Part II - Enacted First Nations Legislation

Decision Information

Decision Content

FIRST NATIONS TAX COMMISSION COMMISSION DE LA FISCALITE DES PREMIERES NATIONS

The First Nations Tax Commission, pursuant to the First Nations Fiscal Management Act, hereby approves the following law made by the Membertou First Nation in the Province of Nova Scotia,

MEMBERTOU PROPER1Y TAXATION LAW, 2022

Dated at Kamloops, British Columbia this 19th day of January 2023.

On behalf of the First Nations Tax Commission

MEMBERTOU PROPERTY TAXATION LAW, 2022 TABLE OF CONTENTS PARTI Citation ........................................................................................................... 2 PART II Definitions and References ............................................................................ 2 PART III Administration ................................................................................................ 4 PART IV Liability for Taxation ..................................................................................... 4 PARTY Exemptions from Taxation ............................................................................. 5 PART VI Grants ............................................................................................................. 6 PART VII Levy of Tax .................................................................................................... 7 PART VIII Tax Roll and Tax Notice ................................................................................ 7 PART IX Payment Receipts and Tax Ce1tificates .......................................................... 9 PARTX Penalties and Interest. ..................................................................................... 10 PART XI Revenues and Expenditures ............................................................................ 10 PART XII Collection and Enforcement.. ......................................................................... 11 PART XIII Seizure and Sale of Personal Propeity ............................................................ 12 PART XIV Seizure and Assignment of Taxable Prope1ty ................................................ 13 PART XV Discontinuance of Services ............................................................................ 16 PART XVI General Provisions ......................................................................................... 16 SCHEDULES I Request for Information by Tax Administrator II Tax Notice III Costs Payable by Debtor Arising from the Collection and Enforcement of Unpaid Taxes

IV Tax Certificate V Tax Arrears Ce1tificate VI Notice of Seizure and Sale of Personal Prope1iy VII Notice of Sale of Seized Personal Prope1ty VIII Notice of Seizure and Assignment of Taxable Property IX Notice of Sale of a Right to Assignment of Taxable Prope1iy X Notice of Discontinuance of Services WHEREAS: A. Pursuant to section 5 of the First Natfons Fiscal Management Act, the council of a first nation may make laws respecting taxation for local purposes of reserve lands, and interests in reserve lands;

B. The Council ofMembe1tou deems it to be in the best interests of the First Nation to make a law for such purposes; and

C. The Council of Membe1tou has given notice of this law and has considered any representations received by the Council, in accordance with the requirements of the First Nations Fiscal Management Act;

NOW THEREFORE the Council ofMembe1tou duly enacts as follows:

PART I CITATION Citation 1. This Law may be cited as the Membertou Property Taxation Law, 2022. PART II DEFINITIONS AND REFERENCES Definitions and References 2.( 1) In this Law: "Act" means the First Nations Fiscal Jvlanagement Act, S.C. 2005, c.9, and the regulations enacted under that Act;

"assessed value" has the meaning given to that term in the Assessment Law; "Assessment Law" means the Membertou Property Assessment Law, 2022; "Assessment Review Board" means the assessment review board established under the Assessment Law; "assessment roll" has the meaning given to that term in the Assessment Law; "assessor" means a person appointed to that position under the Assessment Law; "child" includes a child for whom a person stands in the place of a parent; "Council" has the meaning given to that term in the Act; "debtor" means a person liable for unpaid taxes imposed under this Law; "expenditure law" means an expenditure law enacted under paragraph 5(1 )(b) of the Act; "First Nation" means Membertou, being a band named in the schedule to the Act; "First Nation Entity" means (a) a corporation in which the First Nation beneficially owns, directly or indirectly, shares (i) having not less than fifty percent (50%) of the votes that could be cast at an annual meeting of the shareholders of the corporation, or

(ii) having not less than fifty percent (50%) of the fair market value of all of the issued shares of the capital stock of the corporation; or

(b) a patinership in which the First Nation beneficially owns, directly or indirectly, (i) not less than fifty percent (50%) of all voting rights of the patinership, or (ii) interests in the patinership having not less than fifty percent (50%) of the fair market value of all of the interests in the partnership;

"holder", in relation to an interest in reserve lands, means a person (a) in possession of the interest, (b) entitled through a lease, licence or other legal means to the interest, ( c) in actual occupation of the interest, or ( d) who is a trustee of the interest; "improvement" means any building, fixture, structure or similar thing, other than land, that is included in the definition of "assessable property" in the Assessment Act (Nova Scotia);

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"interest", in relation to reserve lands, means any estate, right or interest of any nature in or to the lands, including any right to occupy, possess or use the lands, but does not include title to the lands that is held by Her Majesty;

"local revenue account" means the local revenue account referred to in section 13 of the Act; "locatee" means a person who is in lawful possession ofreserve lands under subsections 20(1) and (2) of the Indian Act;

