The discussion continues as to whether Thunder Bay has the highest taxes in the province.
Current River Ward councillor Andrew Foulds vehemently denies that assumption, saying it’s like comparing apples to oranges.
“What people are looking at in studies is the tax rate,” notes Foulds. “What you pay every year is calculated by multiplying two figures together; The assessed value of your property, assigned by MPAC, and the tax rate.”
Related: Skepticism Over Property Tax Report
Foulds notes a city like Toronto does have a lower tax rate than Thunder Bay, but he suggests there’s a reason for that.
“For instance, if you own a home in Toronto that costs $1 million, the number that you need to multiply that against to get that $5,000 value is much lower. Their tax rate is way lower than ours because our house prices are lower, and therefore you have to multiply that against a much bigger number to get to that $5,000 to pave that kilometre of road.”
The councillor mentions that it’s roughly the same cost to pave a kilometre of road in Thunder Bay as it is in downtown Toronto or even in locales such as Sudbury.
Foulds, when discussing the 2021 Budget, is confident that council will ratify a plan that won’t go beyond the 2% Municipal Tax Levy.
Related: Projected Increase In Tax Levy Through 2024
“We’ve never gone beyond three per cent because the landscape changes, our assumptions change, our revenue change,” adds Foulds. “If you look at our ten year Tax Levy increase it’s sort of hovered between 1.9% and 3%.”
Budget deliberations continue Tuesday night.