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. With a formal lease, occupiers can take out mortgages with financial institutions.

It is estimated that there are approximately 1500 + Buckshee leases on Okanagan Indian Reserve lands.

2. If we have taxation on the reserve, taxing only the white people, who will be providing the additional services? Do we know how much it will cost to provide the additional services even if at a minimum? How much will the service agreements costs if we negotiate with ambulance, fire and RCMP services? Will we have to pay for dog catchers, etc? Will there be enough money to pay for these services out of taxation dollars? The membership will be the guiding force regarding how the taxation revenues would be spent. This is accomplished by looking to the Community Development Plan which is updated at regular intervals.

3. Council needs to pass an expenditure bylaw before we even pass a taxation bylaw. There is worrisome about how the money will be spent and regulated. The expenditure bylaw will be passed at the same time as the Property Assessment bylaw and the Property Taxation bylaws. Regulation of the money generated by the taxation regime can only be spent as indicated in sections 83 and 85 of the Indian Act.

4. Services at Duck Lake: Fire protection is provided by City of Winfield and the service is currently good. Ambulance service is provided by Lake Country, and service is currently good. RCMP service is very poor and the police service is provided by the City of Kelowna; there are unacceptable delays when the RCMP are called to attend to Duck Lake Reserve.

Manny advised that all of these services are provided by way of protocol agreements with the individual cities or municipals. Council would be the responsible party to meet with the appropriate councils and work out an agreement.

It was suggested that you could have government protocol agreements with NORD and meet monthly with the municipalities regarding servicing issues.

Kamloops is a taxation Band and they have many protocol agreements for many services such as fire, ambulance and police and the services are good. It’s often cheaper to have these services by agreement rather than hiring full­time fire department employees, etc.

5. Is it possible to get out of the City of Kelowna’s boundary?

8 Yes it is possible. Currently the City of Kelowna provides VERY little if ANY services to Duck Lake.

6. Can you use the taxation money to provide single housing at Duck Lake?

Again, the taxation money must be expended in accordance with the Indian Act provisions. Those are listed in section 83 and 85.1 of the Indian Act; housing is the responsibility of CMHC and there are guidelines that cover those kinds of capital projects. However, you can utilize the tax revenue to service homes.

7. Will gas and cigarettes be taxed if we have taxation?

No, not necessarily. It’s the communities ultimate decision on whether or not there could or would be a tax on gas and/or cigarettes. That is a GST tax arrangement which is distinctly different from the Property Taxation. Kamloops Band took direction from its membership to implement the GST program and used the monies raised for legal costs regarding their lands. The result was that Kamloops was able to add substantial lands to their reserve base.

8. ADJOURNMENT OF MEETING 9:30 PM

(c) ROUND LAKE­ January 27, 2006

Property User Fee Initiative Meeting Round Lake Community Hall January 27, 2006 6:00 PM

OKIB Chief & Council In Attendance: Chief Fabian Alexis Allan Louis Peggy Joe

Staff in Attendance: Bob Osborne (not in attendance)

Guests: Manny Jules and Wayne Hamaila (ITAB)

Recording Secretary: Stacey Yow

CALL TO ORDER AT 6:00 p.m.

1. Opening Introduction & Prayer: Fabian Alexis 2. Power Point Presentation: Phyllis Bonneau­Miller 3. Question & Concerns Session

Questions & Concerns Session at Round Lake Community:

9 1. What services are we obligated to provide if a taxation bylaw is implemented compared to city’s?

The Band is only obligated to pay for minimal services. Minimal services are already being provided through service agreements, etc. throughout the reserve.

2. Zoning issues on land is a concern to some band members. Whatever the zoning is it should be fare related to agricultural, residential, etc. Different rates have to be considered before a bylaw is drafted.

Kamloops Indian Band’s industrial rates are lower than the City of Kamloops to attract businesses to the reserve.

3. Do you have to have self­government to be a taxing authority?

No. There are only 2 self­government Bands in BC compared to the 100 + Bands that are currently taxing the white people on their reserves.

4. Is taxation on the reserve tied to the Municipal Act?

No, it’s similar to municipalities as it is a taxing authority.

5. Who owns ITAB and how much of the taxation money goes to ITAB? Who sits on the Board of ITAB?

ITAB is an advisory to INAC on Bylaw issues such as Taxation. ITAB was created by Manny Jules and _____ to advise other 1 st Nation’s and Bands on Taxation.

Who pays Manny Jules? Contributions are paid to ITAB by INAC for advisory services to First Nations and Bands.

6. Who’s bylaw are we using to draft our own bylaw? Are we going to adopt the Municipal Act? Are we using the Act as a model?

No, we are not going to adopt the Municipal Act. The model that OKIB is using is West Bank’s taxation bylaw Model. Note: Kamloops rejected the Municipal Act

7. Is OKIB going to set up zoning for purposes of taxation?

Zoning is not related to taxation. Zoning is part of the Community Development Planning Project.

8. Isn’t this the first step to self­government?

No, it’s not. There are many First Nations and Band’s that are not self­government and have a taxation bylaw.

10 9. It is important that the bylaw wording should be very specific on non­native occupier and not non­member. There is a fine line of non­native and non­ membership.

10. OKIB I.R. #1 borders Vernon City limits, other than us, who’s collecting money from Duck Lake, Priest Valley, and others that border the city limits?

North Okanagan Regional District and Central Okanagan Regional District collects the money.

11. The tax base for the City of Vernon is large. Do we want to have more non­ members on reserve?

The reality is… that a large percentage of revenue comes to the reserve and also leaves the reserve just as soon as it gets here. The Band has to utilize all the tools in today’s society to choose what the community wants and what the youth want to be in today’s society. We have to be in control of our future. We have already opened the door to non­natives.

This question also deals with the land base issue that OKIB currently has. Specifically, the questions deal directly with the following:

1. The Band does not enough land for projected future of natives. 2. What impact will it have on developers such as land leases and land owner? Will the collection have a direct affect on lease itself? 3. Does the Band want to promote non­member to increase more money?

12. It’s said that non­natives only own .05 % of the land mass in British Columbia. What land will be left. We already dictate how I build my home and where I live. How will tax affect me? Round Lake services SUCK. Cant even build a home in Round Lake because not enough water!

13. It was mention that taxation should be tabled until the Browns Creek logging case is final.

14. Present services that taxpayers don’t get. There are two places within the city limits of Kelowna (Duck Lake). What are NORD’S and CORD’s boundaries? Why isn’t Duck Lake getting services?

NORD and CORD are only required to provide minimum service.

15. What will the consequences be? White people won’t give us their money! Poll those people and ask them. Do we believe we won’t provide services? Talk to those who would be taxed.

Services won’t happen over night. The Band will have to develop their own budget based on the community. Protocol agreements can be used to

11 Provide such services if needed.

Membership would like to see other Band Members come and talk about taxation and how it effects them and what the pros and cons are that go with it. Not staff members of the Band – the Membership. (Kamloops, Westbank, Osoyoos, Merritt, Cold Water, etc.)

17. Who would be approving the taxation bylaw? Who will be guiding it?

ITAB has a model bylaw in place for regulation purposes and the bylaws of such a model are recommended for approval by ITAB.

18. To date there is not enough evidence. Would like to see the following from the other Bands related to taxation:

1. a power point presentation with pictures of what other Bands are doing with their taxation money; 2. Financial reports; 3. financial numbers for service agreement costs 4. testimony and challenges that other Bands are facing.

ADJOURNMENT OF MEETING 9:45 PM

(d) HEAD OF THE LAKE­ January 9, 2008

COMMUNITY MEETING

RE: PROPERTY TAXATION

Minutes

Okanagan Indian Band Head of the Lake Hall Wednesday, January 9, 2008 6:00 P.M.

Council in Attendance: Chief Fabian Alexis; Tim Alexis; Mollie Bono; Jenelle Brewer; Diane Louis; Don Louis; Judy Marchand; Raymond Marchand; Emery Robins; Vern Tronson;

Staff in Attendance: Cliff Thorstenson, Interim Director of Operations; Lyle Brewer, Economic Development Manager; Sherry Louis, Executive Assistant;

Panelists: Chief Shane Gottfriedson, Kamloops Indian Band; Chief Nelson Leon, Adams Lake Indian Band;

12 Ernest Jack, WFN – FN Surveyor of Taxes; Chad Eneas, Penticton Indian Band Councillor;

Visitors: Vernetta McMillan; June Cole; Val Chiba; Andy Parker; Vera Cameron; Laura Miller; Donna Good Water; Jon Spotted Eagle; Terry Jack; Ted Marchand; Cecil Louis; Blane Louis; Bonnie Lawrence; Dallas Good Water; Barb Marchand; William Marchand; Stanley Frank Louis; Mike Louis; Mary Louis; Walline Parker; Vince Lewis; Coola Louis; Patricia Wilson; Mary Gregoire; Yvonne Logan; Maureen Marchand.

Non­Band members: Abe Kruger; Ernie Coutlee.

The meeting began at 6:20 p.m.

1. Opening and Introductions. Chief Fabian Alexis.

2. Presentation by Panel Members.

Chief Shane Gottfriedson:

Chief Shane Gottfriedson stated he is the elected Chief for the Kamloops Indian Band throughout the last 4 years. Chief Shane Gottfriedson thanked the Chief and the Band for inviting him back to the Okanagan; he also expressed his acknowledgments of his family history and ties to the Okanagan Indian Band.

The Taxation issue was also a hot topic in his community, as it is in this community and would like to share what occurred throughout the process within his community. Chief Shane Gottfriedson stated he comes from critical and a tough family, so it makes interesting Band meetings in Kamloops, however, he appreciates the passion of the people and individuals, resulting for the success of the Band by having many intelligent and educated people.

Chief Shane Gottfriedson stated he has always supported the young people, and whenever he makes presentations he encourages the youth to be involved. Tonight he had brought his daughter Levi to not only meet her relatives, but to help educate what others communities are doing.

Chief Shane Gottfriedson presented his PowerPoint Presentations:

Visions­ 47 years ago, Kamloops Indian Band (KIB) had the vision and goal to purse business endeavours within reserve lands. Over the years of this endeavour, KIB initiated the goal to also collect a First Nations Tax upon these lands.

KIB being an economically diversified First Nations organizational and government is positioning itself to capitalize on its many economic opportunities. By establishing a new organizational framework and transforming from a service delivery model to a business development model, KIB will continue to advance financially sustainability.

Taxation plays a large role in this business model as a supporting economic base for new initiatives and promotes band independence.

Sales tax history – The original initiatives of taxation were brought to attention by KIB leadership in the 1960 and supported by the membership at a general assembly.

13 In June 13, 1990 Band members moved and seconded to implement Sales Taxes on Tobacco & Fuel products to support Schiedam Flats Land Claims, this was passed unanimously by membership.

KIB collection of the First Nations Tax on these products is agreed upon in form of a Band Council Resolution, such as: ñ Relief of poverty; ñ Education; ñ Culture; ñ Recreational Opportunities; ñ Aboriginal Title 7 Rights; ñ Land Claims negotiation strategies; ñ Youth & Senior Citizens; ñ Economic well being of Band.

The Sales Tax Revenue for 2007 was in the amount of $904,758. The breakdown transferred is as follows:

Education $238,906 26% Ec. Development 47,992 5% General Revenue 414,060 46% Spiyu7ullcw 202,800 22% Admin 1,000 1%

Property Taxation History – The KIB Property Tax By­law was adopted in 1983. Pursuant of Section 83 of the Indian Act, deems it advisable for the purpose of taxation for local purposes of land with interests in land in the reserve including rights to occupy, possesses or use the land in the reserve. This was endorsed and passed by the membership at a general assembly supporting this initiative.

First Nation property tax is growing, currently there are over 114 First Nations that have property tax jurisdiction over their reserve lands (80 in BC) and raise over $49M annually.

1991­1995 –KIB resolved to secure property taxes collected by government for tenants on Reserve Lands.

“Kamloops Amendment” in 1988 clarifies the property tax power respecting leasehold and other interests in reserve land.

Property Taxation – Property Tax dollars have proven the largest in house revenues of our Band at 22% at: 2007 $2,979,236.22 2006 $2,247,463.00

The property tax is utilized in general revenue to support Band initiatives, employment & governance structure.

Since 1988, KIB staff has grown from 30 employees to over 180 to this date.

Taxation – KIB Taxes help generate the development and completion of initiatives proposed to further the Bands success:

ñ Purchase of Spiyu7ullucw Ranch ñ Development of Tk’emlups Gas Station ñ Development of Water Treatment Plant ñ Further employ Band members, develop capacity, expand infrastructure.

14 Property Taxation – Some of KIB’s most current initiative is the designation of new reserve lands for lease opportunity and business frontage:

ñ Chief Louis Centre expansions ñ Land Lease/development opportunities ñ Targeting business opportunities and investors.

KIB’s strength is leasing property & property taxes. KIB holds 950 tax portfolios broken into three types:

1. Buckshee Lease; 2. Registered Lease; 3. Permits.

Registered Leases and Permits are supported by the Kamloops Indian Band Lands, Lease, & Taxation Department. These types of leases protect CP land owners through servicing agreement and applications. The KIB process also protects both parties and the land in question over environmental, archaeological, infrastructure, services, legal and financial issues.

In the amount of $827,000 is collected annually for the Sun Rivers Lease Development. The Gottfriedson Ranch is one of the biggest tax payers. There is also currently over 114 FN nations that have property tax jurisdiction over their reserve lands, 80 in BC.

Everything is re­invested back into the Kamloops Indian Band.

Hiring and employment rates are up within the Band, KIB cannot fill the positions fast enough. Every department in the Band makes money, the Band’s policy states it cannot run a deficit in the Band, as part of their commitment to the Band.

One of the biggest accomplishments is the Band is debt free, succeeded with the early payout of the Ranch, which was purchased for 9 million dollars.

Also credits the new Water Treatment Plan from the taxation dollars, with also provided more economic opportunities including agreements with developments like Sun Rivers.

The infrastructure dollars will be around 22 million, with a percentage from the taxation dollars.

Some of the current initiatives include looking to develop around the band administration office and at the river front. Also KIB has a partnership initiative with the Simon Fraser University on building a state of the art facility. It was stated that without proper planning and strategic planning it may not been a reality. KIB is also looking at expanding the tourism sector as well; Chief Gottfriedson invited the Band to spend some of the dollars at the Kamloops Indian Band.

Chief Shane Gottfriedson expressed it was an honour to address the community and the Okanagan Indian Band.

Chief Nelson Leon:

Chief Nelson Leon is the Chief of the Adams Lake Indian Band, Shuswap Nation, he also thanked the Okanagan Indian Band for the invite. Nelson stated he was serving his 1st year term of Chief, however, had served as a Council member prior to that.

Chief Nelson Leon stated he became involved in the taxation by being a face in the audience, with similar questions being asked by him, including the taxation regime and the affect it will have with the government, the nation, title and rights and jurisdiction.

15 After review of the information he became more and more comfortable and the misconceptions became less once it became understood.

The Adams Lake collects taxes from property, tobacco, gas, and alcohol. In the community, both registered or buckshee are taxed. They receive 25% of the C.P. lease revenues, in the past it was set at 50% of the C.P. lease revenues. In regards to the property tax, there are common themes that are included in the information:

Jurisdiction; Taxation control, Expenditures, Budgets and Cost of service, Obligations, Cons.

Jurisdiction ­ ñ Taxation does not mean you are a municipality. ñ In absence of band taxation, the neighbouring jurisdiction is occupying the field. ñ Taxation does not give up any Aboriginal Title and Rights. ñ All government use taxation as a form of revenue generation. ñ Taxation is an expression of jurisdiction and authority. ñ Courts are upholding the Bands ability to tax and determine the use of surplus funds.

Tax Control – ñ By­law approval by INAC under the Indian Act or First Nations Fiscal and Statistical Management Act. ñ Most bands seek community support to enter into the field of Taxation as well as make amendments to the By­laws. ñ Chief and Council passed expenditure bylaw on how the funds are utilized. ñ Bylaw can state that members are exempt from property taxation. ñ All non band member property interest is subject to property tax regardless if the band is the taxation authority or not.

Expenditures – ñ Chief and Council needs to pass an annual tax expenditure bylaw. ñ Need to cover the cost of administration and service agreements. ñ Surplus funds can be allocated based on local government priorities (ALIB has used funds for: Cultural/Heritage fund gymnasium, fire department, Public works, Security, Elders program, enhanced Education and Recreation fund). ñ Attached budget was provided. ñ Note: If the Band is not taxing, neighbouring jurisdictions are collecting the tax and improving their infrastructure with little to no benefit to the band land or infrastructure (unjust enrichment).

Mill rate­ different services cost per year, the cost of service minus the assessed value.

Budget and Cost of Service – ñ Service Agreements with provides will need to be negotiated. Should not be more than the calculated mill rate. ñ Will require trained people to administrate. (Allows for capacity development and jobs). ñ Assessments are based on existing services, should these change assessment base would also change (ALIB contracts BC Assessment Authority). ñ Revenue would allow for the development of infrastructure improvements in the lease area that could also benefit band members. ñ Types of services, water, sewer, fire protection, 911, transportation improvements. ñ Note: regarding ALIB MSA court case.

Cons – ñ There is a changing Taxation landscape. ñ Move toward budget base mill rates. ñ Changing authority regarding approvals of bylaws and amendments. ñ There will always be an issue regarding rate payer’s representation.

16 What has worked for ALIB? ñ Community presentations on information regarding the field of taxation. ñ Support of community developing the taxation and accountability of revenues. ñ Band developed process that has annual audits and budgets reviewed and accepted by membership ñ Up date reports to the membership on budgets/YTD actual. ñ The support of social programs, Elders­youth. ñ Enhanced band service in fire department, security and recreation. ñ Increase in Property values continue to provide increases in lease and taxation revenue. ñ Investment in the infrastructure, increase the assessment value of property on band land resulting in an increase of taxation revenue. ñ Revenue is used to improve and enhance deliver of service and programs. ñ Less dependent on INAC.

Chief Nelson Leon stated there are benefits, i.e. increase in program dollars for education and students, no mismanagement of funds. The amount of revenue collected on taxation is over $850,000. Further in his present view is, or, cannot see the downside of taxation.

Ernest Jack, FN Surveyor of Taxation, WFN –

Ernest Jack was requested by the Band to provide a presentation on the process of investigating Indian Band Property Taxation and its potential benefits to the Okanagan Indian Band, further he appreciated the opportunity to discuss this same issue with the Okanagan Indian Band.

Ernest Jack stated he was not a chief, however was a past chief for the Penticton Indian Band. His past work included being a First Nation Administrator on Taxation and has worked eleven years for the Shuswap Indian Band in the Kootenay area. Education background includes a graduate as a realty appraiser.

He had started with the taxation portfolio, with the amount of $36,000 in taxation revenue, however, when he left it was around $600,000, presently assessed value is in the millions.

Ernest Jack relocated to Westbank First Nation and has been there for about 5 years. It became a shock, but it like going from back of the bus. The Chiefs talk about the revenues, the Westbank First Nation’s assessment is around the 1 billion, with 7 million dollars in property tax, this has doubled since he arrived at WFN.

The increase is mainly due to markets, in the last couple years, commercial value based for the significant increase. If you notice the bluffs from the City, where they hold concerts, the land owners finally made a deal. There is 1 billion dollars proposed for development at the bluffs, in regards to tax dollars, this would generate another 7 million dollars.

Research was conducted on why First Nations people were initially opposed to taxation; it was similar to an act that was trying to be passed over 100 years ago. It became clear there was misconception it would be taking away exemption from First Nations. The first act was passed in 1972; an Alberta Band had undertaken a taxation agreement.

You get taxed now, and this is not going to change, only if you will be taxed is when you become not being an Indian or a corporation. When people talk about taxation and say they are not involved in taxation, well they are, the monies received from the government and INAC are tax dollars. The only difference between the Band and the Government is the huge strings attached to what or how you can spend the money. Huge budgets are done, jump through hoops, audits.

By July 4 you have 90% of your revenue collected already. 6.7 million dollars is collected by July 4 on the Westbank First Nations.

17 Currently the Upper and Lower Similkameen Indian Bands, Osoyoos Indian Band and the Westbank First Nation are exercising Indian Band Property Taxation Jurisdiction. Together these Bands generate approximately $10 million in property tax revenue annually. The Okanagan Indian Band has potential to generate revenues of approximately $1.5 million dollars per year. In Canada 110 Indian Bands now have property taxation bylaws and tax regimes in place, 10% of the revenues are collected in the Okanagan.

The Okanagan Indian Band can implement Assessment and Property Taxation By­laws before July 1, 2008 in order to start the Indian Band process of enacting the Indian Band Property Taxation jurisdiction for the next calendar year.

The expenditures you collect from property tax revenue must first be authorized by by­law. An expenditure by­law outlines the real property taxation revenue and itemizes the spending of the revenue.

Expenditures are restricted to local purposes. Local purposes could include projects such as the development of infrastructure, public buildings, public services and structures, utilities, health, recreation, public use and tax administration expenses.

The implementation process includes:

Step 1: Decision to tax – after considering the pros/cons of implementing a taxation regime, the Band decides to develop taxation by­laws.

Step 2: Preparation – the Band obtains the necessary information about taxation and drafts the by­laws.

Step 3: Communication – Potential ratepayers and other affected parties, such as the province, regional districts and municipalities, are informed of the Band’s intent.

Step 4: Analysis – the draft by­laws are analyzed by the Indian Taxation Advisory Board. Revisions may be required, and then it is formally passed and resubmitted for approval.

Step 5: Recommendation – the FN Tax Commission then recommends the by­laws for approval by the Minister of Indian Affairs.

Step 6: Ministerial decision – once the bylaws are approved by the Minister, the Band and other parties are informed.

Step 7: Implementation: After the by­laws are in force, the Band Council implements the tax by­laws. The FN Tax Commission provides follow­up and support.

Step 8: Assessment Appeals – if an assessment is appealed, the procedure to be followed is set out in the Assessment by­law.

Ernest Jack stated that taxation is a basic function of government; it facilitates the kind of self­ determination you want and makes a Band more self­sufficient by increasing its revenue potential.

Some of the basic reasons for implementing taxation by­laws are: ñ Jurisdiction – exercise a Band’s governmental; ñ To raise revenues for the Band; ñ To enhance the management and administration of reserve lands; ñ To develop infrastructure and good governance to encourage and promote economic development on­reserve and to improve the quality of life.

Ernest Jack raised the point that it does not make sense for the Provincial, Regional District and Municipal governments to continue to tax revenues ($1.5 million) from reserve lands of the

18 Okanagan Indian Band for their government use and provide no local government services. The Okanagan Indian Band could use these revenues for their own benefit.

Chad Eneas, Penticton Indian Band – Chad Eneas is a Council member of the Penticton Indian Band (PIB) and currently holds the Financial Portfolio for the Band. He is also the youngest member on the council for the Band, further Chad expressed he was not a tax expert, but would like to share his thoughts and experience, including background of who he is.

Chad’s mother is from the OKIB, along with her grandmother Gladys Bonneau. He also comes from a traditional family; his paternal family is the Armstrong family from the Penticton Indian Band. When Chad Eneas first got involved in the community, he remembers the road blocks in the 1990’s. He received his education and has done the rodeo circuit, including Canadian High School Bronc Rider Champion.

Chad Eneas stated he has observed Communities become restricted with limited revenues, along with creating more dependence on INAC. In 1982 when the Penticton Indian Band had disbursed their land claim money, at that time, social issues were at a high level.

In 2001, the Penticton Indian Band community have started to get information from the neighbours of Penticton, where members were not able to open accounts, with the Band being in a remedial management plan. Through time, practices were institutionalized, without a regime, and without a priority on policies. PIB was trying to move towards being more proactive instead of being reactive. So the Band looked at the taxation regime.

Chad hears the good things about the Okanagan Indian Band, i.e. immersion school and tries to keep inform on what is going on in the province, but takes an interest in the ability to tax right­of­ways, as to a court case in Osoyoos Indian Band.

Some of the services left a broad picture where we’ve been and what goes on. More recently he has come to learn that servicing is an issue, and it inhibits the PIB in trying to attract investors. Chad also mentioned he is the president of the Economic Development Corporation.

The PIB engaged the Penticton in servicing in 1953, and presently still trying to get services, because INAC will not provide funds as they only provide for basic needs. PIB cannot provide enough infrastructures for proper housing.

The Penticton Band had Ernest Jack involved in the taxation process, they had 3 or 4 meetings since Chad has been on council, and part of the process is to gather all the information and to look at the pros/cons. It came down to the community, the heart of the Band, to lead the taxation process.

Again, Chad reiterated he was not a tax expert, but the approach is to gather all the information from both sides. As well they had looked at the Indian Act, which was adopted in 1876, and thought of the things that he read and reviewed. Alexander Ross, who was the first non­Indian that wrote about the Okanagan People in 1811 and his purpose for being in the Okanagan, was to report back to the clergy. Chad also spoke on assimilation and the older philosophy, as well as the creation of the reserves, in particular in the Okanagan, by Cox, or also known as the Douglas reserves, and the reserves created by the reserve commission.

Principles of unity and the strength of the nation were cited. Chad Eneas stated he cannot say or tell the people to be for it or against it, and it was not his job to push any views, but to interpret the best way can and to be provided the best information. This will make the difference in order to stay strong and united.

19 Chad also wanted to raise extinguishment with the treaty approach, which is another way to write us off. The community approach is the best approach. Further the Title and Right lies within the Nation; according to the recent court case on Xeni Gwetin, this is something to bear in mind.

Chad Eneas provided thanks and hoped the best for the Okanagan Indian Band.

3. Question and Answers.

Question #1 (question for Chief Shane Gottfriedson): Asked for clarification on what he had said on “straightening out the buckshee leases”, what does this mean?

Chief Shane Gottfriedson: we have a small amount of buckshee’s, and we encourage members to register their leases. For example an individual had an undesirable business, with bringing in chemicals onto the Band and the Band tried to get the C.P. owner to clean up, but was not agreeable. It would have resulted with the Band to clean up the mess.

The Kamloops Indian Band set up serious of workshops with the memberships on the set up of leases, but if you look at the value of the property is not equal to an assessed value, similar to registered leases. At the end of the day, the member loses, and liability issue for the Band is huge.

We cannot force the people to register leases, only encourage them.

Question #2– A community member stated he has relatives in KIB, some of them disagreed with the taxation regime; they say it hinders on what they can generate. So it may be in some cases, it does hinder them due to Band taxation.

Chief Shane Gottfriedson: we have a taxation bylaw and an assessment bylaw that allows the Band to adopt and cannot go higher than 3% annually. One of the challenges is services, which it boils down to and the KIB’s leasing taxation office is fairly a big department and one area looks after C.P. lands and there is another that deals with just Band lands. So if you do not have the resources it can create frustration.

Chief Shane Gottfriedson was candid and stated the applications are a slower process and it hurts business, however, KIB is trying to shorten the turn around time, because it was hurting business. It still a challenge but are working on it.

In providing a level of service is a challenge, but you always try to work on the kinks. Another issue is trust, and you need to have the team to deliver the services. The changed management plan is in place, but be advised that it may take up to 5 years to get to the next level.

Question #3: Buckshee leases, if understood correctly, if you are under a buckshee leases, is it up to the Band to fix it or fix any problems?

Chief Shane Gottfriedson stated if there was a major catastrophe, the Band is ultimately responsible. Previously gave an example of someone burning batteries, where a 20 mile radius was shutdown. The Band member never looked at doing anything with property after many years since the incident. Environmental issues are a concern.

Question #4 from Chief Fabian Alexis: in our earlier discussion, Chief Nelson made a point the community decided to charge the C.P. owners 25% for taxation?

Chief Nelson Leon: it based on the property value, the 25% comes around from the Indian Act where reserve lands are for the use and benefit for Indians. After a couple generations, the original use is to farm the lands; however, through the time past, the use has changed. The

20 lease of the lands includes a portion comes back to the Band. Any C.P. Lease is 25% to the Band, due to the loss of use and benefit for the Band.

Chief Shane Gottfriedson: Just for the record, KIB does not charge that amount.

Question #5: one question to ask, how do you collect if they are in arrears?

Chief Nelson Leon: under the bylaw there is a process on the arrears ­ demand payment, with conclusion of a shut­down of the operations. Property taxation is the same thing, conclusion of a seizure.

Chief Shane Gottfriedson: we had 2 million in bad debt, around $900,000 was in housing arrears, we have $1.2 million that was owed to the Band, and we now have a collection bylaw. Registered leases have benefits and the right to cease assets. The Kamloops India Band has an aggressive plan and process.

Question #6 (question for Chief Nelson Leon): if it is heard correctly regarding the 25% of buckshee, how do you collect the revenue if the lease is unregistered?

