29.10.1. A municipality may enter into an agreement with the council of a band within the meaning of the Indian Act (Revised Statutes of Canada, 1985, chapter I-5) in relation to the exercise of its powers on the reserve over which the council of the band has authority and which is included within the territory of the municipality.
Such an agreement must be approved by the Government. It shall prevail over any inconsistent provision of a general law or special Act or of any regulation thereunder. In particular, it may provide that(1) the municipality is to renounce its power to impose any tax, compensation or mode of tariffing on the immovables situated on the reserve or in respect of them;
(2) the Act respecting duties on transfers of immovables (chapter D-15.1) is not to apply to transfers of immovables situated on the reserve;
(3) the tax base of the school tax is, on the reserve, to be different from the tax base established in section 310 of the Education Act (chapter I-13.3);
(4) all or part of the by-laws of the municipality are not to apply on the reserve.
Such an agreement may have retroactive effect to the date fixed by the order of the Government approving the agreement.
The order may approve the agreement and fix the date from which is has effect, and may, to provide for the impact of the agreement, create a municipal rule of law or derogate from any provision of an Act for which the Minister of Municipal Affairs is responsible, of a special Act governing a municipality, or of an instrument under such an Act.