LIIDLII KUE/FORT SIMPSON
A controversial issue in the village is arising again.

Mayor Sean Whelly said the village has no choice under the law but to try and recoup the property taxes it is owed. - Shane Magee/NNSL photo

Fort Simpson was owed more than $820,000 in unpaid property taxes on 45 properties as of September.

Senior administrative officer Dean Pickering told a recent council meeting that means another tax sale will be coming up early next year.

Legislation provides the village the ability to hold a tax sale auction on properties in arrears.

"Nothing has been done since the last tax sale," Pickering said Dec. 1.

"Something needs to be done, otherwise the process is right around the corner."

Pickering said he'll be notifying Nahendeh MLA Kevin Menicoche, who has been working to resolve an ownership question for two of the properties in arrears, and Liidlii Kue First Nation of the new list of properties under tax sale consideration.

The list is expected to be sent once Pickering has been able to sift out any that shouldn't be on the list.

All property owners who haven't paid their taxes - in arrears - will get a notice that they have to pay.

Those who haven't paid for three years and own more than a figure set by council would then qualify for the tax sale.

Last year, the village set $10,000 unpaid over three years as the minimum to qualify for tax sale.

If that same figure was used, Pickering said there would be 23 properties potentially going up for auction owing more than $520,000 in total.

The notifications to all those in arrears would likely go out toward the end of next month, with the tax arrears auction likely to be held mid-May, said Pickering.

Mayor expects controversy

Mayor Sean Whelly said he expects the news that tax sales are coming up again to be controversial, but adds the village doesn't have a choice.

"We cannot forgive the tax, we just can't. Under the law, we can't," Whelly said in an interview following the council meeting. "So we're going to get stuck again painted as the bad guys, but we're just following the steps we have to follow to collect taxes. We don't have any leeway. We're stuck with the history here of land transfers and sales."

The village had let the issue build up for 15 to 20 years in some cases with no action, leaving unpaid tax bills in the range of $50,000 all the way up to $100,000 for some properties, he said.

At the end of 2013, the village was owed about $750,000 in unpaid property taxes.

The village carried out a property tax arrears auction in June. Whelly said last year, several properties sold, forcing at least one family from a home. As well, an industrial property was sold.

Overall, the village recovered about $260,000 by mid-June from payments and the auction. Nine property owners were given a one-year extension to pay.

Complicated land swap history

"It really blew up last year because there were five or six pieces of property owned by aboriginal people who maintained that, at some point, the land was (Liidlii Kue First Nation) land, but some of it turned into leased lands by the NWT Housing Corporation," Whelly said. "Because of that, they were subject to losing their houses."

Dolly Tsetso was one of those given more time to clear up the ownership status of the property where her family resides.

Tsetso and her husband said they were given the land by Liidlii Kue First Nation in 1989.

She said she was assured at the time that because it was band land, she wouldn't have to pay taxes on it.

Paperwork mix-up

But the paperwork turning over the land from the federal government to the band was apparently never filed.

Back in 2003, she got a letter from the village saying she was in arrears.

Tsetso approached the MLA seeking help to figure out the property ownership.

Menicoche echoed Pickering's comment, saying on on Dec. 8 that little progress has been made on that clearing up the issue.

"I don't see this issue being resolved during the December holidays," Menicoche said.

He's still hopeful a resolution can be reached before a tax sale on Tsetso's property and with another person he's trying to help.

The mayor said both the territorial and federal government haven't acknowledging any errors on their part.

Despite sitting down with representatives from various governments to resolve the issue, he said they haven't gotten anywhere.

"You're left with individuals here in Simpson saying it was all done behind their backs and without their knowledge," Whelly said.

Yanni properties eligible for tax sale

Of the 22 properties in the village owned by Leo (Yanni Yan) Cordero, 19 qualify for tax sale, Pickering said.

There are 12 in mortgage foreclosure by the Royal Bank of Canada.

Cordero, before he left the village last year, authorized Larry Swartz to continue collecting rent on his properties, which includes 23 housing units.

Swartz said 12 of the units are currently occupied.

Swartz isn't the property owner, so he isn't responsible for paying the back taxes he said Dec. 9.

He said he's been using rent money for renovations on the dilapidated units.

Royal Bank of Canada is working on getting all the money to council it has for Cordero's properties that it has mortgages on, Pickering said.

The properties will be transferred to the bank in the foreclosure process.

"The ones I'm concerned about are the community properties obviously," Pickering said. "The ones that involve members of LKFN. Those are tough decisions for council to make."

Unpaid utilities to go on taxes

Next year, those who rent their properties could be seeing a higher property tax bill if their tenants aren't paying for utilities.

Under the Cities, Towns and Villages Act, the Village of Fort Simpson has the ability to collect utilities - in this case, water and sewer bills - from the land owners if the tenant does not pay.

Pickering said the outstanding utility bills will be added to the property tax bill of the owner.

He said that will clear the outstanding amount the village is owed for utilities "by a good portion."

"I think then the owners will realize then that it is their responsibility that their tenants pay their utility bills," Pickering said.

We welcome your opinions. Click here to e-mail a letter to the editor.