Chief Nelson Leon: we have people paying, but enforcement mechanism is not in place. In general, there is only one member that not paying. But if they want to develop other areas, it will create barriers.

Question #7 (from Chief Fabian Alexis): in your experience Ernest Jack, relating to the assessments, does the water value incorporated in the property?

Ernest Jack: Yes, if it actually a service that you can get, also like to make comments on the arrears issue.

As a technician at WFN, when he first got there, there was probably $800,000 in arrears, now they are down to $200,000 but it has become more a political issue than a jurisdiction issue. Ernest Jack is not a member of WFN, therefore it easier to do his job. There are properties, and the way the bylaws are read, and if you are in arrears and become delinquent after a year, you are served through the bailiff, therefore no further discussions with the defaulter.

In 2006, a million dollar waterfront property owner/developer who refused to pay taxes, the judge looked at him and had advised the legal principles he tried to raise was incompetent legal advice, and that it was elementary, and you are obligated to pay. Judgement was against the person.

As far as leases are concerned, WFN evolved in a constitution, so any agreement that a C.P. owners makes, they make on their own, but they do have to register their lease. That is why there is a boom due to the process to obtain a registered lease. The next big development is Wal­mart.

Question #8 (Question to Chief Leon): the issues on the housing for the people, since then, has the issue being addressed?

Chief Nelson Leon: we still rustle with the housing issue, still implement the program under CMHC, always a shortage of housing, but always changing, we have 4 members that are under a different housing option.

Question #9: do you have limited options on land?

Chief Nelson Leon: some by INAC, but have funds as well allocated by the Band. We use dollars for road services; subdivisions for more individual homes are under the current process.

21 Chief Shane Gottfriedson: for the KIB we call it land use planning. KIB has had a series of meetings on where we wanted subdivisions, houses, development, commercial, etc. It boils to Governance and it up to the leadership to ensure sufficient housing.

Question #10: at KIB, how long does it take to obtain a lease?

Chief Shane Gottfriedson: it varies on the turnaround, depending if it is Band land or C.P. land, if starting from scratch or raw land it may take up to 3 months pending assessments, etc. Worse case scenario is 1 year. However think it is very important to go through the proper steps.

Question #11: does KIB have someone in place to carry the ball right to the end?

Chief Shane Gottfriedson: not enough technical people at INAC, one of the things looking at to do, have someone to look at strictly C.P. lands and another for band lands. Have someone right now and service is crucial and we are always improving the process.

Question #12: Land use planning and deciding on what to do with our lands, and talking about taxation putting the cart before the horse. How do you strike a balance, land use planning is a priority, which is at the nation and the Band level. Where do you start? At the Band or Nation level? At the band level it would determine what we want to do with the land. At the nation be more of the resource issue.

Chief Fabian Alexis: this would be something that will have to be considered.

Ernest Jack: As far as the cart before the horse and with WFN success, it had the same issues. Funding the lands department and develop the planning aspect for the Band was required. The physical development plans are being utilized, in order to progress, they used the tax dollars to help fund.

Chief Nelson Leon: Land use planning, we got various lands throughout the reserve. Entered into the taxation, need to look and plan on the future. Taxation dollars will assist on developing land use plans.

Question #13 (question to Ernest Jack): at WFN, if I was a member of the WFN and wanted to develop the lands, am I obligated to register the lease to the Band, and if wanted to do an addition to the house, do I require a permit, am I restricted? Had read in the information, the Band has opted to adopt a taxation bylaw, similar to the WFN, is that where we are at?

Chief Fabian Alexis: it was presented and agreed it was the best model out there, however, still exploring the model.

Question #14 (Cliff Thorstenson): Chad, where is PIB at in the process, PIB has adopted a bylaw. There are rumours that PIB is only taxing utilities?

Chad Eneas: the bylaw was adopted this past June for the property taxation. Penticton Indian Band is at a different stage than KIB and WFN and will take time to go through the INAC process.

On the issue about the nation building, we can consider off reserve development, and providing a percentage to the ONA, this is not a form of taxation but a contribution.

Question #15: would like to know from the Chief’s, does the non members have a say in the expenditure of the funds?

Chief Nelson Leon: no! There are a few groups that have specific issues and are addressed at the Chief and Council. The expenditure bylaw is under the Chief and Council. More responsive to inquiries however, but don’t allow non aboriginal in the governance body.

22 It relates in the land use planning, proper bylaws and policies, creates stability for the developers and investors.

Chief Shane Gottfriedson: basically there is an appeal process for the KIB, there is a bylaw which Chief and Council enacts on behalf of the people.

Ernest Jack: WFN has an advisory council, if the bylaw has been passed; the courtesy is to provide the advisory council with the budgets. Part of the courtesy, after the self government was passed, incorporated an advisory council, acting as advisory. They are elected positions. WFN had the 1st AGA, with a large turnout, with the comments being positive.

Question #16: a few comments on the bylaw, we can write and use certain models as a template. There are a lot of layers to the process; there are a lot of concerns surrounding things before taxation. Don’t agree with the WFN bylaw and taxation as they are different from this Band. Hope there is more planning and consultation with the membership on input on what a model would look like. What sort of ideas and discuss with people on their life and the implementation of taxation including pros/cons.

Chief Shane Gottfriedson: if you want to take ownership, it a great way and to develop your own model. Develop a small working committee and develop strategy. It is an education process for certain. It takes a lot of education and input into what the community wants and what are the outcomes. There is stumbling along the way, always learning the taxation.

All the members may not all agree, and may not see taxation in this generation, however, may be a reality for the next generation. Further as a reminder that shortfalls have to be covered by the Band Revenues. Chief Shane Gottfriedson stated he was willing to come back and share information with the Okanagan Indian Band.

Question #17: have you approached the federal or provincial governments on the share of resources of infrastructure.

Chief Shane Gottfriedson: yes it called Accommodation and Consultation of Aboriginal Title and Rights. We are all working on it to obtain revenue sharing. The FRO’s are currently being done, and we are in the process of signing a mining agreement. There are many court decisions that reflect what we’ve been saying. But now is the next step is to obtain the share of the resources.

Chief Leon: Agree pretty much with what Chief Shane Gottfriedson had stated, they both belong to SNTC. They are working with many corporation and governments. Taxation and revenue sharing are similar. In most areas, most pay some sort of taxes on property.

Chad Eneas: in the Xeni Gwetin case, one of the most significant cases since Delgamuukw, once the case was handed down, there was province wide Chiefs meeting strategizing unity on title and rights in the province.

In terms, on revenue sharing, it will take a big loud voice for the conservative government to listen. They have put back on the table the treaty negotiations. In regards to Title and Rights, need to put the pressure on the government, and they will not hand over, and will have to fight for it.

Question #18: regarding the assessments, a Band member had received assessments, but they haven’t been out there to assess the property. The buckshee lease allows for consideration to have that type of person on the property. Also how does WFN figure the assessment value, in particular if no one has come out to evaluate the property? Further are we going down this route, how long are we looking at, as this looks like it will become a reality? What is the timeframe?

23 Chief Alexis: We have discussed at Council, and were discussed in 1997. This has presently resurfaced, so the purpose of the meetings is to provide the information to the membership with consideration of a referendum or another process if the Band wants the taxation within the Band.

Further we have another meeting tomorrow evening, and as part of information to the membership we have provided minutes from other meetings, in conclusion we need to come to a determination from the community on proceeding or not with the taxation. If at the end of this process the Band is not in favour, then it is the end of discussion.

Question #19: for the people wanting to develop on band lands and compared to what is required on non­reserve lands, what are charges applied?

Chief Shane Gottfriedson: we are looking at a waste water bylaw, we are looking at a cost, and an annual charge cost that would cover the essential and the maintenance. Hopefully if taxation is collected, hopefully infrastructure will be provided.

It costs $210,000 towards the City of Kamloops for the service agreement; however we receive over $800,000 in taxation dollars for the same area.

Chief Leon: when we own the infrastructure, there is a charge of a DCC. For the buckshee leases, they are living there for free and receiving free services.

Question #20: as a locatee of buckshee property, would he pays out of his own pocket for the service.

Chief Shane Gottfriedson: that is why we wanting to build a waste water system. Why pay rent, you in the end don’t own the asset.

Ernest Jack: what was asked earlier on assessments, did you appeal them?

Band member: no, because it was new to them. But was told to inform them they were Indians on reserve, however, asks how they come to the assessment value. Trying to see the benefit on paying property taxation? Services provided, but due to areas, will this slow down the service. There are very few land owners compared to the membership. The numbers of the people, on the vote of the membership will not compare to what was handed down to family members. I would be against it, won’t be benefiting from this because of what is being said. Can see that taxation will be a reality, but need to provide input on what we want. WFN has so much down there; it basically is an extension of Kelowna. Further it is evident the water will be a big issue and the land is being consumed each day, and the water is our priority in particular for the future.

Ernest Jack: in WFN over the last 2 years, did renovations to reservoirs and the way to do that was using surplus.

Question #21: What is being heard on the taxation issue, the Council can collect the taxation dollars and Council can spend anyway you want without communicating with anyone.

Chief Fabian Alexis: you have to go through process.

Question 21: If heard right regarding the GST, tobacco, gas bylaws, Chief Shane Gottfriedson stated he doesn’t like taxing people, but in reality you are taxing your people and taking from your people?

Chief Shane Gottfriedson ­ other purchases you don’t pay taxes i.e. cars. We have to respect the people’s decision; this was done in back in 1990. There are other ways to generate revenues, but it was passed unanimously by the people.

24 Question 22: Regarding taxing Buckshee leases, it is the personal opinion they only taxing because they don’t have other leases.

Chief Nelson Leon: ALIB only have 2 that have buckshee leases. However there is security and certainty on the registered leases.

Chief Fabian Alexis: there have been discussions at the national level on taxation on the GST.

Ernest Jack: When the Band member spoke on taxation to own band members, after the tax was implemented, it was put in the constitution, a full blown referendum would have to be done. WFN has large commercial values; GST estimates something like an extra $10 million. But, there is positive and negatives to this. The community members heard the proposed meetings with Canada; they stated this was not going to happen. There is a formula, 1st 8 million, after that, sharing 50%, where the 3rd stage is 5% go to the band and 95% to Canada. Back in the day it was 100% to the Band.

Chief Shane Gottfriedson: when KIB went down the road on the FNGST, we never gave up rights or the status rights for the privilege.

Question #23: 1st point, glad working group was brought up, is really concerned to make an informed decision, and need to stir up feathers to the community of the community consultation. We need to do community building and trust in the community and get people caring about the community. Need to address and use proactive words to get the people involved.

Who are we going to employ? Will we be getting the youth ready and involved in career goals. There are facilities at WFN, it may be hearsay but have heard Band members had to work around non­Band members just to utilize facilities. What rights giving to taxpayers?

Ernest Jack: as far as facilities, their rights to facilities they have to rent on a first come basis. In regards to the gymnasium it is rented out, also there is a shortage of facilities within the community. Further no one persons or group gets preference.

Question #24: question was not answered in question #21. With all the money coming in, will the Chief and Council have the control?

Chief Shane Gottfriedson: we have a financial bylaw and we have a fiduciary obligation to the Band and members, so need to ensure the bylaw is fair and equitable. If we runs deficit it goes against our bylaw.

At Sun Rivers, community groups meet with our lands/taxation department. This involves the technical people; the groups can voice but have no voting powers. Strategic plans are important on where the dollars are spent. Services are provided to Sun River developments. Roads, water, etc are provided. Developing infrastructure throughout the reserve lands in order to enhance properties and it is going to take time to get to the top of the ladder.

Honestly don’t think it will get any worse for the Band, at the end of the day, still will have ownership over the land. If you want to continue with buckshee lease, am not here to change minds. There are members that comply and they benefit.

There were no further questions/comments.

4. Adjournment.

The meeting ended at 10:36 p.m.

25 ______Chief/Chairperson Date

______Executive Assistant Date

(e) DUCK LAKE­ January 10, 2008

COMMUNITY TAXATION MEETING

MINUTES

Holiday Park Resort Duck Lake Indian Reserve No. 7 Thursday, January 10, 2008 6:00 pm

Council in Attendance: Chief Fabian Alexis; Mollie Bono; Jenelle Brewer; Don Louis; Raymond Marchand; Emery Robins

Staff in Attendance: Cliff Thorstenson, Interim Director of Operations; Sharmaine Gregoire, Executive Assistant; Sherry Louis, Executive Assistant.

Panelists: Chief Nelson Leon, Adams Lake Indian Band; Ernest Jack, FN Surveyor of Taxation, WFN; Chad Eneas, Councillor, Penticton Indian Band; Chief Shane Gottfriedson, Kamloops Indian Band.

Visitors: Cecil Louis; Blane Louis; Clara Dubrett; Rodney Dubrett; Roger Smith; Mildred Smith; Sheila Sevwrite; Grace Aljam; Martha Simpson; Cathy Gottfriedsen; Sandra Lewis; Tara Nice.

The meeting began at 6:40 pm

1. Opening/Introductions. Chief Fabian Alexis.

Chief Fabian Alexis provided opening comments, along with introduction of the panelists presenting their experience with taxation.

The presentations were made at the January 9, 2007 at the Head of the Lake Hall.

26 2. Presentations by the Panelists:

Ernest Jack – FN Surveyor of Taxation, WFN

Ernest Jack began with an introduction, and that he had been requested by Okanagan Indian Band to make a presentation on taxation and the process and how it can be used to raise revenues independent of government funding.

In B.C., when a Band government is not exercising taxation jurisdiction non­Indian governments such as the Province of BC; Regional Districts and adjacent municipalities (Vernon) collect money from on reserve non­native taxpayers. Ten percent of the property taxation is collected in the Okanagan and would increase if the Okanagan Indian Band were to enter into the taxation regime;

Currently Upper and Lower Similkameen Indian Bands, Osoyoos Indian Band and Westbank First Nation are exercising their Indian Band Property Taxation jurisdiction, and collectively generate approximately generate $10 million in property tax revenue per annum.

8 Steps to Property Tax Implementation Process: 1) Decision to Tax – after considering the pros and cons of implementing a taxation regime, the Band decides to develop taxation by­laws; 2) Preparation – the Band obtains the necessary information about taxation and drafts the by­laws; 3) Communication – potential ratepayers and other affected parties, such as the Provincial Regional Districts and Municipalities, are informed of the Band’s intention to tax; 4) Analysis – the draft by­laws are analyzed by the Indian Taxation Advisory Board. Revisions to the by­laws may be required. It is then formally passed and resubmitted for approval; 5) Recommendation – the First Nation Commission the recommends the by­laws for approval by the Minister of Indian Affairs and the Northern Development; 6) Ministerial decision – once the by­laws are approved by the Minister, the Band and other parties are informed; 7) Implementation – after the by­laws are in force, the Band Council implements the tax by­ laws. The First Nation Tax Commission provides follow­up and support; 8) Assessment Appeals – if an assessment appealed, the procedure to be followed is set out in the Assessment by­law

Why Tax? • Exercise a Band’s Governmental Jurisdiction; As it is when a Band is not exercising taxation jurisdiction the non­Indian governments are collecting the taxes and using income for off­reserve projects; • To Raise Revenues; That are utilized by the Okanagan Indian Band rather than going to outside governing agency; • To enhance the management and administration of reserve lands; • To develop infrastructure and good governance and promote economic development on­ reserve and to improve quality of life. In order to do so, have to infrastructure, water, sewer, road and maintenance to meet the continuous demand of growing community.

Q. How many pennies do you have left after providing the services? A. WFN: 25% off the top then make contributions afterwards. You would have a surplus, WFN approximately 10% surplus. KIB: Kamloops Indian Band has strong internal controls within the administration and follows their Financial Bylaw – 50­55% if not more goes back to the Band, any surplus goes back to general revenue. KIB ensures that there is at least 10% safety cushion to deal with emergencies or a Title and Rights Case.

27 Chad Eneas – Penticton Indian Band Councillor

Chad Eneas began with an introduction outlining his family connection throughout the Okanagan Territory.

Mr. Eneas also discussed the Indian Act and the establishment of Indian Rights, including lands set aside for the use and benefit of the Indians, and some history as to how we as came to be.

Taxation of non­Indian tenants within the Penticton Indian Reserve is a way to offset infrastructure costs as difficult to developed without sufficient financial resources. This will also be a source to enhance basic services to the community and improve living environment.

PIB had 5 or 6 community meetings on taxation and development of property, also previous attempts on engaging with the City of Penticton on Service Agreements, with no positive affect to date.

Chief Nelson Leon – Adams Lake Indian Band The information provided by Cliff Thorstenson contained some of the concerns that were raised by his membership. A PowerPoint Presentation was reviewed with the members regarding Adams Lake Indian Band Property Taxation.

1) Jurisdiction • Taxation does not mean that the Band is a Municipality; • Taxation does not give up an Aboriginal rights or title; • All governments (including some Bands) use taxation as a form of revenue generation • Taxation is an expression of jurisdiction and authority • Courts are upholding the Bands ability to tax and determine the use of surplus 2) Taxation Control • By­law control INAC under the Indian Act or First Nations Fiscal & Statistical Management Act; • Community support prior to entering into the Taxation Regime; • Chief and Council pass Expenditure By­law on how generated funds are utilized; • All NON­band member property interest is subject to property tax regardless if the Band is taxing authority or not; if not the Band then Regional Districts and adjacent municipalities (Vernon) will be collecting the taxes; 3) Expenditures • Chief and Council to pass an annual Tax Expenditure by­law; • Cover cost of administration and service agreements; • Surplus funds can be allocated based on local government priorities (ALIB has used funds for: Culture/Heritage, Gymnasium, fire department, public works, security Elders program, enhanced education and recreation fund) • Note: if the Band is not taxing, neighboring jurisdictions are collecting the tax and improving their infrastructure with little to no benefit to the Band land or infrastructure (unjust enrichment) 4) Budgets and Cost of service, obligations • Service agreements with service providers to be negotiated; • Property assessments are based on existing services, to be reassessed if services to property change; • Revenue to increase development of infrastructure improvements in the lease area that could also benefit band members; • Services negotiated with neighboring Municipalities or Regional Districts (fire protection, 911, transportation improvement etc.); 5) Cons • There is a changing Taxation landscape; • Move toward budget base mill rates; • Changing authority regarding approvals of bylaws and amendments;

28 • There will always be an issue regarding rate payers representation;

Q. How much of the dollar do the Chief and Council take out for business? A. One person runs the taxation portfolio that handles the $175,000 and the rest goes to Band funds. It is an organized structure. They have to ensure they maintain the budget. A manager or taxation administrator.

Q. How much is taken for Council Honorarium and Travel. A. ¼ of million is given for honorarium/travel for 1 Chief and 5 Council Members. All approved by the membership. A 15 million dollar Band and account for 15 million dollars. Nothing is funneled to the Chief and Council, have financial controls.

Q. Do you buy your services from the City? A. Yes buy certain services, however on IR #1, have own water system in place, including a lab testing right on the reserve.

Q. Can you give an example on a cost of service, i.e. ambulance service? A. In the district of Salmon Arm, buy fire protection, water, and sewer. Cost $64,000 a year, budgeted $47,000. Pay transportation as well. Pay the district for road improvement.

Service Cost and the Revenues, the servicing only costing around 15% to 19%.

Q. Out of the tax revenues what do you provide to non­members? Provide all the services that is given to reserve members.

Q. Fire Department on reserve? Yes have own fire department, two bay, with a truck and new equipment.

Whatever service they (leasee) get now, will continue to receive in the future.

ALIB: Move towards budget base mill rate, building a budget based on what the mill rate is within the village/city. KIB: waits until the City of Kamloops sets their property tax rate and goes from there.

Discussion on development on the reserve lands adjacent to the city, the cost to improve safety on transportation was at cost to the C.P. owner, however the Band has a 25% interest in the land lease revenues.

Q. Is there Taxation of Band members? A. No taxation for Band members, except for one case, where it a business lease on another CP holders property. Part of his business expense.

ALIB is not going to implement an income tax. Aboriginal Title and Rights not impacted, have recent rulings and cases that prove title and rights, actually title and rights are now stronger than ever.

Q. How long been collecting and what are the growing pains for ALIB? A. Been taxing since 1995. Was a long process, ALIB had to go through court to get where we are today.

Q. How many jobs it creates? A. One taxation person, also employs more band members in different service areas of the Band. Services provided by taxation dollars: Security – have 2­3, Recreation funds – fees are paid to the limited income members, Elders Group and Youth obtain enhanced services.

Q. When you started taxing, was the city and village was collecting tax dollars. A. Yes they were, from the discussion at Head of the Lake Hall, there are buckshee leases

29 that are not being taxed and exempt. C.P. will not be affected.

Q. Who does the tax assessment? BC Taxation Assessment Authority do whole of BC.

Chief Shane Gottfriedson – Kamloops Indian Band

Chief Gottfriedson opened with a thank you to Chief Fabian Alexis for the invitation, followed by a brief background on himself and his family.

A brief rundown was given on the stats of the Kamloops Indian Band: • 1055 KIB members. • Employs 180 full­time • Employs 40 seasonal workers. • Yearly Operational costs around 28 million. • Debt free. • 65 million dollars in assets.

History: The Kamloops Indian Band (KIB) Property Tax By­Law was adopted in 1983. Pursuant of Section 83 of the Indian Act, deem it advisable for the purpose of taxation for local purposes of land with interest in land in the reserve including to occupy, possess or use the land in the reserve. This was endorsed and passed by the membership at a general assembly supporting this initiative.

In 1990 the at a band meeting a motion was passed to implement Sales Taxes on Tobacco & Fuel Products to support Schiedam Flats Land Claims. KIB wanted to position economic diverse and try capitalizing on its many economic opportunities.

In 1991 – 1995 KIB resolve to secure property taxes collected by government for tenants on KIB Reserve Lands. This is to provide sustainability advance contributed by taxation, which plays a big role. Taxation creates Band independence.

First Nation GST: Out of FNGST funds has shown numerous benefits for KIB such as, education, economic development, general revenue, purchase spiyu7ullcw (property), and administration. Elders Group – heating allowance, 2 full time staff that provide services i.e. grass cutting, luncheons for elders over 60 years of age. Total revenue on FNGST for 2007 amounted to $904,758.

Property Tax History. Property Taxation dollars have proven the largest in house revenues of KIB at 22%. 2007 was in the amount of $2,979,236.22 and 2006 was in the amount of $2,247,463. Since 1988 KIB Staff has grown from 30 employees to over 180 to this date.

KIB holds 950 tax portfolios broken into 3 types: Buckshee Registered Lease Permits

Chief Gottfriedson provided a copy of the Power Point presentation to Chief Fabian Alexis, and also invited anyone wanting to see the KIB operations. Shane finds himself as a visual person and welcome OKIB to the Band and to ask questions. Previously OKIB and KIB had a joint meeting to do a meet and greet and check out operations of the Band, particularly around the Economic Development Initiatives of the Band.

Chief Fabian Alexis thanked the panelists on behalf of the community in their information sharing.

Questions/Answers­

30 Q. Chief Nelson Leon touched something and wanted more elaboration on the taxation authority and FN finance. What is the other level means and what it means for Bands belonging to taxation? and what the level can do, and Manny Jules – FSMA. What is their ultimate goal?

A. Fiscal Statistical Management Act (FSMA) – legislated a year ago, 4 bodies, he is the head commissioner. Reviews the taxations bylaws, they approve them, where in the past INAC approved them.

FSMA certifies the Bands who want to belong to the organization. Have to have a management plan to provide security that financial institution and what would be required to be in place.

FN Financial Authority is the next institution.

If the Band goes into default because of a loan, if you qualify for a loan, you give 25% security of the taxation for the loan. This ultimately leaves the Band 75% of the taxation revenues.

CP/Registered Leases – may one day go through the term, and for collecting taxes off the land, where one of the sewers and waterlines be replaced for upgrading? Is the responsibility of the Band or the C.P. land owner.

KIB: developing a capital reserve fund. Using the 288,000 towards the municipal agreement, City of Kamloops when they look at development charge wanting to hook up is charged a fee. If the repair required is on locate land it is the responsibility of the developer, if repair required is on Band land outside the leased property responsibility of the Band.

Example: Holiday Park Resort and if the lease expired and returned to the C.P. Holder, who is the responsibility of the land owner to deal with any issues i.e. water lines, sewers.

Q. The taxation authority and the pooling of revenue, understanding of the one now, the FSMA are commissioners paid by the Federal Government, once the commission is put over from INAC to? Who will pay for the commissioner? How much will band be putting into it? A. Yes the federal government pays from Treasury Dollars. The WFN Regime is not in the tax, still under section 83 of the Indian Act. WFN have option to go into C­20, with option or be able the bonds over long terms or the regular way.

Something in writing from Ernest Jack be provided to the Band, by email.

Q. Canadian Human Rights, future possibility of applying on reserve lands. Therefore it may allow tax payers rights/vote on reserve lands.

A. Have to obtain a legal advice. There is a process for the tax payers in place and assessment appeals. The Federal government is looking at to have CHR code to Indian Band Governments and that says you cannot discriminate based on race, ethnic origins. It is something needs to get comfort with on legalities. There is potential number of non band members vs. band members. Have judges residents on the reserve and telling the council their business and they may become organized. We probably can get organized.

Q. Your taxation bylaws are basically from registered leases? KIB – yes registered leases. ALIB – Buckshee and Registered Leases; The bylaws state specific clauses. They can challenge of the 25%, but the taxation authority will say it applies, court decisions rule.

31 Q. You say you don’t tax your people but you do – gasoline and tobacco. Taxing individuals so it not True? A. ALIB – you are mixing taxes. Various forms of taxation and you give perception of taxing property to band members.

KIB – endorsed by the membership and the FNGST is in the amount of $900,000. Charge 3% of the fuel and 2.00 on carton of cigarettes. As to the presentation, you can see what is collected. Don’t charge property tax for the members.

The FNGST collected goes into the governance structure; in the city you not get a break. Not trying to sell it a good thing, but the 900,000 is reinvested.

For the communities entered into the regime, are you locked in, is there opportunity to opt out.

Ernest Jack ­ says it simple to opt out as it is to opt in, by way of band council resolution.

Chad Eneas – PIB had the same questions on the taxation and there are different types of taxation. There are different forms and services provided to non band members. Hear around Indian country on the garbage disposal and INAC does not provide any funds. Need to bring in resources to provide the services. The Band used to collect and disposal site, so was paying for everyone else garbage, went into deficit. Needed to charge people the service, but it was indirect form of taxation.

The meeting closed at 9:53 p.m.

3. POWER POINT PRESENTATIONS (January 2008)

3. Following are the Power Point presentations made by (a) Chief Shayne Gottfriedson (Kamloops Indian Band), (b) Chief Nelson Leon (Adams Lake Indian Band) and (c) Ernest Jack (Westbank Indian Band taxation officer) at the OKIB Band Taxation meetings on January 9 and 10, 2008.

(a) Chief Shayne Gottfriedson (Kamloops Indian Band)

32 33 34 35 (b) Chief Nelson Leon (Adams Lake Indian Band)

36 37 (c) Ernest Jack (Westbank Indian Band taxation officer)

38 39 40 41 4. STATUTORY AUTHORITY FOR PROPERTY TAXATION BY INDIAN BANDS

In addition to the aboriginal right of Syilx to govern themselves, section 83 of the Indian Act allows Indian Bands to take on the authority for taxation on its reserve lands. There is also taxation authority under the First Nations Fiscal and Statistical Management Act, but the Okanagan Indian Band would use the Indian Act if it goes ahead with property taxation of non­ Band members.

Indian Act 83. (1) Without prejudice to the powers conferred by section 81, the council of a band may, subject to the approval of the Minister, make by­laws for any or all of the following purposes, namely, (a) subject to subsections (2) and (3), taxation for local purposes of land, or interests in land, in the reserve, including rights to occupy, possess or use land in the reserve; (a.1) the licensing of businesses, callings, trades and occupations; (b) the appropriation and expenditure of moneys of the band to defray band expenses; (c) the appointment of officials to conduct the business of the council, prescribing their duties and providing for their remuneration out of any moneys raised pursuant to paragraph (a);

42 5. BC INDIAN BANDS WITH PROPERTY TAXATION BYLAWS

The following Indian Bands in B.C. have enacted property taxation bylaws under section 83 of the Indian Act.

