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Huge debts from tax arrears Casey Lessard Northern News Services Published Monday, July 30, 2012
As of July 11, the combined debt for Lizzie Kelly (with her husband, Jonah, who recently died), Jetaloo Kakee, and Akeeshoo and Alice Joamie, has surpassed $1 million, more than half of the $1,994,929.76 in arrears. Kelly, who became a homeowner in 1989 and now owes $493,003, intends to pay it back. "I want to pay every penny in the future somehow, hoping, dreaming to get out of debt," she said. She "never, ever" predicted she would be in this situation, which started early in her home ownership. "I used to tell my husband, you should pay before it becomes too much. 'Look, it's almost $5,000.' That's a long time ago," Kelly said, highlighting the fact that most of the debt is accumulated interest. Her broadcaster husband died May 26 at age 65. The debts for the three households are long-standing, and predate the creation of Nunavut. In fact, the city withdrew its plans to auction the properties in 2003 - the bidding for Kelly's home was to start at $19,700 - when the Land Titles Office intervened, saying the city had no power to do so because the leases were issued by the Government of the NWT. Assessed in 2006, Kelly's home was valued for taxation purposes at $44,400 with a $49,500 land lease, director of planning and development Arif Sayani said. As of July 11, Jetaloo Kakee owed $411,072. The Joamies are the only other residents owing more than $100,000; their debt stands at $106,509. The NWT Metis Development Corporation, owes more than the Joamies at $248,662. The rest of the second $1 million is split among 69 other ratepayers, each one owing less than $60,000. The city is required by law to list the names of those who owe taxes each July. But does the shame game work? "Yes for some people, no for others," chief administrative officer John Hussey said. "Depends on the individual." More importantly, how does a debt balloon this quickly? Those who are elders or are disabled are not charged tax, Hussey said, but arrears are subject to a one per cent per month compound interest charge. Between Kelly and Kakee, their debt to the city has gone from a combined total of $240,000 in 2002 to more than $900,000 in 2012. "It's not as simple as the city saying, 'We'll help you pay.' It's not as simple as the city just writing off the debt," said councillor Romeyn Stevenson. "I really would have thought more would have come of it in this time, but the reason is not for lack of thinking about it. We will deal with it, but I'm not sure how." If efforts to convince the residents to pay their taxes fail, the city can eventually recover the taxes when the property changes hands. "When any land or property transaction occurs, or even refinancing, then we are able to recoup those outstanding balances," said Mayor Madeleine Redfern, who would like to resolve the situation before her term ends in October. "In order to fulfill or finalize any property transactions, any outstanding arrears owed to the city will come from the sale." Sensitive to the cultural situation, the mayor said her work with the Qikiqtani Truth Commission informs her approach to the situation. "I'm aware of some of the history of how and why Inuit moved into the settlements," she said. "Some of the statements that might have been made by federal government representatives about these new housing initiatives and programs, I think there was some possible cultural and language miscommunication, concepts that Inuit would not have been inherently familiar with: homeownership, principal payments, interest, property taxes." With an annual budget of $37 million, $11 million of which is from property taxes, the city could do a lot with the $2 million in arrears. The mayor said the city needs $50 million for water, sewage and roads, $20 million for the proposed aquatic centre, and $15 million for an emergency services centre.
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