Kitsumkalum Agreement-in-Principle Penalties 6. A Kitsumkalum Law in respect of taxation may provide for: a) a fine that is greater than the limits set out in paragraph 123 of the Self-Government Chapter; or b) a term of imprisonment that is greater than the limit set out in paragraph 125 of the SelfGovernment Chapter, where there is an agreement to that effect as contemplated in paragraph 4 of this Chapter. Adjudication 7. Notwithstanding paragraph 135 of the Self-Government Chapter, parties to an agreement under paragraph 4 may provide for an alternative approach to the appeal, enforcement or adjudication of Kitsumkalum Law with respect to taxation. Kitsumkalum Lands 8. Kitsumkalum is not subject to capital taxation, including real property taxes and taxes on capital or wealth, with respect to the estate or interest of Kitsumkalum in Kitsumkalum Lands on which there are no improvements or on which there is a designated improvement. 9. In paragraph 8, “designated improvement” means: 10. a) a residence of a Kitsumkalum Member; b) an improvement, all or substantially all of which is used for a public purpose or a purpose ancillary or incidental to the public purpose, including: i) a public governance or administration building, public meeting building, public hall, public school or other public educational institution, teacher age, public library, public health facility, public care facility, public seniors home, public museum, place of public worship, manse, fire hall, police facility, court, correction facility, public recreation facility, public park, or an improvement used for Kitsumkalum cultural or spiritual purposes; ii) works of public convenience constructed or operated for the benefit of Kitsumkalum Members, occupiers of Kitsumkalum Lands or individuals visiting or in transit through Kitsumkalum Lands, including public utility works, public works used to treat or deliver water or as part of a public sewer system, public roads, public bridges, public drainage ditches, traffic signals, street lights, public sidewalks, and public parking lots; or iii) other improvements similar in nature to those described in subparagraphs 9(b)(i) and 9(b)(ii); c) an improvement that is used primarily for the management, protection or enhancement of a natural resource, including a Forest Resource, fishery or wildlife resource, other than an improvement that is used primarily in harvesting or processing a natural resource for profit; and d) Forest Resources and forest roads. In subparagraph 9.b), “public purpose” does not include the provision of property or services primarily for the purpose of profit. Page 116 of 140

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