Iqaluit refuses to cut late tax penalty

Iqaluit’s 22 per cent interest rate on unpaid property taxes will remain in place, after council voted against reducing it.

At a meeting on Feb. 24, council rejected a motion to trim the municipality’s penalty down to 18 per cent.

Councillor Simon Nattaq warned that the property tax issue could create a schism in council, between those who favour a high interest rate, and those who favour a lower one.

In a strange twist, councillors who criticized the interest rate of 18 per cent as being too high, voted against the motion – effectively voting to keep the higher interest rate.

After his motion was defeated, Councillor Chris Wilson suggested some members of council needed to review voting procedures and tax issues because they “seemed confused.” Earlier in the meeting, Councillor Simanuk Kilabuk said he couldn’t vote until he had reviewed information related to the motion, but minutes later, voted against decreasing the interest rate.

Councillors who voted against the motion – including Annie Gordon, Goola Nakasuk, and Nattaq – have 30 days to bring forth another motion on the interest rate, unless the subject is brought up by Mayor Elisapee Sheutiapik. Councillors Glenn Williams and Stu Kennedy were absent.

Iqaluit’s interest rate became an explosive issue last year when city hall threatened to re-possess the homes of three families who had neglected to pay hundreds of thousands of dollars in overdue property tax.

Critics of the interest rate say it traps families unable to keep up with payments. Supporters say the interest rate deters deadbeat property owners from avoiding payment of their taxes.