Jysk is one of five big box stores to win a tax appeal, costing the City $650,000 in revenue. (Susan McNeil/paNOW)

By Susan McNeil

City Hall

Big Box stores in Prince Albert win tax appeal

Sep 23, 2022 | 2:05 PM

The City of Prince Albert is looking for another $650,000 after five major retailers successfully appealed their tax bills.

Walmart, JYSK, Canadian Tire, Sport Check and Marks Work Warehouse joined forces in 2017 to argue that the city was not using the Cost Approach appraisal method properly when commercial taxes were assessed.

Mayor Greg Dionne said in a statement he respects the process that allowed the companies to appeal but it will cost Prince Albert taxpayers in the end.

“These businesses are some of the most profitable in Prince Albert and the result of their appeal is that our residents, who are the customers that support them, will need to pay more. With the obvious exception of Canadian Tire, there is very little, if any, support these corporations offer to our community,” said Dionne.

Canadian Tire owner Malcolm Jenkins is one of the largest donors in Prince Albert for initiatives that promote physical activity.

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The city release pointed out a recent trend in which professional tax agents are hired by companies to challenge municipal assessments.

Because the legal process can take several years to run its course, the city finds itself in a challenging position when it comes to budgeting.

In 2017, 15 commercial properties appealed their tax assessments with only the five being successful.

“City assessors applied the rules fairly and correctly as it was set out in legislation and guides,” said Vanessa Vaughan, assessor for the City of Prince Albert. “We followed the process of mass appraisal but are now dealing with the burden of a significant loss.”

In order to reduce the shock of changing tax figures year after year, the City has things like a fiscal stabilization fund that is used when needed.

The City also said that in 2020, the bylaw that set the tax rate for this particular class of commercial properties was adjusted to protect revenues of $430,000 and it plans to use this tool in the future to make sure the tax burden is fair.

The next city council agenda on Monday will include a report from staff that the $650,000 needed to balance the impact the recent decision – along with several other appeals – come from the fiscal stabilization fund.

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susan.mcneil@pattisonmedia.com