Iqaluit hikes taxes 10% for businesses, 3% for homeowners
Mill rate bylaw will raise additional $2.7 million in revenue for city
Half of Iqaluit’s city councillors take part in in Tuesday’s council meeting, where a controversial bylaw to increase property tax rates was on the table. (Photo by Jeff Pelletier)
Iqaluit Mayor Solomon Awa cast the tie-breaking vote at Tuesday night’s council meeting to raise the city’s property taxation rates for 2025.
As a result, the average property tax increase for residential properties will be three per cent, while commercial and mixed-use properties will see a 10 per cent increase. It would put an additional $2.7 million in the city’s coffers compared to 2024, a staff report said.
“Nobody in this room ran on a platform to raise taxes this much,” said Coun. Kyle Sheppard, also expressing frustration that four councillors were not at Tuesday’s meeting.
Council voted 3-2 for a bylaw that sets the city’s mill rate — a number used to calculate property taxes based on a property’s assessed value. The new rates were determined following a Government of Nunavut property value assessment done in 2024. The GN conducts this assessment every 10 years.
Councillors Harry Flaherty, Simon Nattaq and Romeyn Stevenson were absent. Coun. Sam Tilley is still on leave.
“Where the hell is everybody else?” Sheppard said. “It’s ridiculous that four of us are here making this decision tonight.”
At the start of the meeting, councillors heard concerns from Nunastar Properties Inc. president Ed Romanowski and Steve Sullivan, president of the Baffin Regional Chamber of Commerce.
They said the new tax rates will lead to higher costs for consumers and renters.
Sullivan proposed three alternative solutions: an equal tax rate for all types of property; a “phased” tax increase that would allow people to review their assessments; or establishing a task force to review the impacts of the various rates.
“By choosing one of the BRCC’s recommendations you can ease the burden on businesses, residents and the housing market, while still meeting the city’s revenue needs,” Sullivan said.
Deputy Mayor Kim Smith — who voted in favour of the bylaw — noted these reassessments are expected every 10 years.
“The budget that included this tax raise was also passed unanimously by council at the Dec. 10 meeting,” Smith said.
But Sheppard said the city’s “strong” budget doesn’t need such a tax bump to maintain its surplus.
He pointed to opportunities the city has to grow its tax base by developing more neighbourhoods, and suggested that a five per cent commercial, mixed-use and industrial tax increase would be a “compromise.”
As well, he asked councillors to consider how some of the city’s smaller businesses and their customers will be affected.
Smith was joined by Coun. Methusalah Kunuk in supporting the bylaw while Coun. Amber Aglurkark and Sheppard voted against it.
Awa’s tie-breaking vote ushered it through third reading.
“Sometimes you need to make a big decision, tough decision,” Awa said in an interview.
“The fact is … we need that money to operate.”
Both Romanowski and Sullivan shared their disappointment in council’s decision.
“I don’t think we want to wait another 10 years to have these discussions again,” Sullivan said, emphasizing a need for more dialogue and communication.
“By doing it periodically probably makes it an easier pill to swallow for everybody.”
Taxes are calculated based on a percentage of the value of properties.
This bylaw actually LOWERS that percentage for residential.
Total taxes are going up because every ten years all property values are updated.
Residential properties will now pay a lower percent of their current property values, instead of a higher percentage of what their property was worth 10 years ago.
Other property types will pay the same tax rate they did previously,only now it will be on current property values, not 10-year old property values.
These are all technicalities. What is important is the tax increase. Many municipalities NEVER update assessed property values, and you’ll see $1 million homes paying property tax on an assessed value of like $150,000. Since assessments haven’t changed in the last 10 years, of course the actual mill rate should decrease.
Every year now for the next 10 years, council will vote to increase the mill rate. A new assessment update will be done, and the mill rate should decrease.
Again, the important thing is the actual tax increase that is being paid. Increasing business taxes 10% is unreasonable.
