Notices Relating to Local Revenue Laws, 2018.

Next Steps

If you are interested in considering an FMA service tax for your First Nation, please do not hesitate to reach out to us! You can also find sample laws and standards at https://fntc.ca/fma-toolkit-overview-and-opt-in/