Taxation board inks deal for formal mandate

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Collecting millions of dollars in property taxes will be a lot easier for Aboriginals living on reserves under a new agreement signed by Indian Affairs Minster Ron Irwin.

Irwin inked a deal with the Indian Taxation Advisory Board on March 13, giving the Board a formal mandate to help First Nations collect property taxes from non-Natives using reserve lands.

The power to collect taxes is a significant step toward greater self-determination, Irwin said.

"The ability to raise revenues is a key element in achieving self-government and economic self-reliance," Irwin said. Board chair Clarence "Manny" Jules agreed.

"As we move more and more towards greater autonomy and self-government, taxation is going to become more important. Taxation has to be an integral part of self-government," said Jules, chief of the Kamloops Indian Band in British Columbia.

The ITAB was created after Section 83 of the Indian Act was amended in 1988, giving First Nations the power to collect residential and commercial property taxes from non-Natives on reserve land. Although the ITAB was formed eight years ago, the new agreement more formally and clearly outlines the roles and responsibilities of the board.

The five regional board members who adivse Irwin on reserve taxation are: Jules (Board chair and B.C. representative); Strater Crowfoot of the Siksika Nation (vice-chair and Alberta representative); David Paul of the Tobique First Nation (New Brunswick); Grand Chief Phil Fontaine of the Assembly of Manitoba Chiefs; and Ricky Fontaine of the Innu Takuaikan Uashat mak Mani-Utenam in Sept-Iles (Quebec).

The ITAB is the first independent, Aboriginal-controlled body to be involved in ministerial decision-making under the Indian Act. This means it has (in its role as a direct adviser to Irwin) more influence over the development of Indian Affairs policy than any other Native organization before it.

"It really opens up a new chapter in relations between the federal government and First Nations," Jules said. "(Property taxation) is the only independent source of revenue for most First Nations outside of the federal government."

The first part of the ITAB's job is to let reserves know taxation is an option available to them. If the band councils decide to take that route, the Board helps them develop tax bylaws tailored to the needs of their communities. The Board also consults with provincial and municipal governments to avoid conflicts with existing tax laws. Each individual reserve decides how the revenues are spent.

Since 1989, the ITAB has helped more than 50 First Nations enact property tax by-laws generating over $15 million in revenue each year. B.C. has enacted most of the bylaws, with 45 to date. The amount of money collected by each community varies by the size and amount of taxable land on each reserve. Revenues can be used for anything from garbage collection services to job creation programs.

A grey area does exist, however. The ITAB does not deal at all with so-called "special reserve lands," bought by churches for First Nations over a century ago, and therefore land not held by the Crown. Under ITAB guidelines, only reserves fully recognized by the government can collect taxes because the government does not recognize Aboriginal title over special reserve lands. Most cases involving taxation requests on special reserve lands will likely end up in the courts, Jules said.