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Property Taxation INFORMATION PACKAGE

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Property Taxation INFORMATION PACKAGE Okanagan Indian Band Property Taxation INFORMATION PACKAGE May 2008 TABLE OF CONTENTS 1. Introduction ……………………………………………………… 2. Minutes from Previous Meetings ……………......................... (a) Head of the Lake, Jan. 25/06 …………….............. (b) Duck Lake, Jan. 26/06 ……………………………… (c) Round Lake, Jan. 27/06 ..……………………. (d) Head of the Lake, Jan. 9/08 ……………………... (e) Duck Lake, Jan. 10/08 ………..……………………. 3. Power Point Presentations­ January 2008 ……..………. (a) Chief Shayne Gottfriedson, Kamloops IB ……... (b) Chief Nelson Leon, Adams Lake IB ……………... (c) Ernest Jack, Westbank First Nation ……………… 4. Statutory Authority for Property Taxation by Indian Bands ………..……………………………. 5. BC Indian Bands with Taxation Bylaws ……………..………. 6. Questions and Answers about Property Taxation …….. (a) Common Questions and Answers (from Jan 06 community meetings) ……...……………... (b) FAQ from First Nations Taxation Commission website …………………………….. (c) Property Taxation Q&A (Jan 07 Sen’klip) …….. 7. Legal Opinions on Property Taxation ……..……..……….. (a) Donovan and Company ……………………... (b) Mandell Pinder ………..……………………………. 8. Exemptions from Taxation ……………………………………… 9. Potential OKIB Revenue from Property Taxation ……… 10. Potential Uses of Property Tax Revenue ……………..………. 11. Taxpayer Rights ……………………………………………… 12. Sample By­Laws ……………………………………………… (a) Property Assessment and Taxation Bylaw ……… (b) Rates Bylaw ……………………………………… (c) Property Taxation Expenditure Bylaw…………….. (d) Financial Administration Bylaw …………….. 2 1. INTRODUCTION This package of materials contains some of the key documents compiled by the Okanagan Indian Band over the years in its review of property taxation of non­ Band members on OKIB Reserves. It includes: • Minutes of Band meetings in 2006 and 2008 about property taxation; • Answers to “Frequently Asked Questions” about property taxation • Information about other Bands who collect property taxes from non­Band Members; • Legal Opinions about the effects of property taxation; • Estimates of the potential property tax revenue for the Okanagan Indian Band; and • Sample property taxation bylaws. This package is being provided to all Okanagan Indian Band electors together with a booklet entitled, “Property Taxation: A Guide for Okanagan Indian Band Members”, in anticipation of a vote on June 25, 2008. The question on the ballot for all electors of the Okanagan Indian Band will be: Are you in favour of the Okanagan Indian Band Council passing bylaws that will: (1) allow the Okanagan Indian Band to collect property taxes; (2) exempt Band members from paying property taxes; (3) describe the purposes for which property tax revenue can be used; and (4) require Band Council to account to the membership about the use of property tax revenue. _______ YES _______ NO Please review the information in this package and in the booklet and vote on June 25, 2008. If you have any questions about property taxation or the upcoming vote, please contact a member of Band Council, or Cliff Thorstenson by emailing him at [email protected] or by telephoning the Band office at (250) 542­ 4328. 3 2. MINUTES FROM OKIB TAXATION MEETINGS Here are minutes from the property taxation meetings held at Head of the Lake, Duck Lake and Round Lake in January 2006 and at Head of the Lake and Duck Lake in January 2008. (a) HEAD OF THE LAKE­ January 25, 2006 Property User Fee Initiative Meeting HOL Hall Meeting January 25, 2006 6:00 PM OKIB Chief & Council In Attendance: Chief Fabian Alexis Allan Louis Jenelle Brewer Tim Alexis Raymond Marchand Staff in Attendance: Bob Osborne Guests: Manny Jules and Wayne Hamaila (ITAB) Recording Secretary: Stacey Yow 1. CALL TO ORDER AT 6:40 p.m. 2. Opening Introduction: Fabian Alexis 3. Community Development: Bob Osborne 4. Power Point Presentation: Phyllis Bonneau­Miller 5. Question & Concerns Session Questions & Concerns Session at HOL Hall: 1. Please place the Donovan & Company email opinion on the Band’s website and also in the Senklip for community review. 2. Is the Band applying for the taxes that are already being collected? Yes. The Band is not collecting the taxes and cannot collect the taxes that leave the reserve until a taxation bylaw is in place. 3. Band membership would like to review the draft bylaws. 4. Some Band members are worried that since the bylaw is a living document that it would be changed without Band Memberships approval. 4 New Band Chief and Council would be responsible for notifying the community membership if a change is needed in the current bylaw. A referendum would be a requirement and would specifically state such a change in the bylaw would go to referendum for community decision, with an adequate forum. 5. Band membership would like adequate notices in the future of meetings either by letter or notice other than posting such notice on a bulletin board. 