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Bill C-23

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3rd Session, 37th Parliament,
52-53 Elizabeth II, 2004

House of Commons of Canada

BILL C-23

An Act to provide for real property taxation powers of first nations, to create a First Nations Tax Commission, First Nations Financial Management Board, First Nations Finance Authority and First Nations Statistical Institute and to make consequential amendments to other Acts

Preamble

Whereas the Government of Canada has adopted a policy recognizing the inherent right of self-government as an aboriginal right and providing for the negotiation of self-government;

Whereas this Act is not intended to define the nature and scope of any right of self-government or to prejudge the outcome of any self-government negotiation;

Whereas the creation of national aboriginal institutions will assist first nations that choose to exercise real property taxation jurisdiction on reserve lands;

Whereas economic development through the application of real property tax revenues and other local revenues to support borrowing on capital markets for the development of public infrastructure is available to other governments in Canada;

Whereas real property taxation regimes on reserves should recognize both the interests of on-reserve taxpayers and the rights of members of first nations communities;

Whereas accurate, timely and credible statistics are a key element of sound financial planning, management and reporting available to other governments in Canada;

Whereas first nations led an initiative that resulted in 1988 in an amendment to the Indian Act so that their jurisdiction over real property taxation on reserve could be exercised and the Indian Taxation Advisory Board was created to assist in the exercise of that jurisdiction;

Whereas, in 1995, the First Nations Finance Authority Inc. was incorporated for the purposes of issuing debentures using real property tax revenues and providing investment opportunities;

Whereas, by 1999, first nations and the Government of Canada recognized the benefits of establishing statutory institutions as part of a comprehensive fiscal and statistical management system;

And whereas first nations have led an initiative culminating in the introduction of this Act;

NOW, THEREFORE, Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

SHORT TITLE

Short title

1. This Act may be cited as the First Nations Fiscal and Statistical Management Act.

INTERPRETATION

Definitions

2. (1) The following definitions apply in this Act.

``borrowing member''
« membre emprunteur »

``borrowing member'' means a first nation that has been accepted as a borrowing member under subsection 74(2) and has not ceased to be a borrowing member under section 75.

``council''
« conseil de la première nation »

``council'' has the same meaning as ``council of the band'' in subsection 2(1) of the Indian Act.

``first nation''
« première nation »

``first nation'' has the same meaning as ``band'' in subsection 2(1) of the Indian Act.

``First Nations Finance Authority''
« Administrati on financière des premières nations »

``First Nations Finance Authority'' means the corporation established under section 56.

``First Nations Financial Management Board''
« Conseil de gestion financière des premières nations »

``First Nations Financial Management Board'' means the board established under subsection 36(1).

``First Nations Gazette''
« Gazette des premières nations »

``First Nations Gazette'' means the publication published under section 32.

``First Nations Statistical Institute''
« Institut de la statistique des premières nations »

``First Nations Statistical Institute'' means the institute established under section 89.

``First Nations Tax Commission''
« Commission de la fiscalité des premières nations »

``First Nations Tax Commission'' means the commission established under subsection 15(1).

``local revenue law''
« texte législatif sur les recettes locales »

``local revenue law'' means a law made under subsection 4(1).

``local revenues''
« recettes locales »

``local revenues'' means moneys raised under a local revenue law.

``Minister''
« ministre »

``Minister'' means the Minister of Indian Affairs and Northern Development.

``property taxation law''
« texte législatif relatif à l'imposition foncière »

``property taxation law'' means a law made under paragraph 4(1)(a).

``third-party management'' Version anglaise seulement

``third-party management'' means the management of a first nation's local revenues under section 51.

Indian Act definitions

(2) Unless the context otherwise requires, words and expressions used in this Act and not otherwise defined have the same meaning as in the Indian Act.

ABORIGINAL RIGHTS

Aboriginal and treaty rights

2.1 For greater certainty, nothing in this Act shall be construed so as to abrogate or derogate from any existing aboriginal or treaty rights of the aboriginal peoples of Canada under section 35 of the Constitution Act, 1982.

PART 1

FIRST NATIONS FISCAL POWERS

Financial administra-
tion laws

3. Before making any law under subsection 4(1), the council of a first nation shall make a law respecting the financial administration of the first nation under paragraph 8(1)(a).

Local revenue laws

4. (1) Subject to subsections (2) to (6), sections 3 and 5 and any regulations made under paragraph 34(1)(d), the council of a first nation may make laws

    (a) respecting taxation for local purposes of reserve lands, interests in reserve lands or rights to occupy, possess or use reserve lands, including

      (i) the assessment of the value of those lands, interests and rights, the requisition of any information necessary to conduct the assessment and the inspection, in accordance with procedures prescribed by regulation, for assessment purposes of any reserve lands that are subject to taxation for local purposes,

      (ii) a mechanism to establish tax rates and apply them to the assessed value of those lands, interests and rights,

      (iii) taxation for the provision of services in respect of reserve lands,

      (iv) the taxation of business activities on reserve lands, and

      (v) the imposition of development cost charges;

    (b) authorizing the expenditure of local revenues;

    (c) respecting procedures by which the interests of taxpayers may be represented to the council;

