Decision Content
Current ver. 2019 02 13 USING THE SAMPLE FMA ANNUAL TAX RATES LAW The Commission provides sample laws to assist First Nations in their law development work. The attached sample First Nation Annual Tax Rates Law (“sample law”) complies with the FMA requirements, the Regulations and the Commission’s Annual Tax Rates Law Standards. It provides a best practices sample for use and adaptation by First Nations in drafting their own FMA rates laws. Sample laws are intended to assist a First Nation in developing their own laws. The First Nation should ensure that its law reflects its circumstances and that it obtains legal and other advice as necessary. Under subsection 10(1) of the FMA, a First Nation must make a law establishing tax rates at least once each year at a time fixed by regulations, if any, or by Commission Standards. Under the Commission Standards for the Timing of First Nations Annual Tax Rates and Expenditure Laws, 2017, this law must be made on or before November 30 of the taxation year to which the law applies. However, First Nations should follow the timing for making the annual rates law that is set out in their own taxation laws. The following are some notes about the format of the sample law: 1. Instructions are shown in square brackets and bold. All instructions should be deleted from the final version of the law. 2. Missing information to be completed is shown with an underline. All information should be inserted, and the underlining deleted, from the final version of the law. 3. The Schedule sets out a rates template for each province. The applicable provincial template should be used, and all of the others deleted. For British Columbia, there are two possible templates and the inapplicable template should be deleted. 4. Where new sections are added, or sample sections are deleted, remaining sections need to be renumbered for continuity. If you have any questions as you are preparing this law, please do not hesitate to contact the FNTC staff. 1
Current ver. 2019 02 13 ____________________ FIRST NATION ANNUAL TAX RATES LAW, 20__ 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 or rights in reserve lands, including laws to establish tax rates and apply them to the assessed value of those lands and interests or rights; B. The council of the First Nation has made a property assessment law and a property taxation law; and C. Subsection 10(1) of the First Nations Fiscal Management Act requires a first nation that has made a property taxation law to, at least once each year, make a law setting the rate of tax to be applied to the assessed value of each class of lands and interests or rights; NOW THEREFORE the Council of the _____________________ First Nation duly enacts as follows: 1. This Law may be cited as the ___________ First Nation Annual Tax Rates Law, 20__. 2. In this Law: “Act” means the First Nations Fiscal Management Act, S.C. 2005, c. 9, and the regulations made under that Act; “Assessment Law” means the ___________ First Nation Property Assessment Law, 20__; “First Nation” means the ___________First Nation, being a band named in the schedule to the Act; “property taxation law” means a law enacted by the First Nation under paragraph 5(1)(a) of the Act; “taxable property” has the meaning given to that term in the Taxation Law; and “Taxation Law” means the _______ First Nation Property Taxation Law, 20__. 3. Taxes levied pursuant to the Taxation Law for the taxation year 20__ shall be determined by imposing the rates set out in the Schedule upon the assessed value of all taxable property in each property class. [Note to First Nation: If your property taxation law provides for a minimum tax, insert the amount of the minimum tax in this section. If your property taxation law does not provide for a minimum tax, delete this section and renumber the remaining sections of the law.] 4. Notwithstanding section 3, where the amount of the tax levied on taxable property in a taxation year is less than ____ dollars ($ ___), the taxable property shall be taxed at ____ dollars ($ ___) for the taxation year. 5. Except where otherwise defined, words and expressions used in this Law have the meanings given to them in the Assessment Law and the Taxation Law. 6. Where a provision in this Law is expressed in the present tense, the provision applies to the circumstances as they arise. 7. 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. 8. The Schedule attached to this Law forms part of and is an integral part of this Law. 2