"Notice of Discontinuance of Services" means a notice containing the information set out in Schedule X; "Notice of Sale of a Right to Assignment of Taxable Property" means a notice containing the information set out in Schedule IX;

"Notice of Sale of Seized Personal Property" means a notice containing the information set out in Schedule VII;

"Notice of Seizure and Assignment of Taxable Property" means a notice containing the information set out in Schedule VIII;

"Notice of Seizure and Sale" means a notice containing the information set out in Schedule VI; "person" includes a partnership, syndicate, association, corporation and the personal or other legal representatives of a person;

"property class" has the meaning given to that term in the Assessment Law; "Province" means the province of Nova Scotia; "registry" means any land registry in which interests in reserve lands are registered; "related individual" means, in respect of a member of the First Nation, (a) that member's spouse, child, grandchild, great-grandchild, parent, grandparent, great-grandparent or guardian, (b) the spouse of that member's parent, grandparent, great-grandparent, child, grandchild or great-grandchild, or (c) the child, grandchild, great-grandchild, parent, grandparent or great-grandparent of that member's spouse; "reserve" means a reserve of the First Nation within tre meaning of the Indian Act;

"resolution" means a motion passed and approved by a majority of Council present at a duly convened meeting;

"spouse" includes a common law partner; "tax administrator" means a person appointed by Council under subsection 3(1) to administer this Law; "Tax Arrears Ce1iificate" means a ce1iificate containing the information set out in Schedule V; "Tax Ce1iificate" means a ce1iificate containing the information set out in Schedule IV; "Tax Notice" means a notice containing the information set out in Schedule II and includes an amended Tax Notice;

"tax roll" means a list prepared pursuant to this Law of persons liable to pay tax on taxable prope1iy; "taxable propetiy" means an interest in reserve lands that is subject to taxation under this Law; "taxation year" means the calendar year to which an assessment roll applies for the purposes of taxation; "taxes" include

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( a) all taxes imposed, levied, assessed or assessable under this Law, and all penalties, interest and costs added to taxes under this Law, and

(b) for the purposes of collection and enforcement, all taxes imposed, levied, assessed or assessable under any other local revenue law of the First Nation, and all penalties, interest and costs added to taxes under such a law; and

"taxpayer" means a person liable for taxes in respect of taxable property. (2) For greater ce1tainty, an interest, in relation to reserve lands, includes improvements. (3) In this Law, references to a Patt ( e.g. Pait I), section ( e.g. section 1) , subsection ( e.g. subsection 2(1)), paragraph (e.g. paragraph 3(4)(a)) or Schedule (e.g. Schedule I) is a reference to the specified Pait, section, subsection, paragraph or Schedule of this Law, except where otherwise stated.

PART III ADMINISTRATION Tax Administrator 3.(1) Council must, by resolution, appoint a tax administrator to administer this Law on the terms and conditions set out in the resolution.

(2) The tax administrator must fulfill the responsibilities given to the tax administrator under this Law and the Assessment Law.

(3) The tax administrator may, with the consent of the Chief Executive Officer, assign the performance of any duties of the tax administrator to any officer, employee, contractor or agent of the First Nation.

(4) The tax administrator's responsibilities include (a) the collection of taxes and the enforcement of payment under this Law; and (b) the day to day management of the First Nation's local revenue account.

PARTIV LIABILITY FOR TAXATION Application of Law 4. This Law applies to all interests in reserve lands. Tax Liability 5.(1) Except as provided in Pait V, all interests in reserve lands are subject to taxation under this Law. (2) Taxes levied under this Law are a debt owed to the First Nation, recoverable by the First Nation in any manner provided for in this Law or in a comt of competent jurisdiction.

(3) Taxes are due and payable under this Law notwithstanding any proceeding initiated or remedy sought by a taxpayer respecting his or her liability to taxation under this Law.

( 4) Any person who is a holder of taxable prope1ty in any taxation year is liable to the First Nation for all taxes imposed on that taxable prope1ty under this Law during the taxation year and for all unpaid taxes imposed in a previous taxation year, including, for greater ce1tainty, interest, penalties and costs as provided in this Law.

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Tax Refunds 6.(1) Where a person is taxed in excess of the proper amount in a taxation year, the tax administrator must refund to that person any excess taxes paid by that person.

(2) Where a person is entitled to a refund of taxes, Council may direct the tax administrator to refund the amount in whole or in part by applying it as a credit on account of taxes or other unpaid amounts that are due or accruing due to the First Nation in respect of taxable property held by that person.

(3) Where a person is entitled to be refunded an amount of taxes paid under this Law, the tax administrator must pay the person interest as follows:

(a) interest accrues from the date that the taxes were originally paid to the First Nation; (b) the interest rate during each successive three (3) month period beginning on January 1, April 1, July 1 and October 1 in eve1y year, is two percent (2%) below the prime lending rate of the principal banker to the First Nation on the 15th day of the month immediately preceding that three (3) month period;

( c) interest will not be compounded; and ( d) interest stops running on the day payment of the money owed is delivered or mailed to the person to whom it is owed, or is actually paid.

