Released on March 9, 2010
The Government of Saskatchewan has entered into agreements with several First Nations that will permit them to levy their own on-reserve liquor fees.
The Liquor Consumption Tax Administration agreement allows proceeds from liquor fees to remain on-reserve to fund local priorities and will replace provincial taxes formerly collected on-reserve for alcohol purchases. These fees will stay the same as the tax collected off-reserve by the province (currently 10 per cent) and must apply to all consumers.
"We believe there are many benefits to these agreements, such as promoting on-reserve governance by First Nations people and providing them with a new and stable revenue source to help fund local priorities," Finance Minister Rod Gantefoer said.
The Ministry of Finance developed a pilot project involving liquor taxes over two years ago at the request of the Whitecap Dakota First Nation, host of the Dakota Dunes Casino. Approximately $15,000 in liquor taxes per month is first collected by the Ministry of Finance and then remitted to the Whitecap Dakota First Nation to meet local on-reserve needs.
"Having a reliable and sustainable revenue stream provides our Council with the ability to spend on areas that fit the needs of our people," Whitecap Dakota First Nation Chief Darcy Bear said. "As these priorities and needs change over time, it's critical to have this spending flexibility."
The latest First Nations to sign this agreement was the Mosquito, Grizzly Bear's Head, Lean Man First Nation (host of the Gold Eagle Casino in North Battleford) in early February. They now join the Kahkewistahaw First Nation in Yorkton (host of the Painted Hand Casino), the Peter Ballantyne Cree Nation in Prince Albert (host of the Northern Lights Casino), and the White Bear First Nation (host of the Bear Claw Casino) in recently entering these agreements.
"The ministry has experienced a high level of success with the pilot project involving Whitecap Dakota First Nation," Gantefoer said. "I'm pleased we've had the opportunity to expand it to four more First Nations. Our ministry is certainly willing to sit down and discuss this issue with other interested First Nations."
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For more information, contact:
Randy Burton
Finance
Regina
Phone: 306-787-6578
Email: randy.burton@sk.gov.ca
Cell: 306-530-2049