Iqaluit property values soar, bringing taxes with them

JOHN THOMPSON

Revised property tax assessments, completed in December, have boosted the total value of property in Iqaluit by $88 million.

“Some have doubled. Some have tripled. And some have gone the other way,” said the city’s finance director, John Hussey, during discussions about the 2006 draft budget this week.

If the city leaves mill rates unadjusted, that would add $3.2 million extra in taxes to ratepayers.

Hussey warned that taxpayers wouldn’t tolerate a tax increase that large. Instead, he suggested that the city reduce mill rates by nine. That would still amount to a modest tax increase, providing the city with about $600,000 in extra revenue and a $19,400 surplus, according to the city’s draft 2006 budget.

However, a 2.5 per cent tax increase is required under the city’s five-year plan, signed with the Government of Nunavut. That would amount to about $400,000 extra.

Property assessments are revised every five years, conducted by a firm hired by the Government of Nunavut. Hussey said some ratepayers have wrongly blamed the city for the new assessed values. “We’re on the outside of the process,” he said.

Ratepayers will be able to appeal the new property values in March at the board of appeals. Hussey said he expects to see many homeowners attend. Only after those appeals will the city consider changing the mill rates, probably in April or May, Hussey said.

The first installment of property tax bills won’t be affected by the new assessments. Instead, it will be based on half of the 2005 tax bills, Hussey said.

Ratepayers can also expect increased water rates and garbage fees this year.

The capital plan requires water rates to increase by five per cent. And the city’s draft budget shows its public works department will post a $135,000 deficit in 2006, unless garbage fees increase.

Council will present its draft budget to the public on Jan. 16 at 6 p.m. in the city council chambers. It will vote to adopt the budget at a council meeting on Jan. 24.