6. Some suggested provisions to the bylaw: Use of the tax revenue to clean up the land would be a provision in the expenditure bylaw. 7. How will the Band enforce the bylaws? The Band would use the taxation revenue to enforce such bylaws. 8. How does the Band collect taxes on Buckshee leases? The Band doesn’t collect taxes right now on Buckshee leases as there is no taxation bylaw. 9. If the Band collects the taxes does the Band have to provide services? If the Band implements a taxation bylaw the services would be paid by the person being taxed for any services other thank minimal services required. 10. What if the locatee doesn’t allow you on their property? There would be specific wording in the bylaw where this can not happen. (Phyllis, please elaborate) 11. Some membership would like copies of the Indian Act. The Band can provide copies of the Indian Act at the request of the Band member. 12. What happens if those on Buckshee leases have a high water table (regarding central sewer disposal system) would the Band be spending tax revenue on fixing such sewer problems? No, it would be up to the developer to provide such service. 13. Its been said that Adams Lake Band members are being taxed on gas, tobacco, and alcohol. If this is true, it’s not part of property taxation. 5 14. Is the taxation bylaw tied into the Municipal Act? No it is not, and the communities have rejected this throughout BC. (Phyllis, another one to elaborate on) 15. In regards to shortage of water, he government had a dam (Pinaus Lake) put up to serve just OKIB, making service available to the community, can we research this issue? 16. How do we compare to other Band’s with taxation? OKIB would become the 3 rd largest Band to collect the highest revenue. Encourage of taxation could encourage more people living here (i.e., water sources), do we as a Band have enough? The Band has to manage its water rights. 17. Some Band members are concerned about loosing the benefits they have now if a taxation bylaw is implemented by the membership such as fueled delivered to Band members’ homes being tax free (except excise tax). (elaborate) 18. Does the Band still have an agreement with Timber Transport? Yes. 19. Has the Band approached the regional districts to share the taxation money as being an option? No. The Band has had past discussions and there is a need to negotiate with other regional districts. The law is on their side. The districts do not want to give up the revenue it gets from taxation. 19. Further clarification of the taxation bylaw need to more defined with the wording of “members vs. non­members.” 20. How are we going to proceed with a taxation bylaw? The only way to proceed is by a referendum. 21. Will the non­natives have a say in how the revenue is going to be spent? If the non­native have an issue with the assessment value, there would be an assessment appeal board. If they have an issue regarding servicing, they would have to pay more tax. It doesn’t give them a right to vote. (elaborate) 6 22. Membership would like to see more meetings and a workshop on taxation. Future meetings have not been established as of this date. 23. Okanagan language, history, culture and tradition need to be a part of the bylaw. ADJOURNMENT OF MEETING 9:30 PM (b) DUCK LAKE­ January 26, 2006 Property User Fee Initiative Meeting SRI Meeting at Duck Lake January 26, 2006 6:00 PM OKIB Chief & Council In Attendance: Chief Fabian Alexis Allan Louis Raymond Marchand Tim Alexis Staff in Attendance: Bob Osborne Guests: Manny Jules and Wayne Hamaila (ITAB) Recording Secretary: Stacey Yow 2. CALL TO ORDER AT 6:00 p.m. 2. Opening Introduction: Fabian Alexis 3. Community Development: Bob Osborne 3. Power Point Presentation: Phyllis Bonneau­Miller 4. Question & Concerns Session Questions & Concerns Session at Duck Lake: 1. Do Buckshee leases have to be taxed? There was a statement that all Buckshee occupiers would not have to be taxed. It’s the community’s decision and should be stated in the bylaw if that is what the community wants. Phyllis disagreed with this statement and the advisors from ITAB agreed to research the statement and advise. Manny advised that if you have taxation on the Buckshee leases, the services are good. It provides and creates more entrepreneurs and brings certainty to the land values. Currently land is under valued. Example: Westbank had a sewer system put in place and the land value has quadrupled. The more infrastructure on the lands, the higher the value of the land. 7 The Band would be looking at putting property taxation in place and the Buckshee leases will be phased in over three years. The taxation regime is such that you must occupy the whole field of taxation. Buckshee leases are not a formal lease and the lessees cannot get financing with a non­registered lease.
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