PARTV EXEMPTIONS FROM TAXATION Exemptions 7.(1) The following interests in reserve lands are exempt from taxation under this Law to the extent indicated:

(a) subject to subsections (2) and (3), an interest held or occupied by the First Nation, a First Nation Entity, or a member of the First Nation;

(b) an interest occupied as a residence by one (1) or more members of the First Nation and related individuals of those members and by no other persons;

( c) an interest used (i) as a church or place of public worship, or an associated office or facility, and the land used in connection with it,

(ii) as a churchyard and church burial ground, and (iii) as a church hall for religious or congregational purposes exclusively, save only for occasions specially authorized by church authorities and for which no revenue in excess of one hundred dollars ($100) per annum is received, but in computing revenue for the purposes of this subparagraph any contribution paid towards the reasonable additional costs of upkeep imposed by the use must be excluded;

(d) an interest used as a non-profit community cemetery, as cemete1y is defined by the Cemetery and Funeral Services Act (Nova Scotia);

( e) an interest used as a college, academy or other public institution oflearning, including an associated office or facility, but not including an interest mainly used for commercial, industrial, business, rental or other non-educational purposes;

(f) an interest used as a public school;

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(g) an interest held or occupied by a fire depatiment or an emergency services provider and used directly and solely for community purposes or fund-raising activities of the department or provider; and

(h) an interest used as a hospital, medical clinic, or associated office or facility that is not operated for profit.

(2) Where an interest in reserve lands is held by the First Nation, a First Nation Entity or a member of the First Nation, as the case may be, and is wholly occupied by a person who is not the First Nation, a First Nation Entity or a member of the First Nation,

(a) the exemption in paragraph (l)(a) does not apply to the person who is not the First Nation, a First Nation Entity or a member of the First Nation;

(b) that person is responsible for the taxes levied in respect of the interest; and ( c) the taxes are a liability only on that person. (3) Where an interest in reserve lands is occupied by the First Nation, a First Nation Entity or a member of the First Nation and is also occupied by a person who is not the First Nation, a First Nation Entity or a member of the First Nation,

(a) the exemption in paragraph (l)(a) does not apply to that person; (b) taxes under this Law must be levied in respect of that person's propotiionate occupation of the interest; and

( c) the taxes are a liability only on that person. (4) An exemption in paragraph (l)(c) to (h) applies only to that portion of the interest that is used for the purposes for which the exemption is given.

(5) Where subsection ( 4) applies to an interest that is a potiion of a building, the exemption also applies to a proportionate pati of the land on which the building stands.

PART VI GRANTS Annual Grants 8.(1) Council may provide for a grant to a holder of taxable property (a) where the holder is a named Canadian charitable organization and Council considers that the taxable propetiy is used directly or solely for a charitable use; and

(b) where the holder is a non-profit community, charitable, fraternal, educational, recreational, religious, cultural or spotiing organization and Council considers that the organization provides a service that might otherwise be a responsibility of the Council.

(2) Grants provided under subsection (1) (a) may be given only to a holder of taxable property that is taxable in the current taxation year; (b) must be in an amount equal to or less than the taxes payable on the taxable property in the current taxation year, less any other grants; and

( c) must be used only for the purposes of paying the taxes owing on the taxable propetiy in the current taxation year.

(3) Council will in each taxation year determine all grants that will be given under this Part and will authorize those grants in an expenditure law.

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PART VII LEVY OF TAX Tax Levy 9.(1) On or before May 1 in each taxation year, Council must adopt a law setting the rate of tax to be applied to each property class.

(2) A law setting the rate of tax may establish different tax rates for each property class. (3) Taxes must be levied by applying the rate of tax against each one hundred dollars ($100) of assessed value of the interest in reserve lands.

(4) Taxes levied under this Law are deemed to be imposed on January 1 of the taxation year in which the levy is first made.

(5) Notwithstanding subsection (3), Council may establish, in its annual law setting the rate of tax, a minimum tax payable in respect of taxable property.

(6) A minimum tax established under the authority of subsection (5) may be established in respect of one or more property classes.

Tax Payments 10.(1) Taxes are due and payable on or before July 1 of the taxation year in which they are levied. (2) Taxes must be paid at the office of the First Nation during normal business hours, by cheque, money order, or cash.

(3) Payment of taxes made by cheque or money order must be made payable to Membertou. PART VIII TAX ROLL AND TAX NOTICE Tax Roll 11.(1) On or before May 31 in each taxation year, the tax administrator must create a tax roll for that taxation year.

