Proceeds from Liquor Fees to Remain On-reserve in Saskatchewan
REGINA — The provincial government has entered into agreements with several First Nations that will permit them to levy their own on-reserve liquor fees, which could bring in hundreds of thousands of dollars a year for First Nations governments.
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. The province is currently collecting about $500,000 a year in liquor taxes from on-reserve casinos and other licensed operations, like golf course clubhouses, according to a finance ministry spokesperson.
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One of the conditions of the agreement is that all consumers pays the tax, Bear added. “It’s status-blind. Everybody pays. It doesn’t matter if you’re First Nations or non-First Nations.”
The Whitecap Liquor Consumption Fee “works like it does anywhere else. Retailers collect the tax from the consumer and remit it to the province, then the province forwards it back to Whitecap,” Bear said.
“Then we, in turn, can utilize those resources inside the community. So it’s been a very good agreement for us.”
How will the First Nations who collect the tax apply it within their community? Read the full news article here.
