Debates of February 10, 2005 (day 33)

Mahsi, Mr. Speaker. My question is directed to the Minister of Municipal and Community Affairs, since he is on a roll here.

---Laughter

I guess it says here in the budget address that the interim measure beginning April 1, 2005, the new deal is going to be rolled out with Municipal and Community Affairs with regard to property tax, revenues collected within the general taxation area of the NWT, which includes 27 communities, Mr. Speaker. I just want to ask the Minister how the new deal that the Minister is going to be bringing out April 1st is going to address the issues that we have in numerous communities of the NWT with regard to outstanding property taxes among a lot of the community members and any accuracy of a lot of the GTA's current assessment rolls. Thank you.

Thank you, Mr. Villeneuve. The Minister of Municipal and Community Affairs, the Honourable Michael McLeod.

Return To Question 359-15(3): Taxation Problems In NWT Communities

Mr. Speaker, I said the new initiative was a good idea, I didn’t say it was going to solve all our problems.

Mr. Speaker, we do have a number of communities like Fort Resolution, Fort Liard and Fort Providence where we have concerns raised by the community regarding property taxes and aboriginal rights. A number of things are factored in there. We have offered to these communities to go in, do an assessment; have a team of people go in and do the assessment. Up to now we’ve been told by the community of Fort Providence not to bother doing that. They don’t want our property tax assessment team in that community. We’ve also been informed by the community of Fort Resolution not to come in and do an assessment there, either. They’re not ready to talk about that. They would like to talk about some of the other issues around property tax assessments that MACA is not in a position to discuss. Thank you.

Thank you, Mr. McLeod. Supplementary, Mr. Villeneuve.

Supplementary To Question 359-15(3): Taxation Problems In NWT Communities

Thank you, Mr. Speaker. I guess just like what the Minister has stated that a lot of the communities are not all in tune with this new deal and I’m not sure if they know whether it’s a good deal or a bad deal yet. I guess with the inaccuracy of the assessment rolls to date, because there is a nine-year gap between the new roll and the old roll, and the resources to manage these assessment rolls are tasks that the communities are going to require, like the assessors, the administrative staff, the tax collectors, the equipment to print the assessment rolls, the tax notices, the property notices, the appeal processes. All these things are going to be rolled out to the community governments which they say they have to take on themselves. With this additional $350,000 in operating revenues that they’re expecting with these 27 communities -- which equates to about $13,000 extra per community, Mr. Speaker -- if this government could tell me how these communities are going to manage all of these tasks with the extra $13,000 that they’re supposedly going to be collecting, then I think maybe it’s a plan that we should implement in this government as opposed to pouring it on with the community governments and making them figure it out.

I just want to ask the Minister how the Municipal and Community Affairs department plans on assisting and providing resources to the communities so that they will be able to take on this new deal initiative. Thank you.

Thank you, Mr. Villeneuve. Mr. McLeod.

Further Return To Question 359-15(3): Taxation Problems In NWT Communities

Thank you, Mr. Speaker. The Member is quite right; there are a number of different components to this whole initiative that we have to work out over the next while. The issue of property taxes being transferred or reverted to the communities in terms of a grant is something that we plan to do in this next fiscal year. We are not planning to change how we collect those fees at this point. The Department of Finance will continue to collect them and we will provide those monies to the communities that they’re collected in, in the form of a grant. So we’re planning to use our own forces, our own resources that we currently use today. Thank you, Mr. Speaker.

Thank you, Mr. McLeod. Supplementary, Mr. Villeneuve.

Supplementary To Question 359-15(3): Taxation Problems In NWT Communities

Thank you, Mr. Speaker. That satisfies my question on the resources required for this gigantic task for each community. I just want to ask the Minister what plans the government has for the communities that do not want to take this new deal that has been offered to them. Thank you.

Thank you, Mr. Villeneuve. Mr. McLeod.

Further Return To Question 359-15(3): Taxation Problems In NWT Communities

Mr. Speaker, I’m trying to figure out which community would turn down money. If the community does not want to take the grant that we provide, that we collected in terms of property taxes, they don’t have to. We’re not forcing it on anybody. Thank you.

Thank you, Mr. McLeod. Final supplementary, Mr. Villeneuve.

Supplementary To Question 359-15(3): Taxation Problems In NWT Communities

Thank you, Mr. Speaker. I guess maybe the Minister didn’t quite get the question I was trying to get at. I will try to rephrase it. I know there aren’t any communities in their right mind that are going to refuse free money, as the Minister referred to it. With this free money, this extra $350,000 in operating revenue that’s going to be flowing to the communities, how is MACA, who is going to be retaining all these other tasks of printing out rolls and doing the appeals process and the tax collection and the administration and all that stuff, going to subsidize their own work into this whole initiative? Thank you, Mr. Speaker.

Thank you, Mr. Villeneuve. Mr. McLeod.

Further Return To Question 359-15(3): Taxation Problems In NWT Communities

Mr. Speaker, I’m not sure if I’m understanding the question correctly, but we are doing it already. We’re paying for all of what the Member has pointed out with our own sources. Right now, with the transfer of revenues from the property taxes, the communities will enjoy revenues that they don’t currently get and without the burden of the administration for the interim. At some point we’d like the communities to take it on and we will require additional resources, but at this point we are looking at doing it ourselves through the departments of Municipal and Community Affairs and Finance.