(2) The tax roll must be in paper or electronic form and must contain the following information in respect of each interest in reserve lands:

(a) a description of the interest as it appears on the assessment roll; (b) the name and address of the holder entered on the assessment roll with respect to the interest; ( c) the name and address of every person entered on the assessment roll with respect to the interest; ( d) the assessed value by classification of the land and the improvements comprising the interest as it appears in the assessment roll, exclusive of exemptions, if any;

( e) the amount of taxes levied on the interest in the current taxation year under this Law; and (f) the amount of any unpaid taxes from previous taxation years. (3) The tax administrator may use the certified assessment roll as the tax roll by adding the following information to the assessment roll:

(a) the amount of taxes levied on the interest in the current taxation year under this Law; and (b) the amount of any unpaid taxes from previous taxation years.

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( 4) The fact that information required to be shown on the tax roll is omitted or that information shown contains an error, omission or misdescription does not invalidate the roll or any other information shown on the roll.

Annual Tax Notices 12.(1) On or before May 31 in each taxation year, the tax administrator must mail a Tax Notice to (a) each holder of taxable prope1iy under this Law, and (b) each person whose name appears on the tax roll in respect of the taxable property, to the address of the person as shown on the tax roll. (2) Where there is an error in the name of a person on a Tax Notice, the taxes may be collected from the person intended to be taxed if the person is taxable and can be identified.

(3) The tax administrator must enter on the tax roll the date of mailing a Tax Notice. ( 4) The mailing of the Tax Notice by the tax administrator constitutes a statement of and demand for payment of the taxes.

(5) If a number of taxable properties are assessed in the name of the same holder, any number of those taxable properties may be included in one Tax Notice.

(6) Where the holder of a charge on an interest gives notice to the assessor of the charge under the Assessment Law and the assessor enters the holder's name on the assessment roll, the tax administrator must mail a copy of all tax notices issued in respect of the interest to the holder of the charge during the duration of the charge.

(7) If it is discovered that there is an error, omission or misdescription in any of the information shown on a Tax Notice, the tax administrator may prepare and send an amended Tax Notice to every person to whom a Tax Notice must be sent under subsection (1).

Amendments to Tax Roll and Tax Notices 13.(1) Except as provided in subsections (2) and (3), where the assessment roll has been amended in accordance with sections 18 or 19 of the Assessment Law, the holder of the affected interest in reserve lands must be taxed in respect of that interest at the rate fixed for the current taxation year in the same manner as if the interest had been properly assessed on the assessment roll when it was certified in accordance with the Assessment Law.

(2) Where an interest in reserve lands exempt from taxation ceases to be so exempt on or before the first day of March in any taxation year, the holder of the interest after it ceases to be exempt must be taxed in respect of that interest only for the portion of the taxation year during which it is not exempt.

(3) Where an interest in reserve lands becomes exempt from taxation during a taxation year, the holder of the interest must be taxed only for that portion of the taxation year during which it was not exempt, and the holder must be refunded any taxes paid for the portion of the taxation year in which the interest is exempt.

( 4) Upon receipt of notice of an amendment to the assessment roll, the tax administrator must amend the tax roll and mail an amended Tax Notice to eve1y person to whom a Tax Notice must be sent under subsection 12( 1) .

( 5) If it is discovered that there is an error, omission or misdescription in any of the information shown on the tax roll

(a) the tax administrator may correct the tax roll for the current taxation year only; and

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(b) on correcting the tax roll, the tax administrator must mail an amended Tax Notice to eve1y person to whom a Tax Notice must be sent under subsection 12(1).

(6) The tax administrator must record on the tax roll the date of eve1y entry made under this section. (7) Where an amended Tax Notice indicates a reduction in the amount of taxes owing, the tax administrator must fo1thwith refund any excess taxes that have been paid, in accordance with section 6.

(8) Where an amended Tax Notice indicates an increase in the amount of taxes owing, the taxes are due and payable on the date of mailing of the amended Tax Notice; however, the taxpayer must be given thirty (30) days to pay those taxes and a penalty and interest must not be added in that period.

Subdivision 14.(1) If a taxable prope1ty is subdivided, by lease or other legal instrument, before a Tax Notice is mailed in respect of that taxable prope1ty, the tax administrator may

(a) apportion the taxes payable in that year among the taxable propetties created by the subdivision in the same proportions as taxes would have been payable in respect of the taxable prope1ties had the subdivision occurred on or before the assessment roll was ce1tified under the Assessment Law; and

(b) on making an app01tionment under paragraph (a), record the app01tionment on the tax roll in the manner that the tax administrator considers necessary.

(2) Taxes app01tioned to a taxable propetty under subsection (1) are the taxes payable in respect of the taxable prope1ty in the year for which they are app01iioned.

(3) The assessor must provide the tax administrator with the assessed values necessary to calculate the proportions of taxes referred to in subsection (1).

Requests for Information 15.(1) The tax administrator may, for any purpose related to the administration of this Law, deliver a Request for Information containing the information set out in Schedule I, to a holder or a person who has disposed of an interest in reserve lands, and that person must provide the requested information to the tax administrator within fomieen ( 14) days or a longer period as specified in the notice.

