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First Nations Fiscal Management Act (S.C. 2005, c. 9)

Act current to 2020-07-28 and last amended on 2020-07-20. Previous Versions

First Nations Fiscal Management Act

S.C. 2005, c. 9

Assented to 2005-03-23

An Act to provide for real property taxation powers of First Nations, to create a First Nations Tax Commission, First Nations Financial Management Board and First Nations Finance Authority and to make consequential amendments to other Acts


Whereas the Government of Canada has adopted a policy recognizing the inherent right of self-government as an Aboriginal right and providing for the negotiation of self-government;

Whereas this Act is not intended to define the nature and scope of any right of self-government or to prejudge the outcome of any self-government negotiation;

Whereas the creation of national Aboriginal institutions will assist First Nations that choose to exercise real property taxation jurisdiction on reserve lands;

Whereas economic development through the application of real property tax revenues and other local revenues to support borrowing on capital markets for the development of public infrastructure is available to other governments in Canada;

Whereas real property taxation regimes on reserves should recognize both the interests of on-reserve taxpayers and the rights of members of First Nations communities;

Whereas First Nations led an initiative that resulted in 1988 in an amendment to the Indian Act so that their jurisdiction over real property taxation on reserve could be exercised and the Indian Taxation Advisory Board was created to assist in the exercise of that jurisdiction;

Whereas, in 1995, the First Nations Finance Authority Inc. was incorporated for the purposes of issuing debentures using real property tax revenues and providing investment opportunities;

Whereas, by 1999, First Nations and the Government of Canada recognized the benefits of establishing statutory institutions as part of a comprehensive fiscal management system;

And whereas First Nations have led an initiative culminating in the introduction of this Act;

NOW, THEREFORE, Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

  • 2005, c. 9, Preamble
  • 2012, c. 19, s. 657
  • 2018, c. 27, ss. 413(E), 414(E)

Short Title

Marginal note:Short title

 This Act may be cited as the First Nations Fiscal Management Act.

  • 2005, c. 9, s. 1
  • 2012, c. 19, s. 658


Marginal note:Definitions

  •  (1) The following definitions apply in this Act.

    borrowing member

    borrowing member means a First Nation that has been accepted as a borrowing member under subsection 76(2) and has not ceased to be a borrowing member under section 77. (membre emprunteur)

    capital assets

    capital assets includes capital infrastructure. (immobilisation)


    council has the same meaning as council of the band in subsection 2(1) of the Indian Act. (conseil de la première nation)

    First Nation

    First Nation means a band named in the schedule. (première nation)

    First Nations Finance Authority

    First Nations Finance Authority means the corporation established under section 58. (Administration financière des premières nations)

    First Nations Financial Management Board

    First Nations Financial Management Board means the board established under subsection 38(1). (Conseil de gestion financière des premières nations)

    First Nations Gazette

    First Nations Gazette means the publication published under section 34. (Gazette des premières nations)

    First Nations Statistical Institute

    First Nations Statistical Institute[Repealed, 2012, c. 19, s. 659]

    First Nations Tax Commission

    First Nations Tax Commission means the commission established under subsection 17(1). (Commission de la fiscalité des premières nations)


    interest, in relation to reserve lands in Canada elsewhere than in Quebec, means any estate, right or interest of any nature in or to the lands, including any right to occupy, possess or use the lands, but does not include title to the lands that is held by her Majesty. (intérêt)

    local revenue law

    local revenue law means a law made under subsection 5(1). (texte législatif sur les recettes locales)

    local revenues

    local revenues means moneys raised under a local revenue law and payments made to a First Nation in lieu of a tax imposed by a law made under paragraph 5(1)(a). (recettes locales)


    Minister means the Minister of Crown-Indigenous Relations. (ministre)

    property taxation law

    property taxation law means a law made under paragraph 5(1)(a). (texte législatif relatif à l’imposition foncière)


    right, in relation to reserve lands in Quebec, means any right of any nature in or to the lands, including any right to occupy, possess or use the lands and any right of a lessee, but does not include title to the lands that is held by her Majesty. (droit)

    third-party management

    third-party management means the management of a First Nation’s local revenues under section 53.

  • Marginal note:Indian Act definitions

    (2) Unless the context otherwise requires, words and expressions used in this Act and not otherwise defined have the same meaning as in the Indian Act.

  • Marginal note:Amendments to schedule

    (3) At the request of the council of a band, the Minister may, by order, amend the schedule in order to

    • (a) add or change the name of the band; or

    • (b) delete the name of the band, as long as there are no amounts owing by the band to the First Nations Finance Authority that remain unpaid.

  • Marginal note:For greater certainty

    (4) For greater certainty, nothing in this Act shall be construed as requiring capital assets for the provision of local services on reserve lands to be located on reserve lands.

