Part II - Enacted First Nations Legislation

FIRST NATIONS TAX COMMISSION COMM ISSION 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 Tzeachten First Nation in the Province of British Columbia,

CH'{YAQTEL ((ZEACHTEN) FIRST NATION ACCOMMODATION OPERATOR TAX LA\!½ 2024

Dated at Montreal, Quebec this 26th day of March, 2024.

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ch· f Commissioner C.T. (Manny) Jules of the Fi rst Nations Tax Commission

PART I PART II PART III PARTIV PARTY PART VI PART VII PART VIII PARTIX PARTX

CH'IYA.QTEL (TZEACHTEN) FIRST NATION ACCOMMODATION OPERATOR TAX LAW, 2024

TABLE OF CONTENTS Citation ........................................................................................................................ 2 Definitions and References ......................................................................................... 2 Ad1ninistration ............................................................................................................. 3 Tax Liability and Levy ................................................................................................ 3 Determination of Gross Revenues ............................................................................... 4 Returns, Payment and Reassessments ......................................................................... 5 Records, Receipts, Information and Inspections ......................................................... 6 Penalties, Interest and Enforcement ............................................................................ 7 Coin plaints to Tax Administrator ................................................................................ 8 General Provisions ...................................................................................................... 8

SCHEDULES I Accommodation Tax Return II Notice of Tax Reassessment III Request for Information by Tax Administrator IV Complaint to Tax Administrator Respecting Accommodation Tax

WHEREAS:

A. Pursuant to section 5 of the First Nations 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, including the taxation of business activities on reserve lands;

B. The Council of Ch'fyaqtel (Tzeachten) First Nation deems it to be in the best interests of the First Nation to levy a business activity tax on persons providing accommodation on the reserve for consideration; and C. The Council of the Ch'fyaqtel (Tzeachten) First Nation 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 of Ch 'fyaqtel (Tzeachten) First Nation duly enacts as follows:

PART I CITATION Citation 1. This Law may be cited as the Ch 'fyaqtel (Tzeachten) First Nation Accommodation Operator Tax Law, 2024.

PART II DEFINITIONS AND REFERENCES Definitions and References 2.( 1) In this Law: "accommodation" means lodging that is referenced in subsection 9( 1) and not excluded under subsection 9(2); "accommodation tax" or "tax" means a tax imposed, levied, assessed or assessable under this Law and all penalties, interest and costs added to taxes as provided in this Law; "Act" means the First Nations Fiscal Management Act, S.C. 2005, c. 9, and the regulations enacted under that Act; "civil resolution tribunal" means the civil resolution tribunal established under the Civil Resolution Tribunal Act, S.B.C. 2012, c. 25;

"Council" has the meaning given to that term in the Act; "First Nation" means the Ch'fyaqtel (Tzeachten) First Nation being a band named in the schedule to the Act;

"gross revenues" means the total revenues derived from the sale of accommodation, determined in accordance with Part V;

"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 His Majesty;

"Notice of Tax Reassessment" means a notice containing the information set out in Schedule II; "operator" means a person, other than a tourism agent, who sells, provides, or offers to sell accommodation on the reserve;

"person" includes a partnership, syndicate, association, corporation and the personal or other legal representatives of a person;

"Request for Information" means a request containing the information set out in Schedule III; "reporting period" means a period from: (a) January 1 to March 31, (b) April I to June 30, (c) July 1 to September 30, (d) October 1 to December 31, or (e) such other periods as may be determined in advance by the tax administrator provided that each period is at least three months;

respecting which an operator must deliver a Return to the First Nation and pay all tax owing for that

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period. "reserve" means a reserve of the First Nation within the meaning of the Indian Act; "Return" means a form containing the information set out in Schedule I; "tax administrator" means the person appointed under subsection 3( 1) for the purposes of this Law; "tax rate" means the tax rate set out in subsection 6(2); "Taxation Law" means the Tzeachten First Nation Property Taxation Law, 2010, as amended by the Tzeachten First Nation Property Taxation Amendment Law, 2012; and

"tourism agent" means a person who (a) purchases accommodation from an operator, and (b) for payment, makes all or any part of that accommodation available for use by one or more persons as part of a tourism service.

