Village cracks down on tax evaders
Tough discussion held on rebates, utilities and property taxes
April Hudson
Northern News Services
Thursday, June 18, 2015
LIIDLII KUE/FORT SIMPSON
The village is moving ahead with a plan to decrease a tax rebate for residents who pay their property taxes before the Aug. 31 deadline, instead of raising residential taxes three per cent.
Fort Simpson Mayor Sean Whelly sitting before council in May. He is at the forefront of a discussion on what to do about property taxes. - NNSL file photo
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The choice was one or the other, said Mayor Sean Whelly during a June 16 regular council meeting.
For 20 years, homeowners have enjoyed a $300 tax rebate as an incentive to pay their taxes on time. In 2014, the village shelled out more than $22,000 in rebates to around 74 residents.
During numerous meetings to discuss the future of the rebate, councillors initially decided to scrap it altogether, fuelling an outpouring of concern from residents who took to social media to express their opinions.
Council returned to the table Monday afternoon to discuss an alternative: trimming the rebate down to $200 while raising business taxes by five per cent. Trimming the rebate would allow them to keep a zero-per-cent increase to residential property tax.
"To me, it's six in one and a half-dozen in the other. It's good people got so involved in the discussion. We'll see what they think of this compromise," Whelly said after the new bylaw passed first and second reading.
The bylaw will likely come back before council for third and final reading next week during a special council meeting, he said.
During the meeting, deputy mayor Stella Nadia said she wants to see the issue reach more residents so they know the rebate may eventually be eliminated.
"I think by taking the rebate down to $200, we're preparing them (for) that (eventuality that) it will be eliminated," she said.
"These people nominated and elected me; I come to every meeting on their behalf. Some are fortunate to have Internet at home, some do not - but a lot of our people don't know anything about taxes."
Coun. Leah Keats said the rebate is effectively a "good customer discount" provided to residents for paying their taxes - a characterization she is against.
"Tax bills are not a surprise; they come out every year at the same time," she said, adding that the rebate was originally intended to be temporary anyway.
"I think at some point, we have to be able to stand up and say, 'You've had a gift for this many years. It's run out.' The reality is, we can't afford it."
If the bylaw passes in third reading, government properties classed as "institutional", such as schools and GNWT office buildings, will also see a 10 per cent tax increase. Residential properties with multiple units will be taxed the same as businesses.
Utilities, arrears also questioned
Debating the tax rebate was just the tip of the iceberg during council.
Councillors also brought into question residents who have fallen behind on their utility bills and those whose properties are in tax arrears.
With its original planned date for its tax auction cancelled, the village had to decide whether to postpone the auction until October or cancel it altogether this year.
Originally, council had decided that properties with arrears of more than $10,000 would be up for auction. But during the meeting, they passed a motion that properties with delinquent arrears of two years surpassing the sum of $2,500 as of Dec. 31, 2013 will be put up for sale.
According to council documents, a total of 82 properties are currently in arrears to the tune of $208,254, with $91,400 of that delinquent.
As for utilities, 728 customers owed the village money as of June 13.
Those who are more than 90 days late paying their utility bill owe a cumulative $78,515.
"We're trying as hard as we can to recover our arrears in our utility accounts and property taxes, to make sure we don't have to increase our property tax even more," Whelly said after the meeting.
"I understand people are having a hard time keeping up with their property taxes, but in the end, they want services and we need to pay people to do them. I don't think we're living on a champagne budget; we're trying to deliver the basics as best we can. This is the minimum we need to continue to operate."
The village is currently investigating whether it can legally shut off water to properties with large outstanding bills and Whelly said the village should consider referring some of the cases to a collections agency.
