MINDEMOYA—The Manitoulin Municipal Association (MMA) is in support of calls by the municipality of Burpee-Mills for the province to require properties purchased by groups such as the Nature Conservancy of Canada and given conservation status pay their fair share of taxes on these lands.
“That’s the issue our municipality (Burpee-Mills) is bringing forward concerning tax exempt properties,” stated Ken Noland, chair of the Manitoulin Municipal Association (MMA) at a meeting last week. “The Nature Conservancy of Canada (NCC) purchases property (in municipalities) and the MNRF (Ministry of Natural Resources and Forestry) deems them tax exempt. And with programs like the managed forest tax incentive program and others, we are looking at a 13 percent loss in annual tax revenue.”
“And it is just starting,” stated Paul Bowerman.
“And we know they (NCC) have another 400 acres that they are planning to purchase,” said Mr. Noland.
Brian Parker told the meeting, “what bothers me is a lot of people have hunt property on the Island and they call it agriculture property and it is significantly less in terms of taxes paid because of this. And no one looks at what these property owners are doing with these properties. Why isn’t the province auditing this?”
Mr. Noland said Burpee-Mills is requesting a meeting with Ontario Premier Kathleen Wynne and MNRF on the issue. “Robinson and Dawson (townships) have probably taken a bigger hit than we have with lands that have been purchased and then become tax exempt. The NCC applies to the MNRF and get these tax exemptions.”
“They (NCC) and other groups should have to apply to the municipality first,” said Mr. Bowerman.
In a letter to Premier Wynne dated February 17, 2016, Mr. Noland, on behalf of Burpee-Mills, states: “the municipal council of Burpee and Mills is very concerned that the provincial government continues to advocate that private conservation organizations purchase lands on Manitoulin Island. Under the conservation land tax incentive program (CLTIP), these lands become designated tax exempt by the (MNRF).
“To date, Burpee and Mills township properties, assessed at approximately $900,000, have been designated eligible for CLTIP tax exemption. There has been absolutely no consultation or regard for the municipality’s ability to absorb the lost revenue. Our municipality is now required to deal with this serious shortfall, while being forced to continue funding other programs originally created as provincial responsibilities and then downloaded to the municipalities. Managed forest tax incentive program, agricultural land tax incentive program, and the conservation land tax incentive program costs the municipality of Burpee and Mills over $73,000 each year. This represents a 13 percent loss in annual tax revenue.”
Mr. Noland further explained, “(NCC) is presently negotiating purchase of an additional 160 hectares in Burpee-Mills. Our municipality has reached a level of critical tax base erosion resulting from such tax reduced and tax exempt properties. Council is now prepared to challenge the eligibility of any such conservation lands for CLTIP designation.”
“Our council request that the province assist this municipality by requirement to pay fair taxes on all properties with conservation status designated under the CLTIP; provision of provincial “grants in lieu,” for any land designations resulting from provincial incentive programs; and a moratorium on all further CLTIP designations on Burpee and Mills properties by the MNRF.”
Mr. Noland adds in the letter, “our council requests a meeting with you (premier) and appropriate ministers to find a resolution to these financial shortfalls to our municipality created by these incentive programs.”
“We (Burpee-Mills) don’t have the commercial industrial tax base to compensate for this loss in tax revenues,” Mr. Noland told the MMA. “We are looking for support from the MMA from the MMA, and we will be sending this letter to the Federation of Northern Ontario Municipalities and the Association of Municipalities of Ontario.”
“With the farmland exemption, we’re all affected right off the bat with the issue of tax exemptions being provided,” said Pat MacDonald.
“I would support the concerns and the letter from Burpee-Mills to the premier on the concerns raised,” said Lee Hayden, “and have this circulated to all municipalities.”
“This is an issue that is affecting all municipalities,” agreed Brian Parker.
