Independent property taxation for First Nations

The provincial Indian Self Government Enabling Act facilitates First Nations in implementing independent real property taxation on reserve lands.

Through the legislation, the province fully vacates its taxing authority over non-member occupiers so that the First Nation can tax on its own.

On this page

• How to give notice
• Taxation certificate
• Start of independent taxation
• When to provide notice

How to give notice

To start the process of implementing independent taxation under the Indian Self Government Enabling Act, the First Nation delivers a notice to the B.C. Minister of Finance stating:

• That the First Nation intends to enact a taxation law that applies in respect of the reserve lands described in the notice
• That the First Nation wishes to implement a system of independent taxation without concurrent real property taxation under provincial law
• Whether the intended date of the enactment is before, on or after March 1 of the calendar year of the notice
  • If the intended date of the enactment is before March 1 of the calendar year of the notice, whether the first calendar year for which taxes will be imposed under the taxation law is the calendar year of the notice or the next calendar year
  • If the intended date of the enactment is on or after March 1 of the calendar year of the notice, confirm that the next calendar year will be the first for which taxes will be imposed under the taxation law
• Whether or not the First Nation wishes to contract with one or more provincial taxing authorities that receive revenue from real property taxation on the reserve lands
  • If so, specify the provincial taxing authorities in the notice and the services that they would provide

Mailing the notice

Send the notice to:

Minister of Finance
PO Box 9446 STN PROV GOVT
Victoria BC V8W 9V6

Taxation certificate

On receipt of the notice, the minister will acknowledge receipt of the notice and issue a taxation certificate stating:

• That the minister has received a notice that conforms to section 9 of the Indian Self Government Enabling Act
• The name of the First Nation from which the notice was received
• The date of the notice, and
• The first calendar year for which, according to the notice, taxes will be imposed under the taxation law

The minister will also:

• Deliver a copy of the notice and the taxation certificate to each provincial taxing authority that receives revenue from provincial taxation on the reserve lands
• Request any provincial taxing authorities specified in the notice, and any others the minister thinks ought to be involved, to negotiate with the First Nation for the purpose of contracting with the First Nation for the appropriate services
• Publish the taxation certificate in the BC Gazette

Start of independent taxation

Independent taxation on the reserve lands commences under the Indian Self Government Enabling Act once the minister has:

• Issued the taxation certificate, and
• The taxation law has been approved by the First Nations Tax Commission or the federal Minister of Crown-Indigenous Relations

Non-member occupiers of the reserve lands will be exempt from provincial real property taxation from January 1 of the first calendar year for which taxes are charted under the First Nation's taxation law.

Key considerations when providing notice

The approval process for a First Nation to implement independent taxation on reserve lands can take time.

Providing notice a calendar year in advance will help ensure a smooth transition.

Issues may arise when notice is given by a First Nation that it intends to enact a taxation law imposing taxes starting with the current calendar year.