The appellant Indian band surrendered a portion of its reserve to the Federal Crown in 1966 for full market value to be used as a municipal airport, with a stipulation that the land would revert to the band if it ceased to be used for public purposes.
Following 1988 amendments to the Indian Act that brought lands surrendered 'otherwise than absolutely' into the definition of 'reserve' for taxation purposes, the band levied property taxes on the respondent municipality.
The Supreme Court of Canada held that despite the sui generis nature of native land rights, the true intention of the parties was an absolute surrender for sale.
The Court concluded that the lands were not 'designated lands' under the Indian Act and thus not subject to the band's property tax jurisdiction.
