The chief and council of the White Bear Reserve near Carlyle have become the first to enforce a property tax system on buildings housed on reserve that are not owned by the band.
Chief Brian Standingready said the tax, which came into effect Jan. 1, 1999, applies to all the facilities in the oil and gas field on the reserve, the crown utilities properties, and most commercial properties. It will eventually include all the cottages on the White Bear Lake Resort.
"The provincial and federal governments have been moving in with taxes on the reserve, and any tax money that comes out of here, we don't see it coming back for development," said Standingready of council's reason for the new property tax.
In 1998, the band used it's own money, without any government funding, to make improvements in the tourism area - specifically on the resort and the golf course.
Standingready said the improvements were needed before the tax could be implemented. Now, the council has debts that need to be paid, and further money will have to be spent on the run-down and pothole-ridden resort.
He expects the 1999 revenue from the tax - about $1 million - will help offset those costs.
"That's $1 million a year that we didn't have, and don't have to borrow. It will help us pay for some long-term development and pay off some debt," Standingready said.
The tax rate was set by the Saskatchewan Assessment Management Agency and is comparable to any other property rate in the area. A small number of property tax appeals - three or four - have been filed for consideration by council.
"There has been a bit of resistance to the tax, being introduced by a First Nations group, and implemented by an Indian government. But we have to raise money somehow, since the federal and provincial governments collect tax on reserve and we don't see any of it," said Standingready.
Recently-introduced taxes on reserve include GST and PST, plus increased income tax.
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