(2) The tax administrator is not bound by the information provided under subsection (1). PARTIX PAYMENT RECEIPTS AND TAX CERTIFICATES Receipts for Payments 16. On receipt of a payment of taxes, the tax administrator must issue a receipt to the taxpayer and must enter the receipt number on the tax roll opposite the interest in reserve lands for which the taxes are paid.

Tax Certificate 17.(1) On receipt of a written request and payment of the fee set out in subsection (2), the tax administrator must issue a Tax Certificate showing whether taxes have been paid in respect of an interest in reserve lands, and if not, the amount of taxes outstanding.

(2) The fee for a Tax Ce1iificate is thi1ty-five dollars ($35) for each tax roll folio searched.

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PARTX PENALTY AND INTEREST Penalty 18. If all or any portion of the taxes remains unpaid after July 1 of the year in which they are levied, a penalty of ten percent (10%) of the pottion of the current year's taxes that remains unpaid will be added to the amount of the unpaid taxes and the amount so added is, for all purposes, deemed to be patt of the current year's taxes.

Interest 19. If all or any pottion of taxes remains unpaid after July 1 of the year in which they are levied, the unpaid portion accrues interest at twelve percent ( 12%) per year until paid or recovered, and accrued interest is, for all purposes, deemed to be part of the taxes.

Application of Payments 20. Payments for taxes must be credited by the tax administrator first, to unpaid taxes from previous taxation years, with taxes imposed earlier being discharged before taxes imposed later and second, to unpaid taxes for the current taxation year.

PART XI REVENUES AND EXPENDITURES Revenues and Expenditures 21.(1) All revenues raised under this Law must be placed into a local revenue account, separate from other moneys of the First Nation.

(2) Revenues raised include (a) taxes, including for greater ce1tainty, interest, penalties and costs, as set out in this Law; and (b) payments-in-lieu of taxes. (3) An expenditure of revenue raised under this Law must be made under the authority of an expenditure law or in accordance with section 13 .1 of the Act.

Reserve Funds 22.(1) Reserve funds established by Council must (a) be established in an expenditure law; and (b) comply with this section. (2) Except as provided in this section, moneys in a reserve fund must be deposited in a separate account and the moneys and interest earned on it must be used only for the purpose for which the reserve fund was established.

(3) Council may, by expenditure law, (a) transfer moneys in a capital purpose reserve fund to another reserve fund or account, provided that all projects for which the reserve fund was established have been completed;

(b) transfer moneys in a non-capital purpose reserve fund to another reserve fund or account; and (c) borrow moneys from a reserve fund where not immediately required, on condition that the First Nation repay the amount borrowed plus interest on that amount at a rate that is at or above the prime lending rate set from time to time by the principal banker to the First Nation, no later than the time when the moneys are needed for the purposes of that reserve fund.

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(4) As an exception to paragraph (3)(c), where the First Nations Financial Management Board has (a) assumed third-pmiy management of the First Nation's local revenue account, and (b) determined that moneys must be borrowed from a reserve fund to meet the financial obligations of the First Nation,

the First Nations Financial Management Board may, acting in the place of Council, borrow moneys from a reserve fund by expenditure law.

(5) Council must authorize all payments into a reserve fund and all expenditures from a reserve fund in an expenditure law.

( 6) Where moneys in a reserve fund are not immediately required, the tax administrator must invest those moneys in one or more of the following:

(a) securities of Canada or of a province; (b) securities guaranteed for principal and interest by Canada or by a province; ( c) securities of a municipal finance authority or the First Nations Finance Authority; ( d) investments guaranteed by a bank, trust company or credit union; or ( e) deposits in a bank or trust company in Canada or non-equity or membership shares in a credit union. PART XII COLLECTION AND ENFORCEMENT Recovery of Unpaid Taxes 23.(1) The liability referred to in subsection 5(2) is a debt recoverable by the First Nation in a court of competent jurisdiction and may be recovered by any other method authorized in this Law and, unless otherwise provided, the use of one method does not prevent seeking recovery by one or more other methods.

(2) A copy of the Tax Notice that refers to the taxes payable by a person, certified as a true copy by the tax administrator, is evidence of that person's debt for the taxes.

(3) Costs incurred by the First Nation in the collection and enforcement of unpaid taxes (a) are determined in accordance with Schedule III; and (b) are payable by the debtor as unpaid taxes. ( 4) Where the tax administrator has reasonable grounds to believe that a debtor intends to remove his or her personal propeiiy from the reserve, or intends to dismantle or remove his or her improvements on the reserve, or take any other actions that may prevent or impede the collection of unpaid taxes owing under this Law, the tax administrator may apply to a court of competent jurisdiction for a remedy, notwithstanding that the time for payment of taxes has not yet expired.

(5) Before commencing enforcement proceedings under Parts XIII, XIV and XV, the tax administrator must obtain authorization from Council by resolution.

