MPP Michael Mantha’s News from the Park
Algoma-Manitoulin MPP Mike Mantha
Like municipalities across the province, many Northern communities rely on property tax as a key source of revenue. In turn, this means they are reliant on the Municipal Property Assessment Corporation (MPAC) to assess reasonable tax values on local properties for the purposes of collecting property taxes.
Unfortunately, this means municipalities are also at the mercy of MPAC assessments and reassessments. In smaller communities, a single reassessment can have a devastating impact on municipal finances.
Many of these municipalities across the north are under constant financial strain to offer all the necessary services within their municipalities while relying on tax revenue from a much smaller basin than urban centers. In the past we have mentioned how the City of Espanola had been shocked by an MPAC reassessment on a local mill which had been reassessed at approximately $15 million less than previous years, leaving the town on the hook for a property tax refund of $4.9 million. This sort of reassessment can cripple a small municipality.
This week in the legislature I highlighted the current plight of the Municipality of Killarney. Recent changes to the MPAC assessment of provincial parkland have now threatened the financial sustainability of many municipalities across the province.
I explained to the Minister during question period that in January the municipality of Killarney highlighted concerns with the new MPAC valuation method for provincial parks would negatively affect tax revenue to the municipality. The municipality will see a loss in excess of $649,000 in revenue, equaling one third of the tax base.
In the Killarney area, the lands in Killarney Lakelands and Headwaters Provincial Park, Killarney Provincial Park and French River Provincial Park are unpatented and will become exempt from taxation, stripping away a vital source of tax revenue for the municipality. Killarney is one of many affected communities.
I made it clear in the legislature that the MPAC evaluation system is causing turmoil for communities across the province. The entire evaluation system for parks was sprung on communities last year, which left them with shortfalls from previous years. Now the province is threatening to terminate payment all together on unpatented land which would leave the communities with another huge shortfall.
I alongside my colleagues have been calling on the Liberal Finance Minister to take action to help affected municipalities.
We need to know what the government’s plan is to deal with unpatented provincial park land and how this will affect payments to communities. It is imperative that this be looked at immediately before municipalities lose their tax revenue and are thrown into financial crisis.
I will continue to press the government to act quickly on this matter so that municipalities across the north and residents of those communities are not left with the burden.
As always, please feel free to contact my office about this issue or any other provincial matters. You can reach my constituency office by email at mmantha-co@ndp.on.ca or by phone at 705-461-9710/1-800-831-1899
Michael Mantha, MPP/député
Algoma-Manitoulin
