Agreements

Manitoba Treaty Land Entitlement Agreement
Municipal Tax Loss Compensation Application Form and Guidelines

Guidelines

Eligible municipalities whose municipal revenue has been impacted by the creation of new reserves under the Manitoba Treaty Land Entitlement Framework Agreement can now apply to the Province for funding support.

Compensation will be paid upon approval by the Province to those municipalities demonstrating a net loss in municipal tax revenues as a result of conversion of land to reserve status in an amount equivalent to five times (5x) the annual net tax loss at the time of conversion.

Eligibility

Municipal tax loss compensation is available to municipalities who meet the following conditions:

1. TLE sites have converted to reserve;
2. TLE sites were converted as part of the Manitoba Treaty Land Entitlement Framework Agreement;
3. TLE sites are situated within municipal boundaries;
4. TLE sites were subject to municipal property tax or grant-in-lieu prior to reserve status;
5. A net loss in municipal tax revenue has occurred as a result of transfer to reserve status.

A net loss in municipal tax revenue occurs when fees and charges payable by a First Nation as part of a MDSA do not completely offset the annual municipal taxes that would be normally levied on a property. Or it may be that a MDSA has not been negotiated, resulting in a net loss in municipal tax revenue.

General Guidelines for Completing the Application

1. An application form must be completed for each TLE site that when converted to reserve results in an annual net loss in municipal tax revenue.
2. Municipalities can apply upon receiving notice that the land has converted to reserve. A notice confirming that the land has transferred to reserve will be sent to municipalities by Manitoba Aboriginal and Northern Affairs. If several sites are anticipated to be converted to reserve, resulting in a net loss in municipal revenue, applications may be bundled and submitted periodically.
3. To determine if there is an annual net loss in municipal tax revenue, identify the total municipal tax or grant-in-lieu levied on the site in the year the land converted to reserve minus any annual revenue received as part of a Municipal Development and Services Agreement (MSDA) providing for the payment of municipal services to the new reserve.
4. Municipal tax loss is five times (5x) the net loss of annual municipal taxes or grant-in-lieu levied during the year of conversion.
5. Upon approval by the Province, a one-time payment will be forwarded to the applicant equivalent to five times (5x) that municipal net tax loss.

About the Manitoba Treaty Land Entitlement (TLE) Framework Agreement

Between 1871 and 1910, Canada entered into various treaties with First Nations in Manitoba. These treaties provided that Canada would set aside a certain amount of land as reserve land for First Nations. In many circumstances, not all First Nations received their full amount of land for various reasons.

The (TLE) Framework Agreement, entered into by Canada, Manitoba and twenty Manitoba First Nations in 1997, provides for the fulfillment of this long outstanding treaty obligation.

Under this Agreement, First Nations can select Crown land or in a case where there is not access to Crown land, they can acquire (purchase) private land.

These sites, upon meeting provincial and federal eligibility will be converted to reserve. TLE sites can occur in rural or urban municipalities and in unorganized territory.

Additional applications available at:

Manitoba Aboriginal and Northern Affairs
200-500 Portage Avenue
Winnipeg MB R3C 3X1
(204) 945-2511 or (800) 282-8069
(Ask to be directed to 945-2511)
www.gov.mb.ca/ana

Association of Manitoba Municipalities
1910 Saskatchewan Avenue, Box 397
Portage la Prairie MB R1N 0P1
(204) 857-8666
http://www.amm.mb.ca