FNTC: Proposed Standards for First Nation Quarry Operations Business Activity Tax Laws, 2016 (British Columbia)
Press Release
September 26, 2016
Proposed Standards for First Nation Quarry Operations Business Activity Tax Laws, 2016 (British Columbia)
Standards established by the First Nations Tax Commission (FNTC) reflect best practices in property taxation, and are designed to support First Nation economic growth, First Nation jurisdiction, property tax harmonization, and the interests of all stakeholders in the First Nation property tax system.
Under the First Nations Fiscal Management Act (FMA or the “Act”), the FNTC reviews and approves laws. Section 35(1)(a) of the Act gives the FNTC the authority to establish standards, not inconsistent with the regulations, respecting the form and content of local revenue laws. The standards established by the FNTC are additional requirements and, together with the Act and its associated regulations, form the regulatory framework governing First Nation taxation under the Act.
As a matter of policy, the FNTC seeks public input prior to introducing or significantly amending its standards. This input is critical in developing standards that are acceptable and effective for participating First Nations and their taxpayers.
The Proposed Standards for First Nation Quarry Operations Business Activity Tax Laws, 2016 (British Columbia) apply to business activity tax laws that provide for a tax on business operators undertaking quarry operations on reserves located in the Province of British Columbia. The Standards are intended to enable First Nations to establish a tax on quarry operators that is similar to the provincial quarry tax under B.C.’s Mineral Tax Act. In B.C., the quarry tax provisions set a tax rate of $.15 per tonne of quarry materials removed from a quarry. Among the quarry materials included are limestone, dolomite, marble, shale, clay and sandstone.
Under the proposed Standards, the law would have to set out a tax rate that is the same as the provincial tax rate, unless there is written taxpayer support for a higher rate. The Standards would require laws to provide for the appointment of a tax administrator, and the establishment of a self-reporting tax return procedure for the payment of taxes. This procedure would be subject to a tax administrator-initiated reassessment. Further, the proposed Standards would prohibit the use of exemptions, and would require the law to have a complaints process for errors or omissions on notices of tax reassessment.
The FNTC is seeking public input in respect of these proposed amendments to the Standards. If you wish to learn more about the proposed changes, please contact the FNTC at mail@fntc.ca or by telephone at (250) 828-9857.
An electronic version of the proposed Standards is available by clicking the button below:
Please direct your written comments on or before October 28, 2016 to:
First Nations Tax Commission
321-345 Chief Alex Thomas Way
Kamloops BC
V2H 1H1
Telephone: (250) 828-9857
Fax: (250) 828-9858
Email: mail@fntc.ca
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