(2) For greater certainty, an interest, in relation to reserve lands, includes improvements. (3) Except where otherwise defined, words and expressions used in this Law have the meanings given to them in the Taxation Law.

( 4) In this Law, references to a Part ( e.g. Part I), section ( e.g. section 1) , subsection ( e.g. subsection 2( 1) ), paragraph (e.g. paragraph 7(l)(a)) or Schedule (e.g. Schedule I) is a reference to the specified Pati, section, subsection, paragraph or Schedule of this Law, except where otherwise stated.

PART III ADMINISTRATION Tax Administrator 3.( I) The person appointed as the tax administrator under the Taxation Law, is appointed as the tax administrator under this Law.

(2) The tax administrator must fulfill the responsibilities given to the tax administrator under this Law and such other duties assigned to the tax administrator by the First Nation from time to time.

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

Revenues and Expenditures 4. Accommodation taxes collected by the First Nation must be placed in the local revenue account of the First Nation and expended only in accordance with an expenditure law enacted by the First Nation under paragraph 5( I )(b) of the Act, or in accordance with section 13 .1 of the Act.

PARTIV TAX LIABILITY AND LEVY Application of Law 5. This Law applies to all operators and every operator is subject to an accommodation tax 111 accordance with this Law.

Tax Levy and Rate

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6.( I) An accommodation tax is hereby levied and imposed on every operator's use and occupation of the reserve for the provision of accommodation and must be paid by the operator in accordance with this Law.

(2) Every operator must pay to the First Nation an accommodation tax at the rate of three percent (3%) of the operator's gross revenues during each reporting period.

Tax Liability 7.(1) A person on whom a tax is levied under this Law is liable for the tax even if (a) that person is also liable to pay taxes under other property taxation laws of the First Nation; or (b) that person is exempt from taxes under other property taxation laws enacted by the First Nation. (2) Where there is more than one person comprising an operator, each person is jointly and severally liable to the First Nation for all accommodation taxes levied under this Law in respect of that operator.

(3) Accommodation taxes are due and payable under this Law notwithstanding a complaint or any proceeding initiated or remedy sought respecting an operator's liability for taxes under this Law.

PARTY DETERMINATION OF GROSS REVENUES Determination of Gross Revenues 8.( I) For the purposes of this Law, an operator's gross revenues are equal to the total consideration received by the operator from the sale of accommodation.

(2) Without limiting subsection (I), gross revenues include consideration in money and the value of services or prope1ty rendered in return for the accommodation provided.

(3) For clarity, the total consideration received by an operator does not include any taxes or other levies on the sale of accommodation.

( 4) Despite subsection (I), if accommodation is sold as part of a combination of accommodation, meals and other services sold for a single price, the consideration for the accommodation is the fair market value reasonably attributed to the sale of the accommodation alone.

(5) If any portion of the consideration received for accommodation is other than money, the consideration is the amount:

(a) of similar accommodation sold or available for sale to another person by the same operator on the day or days the purchaser occupied the accommodation; or

(b) that is the fair market value reasonably attributable to the accommodation. (6) If the tax administrator is of the opinion that the consideration attributed to accommodation under subsection (4) or paragraph (S)(b) does not represent the fair market value of the accommodation, the tax administrator may determine the fair market value for the purpose of determining the operator's gross revenues.

Inclusions and Exclusions from Gross Revenues 9.( I) Gross revenues includes revenues from the sale of lodging including lodging in a hotel, a motel, resort, cabin, condominium, hostel, boarding or rooming house, bed and breakfast, mobile home, trailer, and vacation home.

(2) Despite subsection (I), gross revenues do not include revenues from the sale of accommodation that is occupied continuously by the same individual for a period of twenty-seven (27) days or more.

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PART VI RETURNS, PAYMENT AND REASSESSMENTS Returns and Payment 10.( I) Every operator must, within thirty (30) days after the end of each repo1iing period, (a) complete and deliver to the First Nation a Return for that reporting period; and (b) pay to the First Nation all taxes owing during that reporting period. (2) Taxes must be paid at the office of the First Nation during normal business hours, by cheque or electronic transfer, where arranged with the First Nation.