Tax Arrears Certificate 24.( 1) Before taking any enforcement measures under Pmis XIII, XIV or XV and subject to subsection (2), the tax administrator must issue a Tax Arrears Ce1iificate and deliver it to eve1y person named on the tax roll in respect of that taxable propetiy.

(2) A Tax Arrears Certificate must not be issued for at least six (6) months after the day on which the taxes became due.

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Creation of Lien 25.(1) Unpaid taxes are a lien on the interest in reserve lands to which they pertain that attaches to the interest and binds subsequent holders of the interest.

(2) The tax administrator must maintain a list of all liens created under this Law. (3) A lien listed under subsection (2) has priority over any unregistered or registered charge, claim, privilege, lien or security interest in respect of the interest in reserve lands.

( 4) The tax administrator may apply to a court of competent jurisdiction to protect or enforce a lien under subsection ( 1) where the tax administrator determines such action is necessary or advisable.

(5) On receiving payment in full of the taxes owing in respect of which a lien was created, the tax administrator must register a discharge of the lien without delay.

( 6) Discharge of a lien by the tax administrator is evidence of payment of the taxes with respect to the interest in reserve lands.

(7) A lien is not lost or impaired by reason of any technical error or omission in its creation or recording in the list of liens.

Delivery of Documents in Enforcement Proceedings 26.(1) This section applies to this Part and Paiis XIII, XIV and XV. (2) Delivery of a document may be made personally or by sending it by registered mail. (3) Personal delivery of a document is made (a) in the case of an individual, by leaving the document with that individual or with an individual at least eighteen ( 18) years of age residing at that individual's place of residence;

(b) in the case of a first nation, by leaving the document with the individual apparently in charge, at the time of delivery, of the main administrative office of the first nation, or with the first nation's legal counsel; and

( c) in the case of a corporation, by leaving the document with the individual apparently in charge, at the time of delivery, of the head office or one of its branch offices, or with an officer or director of the corporation or the corporation's legal counsel.

(4) A document is considered to have been delivered (a) if delivered personally, on the day that personal delivery is made; and (b) if sent by registered mail, on the fifth day after it is mailed. (5) Copies of notices must be delivered (a) where the notice is in respect of taxable property, to all persons named on the tax roll in respect of that taxable property; and

(b) where the notice is in respect of personal propetiy, to all holders of security interests in the personal propetiy registered under the laws of the Province.

PART XIII SEIZURE AND SALE OF PERSONAL PROPERTY Seizure and Sale of Personal Property 27.(1) Where taxes remain unpaid more than thitiy (30) days after a Tax Arrears Cetiificate is issued to a debtor, the tax administrator may recover the amount of unpaid taxes, with costs, by seizure and sale of personal propetiy of the debtor that is located on the reserve.

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(2) As a limitation on subsection (1), personal property of a debtor that would be exempt from seizure under a writ of execution issued by a superior court in the Province is exempt from seizure under this Law.

Notice of Seizure and Sale 28.(1) Before proceeding under subsection 27(1), the tax administrator must deliver to the debtor a Notice of Seizure and Sale.

(2) If the taxes remain unpaid more than seven (7) days after delive1y of a Notice of Seizure and Sale, the tax administrator may request a sheriff, bailiff or by-law enforcement officer to seize any personal property described in the Notice of Seizure and Sale that is in the possession of the debtor and is located on the reserve.

(3) The person who seizes personal property must deliver to the debtor a receipt for the personal property seized.

Notice of Sale of Seized Personal Property 29.(1) The tax administrator must publish a Notice of Sale of Seized Personal Property in two (2) consecutive issues of the local newspaper with the largest circulation.

(2) The first publication of the Notice of Sale of Seized Personal Property must not occur until at least sixty (60) days after the personal property was seized.

Conduct of Sale 30.(1) A sale of personal property must be conducted by public auction. (2) Subject to subsection ( 4), at any time after the second publication of the Notice of Sale of Seized Personal Property, the seized property may be sold by auction.

(3) The tax administrator must conduct the public auction at the time and place set out in the Notice of Sale of Seized Personal Property, unless it is necessaiy to adjourn the public auction, in which case a further notice must be published in the manner set out in subsection 29(1).

( 4) If at any time before the seized property is sold a challenge to the seizure is made to a comt of competent jurisdiction, the sale must be postponed until after the comt rules on the challenge.

Registered Security Interests 31. The application of this Pait to the seizure and sale of personal prope1ty subject to a registered security interest is subject to any laws of the Province regarding the seizure and sale of such prope1ty.

Proceeds of Sale 32.( 1) The proceeds from the sale of seized personal prope1ty must be paid to any holders of registered security interests in the property and to the First Nation in order of their priority under the laws applicable in the Province, and any remaining proceeds must be paid to the debtor.

(2) If claim to the surplus is made by another person and such claim is contested, or if the tax administrator is uncertain who is entitled to such surplus, the tax administrator must retain such money until the rights of the parties have been determined.

