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When do nations tax? The adoption of property tax codes by First Nations in Canada

Author

Listed:
  • Donn. L. Feir

    (University of Victoria)

  • Maggie E. C. Jones

    (Emory University)

  • David Scoones

    (University of Victoria)

Abstract

Recent changes in Canadian legislation have enabled First Nations to adopt property taxation and other forms of taxation on reserves, thereby allowing them to directly finance their local governments through local tax revenues. In this paper, we compile data on the passage of First Nations tax laws over a 30-year period from a centralized national database on First Nations by-laws, the First Nations Gazette. We combine those data with additional sources to analyze the factors that are associated with First Nations exercising their taxation authority. We find evidence of geographic policy diffusion consistent with First Nations learning from their neighbors and direct evidence that formal educational and institutional resources are important correlates of tax law adoption. Understanding that process informs the broader literature on the evolution of taxation structures and local political incentives, the analysis may contain important lessons for Indigenous tax jurisdiction in other contexts. It is also a critical first step towards assessing the long-term consequences of First Nations’ new fiscal powers.

Suggested Citation

  • Donn. L. Feir & Maggie E. C. Jones & David Scoones, 2024. "When do nations tax? The adoption of property tax codes by First Nations in Canada," Public Choice, Springer, vol. 199(3), pages 285-318, June.
    • Handle: RePEc:kap:pubcho:v:199:y:2024:i:3:d:10.1007_s11127-022-01039-4
    DOI: 10.1007/s11127-022-01039-4
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    More about this item

    Keywords

    State evolution; First Nations; Indigenous; Taxation; Property; Public finance;
    All these keywords.

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

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