Mill towns can set their own industry tax rate

The British Columbia Supreme Court has reinforced the right for a mill town to set their own industrial tax rate.

Yesterday, the B.C. Supreme Court Justice Peter Voith dismissed almost all the points in three separate petitions where Catalyst Paper Corp. sought relief from high municipal taxes in Campbell River, Port Alberni, and Powell River. Voith made a similar ruling concerning North Cowichan in October.

Catalyst Paper plans to appeal all four decisions. In the meantime, Catalyst Paper will not pay its outstanding tax bills.

Justice Voith agreed with the nub of the Catalyst argument -- that the tax it must pay is far in excess of the value of municipal services it consumes. Yet he still found it reasonable and legal for councillors, who considered these facts during their deliberations, to impose industrial tax rates up to 10 times higher than what residents pay.

Read more:

Mill towns may tax big industries what they want Catalyst Paper loses in three bids to seek relief (Vancouver Sun)