PART XIV SEIZURE AND ASSIGNMENT OF TAXABLE PROPERTY Seizure and Assignment of Taxable Property 33.(1) Where taxes remain unpaid more than nine (9) months after a Tax Arrears Ce1tificate is issued, the tax administrator may levy the amount of unpaid taxes by way of the seizure and assignment of the taxable prope1ty. 13

(2) Before proceeding under subsection (1), the tax administrator must serve a Notice of Seizure and Assignment of Taxable Property on the debtor and deliver a copy to any locatee with an interest in the taxable property.

(3) Not less than six (6) months after a Notice of Seizure and Assignment of Taxable Property is delivered to the debtor, the tax administrator may sell the right to an assignment of the taxable property by public tender or auction.

( 4) Council must, by resolution, prescribe the method of public tender or auction, including the conditions that are attached to the acceptance of an offer.

Upset Price 34.(1) The tax administrator must set an upset price for the sale of the right to an assignment of the taxable property that is not less than the total amount of the taxes payable on the taxable property, calculated to the end of the redemption period set out in subsection 38(1), plus five percent (5%) of that total.

(2) The upset price is the lowest price for which the taxable property may be sold. Notice of Sale of a Right to Assignment of Taxable Propeiiy 35.(1) A Notice of Sale of a Right to Assignment of Taxable Property must be (a) published in the local newspaper with the largest circulation at least once in each of the four (4 ) weeks preceding the date of the public tender or auction; and

(b) posted in a prominent place on the reserve not less than ten ( 10) days before the date of the public tender or auction.

(2) The tax administrator must conduct a public auction or tender at the time and place set out in the Notice of Sale of a Right to Assignment of Taxable Property, unless it is necessary to adjourn the public tender or auction, in which case a fmiher notice must be published in the manner set out in subsection (1).

(3) If no bid is equal to or greater than the upset price, the First Nation is deemed to have purchased the right to an assignment of the taxable property for the amount of the upset price.

Notice to Minister 36. The tax administrator must, without delay, notify the Minister of Crown-Indigenous Relations in writing of the sale of a right to an assignment of taxable propetiy made under this Law.

Subsisting Rights 37. When taxable propetiy is sold by public tender or auction, all rights in it held by the holder of the taxable propetiy or a holder of a charge immediately cease to exist, except as follows:

(a) the taxable property is subject to redemption as provided in subsection 38(1); (b) the right to possession of the taxable propetiy is not affected during the time allowed for redemption, subject, however, to

(i) impeachment for waste, and (ii) the right of the highest bidder to enter on the taxable propetiy to maintain it in a proper condition and to prevent waste;

(c) an easement, restrictive covenant, building scheme or right-of-way registered against the taxable propetiy subsists; and

( d) during the period allowed for redemption, an action may be brought in a couti of competent jurisdiction to have the sale of the right to an assignment of the taxable propetiy set aside and declared invalid. 14

Redemption Period 38.( 1) At any time within three (3) months after the holding of a public tender or auction in respect of taxable property, the debtor may redeem the taxable property by paying to the First Nation the amount of the upset price plus three percent (3%).

(2) On redemption of the taxable property under subsection (1), (a) if the right to an assignment was sold to a bidder, the First Nation must, without delay, repay to that bidder the amount of the bid; and

(b) the tax administrator must notify the Minister of Crown-Indigenous Relations in writing of the redemption.

(3) No assignment of taxable property must be made until the end of the redemption period provided for in subsection (1).

( 4) Subject to a redemption under subsection (2), at the end of the redemption period, the First Nation must assign the taxable propetty to the highest bidder in the public tender or auction, or to itself as the deemed purchaser in accordance with subsection 35(3).

Assignment of Taxable Property 39.(1) Taxable propetty must not be assigned to any person or entity who would not have been entitled under the Indian Act or the First Nations Land Management Act, as the case may be, to obtain the interest constituting the taxable property.

(2) The tax administrator must register an assignment of any taxable property assigned in accordance with this Law in evety registry in which the taxable propetty is registered at the time of the assignment.

(3) An assignment under subsection 3 8( 4) operates (a) as a transfer of the taxable prope1ty to the bidder from the debtor, without an attestation or proof of execution; and

(b) to extinguish all the right, title and interest of evety previous holder of the taxable prope1ty, or those claiming under a previous holder, and all claims, demands, payments, charges, liens, judgments, motigages and encumbrances of every type, and whether or not registered, subsisting at the time the assignment is registered under subsection (2), except an easement, restrictive covenant, building scheme or right-of-way registered against the taxable property.

( 4) Upon assignment under subsection 3 8( 4 ), any remaining debt of the debtor with respect to the taxable propetty is extinguished.

Proceeds of Sale 40.( 1) At the end of the redemption period, the proceeds from the sale of a right to assignment of taxable property must be paid

(a) first, to the First Nation, and (b) second, to any other holders of registered interests in the taxable prope1ty in order of their priority at law,

and any remaining proceeds must be paid to the debtor. (2) If claim to the surplus is made by another person and such claim is contested, or if the tax administrator is uncertain who is entitled to such surplus, the tax administrator must retain such money until the rights of the parties have been determined.