Adams Lake Indian Band Lheidli T’enneh Nation Skuppah Indian Band Akisqnuk First Nation Little Shuswap Band Sliammon First Nation Ashcroft Indian Band Lower Kootenay IB Snuneymuxw FN Blueberry Indian Band Lower Nicola Indian Band Soda Creek Indian Band Bonaparte Indian Band Lower Similkameen IB Songhees Indian Band Boothroyd Indian Band Matsqui Indian Band Spuzzum Indian Band Boston Bar First Nation McLeod Lake Indian Band Squamish Nation Burns Lake Indian Band Metlakatla First Nation Squiala First Nation Campbell River FN Moricetown Indian Band St. Mary’s Indian Band Chawathil Indian Band Musqueam Indian Band Stellat’en First Nation Cheam Indian Band Nadleh Whut’en IB Sumas First Nation Chemainus First Nation Nak’azdli Indian Band T’it’qet Nation Coldwater Indian Band Neskonlith Indian Band Tl’azt’en Nation Cook’s Ferry Indian Band Nicomen Indian Band Tla­o­qui­aht First Nation Cowichan Indian Band Old Massett Village Coun. Tobacco Plains IB Doig River First Nation Osoyoos Indian Band Ts’Kw’aylaxw First Nation Fort Nelson Indian Band Popkum First Nation Tsawout Indian Band Haisla Nation Scowlitz First Nation Tsawwassen First Nation Hupacasath First Nation Seabird Island IB Tsleil­Waututh Nation Kamloops Indian Band Shuswap Indian Band Tzeachten First Nation Kanaka Bar Indian Band Shxw’owhamel FN Union Bar First Nation Kitsumkalum First Nation Shxwha:y Village Upper Similkameen IB Kwantlen First Nation Siska Indian Band West Moberly FN Kwaw Kwaw Apilt FN Skawahlook First Nation Westbank First Nation PN d’Akisqnuk Skeetchestn Indian Band Whispering Pines IB Lake Babine First Nation Skidegate First Nation Williams Lake IB Leq’a: mel First Nation Skowkale First Nation Yale First Nation Yekooche First Nation

43 6. QUESTIONS AND ANSWERS ABOUT PROPERTY TAXATION

Here are three sets of common questions about property taxation, and attempts to answer them.

(a) COMMON QUESTIONS AND ANSWERS – TAXATION COMMUNITY MEETINGS HELD JANUARY 25­27, 2006 (Prepared by Phyllis Bonneau and Ray Foisy)

Why did notices regarding the taxation meetings did not go to each member by personal letter – it is an important issue. The notices were posted in the usual manner; due consideration will be given to this request.

Who must consent to making Taxation Bylaws? Although the Indian Act, section 83 is very clear that the Band Council may pass the Taxation Bylaws, the Okanagan Indian Band Council have chosen to discuss the matter with the membership by having community meetings.

Will the Taxation Bylaws be passed without Band membership input? No.

Will the Taxation Bylaws be written in a manner to ensure that the members of the Band will NEVER be taxed by the Council? The Taxation Bylaws can be written with a provision that if any changes are to be made to the Bylaws that the Band membership consent i.e. at a General Band Meeting set for that specific purpose. The tax bylaws must be written in clear and strong wording to ensure that we protect the interests of the Band members.

How will the Band members be defined in the taxation bylaw? The Okanagan Indian Band does not have a membership code so the definition of a Band member will be as defined in the Indian Act.

Chief and Council will be spending all the money: The taxation funds are kept in separate bank account and the administration exercises transparency and all expenditures are made from those headings that are covered in Section 83 of the Indian Act.

What happens if the non­native occupiers refuse to pay their taxes? The enforcement of the bylaws by non­natives who do not pay their taxes is contained in provisions of the bylaws that have been passed, that states: among other things, that the non­native occupier who is in tax arrears can be garnished.

44 There is a legal process where the court may grant an order to garnish the non­ occupiers bank account and other measures to collect the tax arrears.

Some Bands do not tax their Buckshees occupiers: The discussions to date have been that all buckshee non­native occupiers on the Okanagan’s Indian Reserves would be taxed if the Okanagan Band takes over taxation. Issues have been raised that some Bands do not tax their Buckshee non­native occupiers of Indian Reserve land. This matter has been referred to the Indian Taxation Advisory Board and a report will be made back to the community.

Do any Buckshees pay taxes currently? Yes, some are paying as those mobile homes are registered with the Mobile Home Registry and some others are tracked by electrical/phone service.

We need to know what and how the tax monies will be spent and it may not be enough for enforcement of all the bylaws, etc. The figures that are on the slides are estimates only of the costs to start up taxation if the Band so chooses. The Band will need to project the additional $125,000.00 to cover the staff and office costs per year. Then the Band will need to discuss the projects that will be carried out for the community with the tax dollars as provided in the Expenditure Bylaw that will have to be passed. An Expenditure Bylaw is required to be passed at the same time as the taxation assessment and taxation bylaws are passed. These expenditures must fit within Section 81, 83 & 85 of the Indian Act, as indicated in the handouts available.

Has the Band Council got a strategy for the expenditures of the tax monies, i.e. cleaning up the lake, pollution, roads, sewage? That will be guided by the Comprehensive Community Plan and by consultation with the Band membership. The suggestion is that with creating reliable systems for sewage, etc. that the services can be charged to the non­native occupiers.

What happens to those Band members who have common law spouses or who are married to non­natives who live with their spouses/children on Okanagan Reserve lands? In all instances examined those non­member spouses and children who are not Band members and live with their families on reserve lands are not taxed as they do not have an “interest” in the reserve lands they occupy – the Band member holds that interest and therefore is not taxed.

Does the Band expect to receive a percentage of the registered lease monies? That is a matter for each Band to deal with and is not part of the taxation. Some Bands do get a percentage from the registered Leases and some don’t.

Will the Band be imposing a tax on gas, tobacco, cigarettes, etc. like other Bands have done?

45 This tax is a G.S.T. and provincial rebate system that is not part of the taxation. The Band does not intend to take the taxes that are saved by Band members for goods and services that are delivered on reserve lands which are exempt from those taxes. Some Bands have done this at the direction of their own membership.

Is the taxation system on reserves tied to the Municipal Act? No. It was rejected by Indian communities throughout BC except for Schelt and Westbank who are working on their own self­government models.

If the Okanagan Band assumes taxation, how would the revenue generated by taxation dollars compare with other Bands in BC? It is estimated that if the Okanagan Band collected all taxes assessed against non­ native occupiers of the reserve lands that Okanagan would be second only to Squamish.

Does Duck Lake #7 Band membership receive appropriate and adequate services? At the current time, the Volunteer Lake Country Fire Department responds to fire calls. There is ambulance service from Lake Country and the service is good. The RCMP come from Kelowna and the servicing is terrible – some calls have resulted in 1+ hour response time. If the Band had tax funds, there can be protocol agreements between these agencies and the Band to improve and maintain these services at a reasonable level.

(b) Frequently Asked Questions­ First Nations Taxation Commission website (www.fntc.ca)

1. HOW DOES THE FIRST NATIONS TAX COMMISSION DIFFER FROM THE FORMER INDIAN TAXATION ADVISORY BOARD? The ten­member First Nations Tax Commission (FNTC) is one of the four institutions created as a result of the passage of the First Nations Fiscal and Statistical Management Act (FSMA) which received Royal Assent in March 2005. It is the successor organization to the Indian Taxation Advisory Board.

In the past, ITAB provided many functions similar to provincial government bodies that regulate their local government property tax authorities. However, there were important differences. For example, the Board was “advisory” in nature, having only the power of recommendation. The power to approve, or not to approve, First Nation taxation laws remained with the Minister of Indian Affairs and Northern Development. ITAB also faced many unique challenges because the First Nation property tax system operates within a legislative, legal and policy context that is very different from local government tax systems.

The enhanced authority of the FNTC will allow property tax revenues to finance infrastructure more effectively and reduce other barriers to economic development

46 on First Nation lands. The FNTC will operate as part of an overall system of fiscal governance for First Nations. It will be responsible for the development and regulation of the First Nation property tax system. In carrying out this role, the Commission will work with First Nations, other First Nation institutions, the federal, provincial and local governments.

The Commission will ensure the First Nation property tax system is administratively efficient, harmonized with the rest of the country and is fair to on­reserve taxpayers. To do this the FNTC will set administrative standards, regulate matters pertaining to its property tax mandate, enforce these regulations, mediate disputes and act on behalf of the collective interest of First Nation tax administrations.

2. HOW WILL THE FNTC WORK? The First Nations Tax Commission operates as part of an overall system of fiscal governance for First Nations. It is responsible for the development and regulation of the First Nation property tax system. In carrying out this role, the Commission works with First Nations, other First Nation institutions, the federal, provincial and local governments.

The Commission will continue to ensure the First Nation property tax system is administratively efficient, harmonized with the rest of the country and is fair to on­ reserve taxpayers. To do this the FNTC will set administrative standards, regulate matters pertaining to its property tax mandate, enforce these regulations, mediate disputes and act on behalf of the collective interest of First Nation tax administrations. More specifically, the FSMA mandates the FNTC to:

• approve local revenue laws under FSMA and continue to advise the Minister on the approval of section 83 by­laws;

• continue to advise and assist the Minister on policy issues relating to the implementation of First Nation property taxation powers, and on any matter or policy put to it by the Minister;

• provide professional and objective assessments of First Nation property taxation laws pursuant to their enabling legislation;

• prevent and minimize the costs of disputes by providing a mechanism for hearing the concerns of affected parties under First Nation taxation regimes and for promoting the reconciliation of conflicting interests. The Commission will have measures for facilitating solutions and, if necessary, mediating;

• set standardized administrative practices for First Nation real property tax administrations;

• provide certified training courses to ensure standards are achieved;

47 • develop national standards and regulations over matters pertaining to First Nation property tax systems;

• regulate and, where required, enforce these standards to provide greater assurance to taxpayers and investors on First Nation lands;

• provide education in order to raise awareness of the benefits of First Nation taxation between First Nations and the rest of the country;

• certify First Nation property tax administrations for debenture borrowing; and

• provide the regulatory certainty to enable property tax revenues to support debenture financing, thereby reducing the cost of local infrastructure.

3. WHAT IS REAL PROPERTY TAX? Property taxes are a major source of revenue for local governments. In fact, it is their single most important source of revenue, including special property­based taxes such as business taxes. Other sources of local government revenue usually include licenses and permit fees, receipts from fines and penalties, investment income, grants and transfer payments. In most cases, property taxes in Canada are imposed to cover the costs of local government that are not met from other revenue sources or transfers from federal and provincial governments.

Property taxes are the main source of funding for the provision of local services, such as roads, water, sewage, sanitation, snow removal, fire and police protection, building and plans inspection. As a result, property taxes commonly are perceived as taxes paid for the benefit of using local government services. These taxes represent "a way of proportioning the net costs of local government among all taxpayers on the basis of wealth as measured by their assessed property value.”

For First Nations, property taxes provide an independent, stable and flexible source of revenue, which can be reinvested in First Nation communities to build economic infrastructure, attract investment, and promote economic growth. Property taxation also establishes jurisdiction and provides First Nations with improved powers to control land development.

4. WHAT IS S.83 TAXATION UNDER THE INDIAN ACT? Section 83 of the Indian Act provides First Nations with by­law making authority for real property taxation on reserve. First Nations exercising taxation under section 83 must pass the following by­laws: Real Property Tax and Assessment Bylaw, Expenditure By­law, and an annual Rates By­law. All by­laws are subject to Ministerial approval, upon the recommendation of the FNTC.

48 5. WHAT IS TAXATION UNDER THE FIRST NATIONS FISCAL AND STATISTICAL MANAGEMENT ACT? The FSMA provides First Nations with law making authority for real property taxation on First Nation lands. First Nations wishing to access the FSMA taxation powers must first pass a band council resolution requesting that the Minister add the First Nation to the FSMA Schedule. Once the Governor­in­Council adds the First Nation to the FSMA Schedule, the First Nation’ tax powers are drawn from the provisions of the FSMA. As well, any section 83 bylaws that the First Nation may have had in place are moved into the FSMA framework. Property taxation under the FSMA requires taxpayer consultation, property tax and assessment laws, and annual laws for expenditures and rates. All laws are subject to the review and approval of the FNTC.

6. WHAT ARE THE MAIN DIFFERENCES BETWEEN S.83 TAXATION AND TAXATION UNDER THE FSMA? The FSMA provides an enhanced regulatory framework for First Nation real property taxation. It differs with s.83 taxation in six fundamental ways:

• Clarity of laws – FSMA provides clear statutory authority for local revenue laws including taxation, business licensing, and development cost charges.

• Institutional support and protection of local revenues ­ FSMA provides clear statutory protection for First Nation local revenues (including taxation revenues).

• Enforcement provisions ­ FSMA provides clear statutory authority for First Nations to enforce their local revenue laws.

• Approval authority ­ FSMA provides for FNTC review and approval of local revenue laws, bypassing delays associated with Ministerial approvals.

• Improved taxpayer relations provisions ­ FSMA provides clear statutory requirements for taxpayer notice and due process.

• Access to debenture financing system ­ FSMA provides access to the infrastructure debenture financing system, allowing First Nations to lever their property tax revenue for financing large scale infrastructure projects.

7. HOW MANY FIRST NATIONS LEVY PROPERTY TAXES ON RESERVE, AND HOW MUCH REVENUE IS BEING GENERATED? First Nations exercising taxation jurisdiction continue to increase annually. Currently, approximately 120 First Nations in Canada are now levying property taxes on reserve.

49 Annual revenues to First Nations from taxation exceeded $49 million for 2005­ 2006. Since 1989, more than $294 million has been generated through property taxation on reserve.

8. DO FIRST NATIONS HAVE SUFFICIENT PROPERTY TAX BASES FROM WHICH TO COLLECT TAX REVENUES? All First Nations have potential property tax bases; however, some are more administratively viable than others. For those First Nations that do choose to enter property taxation, the exercise of their jurisdiction must be supported. Property tax is an important component of government revenue that is essential to the provision of services. Supreme Court of Canada rulings have reinforced the importance of these powers for First Nations governments.

Approximately 120 First Nations are collecting property tax in diverse circumstances across Canada. The composition of these tax bases is as diverse as First Nations themselves. Rural and remote First Nations have greater focus on utility, railway, industrial, or recreational taxpayers, while First Nations that are closer to municipalities are likely to have more residential and commercial taxpayers.

9. WHAT CAN BE TAXED?

Agricultural Permits and Leases Leased agricultural and is subject to taxation. First Nations give leases to agricultural lands through ministerial leases or informal agreements often called "buckshee" leases. These latter are private agreements between the First Nation or an individual member and a non­member.

Oil, Gas, Timber and Resource Leases Surface leases may be taxed as interests in reserve land.

Commercial Land Use Lease Commercial leases or reserve land and facilities on those leases can be taxed. This is income for the First Nation over and above the lease payments.

Rental Leases Rental leases can be subject to taxation. Tax revenues would be independent of any rental payments. However, the lease or rental agreement should provide for the condition of taxation.

Utilities Utility companies which are not government corporations are taxable. Frequently, utilities involving power, telephone and natural gas lines are located on rights of way granted for public roads through a reserve.

50 Grants in lieu of Taxes

10. WHAT ARE THE STEPS IN LEVYING FN PROPERTY TAX? Whether exercising taxation under the FSMA or s.83 jurisdiction, there are five stages to exercising tax jurisdiction: i.) Decision to Tax

In making the decision to exercise real property taxation, a Chief and Council of at First Nation has considered how much revenue will likely be generated, the estimated costs of implementation and administration, and under which legal authority it wishes to exercise jurisdiction. For FSMA taxation, the Council must make a request to the Governor in Council (GIC) to be added to the FSMA schedule (The FNTC has sample Band Council Resolutions for making requests to be added to the FSMA schedule). ii.) Development of Tax Jurisdiction

The First Nation develops and prepares taxation bylaw under section 83 or a local revenue law under the FSMA. The First Nation should consult with the FNTC to determine the various requirements or may use models available on the FNTC website. Taxation, assessment, rates and expenditure bylaws and local revenue laws are free of charge. A visit to your community for tax presentation by an FNTC staff member can also be arranged. The local revenue law or tax bylaw is then submitted to FNTC for its review. iii.) Communications

This stage is a critical. All affected parties must be informed of the First Nation's decision to tax in order to ensure a smooth transition. Affected parties include:

• the potential taxpayers

• the municipality from which the First Nation may be assuming tax jurisdiction

• members of the First Nation

• the MP and MLA for the riding in which the First Nation is located

• the provincial assessment office

To assist in this stage, FNTC can provide sample letters and general advice on the proper wording of the First Nation's correspondence to these parties.

51 iv.) FNTC Review and Analysis

Once the First Nation has submitted its bylaw or local revenue law to FNTC, it is analyzed to ensure that it is legally sound. As such, revisions may be required. If so, FNTC will provide to the First Nation its detailed analysis, which highlights any required changes. v.) Approvals

For local revenue laws under the FSMA, all laws are subject to the review and approval of the FNTC. Approval criteria includes: compliance with the Canadian Charter of Rights and Freedoms, conforms to the principles of natural justice, conforms with the FSMA and supporting regulations, and FNTC policy. Once satisfied all criteria have been met, the FNTC will approve the law.

For section 83 bylaws, the FNTC makes its recommendation to the Minister whether to approve the First Nation's bylaw or not. A favourable recommendation means that the bylaw complies with the Canadian Charter of Rights and Freedoms, conforms to the principles of natural justice, conforms with the Indian Act and FNTC policy. Based on FNTC's recommendation, the Minister will approve, or not approve, the proposed bylaw.

[1] Grants in lieu of taxes, with tax legislation, First Nations can negotiate with both government agencies and utilities for grants in lieu of taxes.

(c) Property Taxation Q & A­ January 2007 Senk’l’ip (Prepared by Cliff Thorstenson)

The Okanagan Indian Band Council continues to look into aspects of property taxation on OKIB reserves.

Council wants to make sure that Band members have accurate information about property taxation so you can give guidance as to how to proceed. I hope the following information paints a clear and accurate picture of the issues.

What taxes are we talking about?

Council is only looking at property taxation—those taxes that are paid by occupiers of land to the province and municipalities to pay for local services. Council is not looking at other forms of taxation like sales tax.

Council is only looking at imposing property taxes for non­Band member occupiers of OKIB reserve lands.

Is anybody paying property taxes on OKIB reserves right now?

52 Right now, property taxes are paid by some people and businesses on OKIB reserves. These include: • Non­Indian residents of registered housing developments such as Desert Cove, Lawrence Heights, Lake Point, Holiday Park and Parker Cove; • Some utilities such as Terasen Gas, FortisBC and Telus; • Commercial/Industrial developments such as Paragon Wood Products (formerly Abeda) and SRI manufactured homes (both on the Duck Lake Reserve); and • Some occupiers of “buckshee leases”.

What is a “buckshee lease”?

Some Band members have a “certificate of possession”. This is a document, often called a “CP” issued under the Indian Act that gives its holder legal possession and use of a given parcel of land. “Locatees” is the term often used to describe these CP holders.

Some CP holders have used their land—especially land along the lakes—to rent or lease to non­Band members. This has generally been done without the involvement of Band Council or Band membership. Such agreements are often called “buckshee leases”.

Why are some but not all occupiers of buckshee leases paying property taxes?

Following a court case in the early 1970’s, the provincial assessment authority felt they had the right to come on reserve and assess buckshee leases for property taxation purposes. They assessed a few on OKIB reserves before Band Council denied them further access to OKIB lands.

The buckshee lease properties that were assessed back then were eventually deleted from provincial taxation rolls.

Some other occupiers of buckshee leases are also paying property taxes. These include people with homes registered in the Manufactured Home Registry.

Still, none of the non­Band member occupiers of the estimated 1,500 buckshee lakefront residential and recreational properties pay any sort of property taxes to the province or municipalities, much less the Okanagan Indian Band.

Who gets the property taxes that are being paid now?

Even though the taxpayers live on reserve, they do not pay taxes to the Band or Indian Affairs. Where the reserve is within municipal boundaries, such as the Duck Lake Reserve (which is inside the boundaries of the City of Kelowna—but not part of the City of Kelowna) the taxes are collected by that municipality.

53 Where the reserve is within the boundaries of a regional district, such as IR#1 (which is partly in the Central Okanagan Regional District and partly within the North Okanagan Regional District­ but not part of those Regional Districts), the taxes are collected by the provincial government.

The tax money that is collected is then distributed among the levels of government that are providing services to the taxpayers. Some services that are covered by property taxes include: • Infrastructure (sidewalks, sewers, water, roads) • Garbage removal • Snow removal • Fire and police protection • Hospitals (partial) • Schools (partial)

How much property tax is being paid right now?

The taxpayers mentioned above pay about $1.5 million in property taxes to the province and municipal governments.

What can the Band do to get the taxes that are already being paid?

The Indian Act says a Band Council can pass a bylaw for “taxation for local purposes of land, or interests in land, in the reserve, including rights to occupy, possess or use land in the reserve”

The Band’s property taxation bylaw must be approved by the Minister of Indian and Northern Affairs Canada. All proposed taxation bylaws are reviewed on behalf of the Minister by the Indian Taxation Advisory Board (“ITAB”). The bylaws must: • be fair according to the Canadian Charter of Rights and Freedoms; • treat all members of a category of land occupants similarly (in other words, the Band could not tax some buckshee lessees and not others)

Could the Band pass a taxation bylaw that applies only to those people who are paying taxes now to the Province or municipalities?

Not exactly.

A Band taxation bylaw can say which categories of land use it applies to. Some Bands tax only the utilities (eg Terasen Gas) that run through their reserves.

A taxation bylaw can also identify taxation “districts”, and collect taxes in some geographic areas and not others, but INAC will not approve a bylaw that taxes only some members of a given land use category (eg residential) and not others.

It is therefore unlikely that the current situation­­ where many non­Band members pay taxes on their residences (eg Desert Cove and some buckshees) and some of their non­Band member neighbours do not—would be accepted.

54 Won’t this mean that Band members will be taxed?

No.

All Bands that have enacted taxation bylaws exempt Band members from property taxation. This is the kind of bylaw that the present OKIB Band Council is looking at.

Some OKIB Band members fear that once the Band has taxation authority, it is only a matter of time before Band members themselves are paying property taxes. This concern is so strong that they would sooner have non­Band members continue to pay property taxes to the province and municipalities, or allow non­ Band members to avoid paying property taxes altogether.

How can we make sure Band members will never pay property taxes?

It is not possible to guarantee this for the reasons explained below. However, Band Council can take some action to make it very unlikely.

Here are the difficulties with “guaranteeing” that there will never be property taxes for Band members. Note that these difficulties apply whether or not this Band Council or the next one passes a taxation bylaw. 1. Current tax exemptions come under section 87 of the Indian Act. These exemptions could be removed at any time by the federal parliament. Some First Nations argue that the tax exemption is an “aboriginal right” but this argument has never been tested in court. 2. Any Band Council has the authority under section 83 of the Indian Act to impose property taxation, even on its own membership. Although it is not the intention of the current Band Council to impose property taxation on Band members, there is nothing in law to stop a future Council from attempting to do so. A current Band Council cannot “bind” a future Council. The best that a current or future Band Council can do to prevent against property taxation of Band members is to enact a clause in the bylaw clearly stating that: • the bylaw does not apply to Band members; and • any future additional taxation would require a referendum with over half the electors participating and, for example, at least 75% support of those voters. How much money are we talking about?

It is hard to give an accurate estimate without assessing the value of the taxable property, but our best estimate is that the Band could collect:

55 • about $1.9 million from the people and businesses who already pay property taxes; • about $3.65 million if all non­Band member occupants of OKIB reserve lands (including occupants of buckshee leases) pay property taxes

What would the Band use the tax money for?

The October 1999 ITAB background bulletin establishes the following categories for the use of property tax dollars:

1. General Government Services 2. Protective Services 3. Transportation Services 4. Recreational and Cultural Services 5. Community Development Services 6. Environmental Health Services 7. Fiscal Services 8. Other Expenditures 9. Taxes for Other Governments

Band Council would have to pass a bylaw setting out how the tax revenue would be distributed among the above categories. Limits could be established to ensure that money is not “wasted”.

Some of the above services would continue to be provided by neighbouring municipalities, and the Band would have to negotiate service agreements with them. According to ITAB, however, most Bands with taxation bylaws have found that the cost of these service agreements is far lower than the total amount of taxes they collect.

Will the Band have to share facilities with taxpayers if those facilities were built with tax dollars?

Yes.

If non­Band members have contributed property tax dollars that have been used to build a recreation centre, for example, they should be entitled to use that facility. However, it is open to the Band to reasonably restrict the use to certain hours and to impose user fees.

If the Band is getting tax revenue, will the government reduce its funding to the Band?

According to ITAB, the answer is no.

In negotiations with government, ITAB has guarded against the reduction of transfers to Bands with taxation bylaws.

56 Would a taxation bylaw affect our aboriginal title and aboriginal rights?

It has been argued that property taxation may impact on the aboriginal title and rights of OKIB and its members and the sovereignty of the Syilx Nation.

On the other hand, the current situation, where another government (the province) collects and distributes property tax dollars collected on OKIB reserves, seems to some to be a greater intrusion on Syilx sovereignty.

However, this is a complex and important issue. Band Council is planning to obtain a legal opinion on the topic.

What rights would the taxpayers have if the Band collected the property taxes?

Generally, people who pay taxes are entitled to vote in elections of the government bodies that impose those taxes, eg residents of the City of Vernon get to vote in municipal elections.

However, non­Band members will not have the right to vote in Band elections. Their rights as taxpayers are protected by the requirement that a taxation bylaw allows a non­Band member taxpayer to appeal the amount of their assessment to an independent Assessment Review Board set up under the OKIB Assessment and Taxation Bylaw.

What are the steps in enacting and implementing a taxation bylaw?

Here are the steps leading up to property taxation of non­Band members on OKIB reserves.

1. Further community consultation. 2. Band Council enacts an Assessment and Taxation Bylaw. 3. Band contracts with BC Assessment Authority to carry out a evaluation/appraisal of properties to be taxed and calculated property taxes for each one. 4. Band negotiates service agreements, as required, with surrounding municipalities. 5. Band issues tax notices to taxpayers. 6. Band collects taxes. 7. Band enacts Expenditure Bylaw authorizing the expenditures of tax monies collected.

Will there be further discussions before Council makes a decision?

Yes.

There will be a further series of community discussions, starting with a meeting at the Head of the Lake Hall at 6 pm on ______, the _____ day of

57 February, 2007. In the meantime, if you have any questions, concerns or comments about this issue, please email me at [email protected]. I will respond to any emails that I can, and will arrange to include comments and views in a future issue of the Senk’l’ip.

Cliff Thorstenson Governance Manager Okanagan Indian Band

58 7. Legal Opinions on Property Taxation a) Donovan & Company b) Mandell Pinder

59 60 61 62 63 64 65 66 67 68 69 8. EXEMPTIONS FROM TAXATION

Although section 83 of the Indian Act authorizes a Band Council to tax Band members as well as non­Band members, OKIB—if it goes ahead with a property tax bylaw­­ intends to exempt Band members from any form of property taxation.

None of the other Bands in B.C. that currently have property taxation bylaws tax their members. This approach has been held up in court.

Following is the wording proposed to OKIB in 2006, to provide for an exemption from property taxation for Band members.

Property Exempt From Taxation (1) The following property is exempt from taxation: a) Property of a band member held under a cp, except any part of the property of a band member held under a cp that is used or occupied or that is subject to an interest held: (i) by a person or persons who are not band members, or (ii) under a lease, licence, permit or any arrangement pursuant to which such person or persons pay, or have an obligation to pay, rent, license fees or other moneys to any person, including without limitation a band member b) Property of the band located within lands that are not designated lands as defined in the Indian Act or surrendered lands as defined in the Indian Act, except any part of the property of the band that is used or occupied: (i) by a person or persons who are not band members, or (ii) under a lease, licence, permit or any arrangement pursuant to which such person or persons pay, or have an obligation to pay, rent, licence fees or other moneys to any person, including without limitation the band, c) notwithstanding subsection (1)(a) and subject to subsection (3), property used and occupied by the band chiefly for the administration of the affairs of the band, d) notwithstanding subsection (1 )(b) and subject to subsection (3), property of an organization, incorporated or otherwise, owned or controlled by the band, or an aboriginal organization, unless the council decides that this exemption shall not apply, e) manufactured homes licensed and equipped to travel on a public highway, that are occupied by a person or persons not ordinarily resident

70 on the reserve and are situated within a mobile home park or manufactured home park for a period of less than 60 days f) campers, motor homes or any vehicle that is capable of being towed on its own permanent wheels and under carriage by motor vehicle, has a current license as a trailer under the Motor Vehicle Act, RSBC 1979, c. 288, as amended from time to time, for use on a highway and is not used as a principal residence, g) a floating manufactured home other than a floating manufactured home that is anchored or secured, for a period of 60 days or more during a year, to land, a structure or a buoy in a manufactured home park that is covered by water, h) if, and for howsoever long as, council by band council resolution may approve, the property of a municipality that is maintained and operated as park or a recreation ground or for athletic or recreational purposes by the municipality, i) property owned by a body corporate, all issued and outstanding shares of which are held by a band member, which is used and occupied by the band member holding all of the issued and outstanding shares of the body corporate, as that band member's principal residence.

