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