Casino liquor tax money will go to First Nations
Last Updated: Tuesday, March 9, 2010 | 3:48 PM CT
CBC News
The provincial government is signing agreements with a number of First Nations in Saskatchewan to allow them to levy their own liquor taxes on reserves.
The idea was tried as a pilot project at the Whitecap Dakota First Nation, south of Saskatoon, which is home to the Dakota Dunes Casino.
In the test project about $15,000 per month was collected.
The liquor consumption tax rate in Saskatchewan is ten per cent.
However, First Nations people on reserve are not obliged to pay such a tax.
Under the agreements everyone who buys a drink at a First Nations casino will pay the tax.
The money that is collected is then returned to the casino's host reserve for local projects.
"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," Rod Gantefoer, Saskatchewan's minister of finance, said in a statement announcing the agreements.
In addition to the Whitecap Dakota First Nation, agreements have been made with:
- Mosquito, Grizzly Bear's Head, Lean Man First Nation (host of the Gold Eagle Casino in North Battleford)
- Kahkewistahaw First Nation in Yorkton (host of the Painted Hand Casino)
- Peter Ballantyne Cree Nation in Prince Albert (host of the Northern Lights Casino)
- White Bear First Nation (host of the Bear Claw Casino)
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