  • 2005, c. 9, s. 2
  • 2012, c. 19, s. 659
  • 2015, c. 36, s. 177
  • 2018, c. 27, ss. 385, 414(E)
  • 2019, c. 29, s. 373

Aboriginal Rights

Marginal note:Aboriginal and treaty rights

 For greater certainty, nothing in this Act shall be construed so as to abrogate or derogate from any existing Aboriginal or treaty rights of the Aboriginal peoples of Canada under section 35 of the Constitution Act, 1982.

  • 2005, c. 9, s. 3
  • 2018, c. 27, s. 413(E)

PART 1First Nations Fiscal Powers

Marginal note:Financial administration laws

 The council of a First Nation may not make a law under paragraph 5(1)(d) until the council has made a law respecting the financial administration of the First Nation under paragraph 9(1)(a) and that law has been approved by the First Nations Financial Management Board.

  • 2005, c. 9, s. 4
  • 2018, c. 27, s. 414(E)

Marginal note:Local revenue laws

  •  (1) Subject to subsections (2) to (5), sections 4 and 6 and any regulations made under paragraph 36(1)(d), the council of a First Nation may make laws

    • (a) respecting taxation for local purposes of reserve lands and interests or rights in reserve lands, including

      • (i) the assessment of the value of those lands and interests or rights, the requisition of any information necessary to conduct the assessment and the inspection, in accordance with procedures prescribed by regulation, for assessment purposes of any reserve lands that are subject to taxation for local purposes,

      • (ii) a mechanism to establish tax rates and apply them to the assessed value of those lands and interests or rights,

      • (iii) taxation for the provision of services in respect of reserve lands,

      • (iv) the taxation of business activities on reserve lands, and

      • (v) the imposition of development cost charges;

    • (a.1) respecting the charging of fees for the provision of services or the use of facilities on reserve lands, or for a regulatory process, permit, licence or other authorization, in relation to water, sewers, waste management, animal control, recreation and transportation, as well as any other similar services;

    • (b) authorizing the expenditure of local revenues;

    • (c) respecting procedures by which the interests of taxpayers may be represented to the council;

    • (d) respecting the borrowing of money from the First Nations Finance Authority, including any authorization to enter into a particular borrowing agreement with that Authority;

    • (e) subject to any conditions and procedures prescribed by regulation, respecting the enforcement of laws made under paragraphs (a) and (a.1) in respect of outstanding taxes, charges or fees, including

      • (i) the creation of liens or, in Quebec, prior claims or legal hypothecs on reserve lands and on interests or rights in reserve lands,

      • (ii) the imposition and recovery of interest and penalties on an amount payable pursuant to a law made under that paragraph, where the amount is not paid when it is due, and the rate of interest or the amount of the penalty, as the case may be,

      • (iii) subject to subsection (7), the seizure, forfeiture and assignment of interests or rights in reserve lands,

      • (iv) the seizure and sale of personal or movable property located on reserve lands, other than property located in a dwelling,

      • (v) the discontinuance of services, and

      • (vi) the recovery of costs that are incurred by the First Nation for the enforcement of those laws;

    • (f) delegating to any person or body any of the council’s powers to make laws under any of paragraphs (a) to (e); and

    • (g) delegating to the First Nations Financial Management Board any other of the council’s powers that are required to give effect to a co-management arrangement entered into under section 52 or to give effect to third-party management of the First Nation’s local revenues.

  • Marginal note:Approval required

    (2) A law made under subsection (1) does not have any force or effect until it is approved by the First Nations Tax Commission.

  • Marginal note:Coming into force

    (3) A law made under subsection (1) comes into force on the later of

    • (a) the day of coming into force set out in the law, and

    • (b) the day after it is approved by the First Nations Tax Commission.

  • Marginal note:Appeals

    (4) A law made under subparagraph (1)(a)(i) shall include

    • (a) an appeal procedure in respect of assessments, incorporating such procedures as are prescribed by regulation; and

    • (b) fixed rates of remuneration and fixed terms of office for any persons designated to decide the appeals.

  • (5) [Repealed, 2015, c. 36, s. 178]

  • (6) [Repealed, 2018, c. 27, s. 386]

  • Marginal note:Assignment of interest or right

    (7) Despite the Indian Act or any instrument or act conferring an interest or right in reserve lands, if there are outstanding taxes payable under a law made under paragraph (1)(a) for more than two years, the First Nation may assign the interest or right in accordance with the conditions and procedures prescribed by regulation.

  • Marginal note:Judicial notice

    (8) In any proceedings, judicial notice may be taken of a local revenue law.

  • Marginal note:Statutory Instruments Act

    (9) The Statutory Instruments Act does not apply in respect of local revenue laws or laws made under section 9.

  • 2005, c. 9, s. 5
  • 2015, c. 36, s. 178
  • 2018, c. 27, ss. 386, 414(E)
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