(3) Payment of taxes made by cheque must be made payable to the Ch' iyaqtel (Tzeachten) First Nation. Return Requirements 11. A Return: (a) must be dated and certified as complete and correct by the operator, or where the operator is a corporation, by a person with personal knowledge of the matters certified and actual authority to ce1iify the Return on behalf of the operator; and

(b) must be completed and delivered to the First Nation, whether or not the operator received revenues from the sale of accommodation during the repo1iing period.

Tax Reassessment 12.(1) The tax administrator must review every Return received under this Law. (2) The tax administrator must make a tax assessment and deliver a Notice of Tax Reassessment to an operator in any case where the tax administrator determines that:

(a) the gross revenues indicated on a Return is not correct; (b) the consideration attributed to accommodation under subsection 8( 4) or paragraph 8(5)(b) does not represent the fair market value of the accommodation;

(c) revenues from the sale of accommodation have been improperly excluded from the determination of gross revenues;

(d) an operator has failed to deliver a Return; (e) an operator delivered a Return with an error or omission; or (f) for any reason an operator has not paid the correct amount of tax. (3) A Notice of Tax Reassessment must set out the amount of accommodation tax payable in respect of the reporting period and (a) set out the amount of tax due and owing by the operator, including penalties and interest, if applicable; or

(b) set out the amount of an overpayment of tax by the operator. (4) Where a Notice of Tax Reassessment indicates that an operator has made an overpayment of taxes, the tax administrator must refund the excess taxes paid, including interest on the amount overpaid, calculated in accordance with subsection (8).

(5) As an exception to subsection (4), if fmiher taxes payable by the operator are due or accruing due, the tax administrator may apply the amount of the overpayment to those taxes, provided notice is given to the operator.

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(6) The delivery of a Notice of Tax Reassessment by the tax administrator constitutes a statement of and demand for payment of the taxes where taxes are owing.

(7) Where a Notice of Tax Reassessment provides that taxes are due and owing by an operator, the taxes are due and payable immediately, and unpaid amounts must bear interest and penalties in accordance with this Law.

(8) Where an operator is entitled to be refunded an amount of taxes paid, 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 I, April I, July I and October I in every year, is two percent (2%) below the prime lending rate of the principal banker to the First Nation on the 15 th day of the month immediately preceding that three (3) month period;

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

PART VII RECORDS, RECEIPTS, INFORMATION AND INSPECTIONS Record of Taxes Levied 13. The tax administrator must keep the following records in respect of the administration of this Law: (a) all taxes levied; (b) all Returns received; (c) all tax payments made and receipts issued; ( d) all Notices of Tax Reassessment issued; (e) all refunds paid; and (f) all enforcement proceedings taken. Receipts for Payments 14. On receipt of a payment of taxes, the tax administrator must issue a receipt to the operator. Operator Records 15.( I) An operator must maintain accurate and complete books of account and other records containing al I the information necessary to enable the First Nation to determine the gross revenues of the operator and any other information required to determine the taxes payable under this Law in each reporting period.

(2) An operator must make the documents referred to in subsection (I) available to the First Nation on request, and allow the First Nation to take copies and extracts as necessary to determine whether an operator is in compliance with this Law and to determine the amount of accommodation tax payable by the operator.

Requests for Information 16.(1) The tax administrator may deliver a Request for Information to any person, including a current or former operator or other person who may have information relevant to the administration of this Law, and that person must provide to the tax administrator, within fourteen (14) days or a longer period as specified in the notice, information, including the production of records, for any purpose related to the administration or enforcement of this Law.

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(2) The tax administrator is not bound by the information provided under subsection 15(2) or subsection (I) and may, where the operator

(a) does not keep adequate records for the purposes of this Law, (b) fails or refuses to produce records on the request of the tax administrator, or (c) alleges that the operator's records have been destroyed, make his or her own determination of the tax payable by the operator. Inspections 17 .(I) A person authorized by the First Nation may, during normal business hours, enter onto an interest in reserve lands to

(a) determine whether or not (i) a person is an operator, (ii) the person is engaged in the sale of accommodation, or (iii) this Law is being and has been complied with; and (b) inspect, audit and examine books of account and records related to the sale of accommodation on the reserve.

