By Tyler Marr

Tax changes for care homes to come in 2018

Nov 17, 2017 | 11:00 AM

A number of care homes in 2017 were moved from a residential tax bracket to commercial and some saw a nearly 200 per cent tax increase.

This obviously was a “shocker” to many when they opened their bill and as a result, council will make moves to reassess and correct taxation on these properties for the upcoming fiscal year. These properties include facilities like the Sunny Days Care Home and Mont St. Joseph Home. 

At a special meeting called to debate tax notice corrections, council voted to explore the creation of a new fee structure for personal care homes during 2018 taxation tool talks. 

“When you swung them to commercial, it was quite a shift… [the bill] comes at year end, and so that is why we took action,” Mayor Greg Dionne said. “We want our fair share, but we don’t want to overshare that. I believe that commercial was too much, but I also think that residential is [not enough].”

Because of this, council decided to wave collection of the increased tax charges this year. It will talk to other municipalities and the provincial tax body to weight alternate taxation options for the facilities, such as mill rate adjustment or special classification.

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Dionne and many councillors pointed out how care homes are, at the end of the day, for-profit businesses, but at the same time provide a valuable service to the community.

Some concerns were raised on what impact the removal of the care homes from residential classification would mean to residential ratepayers. 

Administration explained how this is currently unknown and “is completely flexible” as it is up to council to decide where those burdens lie. 

“If we want to make the burden the same as it is now, we can adjust the mill rate factor and play with that,” Finance Director Steve Brown explained. “If we leave everything status quo right now, then we will see some impact, but every year we revisit the tax policy discussion.”

Before calling for a recorded vote, Coun. Dennis Ogrodnick admitted an error on the city’s part when they sent out the tax notices and passed the resolution earlier this year.

“We need these care homes, and I am proud to be able to be in favour of this motion. It will help maintain the private care homes that have excited in our community… payed their taxes and provided a much-needed service,” he said.

Councillor Ogrodnick, Ted Zurakowski, Blake Edwards, Don Cody and the mayor voted in favour of the move, while Evert Botha, Charlene Miller and Terra Lennox-Zepp were opposed.

tyler.marr@jpbg.ca

On Twitter: @JournoMarr