Regulations (Amending) First Nations Property Assessment and Taxation (Railway Rights-of-Way) Regulations, pursuant to the First Nations Fiscal Management Act

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Title or working title of the regulatory initiative

Regulations Amending the First Nations Property Assessment and Taxation (Railway Rights-of-Way) Regulations

Enabling act(s)

First Nations Fiscal Management Act

Description

The Canadian Pacific Railway has rail lines that run within the reserve lands of a number of First Nations in British Columbia. The Canadian Pacific Railway pays property tax on the land on which its rail lines operate, in the same way it pays property tax to other municipalities and provincial governments for its rail lines that are off reserve. The administration of the property tax for First Nations is done through regulations under the Indian Act to provide certainty for all players involved. First Nations seeking to collect property tax under federal regulations must first enter into a Settlement Agreement with the Government of Canada, the province of British Columbia and the Canadian Pacific Railway respecting the Canadian Pacific Railway rights-of-way.

In 2006, the First Nations Fiscal Management Act was enacted to provide First Nations with the authority to design a modern on-reserve taxation system that closely resembles that of local off-reserve governments. The First Nations Property Assessment and Taxation (Railway Rights-of-Way) Regulations made pursuant to the First Nations Fiscal Management Act provide First Nations with an alternative regime for levying property taxes against railway right-of way areas on reserve lands. These Regulations provide levels of taxation comparable to those off-reserve payable in neighboring communities.

First Nations opting to change the legislation under which property tax collection on reserve is administered from the Indian Act to the First Nations Fiscal Management Act can request to have railway right-of-way areas on reserve lands added to Schedule I of the First Nations Property Assessment and Taxation (Railway Rights-of-Way) Regulations under the First Nations Fiscal Management Act.

Regulatory cooperation efforts (domestic and international)

Settlement Agreements signed between the Government of Canada, the Province of British-Columbia, the Canadian Pacific Railway and the First Nations seeking to collect property tax under federal regulations create an ongoing positive and collaborative regulatory partnership. This initiative is not under a specific formal regulatory cooperation work plan.

Potential impacts on Canadians, including businesses

There are no expected impacts on Canadians in general, international trade, investments or businesses. This initiative only impacts the First Nations seeking to collect property tax under federal regulations and the parties of the Settlement Agreement, namely the Government of Canada, the province of British Columbia and the Canadian Pacific Railway.

Consultations

No consultation is required beyond that which has been conducted by First Nations' leadership with the parties of the Settlement Agreement, namely the Canadian Pacific Railway and the Government of Canada, as well as with the province of British Columbia. This is a technical amendment that only impacts these stakeholders and has no effect on any other individual or entity.

Further information

Please find further information on First Nations Fiscal Management.

Departmental contact

Andrea Dykstra
Director
Fiscal Policy and Investment Readiness
Indigenous Institutions and Governance Modernization Branch
Resolution and Partnerships Sector
Tel.: 343-596-4150
Email: andrea.dykstra@rcaanc-cirnac.gc.ca

The date the regulatory initiative was first included in the Forward Regulatory Plan

October 2015

Find out more

Consult Crown-Indigenous Relations and Northern Affairs Canada's Laws and Regulations web page for:

Consult the following for links to the Cabinet Directive on Regulation and supporting policies and guidance, and for information on government-wide regulatory initiatives implemented by departments and agencies across the Government of Canada:

To learn about upcoming or ongoing consultations on proposed federal regulations, visit:

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