Indian Act tax exemptions apply to income earned and purchases made on reserve. Any income, investments, and purchases made off-reserve by members are already taxed.
Eight to 12 years after the Final Agreement comes into effect, however, we will lose our Indian Act tax exemption for income earned and purchases made on reserve land. This is because the land will no longer be Indian Reserve land governed under the Indian Act. However, the income and sales taxes Lheidli T’enneh citizens will pay will go to the Lheidli T’enneh government. The taxes collected will help fund Lheidli T’enneh operations, programs and services, and so our tax money will be returned to work for us through our government
The Lheidli T’enneh tax powers will work alongside those of the governments of British Columbia and Canada. In some cases, Canada has agreed to take a smaller tax amount to give the First Nations government room to impose its own sales or personal income taxes, without adding extra burden. The Final Agreement sets the groundwork for a similar arrangement.
In other words, the Final Agreement will not result in double taxation. As employment and business opportunities increase, incomes may also increase and this will, of course, result in changes to tax obligations
Like other governments in Canada, the Lheidli T’enneh government will not have to pay income taxes or GST and provincial transaction taxes. The specifics of intergovernmental taxation and refunds will be set out in a separate tax treatment agreement.
The Lheidli T’enneh government will have the power to collect property tax from anyone who lives on Lheidli T’enneh lands, including lands within the city of Prince George, whether they are band members or not.
The Lheidli T’enneh government will in turn be responsible for providing local services to residents on its lands. Lheidli T'enneh will likely rely on agreements with the City and Regional Districts for these services.