The BC Legislature has ratified the amendment to the TFN Treaty, the last step in the process to put into effect the reinstatement of the S87 tax exemption. TFN and Canada had previously completed their part in the process before the end of 2022. As a result of the S87 tax exemption now being reinstated, the following are now in effect for Members who have Status:
- Income earned on the former TFN Reserve or on a reserve in Canada is exempt from federal and provincial income tax.
- Purchases made on the former TFN Reserve or on a reserve in Canada are exempt from BC PST.
- Transfers of real property on the former TFN Reserve or on a reserve in Canada are exempt from BC Property Transfer Tax.
- Other transaction taxes, such as probate fees may also be exempt. As these are situation specific, it is best to enquire to ensure that you are not paying taxes that you do not need to.
This is a huge win for TFN Members, and our hands go up to all who have worked so hard for so long to make this possible.
It may take a few days for the communication from BC to go out to vendors in the province, making them aware that TFN Members are now PST exempt, so please be patient while the transition occurs. In the meantime, TFN Members can purchase PST exempt fuel at the TFN PetroCanada gas station, as that is located on the former TFN Reserve. You would need to show your status cards to the employee at the counter, who will verify your ID, record the details of the purchase (volume, date, ID number etc.) and ask for your signature. This is required by the Provincial Finance Ministry to be reported to them by the gas station.
Tobacco cannot be sold PST exempt without a special permit, so we will have to wait a little longer for that. The gas station could not apply for the permit until the Treaty Amendment was approved. This has now happened, and our application is already in, but we have been informed that the process will likely take 4-6 weeks before the permit is issued. We are doing our best to use our Ministry contacts to expedite the process and will inform TFN Members when tax exempt tobacco is available for sale.
PLEASE NOTE: GST continues to be payable on the former TFN Reserve and TFN Status Members will still pay GST on other Reserves.
If you have any questions with respect to how the Treaty Amendment affects you, please reach out to staff in the Finance Department for assistance. Contact information for them is available on the TFN website: Staff Contacts – Tsawwassen First Nation