First Nations Property Taxation

Ministry of Aboriginal Affairs, Province of British Columbia

Information about . . .

First Nations Property Taxation

One of the important ways that First Nations are moving towards greater self reliance and independence is by assuming control of real property taxation on reserve lands.

In 1988, the federal Indian Act was amended to enable First Nations to collect taxes on reserve land leased to non-aboriginal residents or businesses. An Indian band wishing to take advantage of this amendment is required to pass a property taxation bylaw which must be reviewed by the Indian Taxation Advisory Board and then approved by the federal Minister of Indian Affairs and Northern Development.

To prevent double taxation, the B.C. government passed the Indian Self-Government Enabling Act in 1990, which provides for provincial and municipal authorities to withdraw from taxing reserve lands when band taxation bylaws takes effect. These changes led a number of First Nations in British Columbia to pursue their own taxation measures.

Beginning in 1990, with the Westbank and Kamloops Indian Bands, more than 35 First Nations in B.C. have passed taxation bylaws.
Less than one per cent of the province's real property tax base is located on reserve land.
Band taxation has little effect on the overall revenues of either provincial or local governments, but has been of significant benefit to First Nations with taxation powers.

Usually, municipal tax revenues pay for "hard" services such as sewer, water, and garbage collection as well as "soft" services such as administration, recreation facilities, libraries and local beautification. Where bands undertake taxation, arrangements often need to be made regarding the provision of these types of services to reserves.

In several cases, such as the Cowichan, Musqueam, Matsqui and Squamish Indian Bands, service agreements have been struck whereby the bands pay a fee to the municipality in return for services. A number of other Indian bands are currently negotiating similar agreements with the municipalities that provide services to their reserve lands.

There are also a number of instances where the taxing reserve lies within regional district rather than municipal boundaries. Since few regional districts provide the same range of services to reserves as municipalities, few service agreements have been concluded between regional districts and First Nations. Where regional districts do provide significant "hard" services to on-reserve rate payers, service agreements have been reached, or are being negotiated.

In the majority of cases where service agreements have been necessary, mutually acceptable arrangements have been made between the bands and the municipalities or regional districts involved.
These agreements ensure that non-aboriginal residents and businesses on reserves continue to receive services.

Other First Nations in B.C. may acquire similar or additional powers to tax on traditional lands as treaties are settled. Although the nature and extent of these powers can only be determined by future negotiations, many successful examples already exist that may be used as models.

For more detailed information about the property taxation powers of B.C. Indian bands, please refer directly to the following legislation:

Federal Indian Act, Section 83 (Property tax)
Indian Self Government Enabling Act (B.C.)

For further information on this or other topics, contact:

Ministry of Aboriginal Affairs
Communications Branch
PO Box 9100 Stn Prov Govt
Victoria BC V8W 9B1

Or visit 1st Floor, 908 Pandora Avenue, Victoria, B.C.
Telephone: (250) 356-0330 or toll-free at 1-800-880-1022
Fax: (250) 387-1785

URL: http://www.aaf.gov.bc.ca/aaf/pubs/proptax.htm
Last Update: 1996 Dec 10 by Webmaster