Address railway tax issue: town

Duane Hicks

All aboard!
The Town of Fort Frances is demanding the province address the inequity in property taxation on railway right-of-ways collected by municipalities in Ontario.
And now it’s looking for every other community in the province to get on the train and ask the Ministry of Finance to get on the right track.
“We need support from the municipalities. They need to tell the premier that there’s something wrong,” said Coun. Ken Perry, who has been championing the railway tax inequity issue in recent months.
“It’s good for everybody,” Coun. Perry stressed, noting all municipalities and First Nations with railroad right-of-way properties should be getting their rightful taxation from the railway companies.
To provide an example close to home, Fort Frances currently receives just $3,623 annually from the CNR for right-of-way property taxes here.
If Fort Frances was located in Saskatchewan or Alberta, it would receive $9,260,150 or $6,878,078, respectively, from the CNR, Coun. Perry noted.
“We’re looking for an increase in taxes being paid by the railroad company,” he explained.
“The dream is to get $8 million [for Fort Frances],” Coun. Perry added.
“But [even] $50,000 would be 14 times more than we’re getting right now.”
Town council passed a resolution at its regular meeting Monday night calling on Finance minister Charles Sousa to implement a new system of municipal property taxation for railroad right-of-way properties based on utilizing a per ton-mile concept.
The resolution asserts railway companies in Ontario do not pay a proportionate share of municipal property tax as compared to other properties in their class, or compared to any other municipal tax class.
However, in other provinces and jurisdictions, railway companies do remit a more equitable share of taxes to the local tax base—and those taxes are calculated using a per ton-mile concept.
These fees are reviewed and adjusted on a regular basis according to inflation and ongoing current conditions.
Ontario, meanwhile, has continued to fall further and further behind in its approach to railroad property taxation over the past 112 plus years.
As such, a new system based on utilizing a per ton-mile concept must be implemented in Ontario, council’s resolution states.
Furthermore, it says the new tax system—when implemented—must be reviewed on a regular basis, similar to the MPAC four-year assessment cycle.
Having received council’s approval, the resolution will be sent to every municipal council in Ontario to seek their support.
It also will be sent to Premier Kathleen Wynne, Sousa, all Ontario MPPs, local MPs, and organizations such as the Association of Municipalities Ontario (AMO).
The issue also will be discussed at a Northwestern Ontario Municipal Association board meeting next week, noted Coun. Perry, then at the annual general meeting of the Rainy River District Municipal Association on Jan. 29 in Rainy River.
“Hopefully, we will pass a resolution there,” said Coun. Perry, noting that when when he makes a presentation to the Ministry of Finance at the Rural Ontario Municipal Association annual conference in Toronto on Jan. 30, he’d like to go armed with a handful of resolutions.
At Monday night’s council meeting, Mayor Roy Avis commended Coun. Perry for the effort he’s put forward on the railway taxation issue.
“Ken, you did a good job so far,” he remarked. “Please continue.”
“I’ll be happy when we see some money from the government,” Coun. Perry replied.