Scott Maclagan will get his chance to take his tax fight to city hall after all.
In January, the Orillia resident requested, through proper civic channels, an opportunity to make a deputation to city council about what he claims is unfair tax policies for those, like him, who live in common element condominiums.
He was “surprised” when he received a letter from city staff denying his request to speak. The letter from deputy clerk Janet Nyhof informed Maclagan his request “does not appear to fall within the City of Orillia's mandate. Your request for a deputation has been declined.”
Maclagan, who has previously met with the mayor and his ward councillors to discuss his concerns, was miffed by the decision and sent another letter asking for reconsideration.
In that letter, he noted many residents in common element condos have appealed their Municipal Property Assessment Corporation (MPAC) assessments over the past few years to no avail. Maclagan and others met with MPAC representatives at City Hall last year and “were advised they are powerless to make any change to the assessment process. We were advised we had to petition City Hall to request the provincial government for an amendment to the Assessment Act in order to achieve our objective.”
That, he said, is why they requested a deputation.
“There are over 550 residential units designated as ‘common element condominiums’ currently within the City of Orillia, and many more similar developments proposed or underway,” Maclagan wrote. “All we are asking is for an opportunity to make the mayor and council aware of the concerns of these taxpayers and enlist their support to achieve fairness and equity with all other residential properties in the city.”
Ward 4 Coun. Tim Lauer went to bat for Maclagan at Monday night’s council meeting. North Lake, the new development on the former Atlas Block property where Maclagan lives, is in Lauer’s ward.
“Staff, rightly so, based on policy and approvals we have, denied the deputation on grounds it’s not our mandate to change tax policy,” said Lauer, noting that’s a provincial issue. “But I think there’s an argument here tax is far from an exact science; there are lots of grey areas.”
Lauer said, over the years, many residents have “expressed concerns about condos, wondering about fairness of taxation.” He said allowing a deputation is not about judging the tax system. “I’m just asking council to consider allowing him to make his deputation to speak on behalf of North Lake residents.”
Coun. Ted Emond said he had concerns about allowing the deputation.
“I’m not adverse to hearing opinions of the citizens of Orillia, but I am nervous about this presentation,” said Emond, adding he knows this individual “is adamantly opposed to what he refers to as double taxation that is occurring.”
Emond said city council has no role to play in the issue. “I don’t want to create a scenario here at the council table where we are … considering the fact we don’t have any ability to deal with it, creating a bit of a firestorm.”
Lauer argued it wasn’t about making a tax decision, but rather “simply allowing a constituent to bring forward a concern about taxation which is, I think, shared by a lot of people who are in a similar situation. I think it would just be a simple case of listening to the presentation. We would have the ability, if we thought there was merit, to engage staff and perhaps ask for a report or to arrange a meeting … it’s not too much of an effort.”
In the end, council agreed to allow the deputation. Maclagan will appear before council at an upcoming meeting.
Maclagan’s main concern is about the fee they have to pay for what’s termed ‘common elements’ – the plowing of their streets, garbage collection, street lights and other things typically covered through property taxes. He said residents at North Lake pay about $4,000 in annual property taxes but, unlike other home owners, also have to pay approximately $85 a month for common elements.
He said municipalities like Orillia green-light common element projects because the developer pays for the infrastructure. That, he says, saves the city money but also allows them to collect property taxes while not providing services. On top of that, once the project is complete, the condominium corporation – the home owners – are responsible for any issues related to infrastructure in perpetuity; part of what they contribute to common elements goes into reserve accounts meant to cover future maintenance and replacement costs.
