Fiscal Management Act Toolkit [First Nations Tax Commission, FNTC]

Under the framework of the FMA, a First Nation creates its real property taxation system by making two laws: a First Nation Property Taxation Law and a First Nation Property Assessment Law. A First Nation must have both of these laws in place before it can levy and collect property taxes. The property assessment law establishes the property assessment system. It provides for the appointment of an assessor, creates the timelines for conducting assessments, sets out the rules for determining assessed values of properties, establishes property classes for assessment purposes, and provides for an independent assessment review board to consider and determine assessment appeals. The property taxation law establishes how taxes are levied and what property interests are taxable, sets out the duties of the tax administrator, establishes the timelines and requirements for creating the tax roll and sending tax notices, sets out any exemptions from taxation, provides for the imposition of penalties and interest on unpaid taxes, and outlines the enforcement and collection mechanisms available to the First Nation. Taxation laws enacted under the FMA must comply with all statutory requirements, any regulations made under the FMA and any standards established by the FNTC. Sample property taxation laws, consistent with the Act, regulations, and FNTC standards are found below.