GORE BAY—After a lengthy discussion, Gore Bay town council has agreed that the 2016 Harbour Centre tenant taxes will be written off by the town.
As has been previously raised at council, the issue was that the 2016 and 2017 taxes owed by Harbour Centre tenants to the town had not been billed until 2017. The museum board representatives and Harbour Centre tenants feel that billing tenants now, after some of the tenants are no longer renting space in the building, creates an unfair situation in that current tenants would have to pay this share as well.
It was pointed out at last week’s council meeting that a few of the tenants are making payments toward the tax bills but most haven’t as of yet.
Town council, at their meeting last week, considered the Museum Board recommended motion: “that the 2016 Harbour Centre tenant taxes be written off by the Town of Gore Bay.”
Council was told that the outstanding taxes owed is $4,420 and that the town had not written the taxes off for 2016. There has been ample time for tenants to pay this amount but it hasn’t taken place because some of the tenants have moved out and there is no recourse to get their tax money owing. The current tenants don’t feel they should have to pay for those tenants who have moved out.
“It all comes down to fairness, or at least the appearance of fairness,” stated Gore Bay Mayor Ron Lane. “It was the town’s fault that the taxes were not collected for two years. Some (tenants) have had trouble paying back taxes for one year, let alone three years now and they feel it would only be fair to write off those taxes.”
It was pointed out by Clerk Annette Clarke that future tenants’ taxes will be put together with a tenant’s rent and other costs starting in 2019.
“The other thing is if we say no (to writing off the taxes) some of the tenants say they will leave,” said Mayor Lane.
That would mean the $4,000 owing on taxes from tenants would be much higher, council was told.
“When the general government had agreed to the tax write-off it was because it had been a town error in not charging them for two years’ taxes,” said Councillor Jack Clark. “I don’t support the idea of some leaving and not paying and others not paying. There has to be a compromise situation here.”
Councillor Larry Eirikson asked how many of the Harbour Centre tenants have paid their taxes in 2017 and the clerk relied “none.” The councillor then suggested that the town could write off the taxes for 2016, with the tenants paying their taxes for 2017-2018 in the next few months.
Councillor Kevin Woestenenk felt that more tenants will move out if the town tries to recover the 2016 taxes.
None of the tenants had paid their taxes for 2016, but some are paying down their 2017 taxes, council was told.
“Some haven’t paid rent,” said Councillor Osborne, who said the town is owed the money from taxes and rent. “There is an error in that the tax bills weren’t sent out in 2016 and 2017. But if you are leasing space and a tenant doesn’t receive a statement in the mail it doesn’t mean they aren’t supposed to be paying. In any business lease the tenant knows they have to pay rent and taxes.”
“It has also been brought forward that the lease in place is not correct because it does not include the taxes in it,” said Mayor Lane.
“Let’s write this off and get this off our plate,” said Councillor Woestenenk, noting that if the town continues to push for the 2016 taxes more tenants will move out. “I think the 2016 taxes should be written off.
“As long as they pay the taxes for 2017 and 2018,” said Mr. Eirikson.
While Councillors Dan Osborne and Ken Blodgett voted in opposition, the rest of council, including Councillors Jack Clark, Larry Eirikson, Yvonne Bailey and Kevin Woestenenk voted in favour of writing off the taxes for 2016. The motion passed.
“I would like to go back to the museum committee and explain we (council) have gone our mile and now (the tenants) need to do the same for 2017-2018 by paying the taxes,” said Councillor Clark.
