GST to go into hands of another Saskatchewan First Nation

Low membership numbers and no on-reserve businesses have made it possible for the Nekaneet First Nation to collect GST on business conducted on its land.

In the next month, chief and council will pass the necessary bylaw and by July or August, GST remitted to Ottawa will be back in the hands of the First Nation.
“It’s more income for the band … and it will allow us to reinvest in our economic development opportunities,” said Chief Jordi Fourhorns.

Figures aren’t in yet, but Fourhorns said that no less than $15,000 each month is the expected take. The FNGST will be applied to the same goods and services that are taxable under the federal GST.

The bulk of that tax revenue will come from the Living Sky Casino, which Nekaneet First Nation operates in Swift Current, and urban property in Regina that the band owns. GST will be charged and while both First Nations and non-first Nations will have to ante up the additional five per cent, Fourhorns said the majority of the people dishing out the extra dollars will not be Nekaneet band members.

“Only a small number of our members go to the casino and it will benefit more as we will be collecting GST on all of the people that go tp the Living Sky casino, all the non-First Nations people from Swift current, all the non-First Nations people who pass by and stop at Living Sky,” said Fourhorns.

Nekaneet has under 200 members living on the reserve and about 200 members who live off-reserve in the surrounding area and larger cities. Fourhorns said as there are no businesses on-reserve, members travel into Swift Current and Maple Creek or cross the border to Medicine Hat in Alberta.

Chief and council took the proposal of collecting GST to the membership through community meetings and received full support. Elders also gave the proposal their approval.

“The Elders say it’s not the government that will be taxing our people. It’s going to be our own Nation. It’s our own tax and we will be getting it all back,” said Fourhorns.

After approval was received from membership, the band applied to the Canada Revenue Agency. Approval was received from the CRA.

Fourhorns expects the additional revenue to be reinvested in economic development opportunities in urban centres as well as on-reserve housing and infrastructure.

Nekaneet joins Whitecap Dakota as the only two First Nations in Saskatchewan to collect GST. Whitecap Dakota also operates a casino. Fourhorns said the revenue collected by Whitecap Dakota through the FNGST was another factor as to why Nekaneet decided to pursue that option, which is available to all First Nations.

“Whitecap started off with their casino and then they implemented their tax and they grew and now they have a very top notch housing program,” said Fourhorns. It is estimated that Whitecap Dakota takes in $1 million annually through FNGST.

Fourhorns added that a handful of bands in British Columbia and the Yukon also collect tax on their land under the First Nations Goods and Services Tax Act. The FNGST Act replaces the federal GST with the tax remitted to the First Nation.

Nekaneet will also look at applying to collect provincial sales tax and liquor tax in the future, said Fourhorns.