Iqaluit council split over proposed property tax increases
‘Ashamed’ Coun. Kyle Sheppard warns of backlash over average 10 per cent commercial, mixed-use increase
A proposed mill rate change bylaw, which would result in property tax being increased for residents and businesses, awaits third reading after narrowly passing first and second readings at Iqaluit council Tuesday. (Photo by Jeff Pelletier)
Iqaluit Coun. Kyle Sheppard warned of a backlash from the city’s business community Tuesday after council narrowly voted in favour of a proposed mill rate reduction, which would result in increased average residential and commercial property taxes.
“I am ashamed to be a part of this council that is pushing through a tax increase like this,” Sheppard said during council’s meeting.
He pointed to what he said was a lack of consultation with business owners, as well as the impact the proposed tax will have on people who live in mixed-use buildings.
“I have never been more disappointed to sit in this room,” he said.
The proposed mill rates — which are multiplied by a property’s assessed value to calculate the owner’s municipal property tax bill — were determined following the Government of Nunavut’s 2024 property value assessment, Peter Tumilty, the city’s finance director, said in a presentation to councillors.
The Government of Nunavut is responsible for assessing the values of properties every 10 years.
“The options that I’m presenting tonight are an attempt to create that balance between the increases in assessments and a reduction in the mill rates, and at the same time balance the need for us, the city, to raise revenues to fund the activities that have already been approved in the 2025 operating and capital budgets,” Tumilty said.
He presented four options, with city staff’s preferred option being one that reduced mill rates across residential, commercial and mixed-use properties while keeping industrial and institutional mill rates at 2024 levels.
The impact on property taxes would be an average three per cent increase for residential properties and an average 10 per cent increase on commercial and mixed-use properties, Tumilty said. There would also be a $2.66 million increase in city revenue this year compared to 2024.
The mill rate proposal staff recommended was the “right structure,” Sheppard said. However, he added, a 10 per cent increase on commercial properties will result in higher operating costs being passed down to consumers.
“Our business community is not going to appreciate having a massive tax hike pushed on them with no consultation, no ability or time to speak to this council about those decisions,” he said.
“I can’t support the recommendations that are being made here today.”
Deputy Mayor Kim Smith said the city’s costs are also rising, adding she supports the staff recommendation.
“I think that it is not an unreasonable ask, considering these businesses require our infrastructure, require our city staff,” she said.
“We need this to facilitate growth, that will facilitate business.”
Smith was joined by councillors Methusalah Kunuk and Simon Nattaq, who voted in favour of the staff recommendation.
Councillors Amber Aglukark and Romeyn Stevenson joined Sheppard in voting against the recommendations.
Mayor Solomon Awa broke the 3-3 tie to accept the staff recommendation, pointing to a need to address the rising costs of city operations.
“We need to have some sort of income within,” he said.
The bylaw to implement the proposed mill rates also passed on first and second readings. It still requires third reading at a later date to be fully approved.
Alternate deputy Mayor Harry Flaherty was absent from Tuesday’s meeting as was Coun. Sam Tilley, who is on leave from council for two months.
I wonder how closely the voting lines up with homeowners vs. renters on Council. I’d bet a hypothetical $2.66m that the homeowners voted against the raise.
Cynicism aside, it’s a slam-dunk that businesses and landlords will pass on costs to tenants and consumers.
And so the world turns.
I thought it was good that Northview, NCC, Nunastar, Nunavut Excavating, and Mjenovich would lower rent after council cut water rates… but nope, they raised rents instead.
And if you read the article, it’s clear what really happened—property values went up for everyone. I’m paying $4,500 a month in private rent, so I don’t feel bad for landlords whose assets just got more valuable and made them richer!
Great job to Kyle, Amber and Romeyn. Business costs continue to increase uncontrollably and businesses need to either close or pass it on to consumers.
Increased prices for Nunavut businesses will also force consumers to look at buying from down south where they don’t have these higher costs. This will result in less employment in Iqaluit and the money going down south instead of kept in Iqaluit.
Hopefully the other councillors realize this by next meeting when it goes to vote again.
Less employment is just fear mongering. Let’s put the cards on the table there is already a labour shortage of qualified labour in Iqaluit. Taxes going up do to their net worth increasing as a result of property value is not stoping job creation in this town. The main barrier to job creation is qualified persons.
to Not Even (for clarity, sometimes these responses just end up at the bottom)
How much of the labour shortage has to do with lack of housing? If we had abundant and more affordable housing, wouldn’t that improve the labour shortage?
