New charges taxing for Georgina Island cottagers

The Chippewas of Georgina Island First Nation in the process of implementing a property tax regime on the island

Yorkregion.com
Sept. 27, 2019
Amanda Persico

Taxes are for everyone -- including those with cottages on Georgina Island.

After losing a property value assessment tribunal, cottage owners will now have to start paying property taxes.

The Chippewas of Georgina Island First Nation is one of hundreds of bands in the process of implementing a new property tax regime as permitted by recent federal legislation.

But cottage owners are calling foul play on the move to generate taxes.

“We’re not against the taxes,” said Rick May, local realtor and Georgina Island Cottage Association president (GICA).

“We’d be happy if it was fair.”

Recently, the first nations band hired the Municipal Property Assessment Corp. to conduct property assessments for cottages on the island -- close to 200 properties.

A big part of the dispute came from how much the cottages are worth.

In most other cases, houses are compared to similar houses in the same neighbourhood. In this case, the island cottages were compared to homes of similar size on mainland Georgina instead of a neighbour-to-neighbour comparison on the island.

This comparison artificially inflates the cottage values, thus inflating the base for taxation, May argues.

“We can’t sell the cottage for that price,” May said. “Nowhere in Canada is the appraisal higher than market value.”

On behalf of about 100 cottagers, GICA appealed the MPAC values but lost their case.

Cottagers will have to pay taxes, but the operating budget presented by the First Nations band is cause for concern.

“I have no line of sight or input into (the budget),” said Georgina cottage owner and corporate executive Harvey Carrol. “It would seem it has no upward limit or cap.”

According to the GICA, the operating budget is set to increase from about $300,000 in 2019 to more about $600,000 in 2022.

A number of service fees also increase, including costs for general government pegged at about $10,000 in 2019 and increasing to about $50,000 in 2022; and environment protection services going from close to $20,000 to about $85,000 in 2022.

Environmental protection service issues include water quality, invasive species, species at risk and opposition to the Upper York Sewage System (UYSS).

With growing costs for services, the $750 annual service fee paid by cottagers is not enough, Charles Holder, general counsel for the Georgina Island First Nation, said during the MPAC tribunal.

“The band has proceeded to cover the costs of these services,” he said. “This isn’t about ill will or taking a jab at the lease holders or is imposed so the band can make money. The band needs to impose the tax to pay for services.”

Georgina Island First Nation does not receive funding from the region or the town for services such as emergency services, roads maintenance, waste collection and housing, he added.

On top of the new taxes, cottagers will also continue to pay lease fees of about $4,400.

The next step will be to appeal the tribunal decision, May said.