closely with the munici-
specific class, like com-
pal working group made
mercial taxation, shifts
up of municipalities,
the burden to others,
including representa-
most notably to residen-
tives from the north, to
tial property owners.
assist with the resolu-
“In
places
like
tion of the Canadian
Toronto or Ottawa or
Tire appeal,” says Nell.
any of the big cities
She adds that the issue
where they have multi-
surrounding the evalu-
ple Canadian Tires and
ation of big-box stores
Home Depots, and so
is one also being felt Andrew Foulds
many other commercial
by assessment jurisdic-
businesses within that
tions outside of Ontario.
class, it is a blip,” says Shelley Schell,
“I would say there is some
the chief financial officer and trea-
evidence this issue has already previ-
surer for Sault Ste. Marie. Her city
ously surfaced in other jurisdictions
has found itself owing $1.24 million
outside of Ontario. The reality is that
to Canadian Tire and Home Depot as
the global retail market is changing,
a result of the assessment appeal set-
and in keeping with our mandate we
tlement. “It really doesn’t do anything
have ensured that our 2016 values,
to them because they have growth,
the most recent values, are reflected
so it offsets the change. But when
in the Ontario marketplace,” she says.
you are in the north you don’t have
The Canadian Tire appeal process
that growth in order to absorb it, so
has affected about 105 municipalities
it becomes a hit and a transfer, more
across Ontario with other big-box
so to the residential class where most
chains such as Home Depot and
of your assessment is. And you can’t
Costco also applying to MPAC for
adjust to these large shifts easily.”
assessment reductions. This has
Moving forward from the Canadian
resulted in many communities owing
Tire issue, Schell says a big challenge
money to the chains, while some
for the city is that it underscores the
municipalities have received refunds.
difficulty of fiscal planning, espe-
“Following MPAC’s 2008 and 2012
cially when the municipality is hit
assessment rolls, it was discovered
with large retroactive bills.
that a number of our properties in
“You just have to stay on top of
Ontario were not being properly
your assessment at risk, and try to
assessed,” says Joscelyn Dosanjh,
predict where it is going to go,” she
manager of corporate communica-
says.
tions for Canadian Tire, in a prepared
“What is happening is that all
statement released to several Ontario
these special purpose properties, or
media outlets. “An appeal process was
all the Home Depots and all the big-
launched in collaboration with the
boxes, are all classed the same,” she
affected municipalities and an agree-
adds. “There is not much you can do
ment was recently reached to adjust
because it is not specific to your com-
our property values. In some cases
munity. It’s specific to all of Ontario.
this led to Canadian Tire Corporation
It’s just that you are harder hit in the
paying additional property taxes and
north than you are in the south.”
in others it resulted in tax refunds to
While Schell says the hit to the
be paid by certain municipalities.”
larger northwestern cities of Thunder
However, some municipalities
Bay and Sault Ste. Marie was difficult,
of the north and northwest, whose
it has been even harder for smaller
commercial sector is smaller and
ones like Kenora, Fort Frances,
more vulnerable to sudden adverse
Marathon, Nipigon and Dryden as
tax swings, are facing million-dollar
they all have far fewer commer-
financial hits since the agreement
cial operations from which to draw
was finalized. As well, they charge
revenues.
residents are ultimately punished by
Steven Lansdell-Roll, treasurer
the methodology MPAC used, noting
for the City of Dryden, said while the
a change in property assessment for a
$88,708 Canadian Tire assessment
20
Q2 2017 www.amcto.com
bill owed by his municipality for the
2013 to 2016 tax years was a sur-
prise, there is little that can be done
in appealing the decision or fight-
ing MPAC. That’s because MPAC is
essentially a monopoly in Ontario,
legislated by the government to do
the assessed values for all municipal-
ities across the province.
“There is no competitor. We can’t
say ‘we are not happy with your ser-
vices’ and go to an alternative. We
have to use them,” says Lansdell-
Roll, adding he hopes MPAC will
soon have more resources to ensure
assessed values are “sound and
defendable. Especially ( for) com-
mercial and large industrial, they
need to put some effort into that, and
they also need for the government to
push for things as well, especially
here in the north and northwest in
Ontario.
“We just need our MPs, need our
government to do a better job of
pushing and forcing MPAC to do a
better job and provide better services
to the north. That’s my opinion,” he
adds.
Foulds is determined to see that
push for improvement happen in
Thunder Bay. He says city council
has tasked its intergovernmental
affairs committee to advocate on
behalf of the city and other munici-
palities to MPAC and the province of
Ontario.
“In essence this is very serious and
we need to continue to advocate on
behalf of ourselves and other munici-
palities — on behalf of our citizens
for fairness,” says Foulds. “I think
municipalities, not only across the
north but in the entire province, have
to stand up shoulder to shoulder and
say to the province of Ontario enough
is enough. We have to speak in one
voice strongly with a message that
this is not right.”