Current ver. 2019 02 13 9. This Law comes into force and effect on the day after it is approved by the First Nations Tax Commission. THIS LAW IS HEREBY DULY ENACTED by Council on the ___ day of ____________, 20___, at _____________________, in the Province of ______________________. A quorum of Council consists of __________________ (____) members of Council. [Name] [Name] Chief [Please spell out the name] Councillor [Please spell out the name] [Name] Councillor [Please spell out the name] 3
Current ver. 2019 02 13 SCHEDULE TAX RATES [Note to First Nation: Include only those classes applicable to your Province and delete all other provinces.] PROPERTY CLASS RATE PER [insert applicable rate presentation] British Columbia Class 1 - Residential Class 2 - Utilities Class 4 - Major Industry Class 5 - Light Industry Class 6 - Business and Other Class 8 - Recreational Property/Non-Profit Organization Class 9 - Farm [Note to BC First Nations: If you establish a different rate for land and improvements, use the following format: PROPERTY CLASS RATE PER $1,000 of assessed Value Improvements Land Class 1 - Residential Class 2 - Utilities Class 4 - Major Industry Class 5 - Light Industry Class 6 - Business and Other Class 8 - Recreational Property/Non-Profit Organization Class 9 - Farm PROPERTY CLASS RATE PER [insert applicable rate presentation] Alberta Class 1 - Residential Class 2 - Non-Residential Class 3 - Farmland Class 4 - Machinery and Equipment 4
Current ver. 2019 02 13 Saskatchewan Non-Arable (Range) Land and Improvements Other Agricultural Land and Improvements Residential Multi-Unit Residential Seasonal Residential Commercial and Industrial Elevators Railway Rights-of-Way and Pipeline Manitoba Residential 1 Residential 2 Residential 3: Condominiums and Co-operatives Farm Property Pipeline Property Railway Property Institutional Property Designated Recreational Property Other Property Ontario Residential Multi-Residential Commercial Industrial Pipeline Farm Managed Forests [Optional classes: New Multi-Residential Office Building Shopping Centre Parking Lots and Vacant Land Large Industrial Professional Sports Facility Resort Condominium] 5
Current ver. 2019 02 13 Quebec Industrial Immovables Other Non-Residential Immovables Immovables Consisting of Six or More Dwellings Other Residential Immovables Serviced Vacant Land New Brunswick Residential Non-Residential Nova Scotia Residential Commercial Resource Property Prince Edward Island Non-Commercial Commercial Newfoundland & Labrador Residential Part Residential Commercial Part Commercial Yukon Residential Non-Residential Agriculture and Grazing NWT Class 1 - Commercial Class 2 - Industrial Class 3 - Extraction and Processing of Hydrocarbons Class 4 - Extraction and Processing of Minerals Class 5 - Pipeline Class 6 - Electrical, CCTV, Railway, Natural Gas Class 7 - Residential Class 8 - Residential Mobile Home Class 9 - Residential (low-density multi) Class 10 - Residential (mid-density multi) 6
Current ver. 2019 02 13 Class 11 - Residential (high-density multi) Class 12 - Non-Profit Institutional Class 13 - Non-Profit Recreational Class 14 - Agricultural Class 15 - Classes 7-11 within 50 km of municipal taxation area with all-season road access Class 16 - Classes 1-2 within 50 km of municipal taxation area with all-season road access Nunavut Class 1 - Commercial Class 2 - Industrial Class 3 - Extraction and Processing of Hydrocarbons Class 4 - Extraction and Processing of Minerals Class 5 - Pipeline Class 6 - Electrical, CCTV, Railway, Natural Gas Class 7 - Residential Class 8 - Residential Mobile Home Class 9 - Residential (low-density multi) Class 10 - Residential (mid-density multi) Class 11 - Residential (high-density multi) Class 12 - Non-Profit Institutional Class 13 - Non-Profit Recreational Class 14 - Agricultural Class 15 - Classes 7-11 within 50 km of municipal taxation area with all-season road access Class 16 - Classes 1-2 within 50 km of municipal taxation area with all-season road access 7
You are being directed to the most recent version of the statute which may not be the version considered at the time of the judgment.