(2) Where an interest in property is exempt from taxation, that fact does not affect the liability to assessment or to taxation of any other interest in the same property

(3) The surveyor of taxes shall determine whether:

a) for the purposes of paragraph (1)(c), property is used and occupied by the band primarily for the administration of the affairs of the band, b) for the purposes of paragraph (1 )(d), any organization is owned or controlled by the band, c) for the purposes of subsection (1)(a), any part of the property of a band member held under a cp, is used or occupied: (i) by a person or persons who are not band members, or (ii) under a lease, licence or any arrangement pursuant to which such person or persons pay, or have an obligation to pay, rent, licence fees or other moneys to any person, including without limitation the band, or d) for the purposes of subsection (1 )(b), any part of the property of the band is used or occupied: (i) by a person or persons who are not band members, or (ii) under a lease, licence or any arrangement pursuant to which such person or persons pay, or have an obligation to pay, rent, licence fees or other moneys to any person, including without limitation the band, and any such determination shall be final and conclusive for all purposes unless and until the surveyor of taxes shall make a contrary determination under this subsection (3).

71 (4) Notwithstanding subsection 14(1) through 14(3), all land and interests in land are liable to service and local improvement charges.

(5) Where an interest in land is not subject to taxation, that fact does not affect the liability to taxation of any other interest in the same land.

(6) a) An exemption does not apply to any portion of a building other than the portion occupied or used for the purpose for which the exemption was granted. b) Where an exemption applies to a portion of a building, it applies, in the same proportion, to the land that is necessary as the site for the building.

The First Nations Taxation Commission website (www.fntc.ca) provides the following examples of property that Bands may wish to exempt from taxation:

• any interest in land held or occupied by a member of the Okanagan Indian Band • any interest in land held or occupied by the Okanagan Indian Band • any interest in land held or occupied by a corporation that is majority­ owned by the Okanagan Indian Band • a building used for school purposes or for a purpose ancillary to the operation of a school • a building used or occupied by a religious body and used for public worship, religious education or as a church hall • a building used as a hospital, other than a private hospital • a building used as a university, technical institute or public college, not operated for profit • an institutional building used to provide housing accommodation for the elderly or persons suffering from physical or mental disability, not operated for profit • that part of a cemetery actually used for burial purposes

72 9. POTENTIAL OKIB PROPERTY TAX REVENUE AND EXPENSES

The following table shows the estimated property taxes paid to the Province by non­Band member land holders on OKIB reserves in 2005. These land holders include utilities such as Telus and Terasen Gas as well as residential and business occupants of registered leases.

Reserve Land Use Residential Business Light Recreational Utilities Total Industrial Non­ Professional IR #1 $ 668,000 $ 2,400 $ 4,600 $62,000 $ 737,000

IR #2­ . Otter Lake IR #3­ Harris IR #4­ Swan Lake IR #6­ $ 188,800 $ 800 $ 189,600 Priest Valley IR #7­ $ 766,900 $ 12,400 $ 83,280 $ 862,580 Duck Lake TOTAL $1,623,700 $14,800 $83,280 $ 4,600 $ 62,800 $1,789,180 1

It is estimated that there are approximately 1500 buckshee leases on OKIB Reserves, with a total assessed value of approximately $375 million. With property taxes from buckshee lessees, the property tax revenue to the Okanagan Indian Band would be approximately $3.65million per year.

1 Estimate of total property tax revenue if all non­Band member property holders (including buckshees) were taxed = $3.65 million

73 Property Taxation Expenses

There are expenses that come with taking over property taxation authority. These expenses include: • Administration expenses • Contract with B.C. Assessment Authority (for property assessments) • General and Provincial Tax • Service Agreements with municipalities (to offset their loss of tax revenue for services used by on reserve taxpayers)

These expenses need to be negotiated. But, based on information provided by the First Nations Tax Commission and other Bands, we estimate the cost of these expenses to be between 20 and 50% of property tax revenue.

74 10. POTENTIAL USES OF PROPERTY TAX REVENUE

The following list is from the First Nations Tax Commission website, www.fntc.ca, and describes different potential uses of on­reserve property taxation revenue.

1. General Government Expenditures 6. Environmental Health Services a. Executive and Legislative a. Water Purification and Supply b. General Administrative b. Sewage Collection and Disposal c. Other General Government c. Garbage Wates Collection and Disposal 2. Protection Services d. Other Environmental Services a. Policing b. Firefighting 7. Fiscal Services c. Regulatory Measures a. Interest Payments to First d. Other Protective Services Nations Finance Authority (FNFA) 3. Transportation b. Debt Payments to FNFA a. Roads and Streets c. Other Payments to FNFA b. Snow and Ice Removal d. Other Interest Payments c. Parking e. Other Debt Charges d. Public Transit f. Other Fiscal Services e. Other Transportation g. Debenture Payments

4. Recreation and Cultural Services 8. Other Services a. Recreation a. Health b. Culture b. Social Programs and Assistance c. Other Recreation and Culture c. Agriculture d. Tourism 5. Community Development e. Trade and Industry a. Education f. Other Service b. Housing c. Planning and Zoning 9. Taxes Collected for Other Governments d. Community Planning e. Economic Development • Homeowner Grants Program • Grants to Not­for­profit Corporations f. Heritage Protection • Municipal Service Agreements g. Agricultural Development • Capital Infrastructure Replacement h. Urban Renewal Reserve Fund i. Beautification • Capital Infrastructure Improvement j. Land Rehabilitation Reserve Fund k. Tourism Development • Other Reserve Funds l. Tourism Information m. Other Regional Planning and Development

75 11. TAXPAYER RIGHTS Non­Band member taxpayers have challenged Indian Band property bylaws in court on two grounds:

• they are subject to “taxation without representation”­­ they have to pay taxes to Indian Bands without being able to vote in Indian Band elections. • Property taxation bylaws that require them to pay taxes while exempting Band members are “discriminatory”.

So far, courts have upheld Band bylaws that tax only the property occupied by non­Band members, provided the taxpayers have a way to appeal a tax assessment, such as the following process suggested by FNTC. • Council must, by resolution, establish an Assessment Review Board to: Ø consider and determine all recommendations made by the assessor, and Ø hear and determine assessment appeals under this Okanagan Indian Band law. • Any person, including without limitation the Okanagan Indian Band and the assessor, may appeal an assessment or a reconsideration of an assessment of assessable property to the Assessment Review Board.

• The grounds for appeal may be in respect of one or more of the following: Ø the assessed value of the property Ø the assessment classification of the property Ø the applicability of an exemption to the property Ø any alleged error or omission in an assessment or Assessment Notice Ø the liability of the holder to taxation under the Taxation Law • The Assessment Review Board must give all parties a reasonable opportunity to be heard at a hearing.

• The Assessment Review Board may receive and accept information that it considers relevant, necessary and appropriate, whether or not the information would be admissible in a court of law.

• A decision of the majority of the members is a decision of the Assessment Review Board and, in the case of a tie, the decision of the chair governs.

• An appeal lies from the Assessment Review Board to a court of competent jurisdiction, with leave, on a question of law.

76 12. Sample Property Taxation Bylaws

Following are sample bylaws of the kind that OKIB Council would need to pass in order to take over authority for taxing non­Band member property holders on OKIB Reserves. They include:

• A “Property Assessment and Taxation Bylaw” • A “Rates Bylaw” • A “Property Taxation Expenditure Bylaw” • A “Financial Administration Bylaw”

77 (a) OKANAGAN INDIAN BAND PROPERTY ASSESSMENT AND TAXATION BY­LAW BY­LAW NO. __ (Sample)

1.0 SHORT TITLE...... 85 2.0 DEFINITIONS AND REFERENCES ...... 85 3.0 ADMINISTRATION ...... 89 4.0 APPLICATION...... 90 5.0 LIABILITY FOR TAXATION...... 90 6.0 REFUNDS...... 90 7.0 EXEMPTIONS FROM TAXATION AND GRANTS...... 91 7A.0 TAX ABATEMENT ...... 92 8.0 LEVY OF TAX...... 93 9.0 TAX PAYMENTS ...... 94 10.0 ASSESSED VALUE...... 94 10A.0 EXEMPTION FROM ASSESSMENT ...... 96 11.0 INFORMATION FOR ASSESSMENT ROLL...... 96 12.0 ASSESSMENT ROLL ...... 96 13.0 NOTICE OF ASSESSMENT ...... 99 14.0 ERRORS AND OMISSIONS IN THE ASSESSMENT ROLL...... 100 15.0 SUPPLEMENTARY ASSESSMENT ROLLS ...... 101 16.0 ASSESSMENT REVIEW BOARD ...... 102 17.0 APPEAL TO ASSESSMENT REVIEW BOARD ...... 105 18.0 THE APPEAL HEARING ...... 106 19.0 DECISIONS OF THE ASSESSMENT REVIEW BOARD ...... 111 20.0 DELIVERY OF DOCUMENTS ...... 112 21.0 TAX ROLL ...... 112 22.0 TAX NOTICE ...... 113 23.0 SUBDIVISION ...... 114 24.0 PERIODIC PAYMENTS ...... 114 25.0 PAYMENT RECEIPTS AND TAX CERTIFICATES ...... 115 26.0 PENALTIES AND INTEREST ...... 115 27.0 APPLICATION OF REVENUES ...... 116 28.0 COLLECTION AND ENFORCEMENT ...... 116 29.0 SEIZURE AND SALE OF PERSONAL PROPERTY...... 118 30.0 SALE OF INTEREST IN LAND ...... 120 31.0 CANCELLATION OF INTEREST IN LAND...... 123 32.0 FORFEITURE ...... 125 33.0 DISCONTINUANCE OF SERVICES...... 126 34.0 SERVICE AND LOCAL IMPROVEMENT TAXES ...... 127 35.0 GENERAL...... 127

SCHEDULES:

78 I. Property Classes II. Request for Information III. Form of Assessor Certification IV. Declaration of Purpose for the Use of Assessment Information V. Notice of Assessment VI. Notice of Appeal VII. Notice of Hearing VIII. Order to Attend Hearing/Produce Documents IX. Notice of Withdrawal X. Tax Notice XI. Tax Certificate XII. Demand for Payment/Notice of Enforcement XIII. Costs Payable by Debtor Arising From Enforcement Proceedings XIV. Notice of Seizure of Personal Property XV. Notice of Sale of Seized Personal Property XVI. Notice of Seizure of Interest in Land XVIA. Notice of Sale of Interest in Land XVII. Certificate of Sale of Interest in Land XVIII. Notice of Cancellation of Interest in Land XIX. Certificate of Cancellation of Interest in Land XX. Notice of Forfeiture XXI. Certificate of Forfeiture XXII. Notice of Discontinuance of Services

WHEREAS:

A. Pursuant to paragraph 83(1)(a) of the Indian Act, the council of a Indian Band may make by­laws for the purpose of taxation for local purposes of land, or interests in land, in the reserve, including rights to occupy, possess or use land, in the reserve; and

B. The Council of the Okanagan Indian Band deems it to be in the best interests of the Okanagan Indian Band to make a by­law for such purposes;

NOW THEREFORE the Council of the Okanagan Indian Band at a duly convened meeting enacts as follows: 1.0 SHORT TITLE

1.1 This By­law may be cited as the Property Assessment and Taxation By­law.

2.0 DEFINITIONS AND REFERENCES

2.1 In this By­law:

“actual value” means the market value of an interest in land as if the land and improvements were held in fee simple off the reserve;

“assessable property” means property that is subject to assessment under this By­ law;

“assessed value” means the actual value of an interest in land as determined under this By­law;

79 “assessment” means a valuation and classification of an interest in land;

“Assessment Review Board” means a board established by Council in accordance with Article 16.0;

“assessment roll” means a list prepared pursuant to this By­law setting out interests in land and their assessed values for the purposes of taxation and includes a supplementary assessment roll and a revised assessment roll under this By­law;

“assessor” means a person appointed by Council under section 3.3;

“Certificate of Cancellation of Interest in Land” means a certificate under section 31.4;

“Certificate of Forfeiture” means a certificate under section 32.4;

“Certificate of Sale of Interest in Land” means a certificate under section 30.16;

“chair” means the chair of the Assessment Review Board;

“complainant” means a person who commences an appeal of an assessment under this By­law;

“Council” has the meaning given to that term in the Indian Act;

“debtor” means a person liable for unpaid taxes imposed under this By­law;

“Demand for Payment/Notice of Enforcement” means a demand/notice under sections 28.16, 29.1, 30.1, 32.1 or 33.1;

“expenditure by­law” means a by­law under section 27.3;

“Emergency Program Act” means the Emergency Program Act, R.S.B.C. 1996, c.111;

“First Nations Land Management Act” means the First Nations Land Management Act, S.C. 1999, c. 24;

“holder” means a person in lawful possession of an interest in land or a person who, for the time being,

(a) is entitled through a lease, licence or other legal means to possess or occupy the interest in land,

(b) is in actual occupation of the interest in land,

(c) has any right, title, estate or interest in the interest in land, or

(d) is a trustee of the interest in land;

80 “Home Owner Grant Act” means the Home Owner Grant Act, R.S.B.C. 1996, c. 194;

“improvement” means any building, fixture, structure or similar thing constructed, placed or affixed on, in or to land, or water over land, or on, in or to another improvement and includes any item of immovable machinery or equipment and a manufactured home;

“Indian Act” means the Indian Act, R.S.C. 1985, c. I­5, and the regulations enacted under that Act;

“interest in land” or “property” means land or improvements, or both, in the reserve and, without limitation, includes any interest in land or improvements, any occupation, possession or use of land or improvements, and any right to occupy, possess or use land or improvements;

“locatee” means person who is in lawful possession of land in the reserve pursuant to subsections 20(1) and (2) of the Indian Act;

“manufactured home” means a structure whether or not ordinarily equipped with wheels, that is designed, constructed or manufactured to

(a) be moved from one place to another by being towed or carried, and

(b) provide

(i) a dwelling house or premises,

(ii) a business office or premises,

(iii) accommodation for any other purpose,

(iv) shelter for machinery or other equipment, or

(v) storage, workshop, repair, construction or manufacturing facilities;

“Notice of Appeal” means a notice under section 17.2;

“Notice of Assessment” means a notice under section 13.1;

“Notice of Cancellation of Interest in Land” means a notice under section 31.2;

“Notice of Discontinuance of Services” means a notice under section 33.2;

“Notice of Forfeiture” means a notice under section 32.2;

“Notice of Hearing” means a notice under section 18.3;

“Notice of Sale of Interest in Land” means a notice under section 30.7;

81 “Notice of Sale of Seized Personal Property” means a notice under section 29.4;

“Notice of Seizure of Interest in Land” means a notice under section 30.2;

“Notice of Seizure of Personal Property” means a notice under section 29.7;

“Notice of Withdrawal” means a notice under section 18.36; “Order to Attend Hearing/Produce Documents” means an order under section 18.29;

“party”, in respect of an appeal of an assessment under this By­law, means the parties to an assessment appeal under section 18.5;

“person” includes a partnership, syndicate, association and corporation and the personal or other legal representatives of a person;

“property class” means those categories of property established in section 8.2 for the purposes of assessment and taxation;

“Province” means the province of British Columbia;

“register” in respect of an interest in land, means the Reserve Land Register, the Surrendered and Designated Lands Register, any other land register maintained under the Indian Act and any land register maintained by the Okanagan Indian Band;

“Request for Information” means a request for information under section 11.1;

“reserve” means any land set apart for the use and benefit of the Okanagan Indian Band within the meaning of the Indian Act;

“resolution” means a motion passed and approved by a majority of Council present at a duly convened meeting;

“revised assessment roll” means an assessment roll amended in accordance with this By­law;

“supplementary assessment roll” means a supplementary assessment roll issued under Article 15.0 of this By­law.

“secretary” means the secretary of the Assessment Review Board appointed under section 16.13;

“tax administrator” means the person appointed by Council under to section 3.1 to administer this By­law;

“Tax Notice” means a notice under section 22.1;

“tax roll” means a list of persons liable to pay tax on taxable property;

82 “taxable property” means an interest in land that is subject to taxation under this By­law;

“taxation year” means the calendar year to which an assessment roll applies for the purpose of taxation;

“taxes” includes all taxes imposed, levied, assessed or assessable under this By­ law, and all penalties, interest and costs added to taxes under this By­law; and

“taxpayer” means a person liable for taxes in respect of taxable property.

2.2 In this By­law, references to an Article (e.g. Article 1.0), section (e.g. section 1.1) paragraph (e.g. paragraph 1.1(a)) or Schedule (e.g. Schedule I) is a reference to the specified Part, Article, section, paragraph or Schedule of this By­law, except where otherwise stated. 3.0 ADMINISTRATION 3.1 Council must, by resolution, appoint a tax administrator to administer this By­law on the terms and conditions set out in the resolution. 3.2 The tax administrator’s responsibilities include the collection of taxes and the enforcement of payment under this By­law. 3.3 Council must, by resolution, appoint one or more assessors to undertake assessments of assessable property in accordance with this By­law and such other duties as set out in this By­law or as directed by Council. 3.4 An appointment under section 3.3 is on the terms and conditions set out in the resolution. 3.5 An assessor appointed by Council must be qualified to conduct assessments of real property in the Province. 4.0 APPLICATION

4.1. This By­law applies to all interests in land.

5.0 LIABILITY FOR TAXATION 5.1 Except as provided in Article 7.0, all interests in land are subject to taxation under this By­law.

[Note to Okanagan Indian Band: include words “Except as provided in Article 7.0” only if exemptions included under Article 7.0]

5.2 Any person who shares the same interest in taxable property is jointly and severally liable to the Okanagan Indian Band for all taxes imposed on that taxable property under this By­law during the taxation year and for all unpaid taxes imposed in a previous taxation year, including interest, penalties and costs as provided in this By­law.

5.3 Taxes levied under this By­law are a debt owed to the Okanagan Indian Band, recoverable by the Okanagan Indian Band in any manner provided for in this By­law or in a court of competent jurisdiction.

83 5.4 Where an interest in land is exempt from taxation, the liability to taxation of any other interest on the same property is not affected.

5.5 Where a person alleges that he or she is not liable to pay taxes imposed under this By­law, the person may seek a remedy from the Assessment Review Board or Council or initiate proceedings in a court of competent jurisdiction.

5.6 Taxes are due and payable under this By­law despite a proceeding under section 5.5. 6.0 REFUNDS 6.1 Where

(a) Council, the Assessment Review Board or a court of competent jurisdiction, determines that a person is not liable for taxes under this By­law, or

(b) it is determined under this By­law that a person was taxed in excess of the proper amount, the tax administrator must refund to that person any excess taxes paid by that person.

6.2 Where a person is entitled to a refund of taxes, Council may direct the tax administrator to refund the amount in whole or in part by applying it as a credit on account of taxes or other unpaid amounts that are due or accruing due to the Okanagan Indian Band in respect of taxable property held by that person.

6.3 Where a person is entitled to be refunded an amount of taxes paid under this By­law, the tax administrator must pay the person interest as follows:

(a) interest accrues from the date that the taxes were originally paid to the Okanagan Indian Band;

(b) the interest rate during each successive three (3) month period beginning on April 1, July 1, October 1 and January 1 in every year, is two percent (2%) below the prime lending rate of the principal banker to the Okanagan Indian Band on the fifteenth day of the month immediately preceding that three (3) month period;

(c) interest will not be compounded;

(d) interest stops running on the day payment of the money owed is delivered or mailed to the person to whom it is owed, or is actually paid; and

(e) payment of an amount of interest less than five dollars ($5) will not be made.

84 7.0 EXEMPTIONS FROM TAXATION AND GRANTS

7.1 The following interests in land are exempt from taxation under this By­law to the extent indicated: [Note to Okanagan Indian Band: the following are examples of exemptions that a Okanagan Indian Band may consider in its by­law:

• any interest in land held or occupied by a member of the Okanagan Indian Band;

• any interest in land held or occupied by the Okanagan Indian Band;

• any interest in land held or occupied by a corporation that is majority­owned by the Okanagan Indian Band;

• a building used for school purposes or for a purpose ancillary to the operation of a school;

• a building used or occupied by a religious body and used for public worship, religious education or as a church hall;

• a building used as a hospital, other than a private hospital;

• a building used as a university, technical institute or public college, not operated for profit;

• an institutional building used to provide housing accommodation for the elderly or persons suffering from physical or mental disability, not operated for profit; and

• that part of a cemetery actually used for burial purposes.]

7.2 An exemption from taxation applies only to that portion of a building occupied or used for the purpose for which the exemption is granted. 7a.0 TAX ABATEMENT

[Note to Okanagan Indian Band: The amounts of grants and other forms of tax abatement must be made under the authority of an expenditure by­law.]

7A.1 Where a building is exempted from taxation under this By­law, Council may provide for a grant to the holder equivalent to the taxes payable on that area of land surrounding the building determined by Council to be reasonably necessary in connection with it.

7A.2 Council may provide for a grant to a holder, equivalent to or less than the taxes payable on a property, where

(a) the holder of the property is a charitable, philanthropic or other not­ for­profit corporation; and

85 (b) Council considers that the property is used for a purpose that is directly related to the purposes of the corporation.

7A.3 Council may provide for a grant to holders who would be entitled to a grant under the Home Owner Grant Act if the holder’s property was subject to taxation by a local government.

7A.4 A grant under section 7A.3 may be in an amount equal to or less than the amount to which a person would be entitled under the Home Owner Grant Act if the holder’s property was subject to taxation by a local government.

[Note to Okanagan Indian Band: Council may wish to provide for additional types of tax abatement programs, such as grants or deferrals. The parameters for the programs should be set out in this By­law. For example:

7A.5 Council may, in its expenditure by­law, provide for a grant to holders of residential property:

(a) age sixty­five (65) or older;

(b) with physical or mental disabilities; or

(c) with financial need.

7A.6 In order to qualify for a grant under section 7A.5, a holder must meet the following requirements:

(a) [insert requirements]

(b) …]

8.0 LEVY OF TAX

8.1 On or before ______in each taxation year Council must adopt a by­law pursuant to section 83 of the Indian Act setting the rate of tax to be applied to each class of taxable property.

8.2 A by­law setting the rate of tax may establish different tax rates for each property class set out in Schedule I.

8.3 Taxes must be levied by applying the rate of tax against each one thousand dollars ($1,000) of assessed value of the interest in land.

8.4 Taxes levied under this By­law are deemed to be imposed on January 1 of the taxation year in which the levy is first made.

8.5 Notwithstanding section 8.3, Council may establish, in its annual by­law setting the rate of tax, a minimum tax payable in respect of a taxable interest in land, provided that the minimum tax must not exceed ______dollars ($____).

86 8.6 A minimum tax established under the authority of section 8.5 may be established in respect of one or more property classes.

9.0 TAX PAYMENTS

9.1 Taxes are due and payable on ______of the taxation year in which they are levied.

9.2 Taxes must be paid at the office of the Okanagan Indian Band during normal business hours, by cheque or cash.

9.3 Payment of taxes made by cheque or money order must be made payable to the “Okanagan Indian Band”. 10.0 ASSESSED VALUE

10.1 The assessor must assess all interests in land that are liable to taxation under this By­law and all interests in land for which grants­in­lieu may be accepted by Council.

10.2 For the purpose of determining the actual value of an interest in land for an assessment roll, the valuation date is July 1 of the year during which the assessment roll is completed.

10.3 Where a lease or other instrument granting an interest in land places a restriction on the use of the property, other than a right of termination or a restriction on the duration of the interest in land, the assessor must consider the restriction.

10.4 The actual value of an interest in land for an assessment roll is to be determined as if on the valuation date

(a) the interest in land was in the physical condition that it is in on October 31 following the valuation date; and

(b) the permitted use of the interest in land was the same as on October 31 following the valuation date.

10.5 Paragraph 10.4(a) does not apply to property referred to in section 14.3 and the actual value of property referred to in that section for an assessment roll must be determined as if on the valuation date the property was in the physical condition that it is in on December 31 following the valuation date.

10.6 Except where otherwise provided in this By­law, the assessor must assess interests in land at their actual value.

10.7 The assessor must determine the actual value of an interest in land and must enter the actual value of the interest in land in the assessment roll.

87 10.8 In determining actual value, the assessor may, except where this By­law has a different requirement, give consideration to the following:

(a) present use;

(b) location;

(c) original cost;

(d) replacement cost;

(e) revenue or rental value;

(f) selling price of the interest in land and comparable interests in land;

(g) economic and functional obsolescence; and

(h) any other circumstances affecting the value of the interest in land.

10.9 Without limiting the application of sections 10.7 and 10.8, the interest in land used for an industrial or commercial undertaking, a business or a public utility enterprise must be valued as the property of a going concern.

10.10 Council hereby establishes the property classes set out in Schedule I for the purposes of assessment and administering property taxes under this By­law.

10.11 The assessor must assess interests in land according to the property classes established under this By­law.

10.12 Where a property falls into two (2) or more property classes, the assessor must determine the share of the actual value of the property attributable to each class and assess the interest according to the proportion each share constitutes of the total actual value.

10.13 Where two (2) or more persons are holders of assessable property, the assessor may choose to assess the property in the name of any of those persons or in the names of two (2) or more of those persons jointly.

10.14 If a building or other improvement extends over more than one (1) property, those properties, if contiguous, may be treated by the assessor as one property and assessed accordingly.

10.15 Where an improvement extends over, under or through land and is owned, occupied, maintained, operated or used by a person other than the holder of the land, that improvement may be assessed to the person owning, occupying, maintaining, operating or using it, even though some other person holds an interest in the land.

10.16 Except as otherwise provided in this By­law, for the purposes of assessing interests in land the assessor must use

88 (a) the valuation methods, rates, rules and formulas established under provincial assessment legislation existing at the time of assessment; and

(b) the assessment rules and practices used by assessors in the Province for conducting assessments off the reserve. 10A.0 EXEMPTION FROM ASSESSMENT

10A.1 Notwithstanding any other provision in this By­law, improvements designed, constructed or installed to provide emergency protection for persons or domestic animals in the event of a disaster or emergency within the meaning of the Emergency Program Act are exempt from assessment under this By­law.

11.0 INFORMATION FOR ASSESSMENT ROLL

11.1 The tax administrator or the assessor may deliver a Request for Information in the form set out in Schedule II to any person who is a holder, or a person who has disposed of property, and that person must provide to the tax administrator or assessor, as the case may be, within fourteen (14) days or a longer period as specified in the notice, information for any purpose related to the administration of this By­law.

11.2 The tax administrator and the assessor are not bound by the information provided under section 11.1 and the assessor may in all cases assess the assessable property based on the information available to him or her. 12.0 ASSESSMENT ROLL

12.1 On or before December 31 of each year, the assessor must complete a new assessment roll containing a list of every interest in land that is liable to assessment under this By­law.

12.2 The assessment roll must be in paper or electronic form and must contain the following information:

(a) the name and last known address of the holder of assessable property;

(b) a short legal description of the land;

(c) the classification of

(i) the land, and

(ii) the improvements;

(d) the actual value by classification of

(i) the land, and

89 (ii) the improvements;

(e) the total assessed value of the interest in land;

(f) the net assessed value of the interest in land liable to taxation; and

(g) any other information the assessor considers necessary or desirable.

12.3 On completion of an assessment roll and on or before December 31 in that year, the assessor must

(a) certify in writing in the form set out in Schedule III that the assessment roll was completed in accordance with the requirements of this By­law; and

(b) deliver a copy of the certified assessment roll to Council.

12.4 No later than March 31 of the year following certification of the assessment roll under section 12.3, the assessor must

(a) modify the assessment roll to reflect all corrections of errors and omissions, and decisions received by the assessor from the Assessment Review Board;

(b) date and initial amendments made to the assessment roll under this section; and

(c) prepare a revised assessment roll.

12.5 On completion of the revised assessment roll, the assessor must

(a) certify in writing in the form set out in Schedule III that the revised assessment roll was completed in accordance with the requirements of this By­law; and

(b) deliver a copy of the certified revised assessment roll to Council and to the chair, and on certification, the revised assessment roll becomes the assessment roll for the taxation year and is deemed to be effective as of the date the assessment roll was certified under section 12.3.

