Reassessment of Domtar’s Espanola, ON mill
The assessed value of the Domtar mill in Espanola, Ontario has been drastically lowered.
The updated assessment for the years 2009 through to 2012 is $9.9 million
The original assessed value for these years ranged between $19 million, through to $26.5 million. The $19 million was the assessed value arising from the previous decision for the years 2006, 2007 and 2008.
As a result of the reassessment, the Town of Espanola will need to refund $4.9 million in property taxes to Domtar. The Town had prepared for a reduction, but not such a drastic drop in assessed value.
“This news is devastating; the municipality relies on MPAC’s valuations, and for the decision to be almost onethird of this figure is unacceptable. We cannot expect our taxpayers to be held responsible for this financial burden which is unduly handed to them. This situation identifies critical errors in the methodology used for calculating these values and in funding formulas which do not provide for reconciliations of prior years when such adjustments are made retroactively. Residents simply cannot afford a 50% tax increase for 2013, which is what would be required to fund this liability.”
~ Ms. Townsend, ClerkTreasurer/Administrator for Espanola
The municipality plans to work together with other Ontario mill towns, Dryden, Thunder Bay, and Fort Frances, who are facing the same situation.
Source: Town of Espanola
- Drastic drop in assessed value of Domtar Dryden mill will impact Dryden
- How Dryden will cope with reassessment of Domtar's mill
- Resolute Forest Products wants Thunder Bay, ON mill reassessed for tax savings
- Bowater Mersey gets tax break
- Resolute Forest Products appeals tax rate in Fort Frances, Ontario
- Campbell River faces tax shortfall after reassessment of the Elk Falls mill site
- Heavy toll on property taxes as mills close
- Supreme Court of Canada dismisses Catalyst Paper's tax appeal