Nathan VanderKlippe
Northern News Services

Yellowknife (Jan 25/02) - If you don't pay your taxes, getting your property taken away will be a sure thing.

That is, if city council passes a policy being recommended by the corporate services committee. It will go before council Monday.

For the last three years, the city has tried to auction off all properties whose taxes haven't been paid in two or more years. The auctions didn't prove successful -- only one lot was sold in three auctions. But they worked well at scaring people into paying their taxes: since 1998, the city has made up more than $2 million in tax arrears.

The new policy would see the city pay 50 per cent of the assessed value for all properties auctioned off.

This year, that means five Yellowknife property owners may see their land taken away by the city in April.

Golden Electric, Peter and Tracey Jacobs, Michael Byrne and Mike Walcer could all lose land at the upcoming auction, which has tentatively been set for April 11.

In total, the five property owners owe $609,442 in taxes. Mike Walcer owes the most: $353,816 on four properties. If council adopts the policy, the city would buy that land back for $137,940. "Let them try," said Walcer.

None of the other owners were available for comment.

A total $2.5 million in property is set for auction, land which represents arrears of $847,000.

If the city buys the properties, it would bid the minimum price offered at the auction. If successful in that bid, the money would go to the sheriff's office. The city would later put in a claim to get that money back. If successful, the city will be able to transfer the title on the land without losing a penny. It can sell the land to make up for lost taxes.

The transfer of title happens 30 days after the auction, giving owners an additional month to pay their taxes.

City treasurer Glen Jarbeau said the auction process has been successful because it has made "it clear what the consequences of not paying property taxes are."

As of March 2001, the city was owed $1.89 million in tax arrears. Of that, $400,000 was owed by 32 taxpayers who are currently on the city's payment plan. The plan gives delinquent taxpayers 10 years to pay back taxes at a reduced interest rate of 1 per cent per month, or about 13.6 per cent annually.

Without it, interest rates are 1.8 per cent monthly, or 24 per cent a year.