12.6 The assessment roll is effective on certification and, unless amended in accordance with this By­law by a decision of the Assessment Review Board or an order of a court of competent jurisdiction, is

(a) valid and binding on all parties concerned, despite

(i) any omission, defect or error committed in, or with respect to, the assessment roll,

90 (ii) any defect, error or misstatement in any notice required, or

(iii) any omission to mail any notice required; and

(b) for all purposes, the assessment roll of the Okanagan Indian Band until the next certified assessment roll or certified revised assessment roll.

12.7 On receipt by Council, the assessment roll is open to inspection in the Okanagan Indian Band office by any person during regular business hours.

12.8 A person must not, directly or indirectly, use the assessment roll or information contained in the assessment roll to obtain names, addresses or telephone numbers for solicitation purposes, whether the solicitations are made by telephone, mail or any other means.

12.9 A person who wishes to inspect the assessment roll must complete a declaration in the form set out in Schedule IV

(a) specifying the purpose for which the information is to be used; and

(b) certifying that the information contained in the assessment roll will not be used in a manner prohibited under this Article.

12.10 On application by a holder, the tax administrator may omit or obscure the holder’s name, address or other information about the holder that would ordinarily be included in an assessment roll if, in the tax administrator's opinion, the inclusion of the name, address or other information could reasonably be expected to threaten the safety or mental or physical health of the holder or a member of the holder’s household.

12.11 Where the tax administrator omits or obscures information under section 12.10, such information must be obscured from all assessment rolls that are available for public inspection under section 12.7 or are otherwise accessible to the public.

12.12 Any person holding a charge on taxable property may, at any time, give notice with full particulars of the nature, extent and duration of the charge, to the assessor and request that the assessor add his or her name to the assessment roll in respect of the taxable property for the duration of the charge.

12.13 On receipt of a notice and request under this section 12.12, the assessor must enter the person’s name and address on the assessment roll and provide copies of all notices of assessment issued in respect of the assessable property.

12.14 Where a person’s name and address are entered on the assessment roll in accordance with this Article, the tax administrator must provide copies of all tax notices issues in respect of the taxable property to that person.

91 13.0 NOTICE OF ASSESSMENT

13.1 The assessor [Note to Okanagan Indian Band: can insert “tax administrator” instead] must, on or before December 31 of each year, mail a Notice of Assessment in the form set out in Schedule V to every person named in the assessment roll in respect of each assessable property.

13.2 The Notice of Assessment must be mailed or, where requested by the recipient, emailed to the person at the address on the assessment roll.

13.3 A person whose name appears in the assessment roll must give written notice to the assessor [Note to Okanagan Indian Band: can specify “Tax Administrator” instead] of any change of address.

13.4 Any number of interests in land assessed in the name of the same holder may be included in one Notice of Assessment.

13.5 If several interests in land are assessed in the name of the same holder at the same value, the Notice of Assessment may clearly identify the property assessed, without giving in full the description of each property as it appears in the assessment roll.

13.6 The assessor must provide, to any person who requests it and pays to the assessor the fee of six dollars ($6), the information contained in the current Assessment Notice sent by the assessor.

14.0 ERRORS AND OMISSIONS IN THE ASSESSMENT ROLL 14.1 Before March 16 of the year following the certification of an assessment roll under section 12.4, the assessor must notify and recommend correction to the Assessment Review Board of all errors or omissions in the assessment roll, except those errors or omissions corrected under section 14.2.

14.2 Before March 16 of the year following the certification of an assessment roll under section 12.4, the assessor may amend an individual entry in the assessment roll to correct an error or omission, with the consent of the

(a) holder of the interest in land; and

(b) complainant, if the complainant is not the holder.

14.3 Without limiting section 14.1, the assessor must give notice to the Assessment Review Board and recommend correction of the assessment roll in any of the following circumstances:

(a) because of a change in a holder that occurs before January 1 in a taxation year that is not reflected in the certified assessment roll and that results in

92 (i) land or improvements, or both, that were not previously liable to taxation become liable to taxation, or

(ii) land or improvements, or both, that were previously liable to taxation cease to be liable to taxation;

(b) after October 31 and before the following January 1, a manufactured home is moved to a new location or destroyed;

(c) after October 31 and before the following January 1, a manufactured home is placed on land that has been assessed or the manufactured home is purchased by the holder of land that has been assessed; and

(d) improvements, other than a manufactured home, that

(i) are substantially damaged or destroyed after October 31 and before the following January 1, and

(ii) cannot reasonably be repaired or replaced before the following January 1. 14.4 Except as provided in Article 15.0, or pursuant to an order of a court of competent jurisdiction, the assessor must not make any amendments to the assessment roll after March 16 of the current taxation year.

14.5 Where the assessment roll is amended under section 14.2, the assessor must mail an amended Notice of Assessment in the form set out in Schedule V to every person named in the assessment roll in respect of the interest in land affected. 15.0 SUPPLEMENTARY ASSESSMENT ROLLS

15.1 If, after the certification of the revised assessment roll or where there is no revised assessment roll, after March 31, the assessor finds that any interest in land

(a) was liable to assessment for the current taxation year, but has not been assessed on the current assessment roll, or

(b) has been assessed for less than the amount for which it was liable to assessment, the assessor must assess the interest in land on a supplementary roll, or further supplementary roll, in the same manner that it should have been assessed on the current assessment roll.

15.2 If, after the certification of the revised assessment roll or where there is no revised assessment roll, after March 31, the assessor finds that an interest in land

(a) was liable to assessment for a previous taxation year, but has not been assessed on the assessment roll for that taxation year, or

93 (b) has been assessed in a previous year for less than the amount for which it was liable to assessment, the assessor must assess the interest in land on a supplementary roll, or further supplementary roll, in the same manner that it should have been assessed on the current assessment roll, but only if the failure to assess the interest in land, or the assessment for less than it was liable to be assessed, is attributable to

(c) a holder’s failure to disclose,

(d) a holder’s concealment of particulars relating to assessable property,

(e) a person’s failure to respond to a Request for Information under Article 11.0, or

(f) a person’s making of an incorrect response to a Request for Information under Article 11.0, as required under this By­law.

15.3 If, after March 16 of the year following the completion of the assessment roll under section 12.1, the assessor receives a decision of the Assessment Review Board, the assessor must create a supplementary assessment roll reflecting the decision of the Assessment Review Board and this Article applies.

15.4 Nothing in this Article authorizes the preparation of a supplementary roll for the purpose of changing or updating an assessment roll later than twelve (12) months after that assessment roll is certified under section 12.3.

15.5 The duties imposed on the assessor with respect to the assessment roll and the provisions of this By­law relating to assessment rolls, so far as they are applicable, apply to supplementary assessment rolls.

15.6 Nothing in this Article authorizes the assessor to prepare a supplementary roll that would be contrary to an amendment ordered or directed by the Assessment Review Board or by a court of competent jurisdiction.

15.7 The assessor must, as soon as practicable, after issuing a supplementary assessment roll

(a) deliver a certified copy of the supplementary assessment roll to the Council;

(b) where the supplementary assessment roll reflects a decision of the Assessment Review Board, deliver a certified copy of the supplementary assessment roll to the chair; and

(c) mail an amended Notice of Assessment to every person named on the assessment roll in respect of the interest in land affected.

94 15.8 Where a supplementary assessment roll is issued under this By­law, the supplementary assessment roll is deemed to be effective as of the date the assessment roll was certified under section 12.3 in respect of the assessable property affected.

16.0 ASSESSMENT REVIEW BOARD

16.1 Council must, by resolution, establish an Assessment Review Board to

(a) consider and determine all recommendations from the assessor under section 14.1; and

(b) hear and determine assessment appeals under this By­law.

16.2 The Assessment Review Board must consist of not less than three (3) members, including:

(a) at least one (1) member who is a member of the law society of the Province; and

(b) at least one (1) member who has experience in assessment appeals in the Province; and

(c) [Note to Okanagan Indian Band: the following wording, which includes a member of the Okanagan Indian Band, is optional:] and at least one (1) member who is also a member of the Okanagan Indian Band but not a member of Council.

16.3 A person must not serve as a member of the Assessment Review Board if the person

(a) has a personal or financial interest in the assessable property that is the subject of an appeal;

(b) is the Chief of the Okanagan Indian Band or a member of Council;

(c) is an employee of the Okanagan Indian Band; or

(d) has financial dealings with the Okanagan Indian Band which might reasonably give rise to a conflict of interest or impair that person’s ability to deal fairly and impartially with an appeal as required under the terms of this By­law.

16.4 For the purposes of paragraph 16.3(a), membership in the Okanagan Indian Band does not in itself constitute a personal or financial interest in assessable property.

16.5 Each member of the Assessment Review Board must hold office for a period of three (3) years unless the member resigns or is removed from office in accordance with this By­law.

95 16.6 The Okanagan Indian Band must remunerate:

(a) a member of the Assessment Review Board [and a replacement member appointed to act], other than the chair, for his or her services at a rate of _____ dollars ($______) per hour [Note to Okanagan Indian Band: or “per day”], and

(b) the chair for his or her services at a rate of ______dollars ($______) per hour [Note to Okanagan Indian Band: or “per day”], for time spent on activities related to the Assessment Review Board.

16.7 The Okanagan Indian Band must reimburse a member of the Assessment Review Board [Note to Okanagan Indian Band: can add “and a replacement member”] for reasonable travel and out of pocket expenses necessarily incurred in carrying out his or her duties.

16.8 If a member of the Assessment Review Board is absent, disqualified, unable or unwilling to act, Council may appoint another person, who would otherwise be qualified for appointment as a member, to replace the member until the member returns to duty or the member’s term expires, whichever comes first.

16.9 Council may terminate the appointment of a member of the Assessment Review Board for cause, including where a member

(a) is convicted of an offence under the Criminal Code;

(b) fails to attend three (3) consecutive hearings of the Assessment Review Board; or

(c) fails to perform any of his or her duties under this By­law in good faith and in accordance with the terms of this By­law.

16.10 Council must, by resolution, appoint one of the members of the Assessment Review Board as chair.

16.11 The chair must

(a) supervise and direct the work of the Assessment Review Board;

(b) undertake administrative duties as necessary to oversee and implement the work of the Assessment Review Board;

(c) determine procedures to be followed at hearings consistent with this By­law;

(d) administer an oath or solemn affirmation to a person or witness before his or her evidence is taken; and

(e) preside at hearings of the Assessment Review Board.

96 16.12 If the chair is absent or incapacitated, Council must designate a member of the Assessment Review Board as the acting chair for the period that the chair is absent or incapacitated.

16.13 Council must, by resolution, appoint a secretary of the Assessment Review Board.

16.14 The secretary of the Assessment Review Board must

(a) have the custody and care of all records, documents and orders made by or pertaining to the Assessment Review Board; and

(b) fulfill such other duties as directed by the chair and the Assessment Review Board.

16.15 In performing their duties under this By­law, the members of the Assessment Review Board must act faithfully, honestly and impartially and to the best of their skill and ability, and must not disclose to any person information obtained by them as a member, except in the proper performance of their duties.

17.0 APPEAL TO ASSESSMENT REVIEW BOARD

17.1 The Assessment Review Board

(a) must consider and determine assessor recommendations made under section 14.1 for changes to the assessment roll;

(b) must hear and determine appeals made under this Part; and

(c) may direct amendments be made to the assessment roll in accordance with its decisions.

17.2 Any person, including without limitation the Okanagan Indian Band and the assessor, may appeal an assessment of assessable property to the Assessment Review Board by delivering

(a) a completed Notice of Appeal in the form set out in Schedule VI,

(b) a copy of the Notice of Assessment, and

(c) an administration fee of thirty dollars ($30), to the assessor at the address set out in the Notice of Assessment by January 31 of the year following the year in which the assessment roll is certified under sections 12.3, 12.5 or 15.7.

17.3 The grounds for appeal may be in respect of one or more of the following:

(a) the liability of the holder to taxation;

(b) the assessed value of the property;

97 (c) the assessment classification of the property;

(d) the applicability of an exemption to the property; and

(e) any other alleged error or omission in the assessment or Notice of Assessment.

17.4 Where an appeal is commenced with respect to a supplementary assessment roll, the appeal must be confined to the amendment made in the supplementary assessment roll.

17.5 Where a complainant is represented in an appeal through a solicitor or agent, all notices and correspondence required to be given to the complainant are properly given if delivered to the solicitor or agent at the address set out in the Notice of Appeal. 18.0 THE APPEAL HEARING

18.1 On delivery of a Notice of Appeal to the assessor, or on receipt of a recommendation from the assessor under section 14.1, the chair must, in consultation with the assessor, schedule a hearing of the appeal.

18.2 Subject to section 18.34, the Assessment Review Board must commence and complete all appeal hearings without delay.

18.3 The chair must, at least five (5) days before the hearing, deliver a Notice of Hearing in the form set out in Schedule VII, setting out the date, time and place of the hearing, to the parties and to each person named on the assessment roll in respect of the assessable property and shall include a statement that the recipient may file written submissions instead of appearing at the hearing.

18.4 Notwithstanding section 18.3, the chair is not required to deliver a Notice of Hearing to a holder affected by an assessor recommendation under section 14.1 where the recommendation:

(a) results in a decrease in the assessed value of the interest in land;

(b) does not change the classification of the property; and

(c) does not result in the removal of an exemption.

98 18.5 The parties in a hearing, except as provided in section 18.4, are

(a) the complainant;

(b) the holder of the assessable property, if not the complainant;

(c) the assessor; and

(d) any person who the Assessment Review Board determines may be affected by the appeal or assessor recommendation, upon request by that person.

18.6 The assessor must, without delay deliver, a copy of any document submitted by a party in relation to a hearing to all other parties.

18.7 The chair must

(a) create a daily schedule for the hearings of the Assessment Review Board; and

(b) post the daily schedule at the place where the Assessment Review Board is to meet.

18.8 The Assessment Review Board must proceed to deal with appeals in accordance with the daily schedule, unless the Assessment Review Board considers a change in the schedule necessary and desirable in the circumstances.

18.9 The Assessment Review Board must give all parties a reasonable opportunity to be heard at a hearing.

18.10 A party may be represented by counsel or an agent and may make submissions as to facts, law and jurisdiction.

18.11 The Assessment Review Board may conduct a hearing whether the complainant is present or not, provided the complainant was given notice of the hearing in accordance with this By­law.

18.12 The burden of proof in an appeal is on the person bringing the appeal.

18.13 In an oral hearing, a party may call and examine witnesses, present evidence and submissions and conduct cross­examination of witnesses as reasonably required by the Assessment Review Board for a full and fair disclosure of all matters relevant to the issues in the appeal.

18.14 The Assessment Review Board may reasonably limit further examination or cross­examination of a witness if it is satisfied that the examination or cross­ examination has been sufficient to disclose fully and fairly all matters relevant to the issues in the appeal.

18.15 The Assessment Review Board may question any witness who gives oral evidence at a hearing.

99 18.16 The Assessment Review Board may receive and accept information that it considers relevant, necessary and appropriate, whether or not the information would be admissible in a court of law.

18.17 The Assessment Review Board may conduct its proceedings by any combination of written, electronic and oral hearings.

18.18 An oral hearing must be open to the public unless the Assessment Review Board, on application by a party, determines that the hearing should be held in camera.

18.19 The Assessment Review Board may, at an oral hearing, make orders or give directions that it considers necessary to maintain order at the hearing.

18.20 Without limiting section 18.19, the Assessment Review Board may, by order, impose restrictions on a person’s continued participation in or attendance at a hearing and may exclude a person from further participation in or attendance at a hearing until the Assessment Review Board orders otherwise.

18.21 At any time after a Notice of Appeal is received by the Assessment Review Board, the Assessment Review Board may dismiss all or part of the appeal where it determines that any of the following apply:

(a) the appeal is not within the jurisdiction of the Assessment Review Board;

(b) the appeal was not filed within the applicable time limit; or

(c) the complainant failed to diligently pursue the appeal or failed to comply with an order of the Assessment Review Board.

18.22 Before dismissing all or part of an appeal under section 18.21, the Assessment Review Board must give the complainant an opportunity to make submissions to the Assessment Review Board.

18.23 The Assessment Review Board must give written reasons for any dismissal made under section 18.21 to all parties.

18.24 A majority of the members of the Assessment Review Board constitutes a quorum, provided that there shall not be less than three (3) members present at any time.

18.25 Where a quorum of the members of an Assessment Review Board is not present at the time at which a hearing is to be held, the hearing must be adjourned to the next day that is not a holiday, and so on from day to day until there is a quorum.

18.26 A decision of the majority of the members is a decision of the Assessment Review Board and, in the case of a tie, the decision of the chair governs.

100 18.27 The Assessment Review Board may conduct a single hearing of two (2) or more appeals related to the same assessment roll if the matters in each hearing are addressing the same assessable property or substantially the same issues.

18.28 Subject to this By­law, the Assessment Review Board has the power to control its own processes and may make rules respecting practice and procedure to facilitate the just and timely resolution of the matters before it.

18.29 At any time before or during a hearing, but before its decision, the Assessment Review Board may make an order requiring a person to

(a) attend a hearing to give evidence, or

(b) produce a document or other thing in the person’s possession or control as specified by the Assessment Review Board, by issuing an Order to Attend Hearing/Produce Documents in the form set out in Schedule VIII and serving it on the person at least two (2) days before the hearing.

18.30 Where an order is made under section 18.29, the Assessment Review Board must pay to the person a twenty dollar ($20) witness fee plus reasonable travel expenses to attend and give evidence before the Assessment Review Board.

18.31 A party may request that the Assessment Review Board make an order under section 18.29 to a person specified by the party.

18.32 Where a party makes a request under section 18.31,

(a) the chair must sign and issue an Order to Attend Hearing/Produce Documents and the party must serve it on the witness at least two (2) days before the hearing; and

(b) a party requesting the attendance of a witness must pay a twenty dollar ($20) witness fee plus reasonable travel expenses to the witness to attend and give evidence before the Assessment Review Board.

18.33 The Assessment Review Board may apply to a court of competent jurisdiction for an order directing a person to comply with an order under section 18.29.

18.34 The Assessment Review Board may

(a) hear all appeals or assessor recommendations on the same day or may adjourn from time to time until all matters have been heard and determined; and

(b) at any time during a hearing, adjourn the hearing.

101 18.35 The Assessment Review Board may make orders for payment as follows:

(a) requiring a party to pay all or part of the costs of another party in respect of the appeal;

(b) requiring a party to pay all or part of the costs of the Assessment Review Board in connection with the appeal, where the Assessment Review Board considers the conduct of a party has been improper, vexatious, frivolous or abusive.

18.36 A complainant may withdraw an appeal under this By­law by delivering a Notice of Withdrawal in the form set out in Schedule IX to the Assessment Review Board.

18.37 Upon receipt of a Notice of Withdrawal under section 18.36, the Assessment Review Board must dismiss the matter set for its consideration.

18.38 At any stage of a proceeding before it, the Assessment Review Board, on its own initiative or at the request of one or more of the parties, may refer a question of law in the proceeding to a court of competent jurisdiction in the form of a stated case.

18.39 The stated case must be in writing and filed with the court registry and must include a statement of the facts and all evidence material to the stated case.

18.40 The Assessment Review Board must

(a) suspend the proceeding as it relates to the stated case and reserve its decision until the opinion of the Court has been given; and

(b) decide the appeal in accordance with the Court’s opinion.

18.41 If a proceeding with respect to liability to pay taxes in respect of assessable property that is the subject of an appeal is brought before a court of competent jurisdiction

(a) before the hearing is to commence, the hearing must be deferred until the matter is decided by the court;

(b) during the hearing, the hearing must be adjourned until the matter is decided by the court; or

(c) after the hearing has concluded but before a decision on the appeal is given, the decision must be deferred until the matter is decided by the court.

102 19.0 DECISIONS OF THE ASSESSMENT REVIEW BOARD

19.1 The Assessment Review Board must, at the earliest opportunity after the completion of a hearing, deliver a written decision on the appeal or assessor recommendation to all parties.

19.2 The written decision submitted by the Assessment Review Board under this Article must include a statement that the appellant has a further right of appeal on a question of law to a court of competent jurisdiction.

19.3 Any person may obtain a copy of a decision of the Assessment Review Board from the tax administrator on request and payment of a fee of ______dollars ($___).

19.4 The tax administrator may obscure or omit personal information (other than name and address) and financial business information from decisions provided under section 19.3, provided that assessment and property tax information must not be obscured or omitted.

20.0 DELIVERY OF DOCUMENTS

20.1 Delivery of a document under Articles 17.0, 18.0 or 19.0 may be made personally or by sending it by registered mail, fax or e­mail.

20.2 Personal delivery of a document is made

(a) in the case of an individual, by leaving the document with the individual or with a person at least eighteen (18) years of age residing at the individual’s place of residence;

(b) in the case of the Okanagan Indian Band, by leaving the document with the person apparently in charge, at the time of delivery, of the administrative office of the Okanagan Indian Band;

(c) in the case of a corporation, by leaving the document with the person apparently in charge, at the time of delivery, of the head office or a branch office of the corporation, or with an officer or director of the corporation.

20.3 Subject to section 20.4, a document must be considered to have been delivered

(a) if delivered personally, at the time that personal delivery is made;

(b) if sent by registered mail, on the fifth day after it is mailed;

(c) if sent by fax, at the time indicated on the confirmation of transmission; or

103 (d) if sent by e­mail, at the time indicated in the electronic confirmation that the e­mail has been opened.

20.4 A document delivered on a non­business day or after 17:00 local time on a business day must be considered to have been delivered at 09:00 on the next business day. 21.0 TAX ROLL

21.1 The tax administrator must create a tax roll for each taxation year.

21.2 The tax roll must be in paper or electronic form and must contain the following information:

(a) a description of the property as it appears on the assessment roll;

(b) the name and address of the holder entered on the assessment roll with respect to the property;

(c) the name and address of every person entered on the assessment roll with respect to the property;

(d) the assessed value by classification of the land and the improvements as it appears in the assessment roll, exclusive of exemptions, if any;

(e) the amount of taxes levied on the property in the current year under this By­law; and

(f) the amount of any unpaid taxes from previous years.

21.3 The tax administrator may use the certified assessment roll as the tax roll by adding the following information to the assessment roll:

(a) the amount of taxes levied on the property in the current year under this By­law;

(b) the amount of any unpaid taxes from previous years.

22.0 TAX NOTICE

22.1 Each year, the tax administrator must mail a Tax Notice in the form set out in Schedule X to

(a) each holder of a taxable property under this By­law; and

(b) each person whose name appears on the tax roll in respect of the property to the address of the person as shown on the tax role.

104 22.2 The tax administrator must enter on the tax roll the date of mailing a Tax Notice.

22.3 The mailing of the Tax Notice by the tax administrator constitutes a statement of and demand for payment of the taxes.

22.4 If a number of properties are assessed in the name of the same holder, any number of those properties may be included in one Tax Notice.

22.5 Where applicable, a Tax Notice must state that taxes are payable in conjunction with periodic lease payments under Article 24.0.

22.6 Where the assessment roll has been revised in accordance with this By­law, or where a supplementary assessment roll is issued in accordance with this By­ law, the tax administrator must amend the tax roll or create a supplementary tax roll, as necessary, and mail an amended Tax Notice to every person affected by the amendment.

22.7 The duties imposed on the tax administrator with respect to the tax roll and the provisions of this By­law relating to tax rolls, so far as they are applicable, apply to supplementary tax rolls.

22.8 Where an amended Tax Notice indicates a reduction in the amount of taxes owing, the tax administrator must forthwith refund any excess taxes that have been paid, in accordance with Article 6.0.

22.9 Where an amended Tax Notice indicates an increase in the amount of taxes owing, the taxes are due and payable on the date of mailing of the amended Tax Notice, however the taxpayer must be given thirty (30) days to pay those taxes and a penalty and interest must not be added in that period. 23.0 SUBDIVISION

23.1 If a property is subdivided by lease or other legal instrument before June 1 in the taxation year, the tax administrator may

(a) apportion the taxes payable in that next year between the properties created by the subdivision in the same proportions as taxes would have been payable in respect of the properties had the subdivision occurred on or before the assessment roll was certified under section 12.3; and

(b) on making an apportionment under paragraph (a), record the apportionment in the manner that the tax administrator considers necessary.

23.2 Taxes apportioned to a property under section 23.1 are the taxes payable in respect of the property in the year for which they are apportioned.

105 23.3 The assessor must provide the tax administrator with the assessed values necessary to calculate the proportions of taxes referred to in section 23.1.

24.0 PERIODIC PAYMENTS

24.1 Council, with the consent of the locatee where applicable, may by resolution declare that taxes respecting an interest in land that is leased be expressed as a percentage of the rent payment and collected with it in accordance with the terms of a lease agreement or the terms of an agreement with the landlord.

24.2 Where the Okanagan Indian Band has entered an agreement with the Crown or with any person entitled to receive rents, for the collection of tax under this Article, the receipt by the Crown or such person of payment on account of tax will be a discharge of the liability for tax to the extent of the payment.

24.3 Where taxes are due and payable in conjunction with payment of rent under this Article, the proportionate payment is due and payable on the date that the rent is due and payable.

25.0 PAYMENT RECEIPTS AND TAX CERTIFICATES

25.1 On receipt of a payment of taxes, the tax administrator must issue a receipt to the taxpayer and must enter the receipt number on the tax roll opposite the interest in land for which the taxes are paid.

25.2 On receipt of a written request and payment of the fee set out in section

25.3, the tax administrator must issue a Tax Certificate in the form set out in Schedule XI showing whether taxes have been paid in respect of an interest in land and if not, the amount of taxes outstanding.

25.3 The fee for a certificate under section 25.2 is______dollars ($___) for each tax roll folio searched. 26.0 PENALTIES AND INTEREST

26.1 If all or part of the taxes remain unpaid after July 2 of the year in which they are levied, a penalty of ___ percent (___%) of the portion that remains unpaid will be added to the amount of the unpaid taxes and the amount so added is, for all purposes, deemed to be part of the taxes.

26.2 If all or any portion of taxes remains unpaid on July 2 of the year levied, the unpaid portion accrues interest at _____ percent (___%) per annum, compounded [Note to Okanagan Indian Band: insert “monthly” or “annually”].

26.3 Payments for taxes must be credited by the tax administrator first, to taxes, including interest, from previous taxation years, second, to a penalty added in the current taxation year, and third, to unpaid taxes for the current taxation year.

106 27.0 APPLICATION OF REVENUES

27.1 All revenues raised under this By­law must be placed in a special account or accounts, separate from other moneys of the Okanagan Indian Band.

27.2 Revenues raised must include

(a) taxes, including interest, penalties and costs, as set out in this By­ law; and

(b) grants­in­lieu of taxes.

27.3 Subject to section 27.4, an expenditure made out of revenues raised under this By­law must be made under authority of a by­law of the Okanagan Indian Band.

27.4 The following expenditures of revenues raised under this By­law are hereby authorized:

(a) refunds of overpayment and interest;

(b) expenses incurred in the preparation and administration of this By­ law;

(c) remuneration of the assessor and the tax administrator;

(d) remuneration and expenses of the Assessment Review Board; and

(e) all enforcement costs. 28.0 COLLECTION AND ENFORCEMENT

28.1 The liability referred to in section 5.3 is a debt recoverable by the Okanagan Indian Band in a court of competent jurisdiction and may be recovered by any other method authorized in this By­law and, unless otherwise provided, the use of one method does not prevent seeking recovery by one or more other methods.

28.2 A copy of the Tax Notice that refers to the taxes payable by a person, certified as a true copy by the tax administrator, is evidence of that person’s debt for the taxes.

28.3 Where the tax administrator has reasonable grounds to believe that a debtor intends to remove his or her personal property from the reserve, or intends to dismantle or remove his or her improvements on the reserve, or take any other actions that may prevent or impede the collection of unpaid taxes owing under this By­law, the tax administrator may apply to a court of competent jurisdiction for remedy, notwithstanding that the time for payment of taxes has not yet expired.

28.4 Council may upon application by the debtor

107 (a) postpone taking enforcement proceedings for a specified period; or

(b) reduce or remit the taxes where Council determines that

(i) full payment would result in undue hardship to the debtor, or

(ii) it is necessary and in the best interest of the Okanagan Indian Band to effect a transfer of the debtor’s interest. 28.5 Unpaid taxes are a lien on the interest in land to which they pertain that attaches to the interest in land and binds subsequent holders of the interest in land.

28.6 The tax administrator must register a lien created under this By­law in any of the registers on or after January 2 following the year in which the taxes are imposed.

28.7 A lien registered under section 28.6 has priority over any unregistered or registered claim, privilege, lien or security interest in respect of the interest in land.

28.8 The tax administrator may apply to a court of competent jurisdiction to protect or enforce a lien under section 28.5 where the tax administrator determines such action is necessary or advisable.

