Northern News Services

NNSL (Aug 07/98) - So, everyone in Yellowknife who owes the city taxes has now had their names published in the local newspaper -- now what?

Well, for those who like paying massive interest rates on what they owe -- about 24 per cent each year -- they can keep owing and owing, up to a point.

"Practically, until it (the amount owed to the city) starts to approach the value of the property, you're not going to do it (have the city sell off the property)," Lovell says. "That's a council decision but I think they'd have to do it."

The city is currently owed about $4 million in total. Of this, about $1 million is currently before the courts.

Lovell points out that those who allow their tax bills to build up haven't been studying Canada's interest rates. With the prime rate hovering at about 6.5 per cent right now, it doesn't appear to make sense to allow the dollars owing to pile up at city hall.

Yellowknife charges 1.8 per cent interest per month -- almost 24 per cent a year -- for taxes in arrears. That's quite a price compared to what rates people can now get from their local banker.

According to the tax arrears list the city had published in the Yellowknifer July 31, the Gold Range's Sam Yirkuw is the individual owing the most -- $655,860 -- in Yellowknife.

At 24 per cent, this means Yurkiw could fork out $157,000 in interest over a year. By going to the bank, on the other hand, his interest bill would fall to about $42,630 at 6.5 per cent.

Reached Wednesday evening, Yurkiw said the issue didn't bother him.

"We had a bad year last year and there were other things I had to do first (before paying his taxes)," he said. "I'm not worried about it (the interest rates) at all."

The GNWT's Property Assessment and Taxation Act, provides the North's tax-based municipalities with clear rules and a process that must be followed for those who don't pay up.

By July 31, the act forces a municipality to publish the names of those in arrears in the local newspaper. And, written notices are also sent.

After December 31, the municipality may offer for sale any properties remaining on the tax arrears list.

Municipal councils have the power then to set the date for auctions for these properties.

Lovell said that he could only recall the city selling one property in the previous four years because of tax that was owed.