What Control Does a First Nation Council Have Over Money?

Councils, subject to the approval of the Minister of ISC, can pass bylaws to:

• impose taxes on land use on the reserve
• decide the value of property for tax purposes
• licence businesses
• raise money from First Nation Members to pay for First Nation projects
• set the salary for Chief and councillors in an amount approved by the Minister
• decide how money raised through taxes will be spent on local services, (things like waste collection, water treatment, housing, snow and ice removal, roads and firefighting)
• collect money owed for things like property taxes

These bylaws must include a way to appeal the amount of a property tax.

The First Nations Fiscal Management Act gives First Nations Councils a way to pass money laws without the approval of the Minister. First Nations can opt into the Act through a First Nation Council resolution.

First Nations that opt in can pass real property tax laws and service fee laws. Real property is land or things attached to land such as a house. They can borrow money for reserve projects. They can tax business activities and charge developers for projects on the reserve.

First Nations that opt in can also enforce taxes and other fees. They can conduct inspections and require information for tax assessments. They can charge interest and penalties if taxes are not paid. They can also seize lands or personal property for nonpayment of taxes.

Under the Act, First Nations must give notice of proposed taxation laws. Taxpayers must be able to appeal a decision about taxes they owe. They can also ask for a review about whether the Act has been followed and whether tax laws have been applied fairly and properly. Tax laws need to be approved by the First Nations Tax Commission.