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HomeMy WebLinkAboutThe Huron Expositor, 1998-11-04, Page 17TME HURON EXPOSITOR, NOVEMBER 4, 1998-17 Clerk -treasurers scratchit ig heads Implementation of proposed business tax cap leaves Mahaffy predicts the tax cap "could have a serious impact on our budget." He delivered a report -to Bosanquet Council on Monday - an analysis. In 1997 for commercial/industrial taxes, Bosanquet billed just under $400,000. In '98 it billed $621,000. - "I know there are some errors from the assessment department. They've assigned commercial assessments to properties that shouldn't have been. $112,000 of that $621,000 I know is going back," said Mahaffy. "We went from $400,000 to $500,000 on a straight comparison basis - including school tax." "Logistically, this could be a nightmare (if we have ro rebill commercial taxes). I don't know if that's an option. I;c1 have to reprogram my computer," he said. Like many other treasurers and clerks, he's frustrated with the provincial government's latest move. "They're long on political rhetoric and short , on specifics...They set rules,we follow them. The outcome was not to their liking, so they're changing the rules." Grand Bend's treasurer Paul Turnbull is just returning from two weeks of holidays and is catching up with the developments. He calls the problem "assessment related" is waiting for more details from the province before h'e'll .know how many businesses will be affected under the new legislation. • Other businesseswill pay Exeter's clerk -treasurer Liz Bell says people aren't going, to be happy about the tax cap because it will be other .businesses that pay for it. "The money has to come from all the other businesses - not from municipality, the county, the government, or boards (of .education). it's BY DAVE SCOTT Lakeshore Advance Editor County clerk -treasurers are scratching their heads about how to implement the proposed 10 per cent cap on business tax the provincial government has announced it's going to implement. "Legislation is not passed. There's no draft to look at. We don't know the particulars," said Janisse Zimmerman of -Hay Township. On Wednesday, Oct. 21, a Ministry of Municipal Affairs representative addressed a Huron County clerks and treasurers meeting and had a news release from province. But, there was "no new news" in 'it, says Zimmerman. From the limited information -available from the province, municipalities are being told that they have to make up the difference of business tax increases of more than 10 per cent from other properties in the same tax class that received decreases in their 1998 taxes. But for • some small - municipalities. there are very few businesses within their boundaries to begin with and this poses a problem. • Larry Brown of. Stephen Township says there are probably a few municipalities.in Huron with - only one or two commercial• or industrial businesses - and if they both went up 25 per cent. for example, "how are you going to fund those?" Stanley Township is one of those municipalities. "We don't have a lot of businesses 'in Stanley Township. But the, few that are here saw anywhere between an 18 and 30 per cent increase in their taxes - because of the school board levy," said Ansberth Willert, Stanley's clerk -treasurer. "The province has caused the problem and we're supposed to solve it. If there's an increase in one cott'tmercial tax, we're supposed to clawback from one that saw a decrease," she said. Willert isn't sure how that's supposed to be accomplished and says it still hasn't' been determined whether the differences are going to be made up within lone municipalities or the entire county. "I still don't think it's fair." Wait for legislation • Willert said when government legislation used to arrive, she would be one of the first, to crunch the numbers and get her work done. But from experience with ever-changing legislation in the past few years. she is now taking a 'wait and see' approach and not wasting time rehashing numbers over and over. Hensall clerk -treasurer Luanne Phair is also taking that approach. ."My policy is 'not to do anything until we get the (final) legislation - so 1 don't have to do,it•twice," says • Phair. . "To me it is i nightmare." says Zimmerman of.Hay. "We don't have a lot of commercial (businesses) and industries." -Market Value Assessment Huron County has been on the Market Value.Assessment (MVA) system since 1988 so the government's tax reform for 1998 was "not a huge leap," says Zimmerman, - "If the proposed legislation is passed, municipalities would be required to limit property tax increases resulting from property tax reform on commercial and industrial property to no more than 10 per cent in 1998, and a further five per, cent in 1999 and a further five per cent in 2000," states the press release from the Ministry of Finance. The Town of Bosanquet's treasurer. Glen Mahaffy, explained that Lambton County is on "actual value assessment" now and previously was on a "factored" system - not exactly the same as MVA. Serious budget impact probably going to make a lot of people unhappy. Now they're going to have to pay for other's increases for three years." Bell says if legislation is too late, the cap may have to be an adjustment on the 1999 tax bill. The legislation is also supposed to be retroactive to January 1. 