Six First Nations Added to Fiscal Act

Summary#

The Order Amending the Schedule to the First Nations Fiscal Management Act: SOR/2020-13 adds six First Nations to the list of communities that can use tools created under the First Nations Fiscal Management Act. The order took effect when it was registered on January 21, 2020.

What it does#

• Adds these six First Nations to the Act’s schedule:
  • Ahtahkakoop Cree Nation
  • Gitxaala Nation
  • Homalco First Nation
  • Star Blanket Cree Nation
  • Takla Nation
  • West Moberly First Nations
• Lets those First Nations, if they choose, access services and programs under the First Nations Fiscal Management Act, including:
  • working with the First Nations Tax Commission on property taxation options;
  • seeking certification of financial management from the First Nations Financial Management Board;
  • applying to borrow through the First Nations Finance Authority (a bond financing regime) using property tax or other revenue streams.
• Comes into force on the registration date: January 21, 2020.

Who's affected#

• The six First Nations named above: Ahtahkakoop Cree Nation, Gitxaala Nation, Homalco First Nation, Star Blanket Cree Nation, Takla Nation, and West Moberly First Nations. These were added after each band council requested it.
• The national First Nation institutions that support tax, financial management and borrowing: First Nations Tax Commission, First Nations Financial Management Board, and First Nations Finance Authority.
• Residents of those First Nations may be affected in the future if a band chooses to introduce a property tax or other new revenue measures under the Act. Other communities are not changed by this order.

Why it matters#

• Joining the Act gives these First Nations more tools to raise revenue, manage money, and borrow for community projects. That can help fund local infrastructure, housing, and economic development.
• It creates a legal pathway for a First Nation to adopt a property tax system under the Act and to use predictable revenue streams to access loans or bonds.
• The change is optional: being added to the schedule does not force a community to change taxes or borrowing. Any actual tax or borrowing decisions would come later from the band government.
• The government says there are no direct costs to Canada from adding names to the schedule.