THUNDER BAY – Deals like the agreement between Ontario property assessors and Canadian Tire that will result in the city paying the company back $1 million in taxes are going to be expanded.
A Municipal Property Assessment Corporation spokeswoman has confirmed the process of bundling assessments for chain commercial companies with multiple outlets across the province is both efficient and expanding.
That would replace the property assessment practice of evaluating the value of every commercial property in the chain based on factors of their individual geographic locations.
“This is a new model that has been developed to efficiently resolve a significant number of appeals with similar issues, through a collaborative and co-operative approach of all parties including a significant municipal representation,” MPAC spokeswoman Jennifer Ramcharan expressed in a written statement.
“We look forward to further opportunities to implement and expand this approach.”
MPAC struck a deal with Canadian Tire in November that will see the taxes on its two Thunder Bay outlets fall 23 and 27 per cent per cent while the city will have to pay the Canadian Tire back $1 million in taxes the company has paid since 2009.
The home improvement chain Home Depot is already working toward such an agreement. Its draft form currently under redevelopment would have seen Thunder Bay billed for $800,000 in taxes the company already paid.
Thunder Bay city council voted to reject signing the deal with Canadian Tire and a number of grain elevators that were reclassified as commercial properties on Monday but city administration says it won't mount a challenge against it.