28.9 On receiving payment in full of the taxes owing in respect of which a lien was created, the tax administrator must register a discharge of the lien without delay in any of the registers that the lien is registered in.

28.10 Discharge of a lien by the tax administrator is evidence of payment of the taxes with respect to the interest in land.

28.11 A lien is not lost or impaired by reason of any technical error or omission in its creation or registration in a registry.

28.12 Except for tax proceedings postponed pursuant to paragraph 28.4(a), on or after January 2 following the year for which taxes are imposed, the tax administrator must prepare a list of outstanding taxes and of the persons liable for those taxes.

28.13 Within thirty (30) days of completing the list under section 28.12, the tax administrator must mail a Demand for Payment/Notice of Enforcement in the form set out in Schedule XII to every person named on the list, and to every person listed on the assessment roll and, if different, every person listed on the taxation roll and any affected locatee.

28.14 This section applies to this Article and Articles 29.0 to 33.0 inclusive.

(a) Delivery of a document may be made personally or by sending it by registered mail.

(b) Personal delivery of a document is made

108 (i) in the case of an individual, by leaving the document with that individual or with an individual at least eighteen (18) years of age residing at that individual’s place of residence;

(ii) in the case of a Okanagan Indian Band, by leaving the document with the individual apparently in charge, at the time of delivery, of the main administrative office of the Okanagan Indian Band, or with the Okanagan Indian Band’s legal counsel; and

(iii) in the case of a corporation, by leaving the document with the individual apparently in charge, at the time of delivery, of the head office or one of its branch offices, or with an officer or director of the corporation or the corporation’s legal counsel.

(c) A document is considered to have been delivered

(i) if delivered personally, on the day that personal delivery is made; and

(ii) if sent by registered mail, on the fifth day after it is mailed.

(d) Where the notice is in respect of taxable property, copies of notices must be served on all persons named on the tax roll in respect of that taxable property. 29.0 SEIZURE AND SALE OF PERSONAL PROPERTY

29.1 No sooner than thirty (30) days after the tax administrator mails a Demand for Payment/Notice of Enforcement in the form set out in Schedule XII, Council may, by resolution, authorize the tax administrator to recover the amount of unpaid taxes due, with costs, by seizure and sale of personal property of the debtor located on the reserve.

29.2 As a limitation on section 29.1, personal property of a debtor that would be exempt from seizure under a writ of execution issued by a superior court in the Province is exempt from seizure under this By­law.

29.3 The costs payable by the debtor under this Article are as set out in Schedule XIII to this By­law.

29.4 Before proceeding under section 29.1, the tax administrator must deliver a Notice of Seizure of Personal Property in the form set out in Schedule XIV to the debtor and any affected locatee.

29.5 Except for property exempt from seizure under section 29.2, not less than seven (7) days after delivery of a Notice of Seizure of Personal Property, if the taxes remain unpaid, the tax administrator may request a sheriff, bailiff or by­law

109 enforcement officer to seize any personal property described in the Notice of Seizure of Personal Property.

29.6 The person who seizes personal property must deliver to the debtor a receipt for the personal property seized.

29.7 The tax administrator must publish a Notice of Sale of Seized Personal Property, in the form set out in Schedule XV, in two (2) consecutive issues of the local newspaper with the largest circulation.

29.8 The first publication of the Notice of Sale of Seized Personal Property must not occur until at least sixty (60) days after the personal property was seized.

29.9 A sale of personal property must be conducted by public auction.

29.10 Subject to section 29.12, at any time after the second publication of the Notice of Sale of Seized Personal Property, the seized property may be sold by auction.

29.11 The tax administrator must conduct the public auction at the time and place set out in the Notice of Sale of Seized Personal Property, unless it is necessary to adjourn the public auction, in which case a further notice must be published in the manner set out in section 29.7.

29.12 If at any time before the seized property is sold a challenge to the seizure is made to a court of competent jurisdiction, the sale must be postponed until after the court rules on the challenge.

29.13 The proceeds from a sale of a right conducted under this Article must be paid

(a) first, to the Okanagan Indian Band; and

(b) any remaining proceeds must be paid to the debtor.

29.14 If claim to the surplus is made by another person and such claim is contested, or if the tax administrator is uncertain who is entitled to such surplus, the tax administrator must retain such money until the rights of the parties have been determined.

30.0 SALE OF INTEREST IN LAND

30.1 No sooner than thirty (30) days after the tax administrator mails a Demand for Payment/Notice of Enforcement in the form set out in Schedule XII, Council may, by resolution, authorize the tax administrator to levy the amount of unpaid taxes, by way of the seizure and sale of the taxable property.

30.2 Before proceeding under section 30.1, the tax administrator must serve a Notice of Seizure of Interest in Land, in the form set out in Schedule XVI, on the debtor and deliver a copy to any locatee with an interest in the taxable property.

110 30.3 If the debtor has failed to pay the outstanding taxes or to commence legal proceedings in a court of competent jurisdiction challenging the sale of the taxable property by

(a) June 30 of the year following the year in which the taxes are imposed, or

(b) six (6) months after any period specified by Council under paragraph 28.4(a), the tax administrator may sell the taxable property by public tender or auction.

30.4 Council must, by resolution, prescribe the method of public tender or auction, including the conditions that are attached to the acceptance of an offer.

30.5 The tax administrator must set an upset price for the sale of the taxable property that is not less than the total amount of the taxes payable on the taxable property, calculated to the end of the redemption period set out in section 30.11, plus five percent (5%) of that total.

30.6 The upset price is the lowest price for which the taxable property may be sold.

30.7 A Notice of Sale of Interest in Land in the form set out in Schedule XVIA must be

(a) published in the local newspaper with the largest circulation at least once in each of the four (4) weeks preceding the date of the public tender or auction; and

(b) posted in a prominent place on the reserve not less than ten (10) days before the date of the public tender or auction.

30.8 The tax administrator must conduct a public auction or tender at the time and place set out in the Notice of Sale of Interest in Land, unless it is necessary to adjourn the public auction, in which case a further notice must be published in the manner set out in section 30.7.

30.9 If no bid is equal to or greater than the upset price, the Okanagan Indian Band is deemed to have purchased the taxable property for the amount of the upset price.

30.10 The tax administrator must, without delay, notify the Minister of Indian and Northern Affairs in writing of each sale of taxable property made under this By­law.

30.11 When taxable property is sold by public tender or auction, all rights in it held by the holder of the taxable property or a holder of a charge immediately cease to exist, except as follows:

111 (a) the taxable property is subject to redemption as provided in section 30.12;

(b) the right to possession of the taxable property is not affected during the time allowed for redemption, subject, however, to

(i) impeachment for waste, and

(ii) the right of the bidder to enter on the taxable property sold to maintain it in a proper condition and to prevent waste;

(c) an easement, restrictive covenant, building scheme or right­of­way registered against the interest in land subsists; and

(d) during the period allowed for redemption, an action may be brought in a court of competent jurisdiction to have the sale of the taxable property set aside and declared invalid.

30.12 At any time within three (3) months after the holding of a public tender or auction in respect of taxable property, the debtor may redeem the taxable property by paying to the Okanagan Indian Band the amount of the upset price plus three percent (3%).

30.13 On redemption of the taxable property under section 30.12

(a) if the taxable property was sold to a bidder, the Okanagan Indian Band must, without delay, repay to that bidder the amount of the bid; and

(b) the tax administrator must notify the Minister of Indian and Northern Affairs in writing of the redemption.

30.14 Sale of taxable property is deemed final when

(a) the redemption period provided for in section 30.12 has expired; and

(b) where required, the tax administrator has obtained the consent of the Minister of Indian Affairs and Northern Development to the sale of the interest in land.

30.15 Subject to a redemption under section 30.12, at the end of the redemption period, the Okanagan Indian Band must sell the taxable property to the highest bidder in the public tender or auction held in accordance with section 30.8, or to itself as the deemed purchaser in accordance with section 30.9.

30.16 Taxable property must not be sold to any person or entity who would not have been entitled under the Indian Act or the First Nations Land Management Act, as the case may be, to obtain the interest or right constituting the taxable property.

112 30.17 Upon the sale being deemed final under section 30.14, the tax administrator must

(a) register a Certificate of Sale of Interest in Land in the form set out in Schedule XVII in any of the registers;

(b) deliver the Certificate of Sale of Interest in Land on the debtor and the purchaser; and

(c) note the replacement of the debtor by the purchaser as the holder of the interest in land in all relevant records of the Okanagan Indian Band.

30.18 A sale under section 30.14 operates

(a) as a transfer to the bidder from the debtor of the taxable property, without an attestation or proof of execution; and

(b) to extinguish all the right, title and interest of every previous holder of the taxable property, or those claiming under a previous holder, and all claims, demands, payments, charges, liens, judgments, mortgages and encumbrances of every type, and whether or not registered, subsisting at the time the sale is deemed final under section 30.14, except an easement, restrictive covenant, building scheme or right­of­way registered against the interest in land.

30.19 Upon a sale under section 30.14, any remaining debt of the debtor with respect to the taxable property is extinguished.

30.20 At the end of the redemption period, the proceeds from the sale must be paid

(a) first, to the Okanagan Indian Band; and

(b) any remaining proceeds must be paid to the debtor.

30.21 If claim to the surplus is made by another person and such claim is contested, or if the tax administrator is uncertain who is entitled to such surplus, the tax administrator must retain such money until the rights of the parties have been determined.

30.22 If the taxable property is purchased by the Okanagan Indian Band under section 30.9, the tax administrator may, during the redemption period, sell the assignment of the taxable property to any person for not less than the upset price and the purchaser is thereafter considered the bidder under this Article.

30.23 A sale under section 30.22 does not affect the period for or the right of redemption by the debtor as provided in this By­law.

113 31.0 CANCELLATION OF INTEREST IN LAND

31.1 No sooner than thirty (30) days after the tax administrator mails a Demand for Payment/Notice of Enforcement in the form set out in Schedule XII, Council may, by resolution, authorize the tax administrator to levy the amount of unpaid taxes, with costs, by way of cancellation of the interest in land in respect of which the taxes are due.

31.2 If Council authorizes the cancellation of the interest in land by resolution, the tax administrator must deliver a Notice of Cancellation of Interest in Land, in the form set out in Schedule XVIII, to the debtor and any affected locatee.

31.3 Council may direct the tax administrator to cancel the interest in land if taxes remain unpaid on

(a) June 30 of the year following the taxation year in which they were imposed, or

(b) for more than six (6)months after any specified period under paragraph 28.7(a), provided that under all circumstances Council may only direct cancellation of the interest in land under this section a minimum of five (5) months after delivery of the Notice of Cancellation of Interest in Land under section 31.2.

31.4 If Council directs the tax administrator to cancel the interest in land, the tax administrator must

(a) obtain the consent of the Minister of Indian Affairs and Northern Development to the cancellation, if required;

(b) register a Certificate of Cancellation of Interest in Land, in the form set out in Schedule XIX, in any of the registers;

(c) serve the Certificate of Cancellation of Interest in Land on the debtor and any affected locatee; and

(d) note the replacement of the debtor by the Okanagan Indian Band as the holder of the interest in land in all relevant records of the Okanagan Indian Band.

31.5 Once the tax administrator has fulfilled the requirements under section 31.4, the interest in land will be deemed to have been transferred to the Okanagan Indian Band.

31.6 A transfer under section 31.5 operates

(a) as a transfer to the Okanagan Indian Band from the debtor of the taxable property, without an attestation or proof of execution; and

114 (b) to extinguish all the right, title and interest of every previous holder of the taxable property, or those claiming under a previous holder, and all claims, demands, payments, charges, liens, judgments, mortgages and encumbrances of every type, and whether or not registered, subsisting at the time the transfer is deemed final under section 31.5, except an easement, restrictive covenant, building scheme or right­of­way registered against the interest in land.

31.7 Upon a sale under section 31.5, any remaining debt of the debtor with respect to the taxable property is extinguished.

31.8 The costs payable by the debtor under this Article are as set out in Schedule XIII to this By­law. 32.0 FORFEITURE

32.1 Notwithstanding any other action for the recovery of taxes set out in this By­ law, if any taxes remain unpaid twenty­four (24) months after the tax administrator mails a Demand for Payment/Notice of Enforcement in the form set out in Schedule XII, Council may, by resolution, authorize the tax administrator to levy the amount of unpaid taxes, with costs, by way of forfeiture of the interest in land in respect of which taxes are due.

32.2 If Council authorizes forfeiture of the interest in land by resolution, the tax administrator must deliver a Notice of Forfeiture in the form set out in Schedule XX to the debtor and any affected locatee.

32.3 The Notice of Forfeiture is deemed to be delivered on the date mailed or delivered to the address of the debtor specified in the records of the Okanagan Indian Band or to the address of the holder specified in the records of the Okanagan Indian Band.

32.4 If taxes remain unpaid 40 days after the tax administrator delivers a Notice of Forfeiture to the debtor, the tax administrator must

(a) obtain the consent of the Minister of Indian Affairs and Northern Development to the forfeiture, if required;

(b) register a Certificate of Forfeiture in the form set out in Schedule XXI in any of the registers;

(c) serve the Certificate of Forfeiture on the debtor and any affected locatee; and

(d) note the replacement of the debtor by the Okanagan Indian Band as the holder of the interest in land in all relevant records of the Okanagan Indian Band.

32.5 Once the tax administrator has fulfilled the requirements under section

115 32.4, the interest in land will be deemed to have been transferred to the Okanagan Indian Band.

32.6 A transfer under section 32.5 operates

(a) as a transfer to the Okanagan Indian Band from the debtor of the taxable property, without an attestation or proof of execution; and

(b) to extinguish all the right, title and interest of every previous holder of the taxable property, or those claiming under a previous holder, and all claims, demands, payments, charges, liens, judgments, mortgages and encumbrances of every type, and whether or not registered, subsisting at the time the transfer is deemed final under section 32.5, except an easement, restrictive covenant, building scheme or right­of­way registered against the interest in land.

32.7 Upon a sale under section 32.5, any remaining debt of the debtor with respect to the taxable property is extinguished.

32.8 The debtor may prevent forfeiture under this Article by paying all taxes then due and payable, with costs, to the Okanagan Indian Band on or before the date on which the interest in land will forfeit.

32.9 A payment that does not conform to section 32.8 does not prevent forfeiture under this Article.

32.10 The costs payable by the debtor under this Article are as set out in Schedule XIII to this By­law. 33.0 DISCONTINUANCE OF SERVICES

33.1 No sooner than thirty (30) days after the tax administrator mails a Demand for Payment/Notice of Enforcement in the form set out in Schedule XII, Council may, by resolution, authorize the tax administrator to, subject to section 33.6, discontinue any services provided by or on behalf of the Okanagan Indian Band to the debtor or to the debtor’s interest in land.

33.2 If Council authorizes discontinuance of services by resolution, the tax administrator must deliver a Notice of Discontinuance of Services in the form set out in Schedule XXII to the debtor and to any affected locatee.

33.3 The Notice of Discontinuance of Services must include a date, time and place within thirty (30) days of delivery under section 33.2 for the debtor or any affected locatee to appear before Council and show cause as to why the services should not be discontinued.

33.4 Council must be available to hear from the debtor or any affected locatee on the date and at the time and place indicated under section 33.3 and must consider any representations made by the debtor or the affected locatee at that time with respect to whether or not to discontinue any services.

116 33.5 No less than thirty (30) days after delivery of a Notice of Discontinuance of Services, the tax administrator may discontinue services authorized under section 33.1.

33.6 The Okanagan Indian Band must not discontinue

(a) fire protection or police services to the taxable property of a debtor;

(b) water or garbage collection services to taxable property that is a residential dwelling; or

(c) electrical or natural gas services to taxable property that is a residential dwelling during the period from November 1 in any year to March 31 in the following year.

34.0 SERVICE AND LOCAL IMPROVEMENT TAXES 34.1 Council may, by by­law pursuant to section 83 of the Indian Act, impose service and local improvement taxes to all or any part of the reserve that may apply notwithstanding any exemptions under Article 7.0. 35.0 GENERAL

35.1 The tax administrator, the assessor, a member of the Assessment Review Board, the secretary or any other person who has custody or control of information or records obtained or created under this By­law must not disclose the information or records except

(a) in the course of administering this By­law or performing functions under it;

(b) in proceedings before the Assessment Review Board, a court of law or pursuant to a court order; or

(c) in accordance with section 35.2.

35.2 The assessor may disclose to the agent of a holder confidential information relating to the property if the disclosure has been authorized in writing by the holder.

35.3 An agent must not use information disclosed under section 35.2 except for the purposes authorized by the holder in writing referred to in that section.

35.4 Notwithstanding sections 35.1 to 35.3 inclusive, Council may disclose information and records to a third party for research purposes, including statistical research, provided

(a) the information and records do not contain information in an individually identifiable form or business information in an identifiable form; or

117 (b) where the research cannot reasonably be accomplished unless the information is provided in an identifiable form, the third party has signed an agreement with Council to comply with Council’s requirements respecting the use, confidentiality and security of the information.

35.5 Nothing under this By­law must be rendered void or invalid, nor must the liability of any person to pay tax or any other amount under this By­law be affected by

(a) an error or omission in a valuation or a valuation based solely on information in the hands of an assessor or the tax administrator;

(b) an error or omission in an assessment roll, tax notice, or any notice given under this By­law; or

(c) a failure of the Okanagan Indian Band, tax administrator or the assessor to do something within the required time.

35.6 No person may commence an action or proceeding for the return of money paid to the Okanagan Indian Band, whether under protest or otherwise, on account of a demand, whether valid or invalid, for tax or any other amount paid under this By­law after the expiration of six (6) months from the making of the payment.

35.7 If a person fails to start an action or proceeding within the time limit described in section 35.6, then money paid to the Okanagan Indian Band must be deemed to have been voluntarily paid.

35.8 Where in this By­law a notice is required to be given by mail or where the method of giving the notice is not otherwise specified, it must be given

(a) by mail to the recipient’s ordinary mailing address or the address for the recipient shown on the assessment roll;

(b) where the recipient’s address is unknown, by posting a copy of the notice in a conspicuous place on the recipient’s property; or

(c) by personal delivery or courier to the recipient or to the recipient’s ordinary mailing address or the address for the recipient shown on the assessment roll.

35.9 A notice given by mail is deemed received on the fifth day after it is posted, a notice posted on property is deemed received on the second day after it is posted, and a notice given by personal delivery is deemed received upon delivery.

35.10 The provisions of this By­law are severable, and where any provision of this By­law is for any reason held to be invalid by a decision of a court of competent jurisdiction, the invalid portion must be severed from the remainder of this By­law and the decision that it is invalid must not affect the validity of the remaining portions of this By­law.

118 35.11 Where a provision in this By­law is expressed in the present tense, the provision applies to the circumstances as they arise.

35.12 Words in this By­law that are in the singular include the plural, and words in the plural include the singular.

35.13 This By­law must be construed as being remedial and must be given such fair, large and liberal construction and interpretation as best ensures the attainment of its objectives.

35.14 Headings form no part of the enactment and must be construed as being inserted for convenience of reference only.

35.15 This By­law comes into force and effect on approval by the Minister of Indian Affairs and Northern Development.

THIS BY­LAW IS HEREBY ENACTED by Council at a duly convened meeting held on the ___ day of ______, 20___ .

A quorum of Council consists of (_____) members of Council.

______(Signature of Chief ) (Print Name)

______(Signature of Councillor ) (Print Name)

______(Signature of Councillor ) (Print Name)

______(Signature of Councillor ) (Print Name)

119 SCHEDULE I PROPERTY CLASSES (Section 8.2) In this schedule:

“gathering pipeline” means a pipeline used for the transportation of

(a) natural gas from a wellhead to the intake valve at a scrubbing, processing or refining plant, which precedes the transfer of gas to a transmission line or a distribution line, or

(b) petroleum or a petroleum product from a wellhead to the intake valve at a refining, processing or storage facility, which precedes transfer of the petroleum or petroleum product to a transportation line.

The following are the classes of property established under this By­law:

Class 1 – Residential Class 1 property includes only

(a) land or improvements, or both, used for residential purposes, including single­ family residences, duplexes, multi­family residences, apartments, condominiums, manufactured homes, nursing homes, rest homes, summer and seasonal dwellings, bunkhouses, cookhouses and ancillary improvements compatible with and used in conjunction with any of the above, but not including

(i) hotels or motels other than the portion of the hotel or motel building occupied by the owner or manager as his or her residence; and

(ii) land or improvements, or both, that are owned by the Crown in right of Canada or the Province, or by an agent of either, and are used for the purposes of

(A) a penitentiary or correctional centre,

(B) a provincial mental health facility, or

(C) a hospital for the care of the mentally or physically handicapped;

(b) improvements on land classified as a farm and used in connection with the farm operation, including the farm residence and outbuildings;

(c) land having no present use and which is neither specifically zoned nor held for business, commercial, forestry or industrial purposes;

(d) land or improvements, or both, used for child daycare purposes, including group daycares, preschools, special needs daycares, family daycares, out of school care, residential care, emergency care and child minding.

120 Class 2 – Utilities Class 2 property includes only

(a) land or improvements used or held as track in place, right­of­way or a bridge for the purposes of, or for purposes ancillary to, the business of transportation by railway, and

(b) land or improvements used or held for the purposes of, or for purposes ancillary to, the business of

(i) transportation, transmission or distribution by pipeline,

(ii) telecommunications, including transmission of messages by means of electric currents or signals for compensation,

(iii) generation, transmission or distribution of electricity, or

(iv) receiving, transmission and distribution of closed circuit television,

except that part of land or improvements

(c) included in Classes 1, 4 or 8,

(i) used as a gathering pipeline,

(ii) used as an office, retail sales outlet, administration building or for an ancillary purpose, or

(iii) used for a purpose other than a purpose described in paragraphs (a) or (b).

Class 3 – [Repealed]

Class 4 ­ Major Industry Class 4 property includes only

(a) land used in conjunction with the operation of industrial improvements; and

(b) industrial improvements.

Class 5 ­ Light Industry Class 5 property includes only land or improvements

(a) used as a gathering pipeline,

(b) used or held for the purpose of extracting, processing, manufacturing or transporting of products, or

(c) used for the storage of products as ancillary to or in conjunction with the extracting, processing, manufacturing or transporting of products referred to in paragraph (b), but does not include those lands or improvements

(d) included in class 2 or 4,

121 (e) used or held for the purposes of, or for purposes ancillary to, the business of transportation by railway,

(f) used principally as an outlet for the sale of a finished product to a purchaser for purposes of his or her own consumption or use and not for resale in either the form in which it was purchased or any other form, and

(g) used for extracting, processing, manufacturing or storage of food, non­alcoholic beverages or water.

Class 6 ­ Business and Other Class 6 property includes all land and improvements not included in Classes 1 to 5 and 7 to 9.

Class 7 ­ Forest Land Class 7 property includes [To be discussed ­ only lands respecting which a licence to cut timber has been issued under the Indian Act and the regulations thereunder.]

Class 8 ­ Recreational Property/Non­Profit Organization Class 8 property includes only

(a) land, but not improvements on that land, used solely as an outdoor recreational facility for the following activities or uses:

(i) golf;

(ii) skiing;

(iii) tennis;

(iv) ball games of any kind;

(v) lawn bowling;

(vi) public swimming pool;

(vii) motorcar racing;

(viii) trap shooting;

(ix) archery;

(x) ice skating;

(xi) water slides;

(xii) museums;

(xiii) amusement parks;

(xiv) horse racing;

(xv) rifle shooting;

(xvi) pistol shooting;

(xvii) horseback riding;

122 (xviii) roller skating;

(xix) marinas;

(xx) parks and gardens open to the public;

(xxi) hang gliding; and

(xxii) bicycling in addition to, or as part of, one of the activities or uses set out in subparagraphs (i) to (xxi); and

(b) that part of any land and improvements used or set aside for use as a place of public worship or as a meeting hall for a non­profit fraternal organization of persons of either or both sexes, together with the facilities necessarily incidental to that use, for at least one hundred and fifty (150) days in the year ending on June 30, of the calendar year preceding the calendar year for which the assessment roll is being prepared, not counting any day in which the land and improvements so used or set aside are also used for

(i) any purpose by an organization that is neither a religious organization nor a non­profit fraternal organization,

(ii) entertainment where there is an admission charge, or

(iii) the sale or consumption, or both, of alcoholic beverages.

Class 9 ­ Farm Class 9 property includes only land classified as farm land.

123 SCHEDULE X TAX NOTICE (Section 22.1)

TO: ______

ADDRESS: ______

RE: ______(description of interest in land)

PURSUANT to the provisions of the Okanagan Indian Band Property Assessment and Taxation By­ law No. __, taxes in the amount of ______dollars ($______) are hereby levied with respect to the above­noted interest in land.

All taxes are due and payable on or before [Note to Okanagan Indian Band: if taxes are paid in conjunction with lease payments, insert the following instead: “Pursuant to Article 24.0 of the Okanagan Indian Band Property Assessment and Taxation By­law No. __, taxes are due and payable in conjunction with periodic lease payments on or before .”] Payments for unpaid taxes, penalties and interest are past due and must be paid immediately.

Payments must be made at the offices of the Okanagan Indian Band, located at [address] during normal business hours. Payment must be by cheque, money order or cash.

Taxes that are not paid by ______shall incur penalties and interest in accordance with the Okanagan Indian Band Property Assessment and Taxation By­law No. __.

The name(s) and address(es) of the person(s) liable to pay the taxes is (are) as follows:

______

______

Assessed value $______

Taxes (current year) $______

Unpaid Taxes (previous years) $______

Penalties $______

Interest $______

Total Payable $______

DATED: , 20 .

______(Signature of Tax Administrator)

124 SCHEDULE XI TAX CERTIFICATE (Section 25.2)

In respect of the interest in land described as: ______and pursuant to the Okanagan Indian Band Property Assessment and Taxation By­law No. __, I hereby certify as follows:

That all taxes due and payable in respect of the above­referenced interest in land have been paid as of the date of this certificate.

OR

That unpaid taxes, including interest, penalties and costs in the amount of: $______are due and owing on the above­referenced interest in land as of the date of this certificate.

The following persons are jointly and severally liable for all unpaid taxes:

______

______

DATED: ______, 20__

______(Signature of Tax Administrator)

125 SCHEDULE XII DEMAND FOR PAYMENT/NOTICE OF ENFORCEMENT (Sections 28.15, 29.1, 30.1, 31.1, 32.1 or 33.1)

TO: ______

ADDRESS: ______

DESCRIPTION OF INTEREST IN LAND: ______

In respect of the interest in land described as: ______and pursuant to the Okanagan Indian Band Property Assessment and Taxation By­law No. __, I hereby certify as follows:

That taxes, interest and penalties are unpaid in respect of the above­referenced interest in land, as follows:

Taxes: $______

Penalties: $ ______

Interest: $______

Total unpaid tax debt: $______

The total unpaid tax debt is due and payable immediately.

If the total unpaid tax debt is paid on of before ______, no further penalties and interest will be assessed on this amount.

If the all or any portion of the tax debt is not paid on or before ______, a further penalty of ______dollars ($______) will be assessed on that date.

The unpaid tax debt accrues interest each day that it remains unpaid, at a rate of __ percent (__%) per annum, compounded [monthly/yearly].

Payments must be made at the offices of the Okanagan Indian Band, located at [insert address] during normal business hours. Payment must be by cheque, money order or cash.

The following persons are jointly and severally liable for the total unpaid tax debt:

______

______

TAKE NOTICE that the failure to pay in full the above­mentioned tax debt within thirty (30) days from the date of this demand may result in procedures being taken by the Okanagan Indian Band for the enforcement and collection of such debt.

DATED: , 20 .

______(Signature of Tax Administrator)

126 SCHEDULE XIII COSTS PAYABLE BY DEBTOR ARISING FROM ENFORCEMENT PROCEEDINGS (Sections 29.3, 31.7 and 32.9) The following are allowable costs payable by the debtor arising from the seizure and sale of personal property: 1. Preparation of a notice $ 2. Service of notice on each person or place $ 3. Advertising in newspaper $ 4. Time spent in conducting a seizure and sale of personal property: $ /hr 5. Actual cost of seizure and storage will be assessed based on receipts.

127 SCHEDULE XIV NOTICE OF SEIZURE OF PERSONAL PROPERTY (Section 29.4)

TO: ______

ADDRESS: ______

DESCRIPTION OF INTEREST IN LAND: ______

TAKE NOTICE that taxes, penalties and interest in the amount of _____ dollars ($______) remain unpaid and are due and owing in respect of the above­referenced interest in land.

AND TAKE NOTICE that a Demand for Payment/Notice of Enforcement dated ______was delivered to you in respect of these unpaid taxes.