1998. Assessment appeals ongoing Another logistical nightmare- is assessment appeals - all of the property owners who were not happy with their recent assessments and are appealing across the province. "There's a lot of properties on appeal - and the assessment board hasn't ruled on them all," said Bell. Businesses whose taxes originally went up more than 10 per cent could be awarded a decrease by the assessment board - but then ironically face -another tax hike by the government's new legislation 'to subsidize other businesses in their tax class who are above 10 per cent.. "It's a can of worms," says Bell. • - To .make matters more confusing, the government has extended the deadline for filing assessment appeals for the 1998 taxation year to December 31, 1998. For further information from the Ministry of Finance, taxpayers are asked to call 1- 800-263-7965. ' No details on `tools'. The 'tools' the government said are there for 'municipalities to use include putting a 2.5 per cent cap on tax increases like Toronto did. Other tools mentioned are "phase -ins, graduated tax rates, optional property classes and rebates" - but no details or elaboration on those tools are included in the government press release. Since Huron County was on confusion the Market Value system before, municipalities thought the latest tax reform "shouldn't be a big surprise...and therefore the county didn't introduce tools that were in there," said Bell. In some instances, it's a tax reform issue where a category has changed for a business and they're now paying more. Several new categories were introduced by the government in the 1998 tax reforms. Bell used the example of one produce company in Exeter that produces its own food on its farm. "It got a farm tax rate in the old act - now it's an industrial or commercial operation." "The province reacted without thinking what it would involve for the municipalities," said Bell. Education tax increase Charlene Overholt of Zurich says the biggest increase is education tax. for commercial properties. "But education tax is hitting everybody. There has to be something done. I think if education wasn't so high - we wouldn't have to deal with a lot," she said. Larry Brown of Stephen says the business tax cap will not affect residential taxes. "All (businesses) will be affected by it because it will be averaged out. Essentially everyone will get a new tax bill." said Brown. But when that's going to arrive is anybody's guess, Groups meeting on issue . Huron County clerk - treasurers have established a working group on this matter. The group met Nov. 3 (yesterday) in Tuckersmith Township to look at the ramifications of the proposed legislation. The Association of Municipalities of Ontario (AMO) met on this matter on Friday. October 30. New board policy encourages people to volunteer in public schools BY TIM CUMMING Mitchell Advocate Staff A new policy on volunteers in Perth and Huron schools was approved at the Oct. 13 meeting of the Avon Maitland District School Bo, rd.'1'he policy encourages volunteer programs and s: • - ' Director of Education will give guidelines to . e,s when volunteer programs are implemented Director of Education Lorne Rachlis told the meeting of the board that he had been concerned over liability issues concerning volunteers and therefore passed on the policy for comment. It received positive appraisal from those who reviewed it, he said. The school procedures manual for volinteer programs says volunteers can help in duties such as field trip helper, on fundraising campaigns and providing one -on --one assistance to students. It also says the board's intent is to "promote a safe and secure school and working environment for students and staff.' Under the procedure, school principals are responsible for the recruitment, selection and screening of volunteers. • Each school will designate a volunteer coordinator. • The board's liability insurance will cover a volunteer doing their duties for the board. "This insurance protects a volunteer'who may be named in a lawsuit arising out of an injury to a student," the report says, Volunteer applicants must be interviewed by- the principal or school volunteer coordinator, the policy says. , The amount of time spent screening and training a volunteer would be in proportion to the extent of the volunteer's responsibilities and the degree of direct supervision of the volunteer, according to the report. "Volunteers who are non -parent, but community members, may require a higher level of screening , which would require that the applicant provide a list of three' references which will be checked by the' principal." according to the document. "If it is necessary for a volunteer to have direct contact with students under low or i no direct supervision by 'the principal or another staff member - e.g., coaching an athletic team overnight trips with students - the applicant must provide a recent 'Criminal Reference Check at their own expense." The pplicy procedure says volunteers must be aware of health and safety issues, legal liability, emergency procedures such as fire drills andreporting abusc procedurgs. Principals mus; also give them a statement' concerning confidentiality issues and a statement of disclosure of abuse by a student. "Tlte principal is ultimately responsible for the actions and activities of any volunteer within the school," according to the policy statement. 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