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Resale by First Nation 41.(1) If the right to assignment of taxable property is purchased by the First Nation under subsection 35(3), the tax administrator may, during the redemption period, sell the assignment of the taxable property to any person for not less than the upset price and the purchaser is thereafter considered the bidder under this Part.

(2) A sale under subsection (1) does not affect the period for or the right ofredemption by the debtor as provided in this Law.

PART XV DISCONTINUANCE OF SERVICES Discontinuance of Services 42.(1) Subject to this section, the First Nation may discontinue any service it provides to the taxable property of a debtor if

(a) revenues from this Law or any property taxation law enacted by the First Nation are used to provide that service to taxpayers; and

(b) taxes remain unpaid by a debtor more than thirty (3 0) days after a Tax Arrears Ce1iificate was delivered to the debtor.

(2) At least thirty (30) days before discontinuing any service, the tax administrator must deliver to the debtor and to any locatee with an interest in the taxable prope1iy a Notice of Discontinuance of Services.

(3) The First Nation must not discontinue (a) fire protection or police services to the taxable property of a debtor; (b) water or garbage collection services to taxable prope1iy that is a residential dwelling; or ( c) electrical or natural gas services to taxable prope1iy that is a residential dwelling during the period from November 1 in any year to March 31 in the following year.

PART XVI GENERAL PROVISIONS Disclosure of Information 43.(1) The tax administrator or any other person who has custody or control of information or records obtained or created under this Law must not disclose the information or records except

(a) in the course of administering this Law or performing functions under it; (b) in proceedings before the Assessment Review Board, a comi of law or pursuant to a court order; or ( c) in accordance with subsection (2). (2) The tax administrator may disclose to the agent of a holder confidential information relating to the interest in reserve lands if the disclosure has been authorized in writing by the holder.

(3) An agent must not use information disclosed under subsection (2) except for the purposes authorized by the holder in writing referred to in that subsection.

Disclosure for Research Purposes 44. Notwithstanding section 43, (a) the tax administrator may disclose information and records to a third party for research purposes, including statistical research, provided the information and records do not contain information in an individually identifiable form or business information in an identifiable form; 16

(b) Council may disclose information and records to a third pmiy for research purposes, including statistical research, in an identifiable form where

(i) the research cannot reasonably be accomplished unless the information is provided in an identifiable form, and

(ii) the third patiy has signed an agreement with Council to comply with Council's requirements respecting the use, confidentiality and security of the information.

Validity 45. Nothing under this Law must be rendered void or invalid, nor must the liability of any person to pay tax or any other amount under this Law be affected by

(a) an error or omission in a valuation or a valuation based solely on information in the hands of an assessor or the tax administrator;

(b) an error or omission in a tax roll, Tax Notice, or any notice given under this Law; or ( c) a failure of the First Nation, tax administrator or the assessor to do something within the required time.

Limitation on Proceedings 46.( 1) No person may commence an action or proceeding for the return of money paid to the First Nation, whether under protest or otherwise, on account of a demand, whether valid or invalid, for taxes or any other amount paid under this Law, after the expiration of six ( 6) months from the date the cause of action first arose.

(2) If a person fails to stmi an action or proceeding within the time limit prescribed in this section, then money paid to the First Nation must be deemed to have been voluntarily paid.

Notices 47.(1) Where in this Law a notice is required to be given by mail or where the method of giving the notice is not otherwise specified, it must be given

(a) by mail to the recipient's ordinary mailing address or the address for the recipient shown on the tax roll; (b) where the recipient's address is unknown, by posting a copy of the notice in a conspicuous place on the recipient's property; or

( c) by personal delivery or courier to the recipient or to the recipient's ordinary mailing address or the address for the recipient shown on the tax roll.

(2) Except where otherwise provided in this Law (a) a notice given by mail is deemed received on the fifth day after it is posted; (b) a notice posted on propetiy is deemed received on the second day after it is posted; and ( c) a notice given by personal delivery is deemed received upon delivery. Interpretation 48.(1) The provisions of this Law are severable, and where any provision of this Law is for any reason held to be invalid by a decision of a couti of competent jurisdiction, the invalid pmiion must be severed from the remainder of this Law and the decision that it is invalid must not affect the validity of the remaining potiions of this Law.

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(2) Where a provision in this Law is expressed in the present tense, the provision applies to the circumstances as they arise.

(3) Words in this Law that are in the singular include the plural, and words in the plural include the singular.

( 4) This Law must be construed as being remedial and must be given such fair, large and liberal construction and interpretation as best ensures the attainment of its objectives.

(5) Reference in this Law to an enactment is a reference to the enactment as it exists from time to time and includes any regulations made under the enactment.

(6) Headings form no pa1t of