I don’t usually agree with Mr. Sheepherder, but on this I am fully supportive.
What council has done is stupid left-wing populism (potentially as bad as right-wing populism!). Stick it to the businesses! What do those greedy varmints ever do for us anyway? We may not be able to do a rent control, but we can tax them to smithereens!
Some on council think there is just an infinite supply of money out there for them to pilfer.
They’ve budgeted $4,417,000 in expenses for the aquatic centre with only $622,000 in revenue, a net expense of $3.8 million. That’s a cost of $550 for every man, woman, and child in Iqaluit. It effectively costs a family of four $1,900 for the aquatic centre if you don’t even use it. Excluding depreciation, the aquatic centre accounts for 55% of the city’s net expenses in recreation and culture.
There’s a net budget expense of $1.6 million for bylaw enforcement, even though bylaw can’t enforce the unsightly land bylaw and they paid $150,000 to remove people’s old vehicles for free.
$4,670,600 for “community funding”, which is a $2 million increase from 2024. What’s that for? This, plus $116,000 in salaries and $532,000 in administration. Why is there $532,000 in administration costs to go with what looks like one position?
$700,000 for “programs and special events”, whatever those are.
They’ve budgeted $175,000 for a consultant in economic development, even though they also have $163,000 for compensation and benefits.
Last I checked the entire community voted for the pool in a plebiscite so not much sympathy for that. These facilities are a financial loss all over Canada.
It’s also of note that AWG, Arnaitok, and Curling all do not cover their expenses to run them. Maybe they should shut down all these facilities in town!
The community funding you note if you can read the revenue line is 100% Federal funded…. So its not coming from your taxes.
AWG, Arnaitok, and Curling operate at a combined net expense of $1,647,500, compared to Aquatic Centre’s $3,795,000 by itself. In terms of value for money, the arenas far outdo the pool.
Yes, the plebiscite passed. But it did not include any information on what the ongoing operating costs to run the pool would be, only the capital costs. I have a feeling that if the plebiscite also included, “this facility will cost every Iqaluit resident $550 per year to operate”, the vote may have turned out differently.
Sometimes, in a position of authority, you have to save people from themselves. That is the responsibility you bear.
In the midnight are you suggesting to shut down the Aquatic Center?
Fine figures and insightful comments, Itmhscmmm
I will not Vote for them who pushed this ahead and the employees who presented this jumped cost wish to be fired,
Push comes to shove,
I’m not a happy camper anymore and who gains to this ,
I might as well build a shack to live in QIA land soon to request as a Inuk if this be passed on to us real Iqalumuit ,
Dumb games short life we are all in put in struggles to keep us working harder for building my own home town with no benefits given back to us.
David
Raising business taxes is just a sneaky way to raise taxes on consumers while pretending your not…all businesses will do is raise their prices to account for the extra costs and all the rest of us will be stuck paying more at the till.
Yes people have to pay to stuff. NOTHING is FREE. Even when you go out and catch an animal with your bare hands. still not free you had to put in your own physical effort and knowledge.
Inflation of everything (Gas particularly) is causing doing things to cost more. If you want your community to provide services they need more money. Yes it is hard to see prices go up in a store. But that spreads the pain over more people then just for the home owners. The home owners will still need to pay for the the increase as well when they buy stuff. But so does everyone else as well. Depending on how much you buy is how much you pay.
Another added expense to deter home ownership. At the same time as increased power rates.
If you’re a renter/tenant, it’s another excuse for increasing your rent.
Iqaluit is becoming less and less of a place to buy homes and raise families, the housing market is straight bunk, there’s drugs guns and booze riddling the streets, and those who already own homes will likely not be able to retire in them due to the ever rising cost of homeownership
The Budget Committee and all of Council voted to approve the budget for 2025; some councillors were in on budgets for prior years
No one doubts that twenty, thirty, forty cents of every dollar spent by the City of Iqaluit is waste. Wasted on what? Unproductive time; unproductive positions; purchasing errors for unneeded goods or overpaying. The list could go on infinitum
As a homeowner for 20 plus years, we have seen way too many increases in our property tax, all the while the city cutting back on services, as a slap in the face the city pushes snow up on our driveways.