    (d) respecting the borrowing of money from the First Nations Finance Authority, including any authorization to enter into a particular borrowing agreement with that Authority;

    (e) subject to any conditions, and in accordance with any procedures, prescribed by regulation, respecting the enforcement of laws made under paragraph (a) in respect of outstanding taxes or charges, including

      (i) the creation of liens on reserve lands and interests in reserve lands,

      (ii) the imposition and recovery of interest and penalties on an amount payable pursuant to a law made under those paragraphs, where the amount is not paid when it is due, and the rate of interest or the amount of the penalty, as the case may be,

      (iii) subject to subsection (7), the seizure, forfeiture and assignment of interests or rights in reserve lands,

      (iv) the seizure and sale of personal property located on reserve lands, other than property located in a dwelling, and

      (v) the discontinuance of services;

    (f) delegating to any person or body any of the council's powers to make laws under any of paragraphs (a) to (e); and

    (g) delegating to the First Nations Financial Management Board any other of the council's powers that are required to give effect to a co-management arrangement entered into under section 50 or to give effect to third-party management of the first nation's local revenues.

Approval required

(2) A law made under subsection (1) does not have any force or effect until it is approved by the First Nations Tax Commission.

Coming into force

(3) A law made under subsection (1) comes into force on the later of

    (a) the day of coming into force set out in the law, and

    (b) the day after it is approved by the First Nations Tax Commission.

Appeals

(4) A law made under paragraph (1)(a) shall include

    (a) an appeal procedure in respect of assessments, incorporating such procedures as are prescribed by regulation; and

    (b) fixed rates of remuneration and fixed terms of office for any persons designated to decide such appeals.

Third-party management

(5) A property taxation law shall provide that, if the First Nations Financial Management Board gives notice to the first nation that third-party management of the first nation's local revenues is required, the Board may act as agent of the first nation to fulfil any of the powers and obligations of the council under the property taxation law, this Act and any regulations made under this Act.

Special levy

(6) A property taxation law of a borrowing member shall provide that the borrowing member must make a law under paragraph 4(1)(a) in order to recover amounts payable under paragraph 82(5)(b).

Assignment of right or interest

(7) Notwithstanding the Indian Act or any instrument conferring a right or interest in reserve lands, if there are outstanding taxes payable pursuant to a law made under paragraph (1)(a) for more than two years, the first nation may assign the right or interest in accordance with the conditions and procedures prescribed by regulation.

Judicial notice

(8) In any proceedings, judicial notice may be taken of a local revenue law.

Statutory Instruments Act

(9) The Statutory Instruments Act does not apply in respect of local revenue laws or laws made under section 8.

Notice of proposed laws

5. (1) The council of a first nation shall, at least 60 days before making a law under any of paragraphs 4(1)(a) to (c), including a law repealing such a law or an amendment to such a law other than one referred to in paragraph 9(a) or (b),

    (a) publish a notice of the proposed law in a local newspaper;

    (b) post the notice in a public place on the reserve lands of the first nation; and

    (c) send the notice, by mail or electronic means, to the First Nations Tax Commission, to members of the first nation, to others who have interests in those lands or rights to occupy, possess or use those lands and to every government, organization and individual who, in the opinion of the council, may be affected by the proposed law.

Exemption

(2) The First Nations Tax Commission may exempt a first nation from the requirements of subsection (1) in respect of an amendment of a law if the Commission considers that the amendment is not significant.

Content of notice

(3) A notice referred to in subsection (1) shall

    (a) describe the proposed law;

    (b) state where a copy of the proposed law may be obtained;

    (c) invite representations regarding the proposed law to be made, in writing, to the council within 60 days after a day stated in the notice; and

    (d) if the council is to review the proposed law at a public meeting, state the time and place of the meeting.

Council to consider representa-
tions

(4) Before making a law under any of paragraphs 4(1)(a) to (c), the council of a first nation shall consider any representations that were made in accordance with paragraph (3)(c) or at a meeting referred to in paragraph (3)(d).

Further representa-
tions

6. When the council of a first nation sends a property taxation law or a law made under paragraph 4(1)(c) to the First Nations Tax Commission for its approval, the council shall

    (a) provide a copy of the law to any persons who made representations under paragraph 5(3)(c); and

    (b) invite those persons to make written representations to the Commission within 30 days after the day on which they receive the copy of the law.

Information accompanyin g property taxation law

7. (1) A property taxation law - including an amendment of a property taxation law - shall, when submitted to the First Nations Tax Commission for approval, be accompanied by

    (a) a description of the lands, interests or rights subject to the law;

    (b) a description of the assessment practices to be applied to each class of land, interest or right;

    (c) information regarding services to be provided from local revenues, existing service agreements and any service agreement negotiations under way at the time the law was made;

    (d) a description of the notices that were given, any consultation undertaken by the council before making the law and copies of any written representations received by the council; and

    (e) evidence that the law was duly made by the council.

Exemption

(2) The First Nations Tax Commission may exempt a first nation from the requirements of subsection (1) in respect of an amendment of a property taxation law if the Commission considers that the amendment is not significant.

Accompanyin g information

(3) A law made under paragraph 4(1)(c), when submitted to the First Nations Tax Commission for approval, shall be accompanied by

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