Thank you, Mr. Speaker. Yesterday, the Minister of Lands spoke in his Minister's statement on what the departments have been working on to serve residents, in the way that best reflects the Northwest Territories' interests and priorities. It talks about Lands and bringing the two Lands acts together. One of the things they talked about was reviewing --
Member, what is your question?
That is good. We will get to the question. Sorry, Mr. Speaker. My question is: what factors do the Department of Lands use to come up with the rate of 10 per cent to charge on land leases? Thank you, Mr. Speaker.
Masi. Minister of Lands.
Thank you, Mr. Speaker. As the Member's office has correctly stated, the leases are based on 10 per cent of the assessed value, and that is standard across the Northwest Territories, that 10 per cent of assessed value exists from Fort Smith, all the way up the valley to the ocean. Now, that is standard across the Northwest Territories, and that 10 per cent is roughly a standard that would be true, all across Canada. What happens is that the MACA assesses the land based on several factors: location of force is always important; whether the land is developed or surveyed; or whether there is a road nearby. All of those factors go into determining what the assessment is, and the lease amount is based on 10 per cent of that. Of course, as mentioned when I was answering the other question, there is a reduced rate for agricultural, seniors, or for non-profit groups, which is half of the regular rate. Thank you.
I thank the Minster for his answer. Why isn't the department using the mill rate, like tax-based communities use, instead of using the flat rate of 10 per cent for land leases?
The Land Pricing Policy was developed in 1997, and as the Member mentioned, it is being reviewed. Now, the mill rate is a municipal rate which each municipality sets to determine the amount of money that is required to be raised from local taxpayers. That is different in each community, so the mill rate has to do with taxation. The lease rate, that I have referred to, has to do with leasing of the land itself.
I thank the Minister for his answer. Will the Minister direct his department to look at how tax-based communities come up with their mill rate and then develop their own mill rate to replace the 10 per cent approach presently used by this government?
As mentioned in my answer to the previous question, of course the mill rate is the way in which municipalities establish their needs to raise tax revenue in each community, and that tends to be different in each community, depending on their needs. We are, of course, reviewing the whole policy in this area, but I don't think we would be referring to a rate as a "mill rate," which is really specific to municipalities.
Masi. Oral questions. Member for Nahendeh.
Thank you, Mr. Speaker. I understand the mill rate belongs to municipalities, and I am talking about a similar approach. Since the Minister isn't going to look at that, will the Minister have his department look at only charging for 10 years and have the total cost spread over a 30-year time period instead of the lessees paying for, over and over again, as every 10 years, they are paying for their land? Thank you, Mr. Speaker.
Thank you, Mr. Speaker. As mentioned earlier, our lease rate is based on 10 per cent of the assessed value. We are looking at the whole regime, if I can put it that way, of taxation, but I am not prepared to commit to the specific plan suggested by the Member opposite.
Masi. Oral questions. Member for Tu Nedhe-Wiilideh.
