It’s inevitable–residential taxes will be going up because of Bill 140.
During a taxation information session for Fort Frances council and administration Thursday, it was evident the town has no option but to make residents pay for the province’s decision to limit taxes on industrial, commercial, and multi-residential buildings beginning this year.
“With the government of the day, their mandate to protect the commercial and industrial segment . . . will mean an increase on residential taxes,” said Coun. Roy Avis.
“There will be a tax shift and there’s nothing we can do about it,” noted CAO Bill Naturkach. “It’s nothing to do with a municipal decision, it was a provincial decision.”
Because industrial and commercial taxes here are above the limit set by Bill 140, taxes in those sectors cannot go up so residential taxes will have to be hiked to make up for it.
In the town’s initial 2001 budget, taxes were increased by two percent across the board. Now, the two percent on industrial will have to be re-apportioned onto residential properties.
“There is no alternative to us–the taxes to industrial are going down period. We can’t do anything about it,” Naturkach stressed.
Council will determine how much taxes are to go up May 31, just before the deadline set by the province.
Mayor Glenn Witherspoon indicated council likely will agree to put the two percent from industrial and commercial onto residential but won’t add additional increases to make up for the revenue differential.
“We’re going to leave our rates where they are and go as status quo,” he said.
Because the municipal budget already is close to a bare-bones one, administration had asked the revenue loss be recovered with further increases.
Bob Heil, from Municipal Tax Equity Consultants Inc., helped lead council and administration through the legislated adjustments during the meeting, which ran from 12:30-2:30 p.m. Thursday.
Fort Frances Times
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