SECTION 83 TOOLKIT
First Nations have the authority to pass by-laws related to taxation pursuant to section 83 of the Indian Act. While section 83 affirms powers of control over individual First Nations’ fiscal management it is limited in scope and jurisdiction. Section 83 by-laws proposed by First Nations require ministerial approval, on the advice of the First Nations Tax Commission.
Under section 83, a First Nation may make by-laws for any or all of the following:
- Taxation for local purposes of land, or interests in land, in the reserve, including rights to occupy, possess or use land in the reserve
- Licensing of businesses, callings, trades and occupations
- Appropriation and expenditure of moneys of the band to defray band expenses
- Appointment of officials to conduct the business of the council, prescribing their duties
- Providing for payment of remuneration to Chiefs and Councillors
- Enforcement of payment of amounts that are payable including arrears and interest
- Imposition and recovery of interest on amounts that are payable, where those amounts are not paid before they are due, and the calculation of that interest
- Raising of money from band members to support band projects
- With respect to any matter arising or ancillary to the exercise of powers under section 83
Note: Section 83 provides a basic regulatory framework for taxation. It does not provide access to expanded tax powers such as property transfer taxes, service taxes, development cost charges and business activity taxes as found in the FMA. Further, First Nations taxing using section 83 cannot access debenture financing through the First Nations Finance Authority.
- SAMPLES, POLICIES & GUIDES:
SECTION 83 TOOLKIT
The Indian Act and section 83
FAQs: SECTION 83 TAXATION
Common questions relating to taxation under the SECTION 83 of the Indian Act
NEXT STEPS: SECTION 83 TAXATION
First Nations establish Property Taxation and Assessment by-laws, along with the required Rates by-law and the Expenditure by-laws, then consider building on that established framework with Specific Activity and Service Options by-laws.