AND TAKE NOTICE that:

1. Failure to pay the full amount of the unpaid tax debt within SEVEN (7) days after delivery of this notice may result in the tax administrator, pursuant to the Okanagan Indian Band Property Assessment and Taxation By­law No. __, seizing the personal property described as follows:

[insert general description of the personal property to be seized].

2. The tax administrator may retain a sheriff, bailiff or by­law enforcement officer to seize the property and the seized property will be held in the possession of the tax administrator, at your cost, such cost being added to the amount of the unpaid taxes.

3. If the unpaid taxes, penalties, interest and costs of seizure are not paid in full within sixty (60) days following the seizure of the property, the tax administrator may

(a) publish a Notice of Sale of Seized Personal Property in two (2) consecutive issues of the ______newspaper; and

(b) at any time after the second publication of the notice, sell the seized property by public auction.

AND TAKE NOTICE that the tax administrator will conduct the public auction at the time and place set out in the Notice of Sale of Seized Personal Property, unless it is necessary to adjourn the public auction, in which case a further notice will be published.

DATED: ______, 20__

______(Signature Tax Administrator)

128 SCHEDULE XV NOTICE OF SALE OF SEIZED PERSONAL PROPERTY

(Section 29.7)

TAKE NOTICE that a sale by public auction for unpaid taxes, penalties, interest and costs owed to the Okanagan Indian Band will take place on ______, 20_____ at ______o’clock at ______[location].

The following personal property, seized pursuant to the ______Okanagan Indian Band Property Assessment and Taxation By­law No. __, will be sold at the public auction: (general description of the goods)

The proceeds of sale of the seized property shall be paid to any holders of security interests in the property and to the Okanagan Indian Band in order of their priority under applicable provincial laws. Any moneys received from the sale of the seized property that are in excess of these amounts owing will be paid to the debtor.

DATED: ______, 20__

______(Signature of Tax Administrator)

129 SCHEDULE XVI NOTICE OF SEIZURE OF INTEREST IN LAND (Section 30.2)

TO: (the “Debtor”)

ADDRESS:

DESCRIPTION OF INTEREST IN LAND:______(the “taxable property”) TAKE NOTICE that taxes, penalties, and interest in the amount of ______dollars ($______) remain unpaid and are due and owing in respect of the taxable property. AND TAKE NOTICE that a Demand for Payment/Notice of Enforcement dated ______was delivered to you in respect of these unpaid taxes. AND TAKE NOTICE that failure to pay the full amount of the unpaid tax debt BY June 30, 20__ may result in the tax administrator, pursuant to the Okanagan Indian Band Property Assessment and Taxation By­law No. __, seizing and selling the taxable property by public auction or tender as follows: 1. The public auction or tender, including any conditions that are attached to the acceptance of a bid to purchase the taxable property, shall be conducted in accordance with the procedures prescribed by the Council of the Okanagan Indian Band, a copy of which may be obtained from the tax administrator. 2. The tax administrator will:

(a) publish a Notice of Sale of Interest in Land in the ______newspaper at least once in each of the four (4) weeks preceding the date of the sale; and

(b) post the Notice of Sale of a Interest in Land in a prominent place on the reserve not less than ten (10) days preceding the date of the sale. 3. The Notice of Sale of Interest in Land will set out the upset price for the right to assignment of the taxable property and any conditions attached to the acceptance of a bid. 4. The upset price will be not less than the total amount of the taxes, interest and penalties payable, calculated to the end of the redemption period, plus five percent (5%) of that total. The upset price is the lowest price for which the right to assignment of the taxable property will be sold. 5. The tax administrator will conduct the public auction or tender at the time and place set out in the Notice of Sale of Interest in Land unless it is necessary to adjourn in which case a further notice will be published. 6. If the Okanagan Indian Band does not receive a bid that is equal to or greater than the upset price, the Okanagan Indian Band will be deemed to have purchased the taxable property for the amount of the upset price. 7. The debtor may redeem the taxable property after the sale by paying to the Okanagan Indian Band the amount of the upset price plus three percent (3%) any time within three (3) months after the holding of the public auction or tender in respect of the taxable property (hereinafter referred to as the “redemption period”). Where the taxable property is redeemed, the Okanagan Indian Band will, without delay, repay to the bidder the amount of the bid. 8. A sale of taxable property by public auction or tender is not complete, and no transfer of the taxable property will be made, until the expiration of the redemption period and, where required, the tax administrator has obtained the consent of the Minister of Indian and Northern Affairs. If the taxable property is not redeemed within the redemption period, then on the expiration of the redemption period, the Okanagan Indian Band will transfer the taxable property to the highest bidder or to itself as the deemed purchaser, as applicable. The taxable property will not be transferred to any person or entity who would not have been capable under the Indian Act or the First Nations Land Management Act of obtaining the interest or right constituting the taxable property. 9. Council of the ______Okanagan Indian Band will, without delay, notify the Minister of Indian and Northern Affairs in writing of any sale of the taxable property and of any redemption of the taxable property.

130 10. The tax administrator will register a Certificate of Sale of Interest in Land pursuant to the Okanagan Indian Band Property Assessment and Taxation By­law No. __. 11. A sale of the taxable property operates:

(c) as a transfer to the bidder or the Okanagan Indian Band, as the case may be, from the debtor of the taxable property, without an attestation or proof of execution; and

(d) to extinguish all the right, title and interest of every previous holder of the taxable property, or those claiming under a previous holder, and all claims, demands, payments, charges, liens, judgments, mortgages and encumbrances of every type, and whether or not registered, subsisting at the time the transfer is registered, except an easement, restrictive covenant, building scheme or right­of­way registered against the interest in land. 12. Upon sale of the taxable property, the debtor will be required to immediately vacate the taxable property, and any rights or interests that the debtor held in the taxable property, including the improvements, will be transferred in full to the purchaser. 13. The proceeds of sale of the taxable property will be paid first to the Okanagan Indian Band, and any remaining proceeds must be paid to the debtor in accordance with the Okanagan Indian Band Property Assessment and Taxation By­law No. __.

DATED: ______, 20__

______(Signature of the Tax Administrator)

131 SCHEDULE XVIA NOTICE OF SALE OF INTEREST IN LAND (Section 30.7)

TO: ______(the “debtor”)

ADDRESS: ______

DESCRIPTION OF INTEREST IN LAND:______(the “taxable property”)

TAKE NOTICE that a Notice of Seizure of Interest in Land was given in respect of the taxable property on ______. 20__.

AND TAKE NOTICE that unpaid taxes, including penalties and interest, in the amount of _____ dollars ( $____), remain unpaid and are due and owing in respect of the taxable property.

AND TAKE NOTICE that a sale of the taxable property will be conducted by public [auction/tender – Note to Okanagan Indian Band: specify whether sale will be by auction or tender throughout this Notice] for unpaid taxes, penalties and interest owed to the ______Okanagan Indian Band.

The public [auction/tender] will take place on:

______, 20__ at ______o’clock at ______[insert location].

The tax administrator will conduct the public [auction/tender] at the above time and place unless it is necessary to adjourn in which case a further notice will be published.

AND TAKE NOTICE that:

1. The upset price for the taxable property is: ______dollars ($______). The upset price is the lowest price for which the taxable property will be sold.

2. The public [auction/tender], including the conditions that are attached to the acceptance of an offer, shall be conducted in accordance with the procedures prescribed by the Council of the Okanagan Indian Band as set out in this notice.

3. If at the [auction/tender] there is no bid that is equal to or greater than the upset price, the Okanagan Indian Band will be deemed to have purchased the right to assignment of the taxable property for the amount of the upset price.

4. The debtor may redeem the taxable property after the sale by paying to the Okanagan Indian Band the amount of the upset price plus three percent (3%) any time within three (3) months after the holding of the public [auction/tender] in respect of the taxable property (hereinafter referred to as the “redemption period”). Where the taxable property is redeemed, the Okanagan Indian Band will, without delay, repay to the bidder the amount of the bid. 5. A sale of taxable property by public auction or tender is not complete, and no transfer of the taxable property will be made, until the expiration of the redemption period and, where required, the tax administrator has obtained the consent of the Minister of Indian and Northern Affairs. If the taxable property is not redeemed within the redemption period, then on the expiration of the redemption period, the Okanagan Indian Band will transfer the taxable property to the highest bidder or to itself as the deemed purchaser, as applicable. The taxable property will not be transferred to any person or entity who would not have been capable under the Indian Act or the First Nations Land Management Act of obtaining the interest or right constituting the taxable

132 property. 6. Council of the Okanagan Indian Band will, without delay, notify the Minister of Indian and Northern Affairs in writing of any sale of the taxable property and of any redemption of the taxable property. 7. The tax administrator will register a Certificate of Sale of Interest in Land pursuant to the Okanagan Indian Band Property Assessment and Taxation By­law No. __. 8. A sale of the taxable property operates:

(a) as a transfer to the bidder or the Okanagan Indian Band, as the case may be, from the debtor of the taxable property, without an attestation or proof of execution; and

(b) to extinguish all the right, title and interest of every previous holder of the taxable property, or those claiming under a previous holder, and all claims, demands, payments, charges, liens, judgments, mortgages and encumbrances of every type, and whether or not registered, subsisting at the time the transfer is registered, except an easement, restrictive covenant, building scheme or right­of­way registered against the interest in land. 9. Upon sale of the taxable property, the debtor will be required to immediately vacate the taxable property, and any rights or interests that the debtor held in the taxable property, including the improvements, will be transferred in full to the purchaser. 10. The proceeds of sale of the taxable property will be paid first to the Okanagan Indian Band, and any remaining proceeds must be paid to the debtor in accordance with the Okanagan Indian Band Property Assessment and Taxation By­law No. __.

DATED: ______, 20__

______(Signature of the Tax Administrator)

133 SCHEDULE XVII CERTIFICATE OF SALE OF INTEREST IN LAND (Section 30.17)

RE: ______(description of interest in land)

______(description of improvements)

I, ______, Tax Administrator of the Okanagan Indian Band hereby certify that resulting from the failure of ______to pay the outstanding tax debt on the above­ noted interest on land, that interest has been disposed of by public auction [tender] pursuant to the Okanagan Indian Band Property Assessment and Taxation By­law No. __. Pursuant to that By­law, the following person must be substituted for the debtor as the holder of the above­noted interest in land:

(Name of Purchaser)

(Address of Purchaser)

DATED: , 20 .

______(Signature of Tax Administrator)

134 SCHEDULE XVIII NOTICE OF CANCELLATION OF INTEREST IN LAND (Section 31.2)

TO: [insert Debtor’s name] ADDRESS:

DESCRIPTION OF INTEREST IN LAND:______(the “taxable property”) TAKE NOTICE that taxes, penalties, and interest in the amount of ______dollars ($______) remain unpaid and are due and owing in respect of the taxable property. AND TAKE NOTICE that a Demand for Payment/Notice of Enforcement dated ______was delivered to you in respect of these unpaid taxes.

AND TAKE NOTICE that unless the above­noted outstanding taxes are paid in full on or before June 30, 20__ , the interest you hold in the taxable property will be absolutely and unconditionally cancelled. Upon such cancellation, your interest in the taxable property will transfer in the Okanagan Indian Band pursuant to the ______Okanagan Indian Band Property Assessment and Taxation By­law No. __. Upon the cancellation of your interest in the taxable property, you will be required to immediately vacate the interest in land, and any rights or interests which you acquired through such interest in land will cease to exist.

AND TAKE NOTICE that you may prevent cancellation by paying all taxes due and payable, with costs, to the ____ Okanagan Indian Band on or before June 30, 20__.

DATED: , 20 .

(Signature of Tax Administrator)

135 (b) OKANAGAN INDIAN BAND BYLAW NO. ___ RATES BY­LAW (Sample)

WHEREAS pursuant to the Indian Act, R.S.C. 1985, and specifically paragraph 83(1)(a) of the Indian Act, 1985, c.I­5, the Council of a band may make by­laws for the purpose of taxation for local purposes of land, or interests in land, including rights to occupy, possess or use land in a reserve and with respect to any matters arising out of or ancillary to such purpose;

AND WHEREAS the Council of the Okanagan Indian Band enacted the Okanagan Indian Band Property Assessment and Taxation By­law on ______, 20 __ ;

NOW BE IT HEREBY RESOLVED that the following by­law be and is hereby enacted pursuant to the provisions of the Indian Act, and in particular section 83(1) for the purpose of establishing annual rates of taxation.

1. This by­law may be cited for all purposes as the Okanagan Indian Band Rates By­law 2008.

2. Pursuant to the Okanagan Indian Band Property Assessment and Taxation By­law, the tax rates for each class of property shall be in accordance with Schedule "A" which is attached, and forms part of the 20 Rates By­law.

This by­law is hereby enacted by Council at a duly convened meeting held on the _ day of __ , 20__.

______

Chief [please spell out the name]

______

Councillor [please spell out the name]

______

Councillor [please spell out the name]

SCHEDULE “A”

136 The Council of the Okanagan Indian Band hereby adopts the following taxation rates for the 20 taxation year for the following classes of property.

COLUMN 1 COLUMN 2

Class of Property as prescribed under Schedule II Rate of Tax applied against each $1,000.00 of the and Section of the Okanagan Indian Band assessed value of the land and improvements as Property Taxation By­law. determined in accordance with Part IV of the Okanagan Indian Band Property Assessment and Taxation By­law. Class 1 ­ Residential Class 2 ­ Utilities Class 3 ­ Unmanaged Forest Land

Class 4 ­ Major Industry Class 5 ­ Light Industry Class 6 ­ Business and Other Class 7 ­ Managed Forest Land Class 8 ­ Recreation/Non­Profit Organization Class 9 ­ Farm

137 (c) OKANAGAN INDIAN BAND PROPERTY TAXATION EXPENDITURE BY­LAW NO. ___ (Sample)

WHEREAS the Property Taxation By­law was made pursuant to subsection 83(1) of the Indian Act, R.S.C. 1985, c.I­5, for the purpose of taxation for local purposes of land, or interests in land, in the "reserve" (as defined in the Property Taxation By­law), including rights to occupy, possess or use land in the "reserve";

Subsection 83(2) of the Indian Act provides that an expenditure made out of moneys raised pursuant to subsection 83(1) of the Indian Act must be made under the authority of a by­law of the council of the band; Section ____ of the Property Taxation By­law authorizes the making of certain expenditures out of property tax revenue and, in addition, the Taxation Expenditure By­law was enacted for the purpose, inter alia, of establishing procedures for the authorization of expenditures to be made out of property tax revenue from time to time; Council wishes to authorize expenditures (in addition to those authorized under section ____ of the Property Taxation By­law ) to be made out of property tax revenue from time to time in this by­law. NOW BE IT HEREBY RESOLVED that the following by­law be and is hereby enacted pursuant to the provisions of the Indian Act and in particular subsections 83(1) and (2) thereof, for the purpose of authorizing expenditures to be made out of property tax revenue.

SHORT TITLE 1. This By­law may be cited for all purposes as the Taxation Expenditure By­law.

2. In this By­law, including, without limiting the generality of the foregoing in the recitals and this section, "annual property tax budget" means a budget that includes and identifies in a general way projected property tax revenue for a fiscal year, surplus or deficit property tax revenue carried over from previous fiscal years and projected expenditures to be made out of property tax revenue for the fiscal year for local purposes; "Band" means the Okanagan Band of Indians; "band council resolution" means a motion passed and approved at a meeting of Council pursuant to the consent of a majority of the quorum of the Councillors of the Band; "community works" includes, without limitation, designing, constructing, reconstructing, creating, replacing, enlarging, extending, removing, moving, repairing, maintaining and operating buildings, works and facilities (other than public works), located within Reserve and owned, operated, controlled, managed, administered, provided or financially supported, wholly or in part, by the Band or Council on behalf of the Band and used for community services or general government services, including, without limiting the generality of the foregoing, Band administration offices, Band public works yards, cemeteries, longhouses, cultural centres, daycare centres, group homes, libraries, archives, museums, art galleries, recreation centres, parks and playgrounds, together with Reserve lands appurtenant thereto; "community services" includes, without limitation, programs and services (other than utility services), operated, controlled, managed, administered, provided or financially supported, wholly or in part, by the Band or Council on behalf of the Band and of benefit to any residents of Reserve (whether in common with any non­residents of Reserve or not) including, without limiting the generality of the foregoing, social, public health, cultural, recreation, education, daycare, library, park, playground, police or fire protection programs and services;

138 * or Indian Band

"Council" means the Council of the Okanagan Indian Band within the meaning of subsection 2(1) of the Indian Act as elected by the Band members from time to time pursuant to the custom of the Band; "fiscal year" means April 1 of a calendar year through March 31 of the following calendar year; "general government services" includes, without limitation, government and administrative programs, services and operations of the Band or Council on behalf of the Band including, without limiting the generality of the foregoing, the operations of Council and the development, preparation, enforcement and administration of Council or Band policies, by­ laws and programs and the administration and operation of departments of the Band; "Minister" means the Minister of Indian Affairs and Northern Development and includes a person designated in writing by the Minister; "permitted property taxation by­law expenditures" means those expenditures out of property tax revenue authorized to be made under section ____ of the Property Taxation By­law; "property taxation by­law" means the Okanagan Indian Band Property Taxation By­law passed by the Council on ______, 200__, and approved by the Minister of Indian Affairs and Northern Development on ______, and as amended from time to time; "property tax revenue" includes all taxes and other moneys raised under the Property Taxation By­law, including, without limiting the generality of the foregoing, all interest earned thereon and other accumulations thereto from time to time; "public works" includes (a) designing, constructing, reconstructing, creating, replacing, enlarging, extending, removing, moving, repairing, maintaining or operating (i) roads, streets, overpasses, underpasses, sidewalks, foot crossings, curbing bridges, tunnels, culverts, embankments and retaining walls; (ii) equipment, wires, works and facilities, including standards and conduits, necessary to supply public lighting within reserve, including, without limiting the generality of the foregoing, all necessary poles, towers, cross­arms, encasements, transformer structures and other related works and facilities; (iii) conduits for wires, fiber­optics and pipes for purposes other than providing public lighting within Reserve, including, without limiting the generality of the foregoing, all necessary poles, towers, cross­arms, encasements, transformer structures and other related works and facilities; (iv) storm or sanitary sewer or water lines, works and facilities, including service connections to sewer or water lines on land abutting a main; (v) sewage treatment and water treatment works, facilities and plants; (vi) retaining walls, rip­rap, sheet­piling, sea­walls, pilings, dykes and breakwaters in, along or adjacent to the sea, a lake or a river; and (vii) any buildings, works or facilities related or ancillary to anything referred to in subparagraphs (i) through (vi), together with reserve lands appurtenant thereto; (b) remediating environmentally contaminated Reserve lands; and (c) creating new lands by any lawful means including, without limiting the generality of the foregoing, by the placement and compaction of permitted soils and other fill materials; "Reserve" means those lands the legal title to which is vested in Her Majesty, that have been set apart by Her Majesty for the use and benefit of the Band, whether they be designated lands or conditionally surrendered lands or otherwise;

139 "Tax Administrator" means the tax administrator appointed by Council under the Okanagan Indian Band Property Taxation By­law; "utility services" includes water, storm sewer, sanitary sewer, garbage collection, garbage disposal, solid waste disposal, sewage treatment and water treatment programs, services and operations.

AUTHORIZATION OF EXPENDITURE OF PROPERTY TAX REVENUE 3.(1) This By­law authorizes the expenditure of property tax revenue by Council on behalf of the Band for local purposes. (2) Without limiting the generality of subsection (1) but for greater certainty, this By­law authorizes the expenditure of property tax revenue by Council on behalf of the Band on community works, community services, general government services, permitted property taxation by­law expenditures, public works and utility services.

ANNUAL PROPERTY TAX BUDGET 4.(1) On or before July 31 in each fiscal year, the tax administrator shall prepare and table with Council a draft annual property tax budget for the then current fiscal year and a draft band council resolution approving the budget, and Council shall endeavor to consider such budget and resolution on or before August 31 of the same fiscal year. (2) An annual property tax budget may, but is not required to, be in the form of that draft annual property tax budget attached as Schedule AA@ to this By­law. (3) Subject to subsection (4), all expenditures made out of property tax revenue that Council is authorized to make under this By­law shall be made pursuant to an annual property tax budget that has been approved by band council resolution. (4) For greater certainty (a) Band Council may at any time and from time to time amend any annual property tax budget and any band council resolution approving an annual property tax budget; and (b) nothing in this By­law shall have the effect of amending section ____ of the Property Taxation By­law or of limiting the authorization of, or requiring additional procedures to permit, expenditures of property tax revenue thereunder.

PROPERTY TAX REVENUE ACCOUNTS 5.(1) All property tax revenue shall be deposited in a special account or accounts maintained in the name of the Band and be invested until required to be expended pursuant to an annual property tax budget that has been approved by band council resolution. (2) Any surplus property tax revenue raised during a fiscal year that is not required for expenditure during that fiscal year pursuant to an annual property tax budget that has been approved by band council resolution, shall be set aside in a special surplus fund account or accounts maintained in the name of the Band and be invested until required for such expenditure in a future fiscal year.

ADMINISTRATION AND ENFORCEMENT 6. The tax administrator shall administer this By­law.

BY­LAW REMEDIAL 7. This By­law shall be construed as being remedial, and shall be given such fair, large and liberal construction and interpretation as best ensures the attainment of its objectives.

140 MISCELLANEOUS 8.(1) Headings form no part of this By­law but shall be construed as being inserted for convenience of reference only. (2) A finding by a court of competent jurisdiction that a section or provision of this By­ law is void or invalid shall not affect or bear upon the validity or invalidity of any other section or part of this By­law or this By­law as a whole. (3) Where a provision in this By­law is expressed in the present tense, future tense or in the past tense, the provision applies to the circumstances as they arise. (4) In this By­law words in the singular include the plural, and words in the plural include the singular.

COMING INTO FORCE 9. This By­law shall come into force immediately upon being approved by the Minister.

THIS BY­LAW IS HEREBY ENACTED by Council at a duly convened meeting held on the ______day of ______, 20__.

A QUORUM OF COUNCIL CONSISTS OF ______.

______Chief [spell out the name please]

______Councillor [spell out the name please]

______Councillor [spell out the name please]

141 (d) OKANAGAN INDIAN BAND OKANAGAN INDIAN BAND FINANCIAL ADMINISTRATION BY­LAW BY­LAW NO. ____ (Sample)

A by­law to regulate the management and control of Okanagan Indian Band funds and establish the administrative structure of the Okanagan Indian Band which manages the funds. Table of Contents

part 1 144 TITLE 144 part 2 144 DEFINITIONS ...... 144 part 3 146 APPLICATION ...... 146 part 4 146 COUNCIL...... 146 Role of Council...... 146 Duties 147 Alternative Arrangements for Funding Agreements ...... 147 part 5 148 TREASURY BOARD...... 148 Role of the Board ...... 148 Appointment of Board ...... 149 Terms of Office...... 149 Election and Role of the Chair...... 150 BAND MANAGER...... 150 Role of Band Manager ...... 150 CONTROLLER ...... 151 Role of Controller ...... 151 Appointment of Controller ...... 152 part 6 152 FISCAL YEAR ...... 152 ANNUAL BUDGET ...... 152 ANNUAL AUDIT ...... 152 Public Access...... 153

142 part 7 154 FINANCIAL MANAGEMENT: DEPOSITS ...... 154 General Requirements ...... 154 Bank Accounts and Tax Account ...... 154 FINANCIAL MANAGEMENT: RESERVE FUND...... 155 Reserve Fund...... 155 Conditions of Use...... 155 FINANCIAL MANAGEMENT: EXPENDITURES...... 156 Conditions of Expenditures ...... 156 Authorized Signatories...... 156 Bonding and Insurance Requirements ...... 157 Expenditure Procedures...... 157 Petty Cash ...... 158 Travel Expenses ...... 158 FINANCIAL MANAGEMENT: LOANS, BORROWING AND DEBTS ...... 158 Loans 158 Borrowing and Credit Powers of Council...... 159 Conditions of Borrowing...... 160 Collection of Debts...... 160 FINANCIAL REPORTING: INVOICING ...... 161 AWARDING OF CONTRACTS...... 161 Tendering Requirements...... 162 part 8 163 CONFLICTS OF INTEREST...... 163 Definitions ...... 163 General Conflict of Interest Rule ...... 164 Disclosure by Members of Council and the Board ...... 164 Disclosure by Employees...... 164 Liability to Account ...... 165 Suspension or Dismissal...... 165 part 9 165 NON­COMPLIANCE...... 165 part 10 ...... 165 AMENDMENTS AND REPEAL...... 165 part 11 ...... 166 GENERAL...... 166

WHEREAS the Indian Act provides that Council may, subject to the approval of the Minister of Indian Affairs and Northern Development, make by­laws for the following purposes:

143 (c) the appropriation and expenditure of moneys of the Okanagan Indian Band to defray the Okanagan Indian Band expenses;

(d) the appointment of officials to conduct the business of Council; and

(e) any matter arising out of or ancillary to the exercise of the powers described in subsection 83(1) of the Act;

AND WHEREAS the Council of the Okanagan Indian Band has determined that it is desirable and necessary that a financial administration by­law be established for the purposes set out in subsection 83(1) of the Act;

NOW THEREFORE the Council of the Okanagan Indian Band, at a duly convened meeting, enacts the following by­law: part 1

TITLE

1. This By­law may be called the “ Okanagan Indian Band Financial Administration By­law”. part 2

DEFINITIONS

2. In this By­law,

“Act” means the Indian Act;

“annual audit” means an audit by an auditor of the Okanagan Indian Band’s consolidated financial statements for the preceding fiscal year according to generally accepted auditing standards and including a separate audit of the Tax Account;

“annual budget” means the revenues and expenditures projected and approved by Council under section 31 for the next fiscal year and includes any amendments to the annual budget made under section 30;

“annual audited financial statements” means the consolidated financial statements audited by an auditor as part of conducting the annual audit;

“auditor” means a person or company who is designated as a chartered accountant or certified general accountant and who is a member in good standing with the registered accounting association that regulates his designation;

“band manager” means the employee or contractor appointed by resolution as the administrator of the Okanagan Indian Band;

“Board” means the treasury board of the Okanagan Indian Band established pursuant to section 11 of this By­law;

144 “capital works” means major physical assets owned or controlled by the Okanagan Indian Band, including roads, bridges, utilities, water supply and septic systems, ditches and water spillways, buildings, waste control facilities, land, landscaping and fencing;

“controller” means the person appointed under section 23;

“Council” means the council of the Okanagan Indian Band and includes the Chief of the Okanagan Indian Band;

“department” means an administrative division or agency of the Okanagan Indian Band government as established from time to time and includes

(f) internal organizational units of the Okanagan Indian Band administration;

(g) any board, tribunal, commission or committee of the Okanagan Indian Band; and

(h) any corporate entity controlled by the Okanagan Indian Band, including a partnership;

“employee” includes, for the purposes of this By­law, any contractors with the Okanagan Indian Band who administer, manage or control Okanagan Indian Band funds;

“Expenditure By­law” means a by­law of the Okanagan Indian Band enacted pursuant to section 83 of the Act, specifying allowable expenditures from Tax Revenue;

“Okanagan Indian Band funds” means all moneys received and managed by Council, or its designate, for the use and benefit of the Okanagan Indian Band, including all revenues, grants, contributions, loans, earnings from business enterprises and, unless otherwise indicated in this By­law, includes Tax Revenue, but does not include

(i) money received by the Okanagan Indian Band on behalf of an individual, corporate entity or partnership, and

(j) any money received and managed by Council for which Council has approved an alternative arrangement under to section 9 of this By­law;

“Okanagan Indian Band” means the ______Okanagan Indian Band, being a band, as defined under the Indian Act;

“fiscal year end” means the date specified in section 25.

145 “funding agreement” means any written contract between the Okanagan Indian Band and another party or parties, pursuant to which money is to be paid to the Okanagan Indian Band;

“General Account” means any bank account in the name of the Okanagan Indian Band and created pursuant to section 46;

“resolution” means a decision of Council at a duly held Council meeting and recorded in writing;

“Tax Account” means a single bank account in the name of the Okanagan Indian Band for the purpose of holding all and making expenditures from Tax Revenue;

“Taxation By­law” means a by­law providing for the taxation of real property and enacted by the Okanagan Indian Band pursuant to section 83 of the Act; and

“Tax Revenue” means any revenue collected by the Okanagan Indian Band pursuant to a Taxation By­law. part 3

APPLICATION

3. This By­law governs the management and control of Okanagan Indian Band funds and the administrative organization of the Okanagan Indian Band to manage and control Okanagan Indian Band funds.