(2) As part of an inspection under this section, the operator must give access to the books of accounts and other records required to be kept by this Law, and allow the First Nation to take copies and extracts as necessary, and the operator must, on request, furnish every facility and assistance required for the entry and examination.

PART VIII PENALTIES, INTEREST AND ENFORCEMENT Penalty 18. If all or part of the taxes are not paid when due as required under this Law, a penalty often percent (10%) of the potiion 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 part of the taxes.

Interest 19. If all or any portion of the taxes are not paid when due as required under this Law, the unpaid portion accrues interest at fifteen percent ( 15%) per year until paid or recovered, and accrued interest is, for all purposes, deemed to be part of the taxes.

Penalty and Interest May Be Waived 20.( I) Where an operator has, within the required time, (a) delivered a completed Return under section I 0, and (b) made payment of accommodation taxes to the First Nation in accordance with the Return, Council may in its sole discretion, where it determines that the operator's failure to pay the full amount of accommodation taxes owing was due to an error made in good faith by the operator, direct the tax administrator that a penalty under section 18 must not be added to unpaid taxes and interest under section 19 must not accrue, provided the outstanding taxes owing are paid in accordance with subsection (2).

(2) Where Council has determined under subsection ( 1) that penalties and interest will not be assessed against the operator, the operator must pay all amounts owing, as provided in the Notice of Tax

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Reassessment, within fourteen (14) days of the date of the Notice, after which time a penalty and interest must be levied on amounts remaining unpaid in accordance with this Law.

Application of Taxes Paid 21. The tax administrator must credit payments for taxes first to unpaid taxes from previous reporting periods, with taxes imposed earlier being discharged before taxes imposed later, and second, to unpaid taxes for the current reporting period.

Tax Collection and Enforcement 22.( 1) Taxes levied under this Law are a debt owed to the First Nation by the operator, recoverable by the First Nation in any court of competent jurisdiction or in a proceeding before the civi I resolution tribunal, and may also be recovered by any other method authorized under the Taxation Law or other applicable laws, and for this purpose Parts XIII, XIV, XV and XVI of the Taxation Law apply to the collection and enforcement of unpaid accommodation taxes, including with respect to the recovery of the costs of enforcement incurred by the First Nation.

(2) The use of one method of collection and enforcement does not prevent seeking recovery by one or more other methods.

(3) A copy of the Notice of Tax Reassessment 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.

PARTIX COMPLAINTS TO TAX ADMINISTRATOR Complaints to Tax Administrator 23.(1) An operator may deliver a complaint to the tax administrator respecting an alleged error or omission in a Notice of Tax Reassessment delivered to that operator.

(2) A complaint under this section must: (a) be in the form set out in Schedule IV; (b) be delivered to the tax administrator within thirty (30) days after receipt of a Notice of Tax Reassessment; and

(c) include any reasons in support of the complaint. (3) Within twenty-one (21) days after receipt of a complaint, the tax administrator must review the matter and attempt to resolve the complaint.

(4) If the tax administrator concludes that there was an error or omission in the Notice of Tax Reassessment, the tax administrator must mail an amended Notice of Tax Reassessment correcting the error or omission, and subsections 12(3) to (8) apply to that Notice.

(5) The tax administrator must advise Council of each complaint received under this section, including the nature of the complaint and the resolution of the complaint, if any.

PARTX GENERAL PROVISIONS Disclosure of Information 24.( I) 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

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(a) in the course of administering this Law or performing functions under it; (b) in proceedings before a tribunal having jurisdiction, including the civil resolution tribunal or a court of law; or

( c) in accordance with subsection (2). (2) The tax administrator may disclose to the agent of an operator confidential information relating to the interest in reserve lands if the disclosure has been authorized in writing by the operator.

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

Disclosure for Research Purposes 25. Despite section 24, (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; and

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

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

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

Validity 26. 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 determination made by the First Nation or the tax administrator; (b) an error or omission in a Notice of Tax Reassessment or other notice given under this Law; or (c) a failure of the First Nation or the tax administrator to do something within the required time. Limitation on Proceedings 27 .( 1) A person must not 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 start an action or proceeding within the time limit described in this section, then money paid to the First Nation is deemed to have been voluntarily paid.