This 2025 increase is the first increase since 2022. 10% is very far from unreasonable.
2025 is the first residential increase since 2022, not so for commercial/industrial.
Ah I see that the commercial rate was raised by LESS THAN ONE PERCENT in 2023.
11% over three years, is still less than inflation.
And the City of Iqaluit recently raised water prices for Commercial customers by 75%. Is that less than inflation?
An extra $2 million per year from the business community for water services.
We can lay the dubious water pricing decisions largely at the voters feet.
Kyle ran on that plan and got elected…. Halving the cost of residential water during a water shortage which limits housing… Jacking the price for business. The logic isn’t clear.
The mill rate is going down but not enough to fully offset the increase in assessed values for any property class. That means real tax bills are going up for everyone.
Mixed used commercial is the closest thing we have to affordable housing in Iqaluit. Those taxes are going up 10% on average. That means higher rental rates for every small business, NGO and residential tenant in those buildings.
Taxes go up significantly every 10 years. That is the system we have had for many decades.
Because there is a HOUSING CRISIS council chose to reduce the tax rate for residential properties.
It is “rich” that some of the wealthiest people in town are complaining that the tax breaks for housing are not also being applied to other property types. If Nunastar needs handouts from the public, then they should be prepared to open their books for public scrutiny.
Simon Nattaq and Romeyn Stevenson: we’re active on this important issue last council meeting, during first and second reading.
Sam Tilley: is on valid leave
Harry Flaherty: is too important for council meetings, is he even still a councillor?
Amber Aglurkark: was physically present for both meetings, but DID NOT OPEN HER MOUTH ONCE. Why did we even elect her?
Amber was not elected, she was appointed.
Indeed… ‘anointed’
NDP ideology sucks , nothing good comies from over taxing
It should have been 25 percent
To everyone wondering why your rent goes up this year, please send an email to Kim Smith so she is aware of what she caused.
She obviously doesn’t have a clue on economics and thinks that having lower property taxes on residential properties instead of commercial and mixed use will help the residents.
She obviously doesn’t understand that most residents in Iqaluit rent, so she is actually causing their rents to increase. Meanwhile the homeowners who are wealthy enough to own home benefit from this.
Do you not think that lower residential property taxes means less taxes on residential properties?
You should be fully informed before making comments. But I will explain it to you.
As part of the tax increase, the are increasing mixed use properties by an average of 10%. A mixed use property is residential and commercial building.
Since many buildings are mixed use that are leased, this means that these residential units will also be effected by the property tax increase. The landlords will raise rents because their costs go up.
Thanks to our all mighty deputy mayor Kim.
Watch the meeting….. The total taxes was decided back in December. This vote was only deciding how it would be distributed. Smith championed a lower residential rate…
Privilege is thanks to Daddy Warbucks, who coincidentally made his money from his business. Must be nice not to have to worry about money.
If I had a dollar for every time Kyle Shepard complained about something (other people, Nunatsiaq, his own quotes, his own words, life, etc.)
I’d have enough money to pay for the cities budget myself.
Good to know this information,
City is a public Government internal and follow federal government systems,
Why federal Government tells them to basically learn how to build your own funding to run your own city as much on your self bill people on taxes this taxes that and tax everything because federal government elected people who does not understand where the funds will come from is or worthless to our North ,
Don’t get me wrong this is why we are in short of houses and worst for our younger generations to struggle worst on building there new homes ,
What a joke to approve have council attend and Mayor break the tie ,
Bhy bhy Soloman not in my favor and Mr, Kunuk next elections ever to any board .
David
Nobody loves tax hikes followed by the squandering of those funds like the NDP, Liberals and Nunatsiaq “news”
#Defund-Nunatsiaq-News
Any taxes in any form are the decreased to paychecks. Less food on the table of households. Only ppl laughing are the city employees on subsidized staff with VTA benefits…. From top brass to departmental directors. Screw the front lines….