4. This By­law applies to Council and all departments in receipt of Okanagan Indian Band funds. part 4

COUNCIL

Role of Council

Council must conduct the business of the Okanagan Indian Band in a manner that ensures sound financial management by, among other things, carrying out the following duties and responsibilities:

(k) ensuring that the annual budget of the Okanagan Indian Band does not have expenditures exceeding revenues;

(l) planning and budgeting financial and other resources for local services and capital works projects;

(m) setting policies and procedures to safeguard the resources of the Okanagan Indian Band and maximize the well­being of the members of the Okanagan Indian Band;

146 (n) ensuring Council and all employees of the Okanagan Indian Band have full financial accountability at all times to all members of the Okanagan Indian Band;

(o) ensuring the Okanagan Indian Band meets all financial obligations with third parties;

(p) ensuring all investments in financial instruments are made in accordance with prudent investor standards;

(q) overseeing the work of all employees of the Okanagan Indian Band, through the band manager, and ensuring that all employees of the Okanagan Indian Band who manage and control Okanagan Indian Band funds are

(i) responsible for maintaining accurate financial records, and

(ii) qualified for the position to which they are appointed;

(r) permitting access by all members of the Okanagan Indian Band, under the supervision of Council or its designate, to Okanagan Indian Band by­laws, annual budgets, annual audited financial statements and annual audit reports of the Okanagan Indian Band;

(s) ensuring that all financial records of the Okanagan Indian Band, including computer files, are kept in the administration office of the Okanagan Indian Band in a secure and safe condition, and are not removed from the office without the authority of Council, such authority to be evidenced by resolution; and

(t) ensuring the sale of any assets owned by the Okanagan Indian Band is for no less than fair market value.

Duties

Each member of Council must, in exercising his powers and performing his functions under this By­law,

(u) act honestly and in good faith and in the best interests of the Okanagan Indian Band; and

(v) exercise the care, diligence and skill of a reasonably prudent person.

Alternative Arrangements for Funding Agreements [Note to Okanagan Indian Band: sections 7 and 8 are meant to allow flexibility, in case the Okanagan Indian Band obtains financing from a third party (like INAC or a private party), but the financing has ‘strings’ attached – i.e. requirements on how the funds must be processed and spent that are different from the Okanagan Indian Band’s normal procedures in this By­

147 law.]

Council may, by resolution, approve any funding agreement.

Notwithstanding the provisions of this By­law, Council may by resolution approve an alternative arrangement other than the provisions of this By­law for the management of money received pursuant to the terms of a funding agreement, if the terms of the funding agreement require the alternative arrangement. part 5

TREASURY BOARD

Role of the Board

The Board must ensure the control and management of Okanagan Indian Band funds in a manner that is consistent with prudent financial management practices by, among other things, carrying out the following duties and responsibilities:

(w) manage and control all transactions of Okanagan Indian Bands funds, including the receipt, collection, expenditure and disbursement of Okanagan Indian Band funds;

(x) administer and supervise the compilation and preparation of information for the annual budget;

(y) present the annual budget to Council for its review and approval by resolution;

(z) ensure the completion and of an annual audit and presentation of the audit to Council for its review and approval by resolution;

(aa) administer and supervise the financial records and reporting systems of the Okanagan Indian Band;

(bb) ensure financial compliance of the Okanagan Indian Band with all contracts and funding agreements entered into by Council or any department, and immediately report any non­compliance to Council;

(cc) report to Council on financial matters;

(dd) provide advice to Council on financial matters;

(ee) develop and present a list of candidates to Council for the position of controller;

(ff) supervise and oversee the role and responsibilities of the controller; and

148 (gg) oversee all other matters relating to the financial affairs of the Okanagan Indian Band.

The Board may prescribe any requirements for the form and content of the financial records and the accounting systems of the Okanagan Indian Band that it deems necessary.

Appointment of Board [Note to Okanagan Indian Band: this sample by­law establishes a Treasury Board of five (5) people. You should establish an appropriate sized Treasury Board for the size of your community. Any Treasury Board should contain an odd number of people, no less than three (3) members, one (1) of whom should be the band manager and one of whom should be a councillor.]

Council hereby establishes a treasury board of the Okanagan Indian Band.

Council must, by resolution, appoint at least five (5) members to the Board and those members must include

(hh) the band manager;

(ii) at least two (2) members of Council; and

(jj) at least two (2) members of the Okanagan Indian Band who are not members of Council.

Terms of Office

Council must, by resolution, appoint the band manager to be a member of the Board for as long as he is the band manager.

Council must, by resolution, appoint the members of the Board prescribed under paragraphs 15(b) and (c) for a term of office that is the same duration as a term of office for a member of Council.

A member of the Board may be removed from office

(kk) by the chair if the member has missed three (3) consecutive scheduled meetings of the Board;

(ll) by a majority of Council and with the recommendation of the chair; or

(mm) by a unanimous vote of Council.

If any position on the Board is vacated for any reason, including under section 15, then Council must appoint, by resolution, the members needed to fill any vacancies in the Board that result from that change.

149 Election and Role of the Chair

The Board must elect from its members one (1) person to serve as chair of the Board.

The term of office for the position of chair must be two (2) years and a person may serve as a chair for one (1) or more consecutive terms.

If the chair resigns, the Board must elect from its members one (1) other person to serve as chair for the balance of the term remaining.

The chair must:

(nn) supervise and direct the work of the Board;

(oo) undertake administrative duties as necessary to oversee and implement the work of the Board; and

(pp) preside at meetings of the Board.

BAND MANAGER

Role of Band Manager [Note to Okanagan Indian Band: the following gives the financial administration responsibilities of the band manager only and is not intended to be a complete job description for a band manager.]

(1) The band manager must act as the senior administrative officer of the Board and must assist the Board in carrying out its duties.

(2) The duties of the band manager include

(qq) ensuring the creation and maintenance of adequate records of Board minutes, resolutions, decisions and other proceedings;

(rr) maintaining security of finances and financial documents by

(i) establishing safe storage in security boxes or safes,

(ii) establishing secure storage with security codes and locks on files, cash and valuable documents, and

(iii) ensuring no more than two (2) people, in addition to himself, have knowledge of the security codes, combinations or possession of keys to locked files;

(ss) ensuring all cash is deposited in a drop safe located in the administration office of the Okanagan Indian Band at the end of each business day;

150 (tt) monitor all contracts and funding agreements entered into by Council or any department for financial compliance and immediately report any non­compliance to the Board; and

(uu) complete any other task assigned by the Board.

CONTROLLER

Role of Controller

The controller reports directly to the Board and must

(vv) conduct the administration necessary to discharge the financial administration responsibilities of the Board, including staff supervision;

(ww) maintain records of all information required to facilitate the annual audit;

(xx) compile and prepare information for the annual budget and any amended annual budget;

(yy) administer and maintain adequate and timely financial records and reporting systems that record all financial transactions of the Okanagan Indian Band, including but not limited to copies of all vouchers, financial statements, cancelled cheques and correspondence relating to the financial business of the Okanagan Indian Band and reporting systems;

(zz) prepare and present to the Board by the 20th day of each month, a financial statement for the previous month that includes a balance sheet and a statement of operations showing revenues and expenditures;

(aaa) receive, record and deposit, or administer the receipt, recording and deposit of all money received by the Okanagan Indian Band in a timely manner;

(bbb) ensure all accounts payable are paid in accordance with the procedures set out in this By­law;

(ccc) complete any other task assigned by the Board; and

(ddd) maintain a detailed inventory of all Okanagan Indian Band assets having a reasonable estimate of fair market value over ______dollars ($ ).

151 Appointment of Controller

The Board must develop a list of at least three (3) potential candidates for the position of controller and Council must, by resolution, appoint a person as controller from the list.

Subject to the provisions of this By­law, the engagement and removal of any person as controller must be consistent with any personnel policies of the Okanagan Indian Band. part 6

FISCAL YEAR

The financial year­end of the Okanagan Indian Band is March 31.

ANNUAL BUDGET

The Board must prepare estimates of the projected revenues of the Okanagan Indian Band for the purpose of preparing the annual budget.

Each department manager must prepare the department’s annual budget and any amendments thereto for the operation of the department and must submit the budget and any amendments prepared to the Board.

The Board must prepare an annual budget and submit the annual budget to Council for consideration and approval by resolution.

Council is solely responsible for the approval of the annual budget for each fiscal year.

Council may, by resolution, direct amendments to the annual budget submitted by the Board.

The annual budget becomes effective upon approval by Council, by resolution.

The annual budget must be made available during regular working hours for inspection by any member of the Okanagan Indian Band, and copies are to be provided to Okanagan Indian Band members upon written request to the controller and payment of a fee of twenty­five dollars ($25.00).

ANNUAL AUDIT

Council must appoint annually, by resolution, an auditor to conduct the annual audit, and prepare an annual audit report and a separate annual audit report with respect to the Tax Account.

The auditor reports to Council.

152 The auditor must be entitled to access any information or records that are held by or in the control of the Okanagan Indian Band and are necessary to complete the annual audit, including but not limited to

(eee) all books, records, accounts and vouchers of the Okanagan Indian Band;

(fff) any information held by or under the control of a department manager or any agent of the Okanagan Indian Band that is necessary for the completion of the audit;

(ggg) all Council resolutions and Okanagan Indian Band by­laws; and

(hhh) any agreements, contracts, or related documents entered into or in control of the Okanagan Indian Band, Council or any employee of the Okanagan Indian Band.

The annual audit must be conducted in accordance with generally accepted auditing standards, must include a general review of the adequacy of the accounting procedures and systems of control employed to preserve and protect the assets of the Okanagan Indian Band, and must be completed in no more than four (4) months after the fiscal year end.

The controller must provide any assistance to the auditor required for the completion of the annual audit.

After the review of the annual audited financial statements and annual audit reports by the Board, the auditor must present the statements and reports to Council.

Council must consider and vote on the annual audited financial statements and annual audit reports at a duly held meeting of Council and, if approved, must be signed by the Chief and one (1) other person as designated by resolution.

Public Access

Once Council signs the annual audited financial statements and annual audit reports, the controller must post copies of the statements and reports in such public places as determined by Council by resolution.

The controller must retain the signed, annual audited financial statements and annual audit reports, and any member of the Okanagan Indian Band may

(iii) inspect the statements and reports during regular office hours; and

(jjj) directly or through an agent, make a copy of the statements, the reports or any part thereof, upon payment of a fee of twenty­five cents ($.25) per page.

153 part 7

FINANCIAL MANAGEMENT: DEPOSITS

General Requirements

The Board must ensure that all operating and savings accounts in the name of the Okanagan Indian Band are established at a chartered bank, trust company or credit union.

The controller must ensure the safekeeping of all Okanagan Indian Band funds received and maintain a numbered receipt book for the funds.

Upon receipt of any Okanagan Indian Band funds other than Tax Revenue, the controller must

(kkk) stamp all cheques immediately upon receipt with a stamp that designates the moneys for deposit into a General Account;

(lll) cause such funds to be deposited into a General Account within five (5) days of receipt; and

(mmm) promptly issue a receipt in the correct amount to the payor.

Upon receipt of any Tax Revenue, the controller must

(nnn) stamp all cheques immediately upon receipt with a stamp that designates the moneys for deposit into the Tax Account;

(ooo) cause such funds to be deposited into the Tax Account within five (5) days of receipt; and

(ppp) promptly issue a receipt in the correct amount to the payor, subject to any requirement in the Taxation By­law to issue a receipt.

Bank Accounts and Tax Account

The controller must, under the supervision of the Board, establish at least one (1) bank account held in the name of the Okanagan Indian Band, into which all Okanagan Indian Band funds, other than Tax Revenue, must be deposited.

The controller must, under the supervision of the Board, establish one (1) Tax Account into which all Tax Revenue must be deposited.

The Board may authorize the controller to reallocate funds from one General Account to another General Account for investment purposes or program and services delivery.

Funds in any General Account and the Tax Account must be administered by the controller.

154 The interest earned on Okanagan Indian Band funds, other than the Tax Revenue, must be paid to a General Account.

The interest earned on Tax Revenue must be paid to the Tax Account. FINANCIAL MANAGEMENT: RESERVE FUND

[Note to Okanagan Indian Band: the Reserve Fund provisions are added for your consideration.]

Reserve Fund

Subject to the provisions of any funding arrangement, Council may, by resolution, authorize the establishment of a reserve fund, using Okanagan Indian Band funds other than Tax Revenue, called the “Reserve Fund” for the sole purposes of

[Note to Okanagan Indian Band: the following are two examples of reasons you may wish to create a Reserve Fund.]

(qqq) constructing or upgrading capital works of the Okanagan Indian Band;

(rrr) supplementing operational costs when projected revenues for Okanagan Indian Band administrative, social and educational programs are anticipated to be lower than projected expenditures.

Conditions of Use

The following conditions apply to the use of any Reserve Fund created under section 52:

(sss) the Reserve Fund must be established in a separate bank account with a bank, trust company or credit union;

(ttt) Council must regularly inform the members of the Okanagan Indian Band about the use of the Reserve Fund;

(uuu) the members of the Okanagan Indian Band must give prior approval for any withdrawal from the Reserve Fund over ______dollars ($______), such approval to be obtained in the same manner as set out in paragraph 70(b) of this By­law;

(vvv) Council must ensure that contributions are made to the Reserve Fund on an annual basis as part of normal monthly expenditure from Okanagan Indian Band funds and each contribution must be no less than ______percent ( %) of the total projected annual revenues of the Okanagan Indian Band set out in the annual budget projections;

155 (www) Council can only withdraw from the Reserve Fund between April 1 and April 15 of each fiscal year and only if a balance of ______dollars ($______) remains in the Reserve Fund account after the withdrawal, unless Council receives approval of the members of the Okanagan Indian Band in the same manner as set out in paragraph 70(b) of this By­law;

(xxx) Council must ensure that contributions to the Reserve Fund are budgeted as part of the annual budget, and are shown in financial statements required under paragraph 22(e) of this By­law; and

(yyy) the Reserve Fund will be established and maintained on or before April 1, _____ and may not be accessed until after April, 1 _____. FINANCIAL MANAGEMENT: EXPENDITURES

Conditions of Expenditures

Prior to any expenditure from a General Account, other than loans under section 68, the following conditions must be met:

(zzz) funds for the expenditure must be allocated and approved as part of the annual budget; and

(aaaa) the expenditure must be consistent with prudent cash management practices.

Any expenditures from the Tax Account must be in accordance with an Expenditure By­law.

Authorized Signatories

Council may, by resolution, designate up to four (4) individuals to sign any purchase order, work order, cheque, agreement or other obligation to make an expenditure from Okanagan Indian Band funds, provided that any obligation to make an expenditure must be signed by

(bbbb)at least one (1) councillor; and

(cccc) the band manager or, if the band manager is unavailable, the director of finance.

[Note to Okanagan Indian Band: the types of expenditures and pre­ approved amounts listed below are given as examples only. Please insert the types of expenditures that you wish to pre­approve, as well as reasonable amounts for your community’s signing authorities. Consider the size of your administration, budget and authority level of personnel.]

156 Council may, by resolution, designate the individuals described below to sign purchase orders and work orders for up to the following limits:

Employee Title Limit

(a) department $2,000; and manager

(b) band manager $5,000.00.

Bonding and Insurance Requirements

[Note to Okanagan Indian Band: the requirement for bonding is optional. The following provision and the sample amounts are provided for your consideration.]

Council must ensure that any individual that is designated under section 56 is bonded to a minimum of ______dollars ($______) [e.g. $50,000], and any individual that is designated under section 57 is bonded to a minimum of dollars ($______) [e.g. $30,000].

Council must ensure that the Okanagan Indian Band obtains a reasonably prudent amount of loss and liability insurance to protect the Okanagan Indian Band and its assets.

Expenditure Procedures

The controller may distribute Okanagan Indian Bands funds, other than Tax Revenue, among more than one General Account if he determines that it is administratively prudent to do so.

Council may, by resolution, authorize an expenditure from the Tax Account if the expenditure has been approved by Council

(dddd)as part of the annual budget; and

(eeee)as part of the Expenditure By­law.

An individual designated under section 57 may sign a purchase order or work order up to the amount specified in section 57 provided the expenditure has been approved by Council as part of the annual budget.

The Board must report to the Council no later than the last day of the month with the following information for the previous month:

(ffff) a summary of revenues and expenditures for the previous month;

(gggg)a cumulative summary of year­to­date revenues and expenditures;

(hhhh)bank balances for all General Accounts and the Tax Account; and

157 (iiii) a monthly cash flow report showing annual projections for each department and year­to­date revenues and expenditures of each department.

Council must ensure that all expenditures for the Okanagan Indian Band meet the conditions set out in section 54.

Petty Cash

Council may, by resolution, establish and maintain a petty cash fund to a maximum of dollars ($______) [e.g. $500], provided that

(jjjj) the resolution designates an employee of the Okanagan Indian Band who is not an authorized signatory of the Okanagan Indian Band to be responsible for the petty cash fund;

(kkkk) the designated employee must

(i) complete a voucher for each disbursement made

(ii) ensure that the total of disbursement vouchers plus the cash on hand equals the total amount of the fund

(iii) ensure reimbursement of the fund, in accordance with the vouchers, and

(iv) charge each expense to the appropriate department account.

Travel Expenses

All employees of the Okanagan Indian Band must submit travel expenses over ______dollars ($ ) to the band manager for advance approval and the band manager may approve such expenses, provided that the expenses are within the annual budget.

(a) On an annual basis, the Board must recommend allowable rates of travel expenses and conditions of reimbursement to Council for its consideration and approval, by resolution. (b) Where there have been no recommended changes the previous existing rates and conditions shall apply until amended by resolution. FINANCIAL MANAGEMENT: LOANS, BORROWING AND DEBTS

Loans [Note to Okanagan Indian Band: is this a power that you wish Council to have? You could prohibit Council from making any types of loans. Or, you could limit the types of loans that Council can make (see below)].

158 Council may make, or allow to be made, a loan from Okanagan Indian Band funds held in a General Account, provided that the following conditions have been met:

(llll) the loan must be for

[Note to Okanagan Indian Band: if you wish to restrict the types of loans, insert allowable loans here. Restrictions could include:

(i) terms that include a reasonable rate of interest, and

(ii) no more than ______dollars ($______)etc.;]

(mmmm) Council must have pre­authorized the loan by resolution;

(nnnn) funds for the loan must be allocated and approved as part of the annual budget; and

(oooo) the loan must be consistent with prudent cash management practices.

Borrowing and Credit Powers of Council [Note to Okanagan Indian Band: these conditions of borrowing are designed so that if the Okanagan Indian Band only needs to borrow a small amount, it can be done by band council resolution, but if it needs to borrow a large amount, it must be approved by the members.]

Council may, by resolution, from time to time on behalf of the Okanagan Indian Band

(pppp)borrow money in such manner and amounts, on such security, from such sources and upon such terms and conditions as they think fit,

(qqqq)obtain credit for operational purposes of the Okanagan Indian Band,

(rrrr) issue bonds, debentures, and other debt obligations either outright or as security for any liability or obligation of the Okanagan Indian Band or any other person, and

(ssss) mortgage, charge, whether by way of specific or floating charge, or give other security on the undertaking, or on the whole or any part of the property and assets, of the Okanagan Indian Band (both present and future),

provided that the conditions of borrowing in section 70 have been met.

159 Conditions of Borrowing

Council must ensure that the following conditions have been met prior to passing an authorizing resolution under section 69:

(tttt) if the amount to be borrowed is less than ______dollars ($______) and if Council approves of the terms of the loan, then Council must pass a resolution authorizing the loan;

(uuuu)if the amount to be borrowed is more than ______dollars ($_____), then Council must have the prior approval of the members of the Okanagan Indian Band authorizing the loan, such vote to be held in the following manner:

(i) Council must ensure that a notice is

(A) mailed or delivered to all households of members of the Okanagan Indian Band, on all reserves of the Okanagan Indian Band,

(B) mailed or delivered to all members of the Okanagan Indian Band who live off the reserve, and

(C) posted at all administration offices of the Okanagan Indian Band,

at least fourteen (14) days prior to a vote held under this section;

(ii) a notice mailed or delivered under this section must set out the details of the amount of the loan, the purpose of the loan and the repayment obligations in respect of the loan, and the time, date and place of a meeting of the members of the Okanagan Indian Band to authorize the loan;

(iii) at the meeting, Council must inform the members of the Okanagan Indian Band of the details of the loan, including the amount of the loan, its purpose, the cost of interest and how the loan will be repaid; and

(iv) the loan must be approved by fifty percent (50%) plus one (1) of the members present at the meeting.

Collection of Debts

The Board must seek, or cause to be sought, agreement for a payment plan from each person or entity that owes money to the Okanagan Indian Band.

160 The Board must ensure that the repayment plan for any debt to the Okanagan Indian Band under one thousand dollars ($1,000) is for a term no longer than twelve (12) months, unless otherwise approved by resolution.

The Board must ensure that the repayment plan for any debt to the Okanagan Indian Band over one thousand dollars ($1,000) is for a term no longer than twenty­four (24) months, unless otherwise approved by resolution.

Council, or its designate, must charge interest on any debts owing to the Okanagan Indian Band, and Council must, by resolution, determine the amount of interest to be charged, provided that in no circumstances may it be less than ______percent (___%) per year.

Council may, by resolution, set off or designate another person to set off any amount owing to the Okanagan Indian Band against any money owed to the debtor from the Okanagan Indian Band.

(a) The Board may use a debt collection agency or, if approved by resolution, the court, to collect debts that are greater than ______dollars ($_____), more than ninety (90) days in arrears and for which the debtor has failed to agree to a repayment plan according to this By­law. Prior to initiating any collection action under this provision, the Board must make reasonable efforts to enter into a repayment plan with the debtor in accordance with the provisions of this Part.

The band manager, or his designate, must render a statement of account to all debtors of the Okanagan Indian Band on a monthly basis.

FINANCIAL REPORTING: INVOICING

No person may make a payment on behalf of the Okanagan Indian Band for the performance of work, supply of goods or rendering of services unless the charge in respect of such work, goods or services has been authorized

(vvvv) pursuant to a resolution; or

(wwww) by a person delegated to authorize such payment under this By­law.

The band manager or his designate must ensure that an invoice is rendered, in a timely manner, for all work, goods or services that are provided for payment by the Okanagan Indian Band. AWARDING OF CONTRACTS

Council may, by resolution, approve any contract on behalf of the Okanagan Indian Band, provided the following conditions must be met:

(xxxx) any expenditure required of the Okanagan Indian Band in the contract must meet the requirements under section 54;

161 (yyyy) the department manager responsible for managing the contract must recommend the contract to Council; and

(zzzz) the controller must state to Council that the funds are available to pay the expenditure.

Council may, by resolution, designate the employees described below to approve any contract for up to the following limits, provided the requirements under paragraphs 80(a) and (c) are met in advance:

Employee Title Limit

(a) department $2,000; and manager

(b) band manager $5,000.

Tendering Requirements

The band manager may approve a capital works purchase up to ______dollars ($ ) without going to tender if the purchase was approved in the annual budget.

The Board must put all capital works purchases over _____ dollars ($ ) to public tender and seek bids from at least three (3) independent contractors for such purchases.

Council may, be resolution, approve the Board to consider less than three (3) bids if less than three (3) bids are received by the tender closing date.

In emergency situations telephone bids up to _____ dollars ($ ) may be accepted by a department manager providing a written confirmation follows from the bidder and a record of telephone bids is filed.

Invitations to tender must include

(aaaaa) the time and date of closing;

(bbbbb) sufficient details from which comparable bids can be made;

(ccccc) the time, date, and place tenders are to be opened; and

(ddddd) the amount of any security deposit.

The tendering period is not to be less than five (5) working days, unless in an emergency situation.

All tenders are to be returned sealed and addressed to the Okanagan Indian Band, clearly marked “Tendered for [description of project]” and the controller must record, or cause to be recorded, the time and date of receipt on the unopened envelope of tender.

162 All tenders received must be opened in public in the presence of the band manager and any department manager responsible for the tendering process.

The name of the bidder and the project, and the date and amount of the bid must be recorded.

The Board must accept the lowest tender received unless Council has passed a resolution that

(eeeee) approves the other tender; and

(fffff) records the reasons why it is in the best interests of the Okanagan Indian Band to accept a higher tender.

Upon acceptance of a tender for the performance of work, goods, or services, the Board must ensure that

(ggggg) a written contract is signed by the party accepting the contract and the Okanagan Indian Band; and

(hhhhh) a copy of the written contract is kept as a record of the Okanagan Indian Band.

No disbursements or payment on any contract must be made without supporting documentation as required by any policies of the Board.

The controller must retain a fifteen percent (15%) hold­back of final payment or such greater amount as may be determined by the Board, from all contractors until Council, by resolution, approves all work as complete and satisfactory.

The Board may establish any further policies and procedures for the tender process as it considers necessary. part 8

CONFLICTS OF INTEREST

Definitions

The following definitions apply to this Part:

(iiiii) “personal gain” means any financial benefit; and

(jjjjj) “family member” means a spouse, including a common law spouse, children, parent, brother, sister, father­in­law, mother­in­ law, uncle, aunt, grandparent, son­in­law, daughter­in­law, and also includes any relative permanently residing in the person’s household.

163 General Conflict of Interest Rule

A person who is a member of Council or the Board, or is otherwise employed by the Okanagan Indian Band or one of its departments, must not use that office or employment for his own personal gain, the personal gain of his family member or to the detriment of the interests of the Okanagan Indian Band.

Disclosure by Members of Council and the Board

If a decision by Council or the Board may result in a member of Council or the Board, or his family member, receiving any personal gain, such member must make full and complete disclosure to Council or the Board, as the case may be, of the details of the potential personal gain.

It shall be the duty of each member of Council and the Board to disclose to Council or the Board, as the case may be, any real or perceived personal gain of any other member or any other member’s family member.

A member of Council or the Board must disclose his potential personal gain and the potential personal gain of his family member in one of the following ways, whichever occurs first:

(kkkkk) at the meeting at which the Council or the Board, as the case may be, first considers the decision that may result in the potential personal gain;

(lllll) at the first meeting after the member becomes aware of the potential for the personal gain; or

(mmmmm) in writing to the Council or the Board, as the case may be, as soon as the member becomes aware of the potential for the personal gain.

Immediately after the disclosure set out in paragraphs 100(a) and (b), the member in potential conflict must leave the meeting room and must not participate in any discussions or vote concerning the matter and the minutes of the meeting must record the time that the member leaves and returns to the meeting room.

Despite section 101, the person who leaves the room may still be counted for the purpose of calculating any quorum requirement.

Disclosure by Employees

If an employee of the Okanagan Indian Band or his family member may receive a personal gain from a contract with the Okanagan Indian Band, he must disclose his interest to the Board in writing and thereafter refrain from taking part in any discussion or decision about the awarding of the contract.

164 Liability to Account

Council may hold any person who fails to follow the proper procedure for disclosure and abstaining from involvement under this Part responsible to reimburse the Okanagan Indian Band for any personal gain that he or his family member received.

Suspension or Dismissal

If any person other than a member of Council or the band manager violates the conflict of interest provision, then subject to any personnel policy of the Okanagan Indian Band, the band manager may

(nnnnn) suspend the person; or (b) dismiss the person from all privileges and benefits of office or employment.

Subject to any personnel policy of the Okanagan Indian Band, any person who is suspended or dismissed under section 105 must have a right to appeal the dismissal or suspension to Council.

If the band manager violates the conflict of interest provision, then subject to any personnel policy of the Okanagan Indian Band that applies to the band manager, Council must

(ooooo) suspend the band manager; or (b) dismiss the band manager from all privileges and benefits of office or employment.

Subject to any personnel policy of the Okanagan Indian Band that applies to the band manager, Council must, in a timely manner, give a band manager who is suspended or dismissed under section 107 an opportunity to speak to Council and explain any relevant circumstances.

[Note to Okanagan Indian Band: you may want to include other dispute resolution mechanisms for the band manager here.] part 9

NON­COMPLIANCE

A decision made in contravention of this By­law is voidable by vote of a majority of Council. part 10

AMENDMENTS AND REPEAL

Amendment or repeal of this By­law must be made by a by­law enacted by Council.

165 part 11

GENERAL

In this By­law, any words in the singular include the plural and words in the plural includes the singular and the masculine includes the feminine and neuter where the context requires.

If any provision of this By­law is held to be invalid, void, voidable or unenforceable for any reason, then the particular provision will be deemed severed from the remainder of this By­law and all remaining provisions of this By­law must remain in full force and effect.

This By­law is hereby enacted by Council at a duly convened meeting held on the ______day of ______200___.

______Chief Councillor

______Councillor Councillor

______Councillor

166