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Cornwall hits off-Island property owners hard

Cornwall Town Hall Guardian photo

Cornwall Town Hall

Published on March 22, 2013
Published on March 21, 2013
Mitch MacDonald  RSS Feed

Off-Island property owners will now go from paying 46 cents to 92 cents per $100 of assessed value.

Topics :
Sewer Utility , Iceland , Elliot Park

CORNWALL — A 2013 budget will see tax rates hold steady for most residents in the town while doubling for off-Island property owners.

The budget, which passed 4-1 at town hall Wednesday night, also saw hikes in the commercial and multi-unit property tax rates.

The Water and Sewer Utility Corporation budget, also passed on Wednesday, saw no rate increases.

Off-Island property owners will now go from paying 46 cents to 92 cents per $100 of assessed value. Multi-unit rates have increased from 46 cents to 66 cents.

The commercial rate was increased from 86 cents to 96 cents.

Finance chair Minerva McCourt said this year’s budget has been the most challenging for the town in a number of years.

“It is worth noting the difference between the 20 cent tax credit and the grant which replaced it in 2008 means a loss of about $115,000 to the town in 2013.” McCourt said while delivering the budget.

The budget outlines that council will proceed only on capital projects which are time sensitive in 2013.

The two major projects anticipated by council are the replacement of the Cornwall pool and a sewer line upgrade off the Trans-Canada highway.

“It is worth noting the difference between the 20 cent tax credit and the grant which replaced it in 2008 means a loss of about $115,000 to the town in 2013,” - Finance chair Minerva McCourt

McCourt said council intends to proceed with preliminary work towards the placement of a water booster station in Elliot Park.

With the actual installation not occurring until 2014, Coun. Marlene Hunt said she couldn’t support the budget. She also described it as lacking balance with no sidewalk construction yet heavy spending on the town’s recreation centres.

“I’d like to see a budget with a little bit of this and a little bit of that,” said Hunt. “I have misgivings.”

However, Coun. Peter Meggs said he felt the budget was balanced.

“Everybody had to take a hit if you look at the different divisions of the town,” Meggs said. “There wasn’t one particular area that suffered more than any other.”

Coun. Irene Dawson also gave her approval of the budget during the meeting.

“To be able to hold the line on residential taxes during a term of fiscal restraint I’m very pleased with what we brought forward.”

Coun. Parker Beer was absent from the budget meeting.

Comments

  • Username
    From Away
    - March 25, 2013 at 12:22:40

    When we visit PEI in the summer we shop at Cornwall . . . No more.

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  • Username
    wow
    - March 23, 2013 at 16:59:14

    wow, this year there have been some oddball stuff reported on the state of affairs in Cornwall. Happy to say that we don't reside there. Sounds like it may be run like confused and impulsive town. Maybe someone should think things through carefully. Just my opinion.

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  • Username
    ex island vacationer
    - March 22, 2013 at 20:27:51

    Well it has been nice, really nice. but the time has come to break the tie and spend our vacation time near home in New Brunswick. So our PEI retreat is now listed and it hopefully will sell soon. Your increased taxes are the proverbial straw. Going to miss you Sandbar and all our summer friends.

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  • Username
    ripoff
    - March 22, 2013 at 16:19:48

    A great way to encourage i.nvestment in your community...A step in the wrong direction..I guess if you move from here and want to keep a property,improve it,spend money on it...you are not welcome...You must be in the Wes Sheridan party.

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  • Username
    Treaus
    - March 22, 2013 at 15:41:15

    Wow Cornwall. Special. I'd call this protectionism, but I'm not sure what it's protecting. Bad economic practices? Good job on keeping those mainlanders out though. Sarcasm Off.

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  • Bill Kays
    Bill Kays
    - March 22, 2013 at 12:45:00

    This is the most stupid thing ever done by Cornwall. Is it a joke or are they serious? You folks are acting just like GHIZZY and HARPER, sandbagging the owners like this. Are you insane or do you just NOT WANT any more outside investment? This is stupidity at its finest. It shows that Cornwall leadership knows little about the real causes of their financial hardship. What's next, is the town of Cornwall going to raid our local bank accounts to prop themselves up, no, what about the bank accounts of the alien property holders?

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  • Username
    To Lawrence Millar
    - March 22, 2013 at 12:36:47

    I was appalled at this article, however you do make a good point.

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  • Username
    Billy
    - March 22, 2013 at 12:25:55

    Lawrence, so are you telling me that a resident of PEI can buy up all the shore front property and agricultural land and keep both islanders and non residents off it and double taxes are not accessed while non residents pay double taxes for properties mostly non accessible during the six months of winter. Those double taxes help to pay something since they do not go into improving the private roads etc to those double taxes properties! Sounds like you are part of this problem. Why not try to help bring non residents to PEI, limit the property they can buy (as it is now) and not double tax them. If not, soon the non residents will have everything sold off and you can have the property to yourself.

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  • Username
    bornanislander
    - March 22, 2013 at 11:04:36

    How many of these owners were given prior notice or an opportunity to voice opinions. Acts like these are cowardly! Many of these owners were probably born on PEI; went away to work and returned to retire and REINVEST and support the local economy during the months they live there. What a joke!

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  • Username
    Karen
    - March 22, 2013 at 10:32:39

    This is disgusting! The provincial double tax for non residents is bad enough. There is nothing, in the long haul, to be gained here. Non residents are slowly selling off their properties and buying off island. They (non residents) keep telling me, "nice place to visit but to live here - not any more"!

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  • Username
    an off island owner
    - March 22, 2013 at 10:32:22

    I live in Alberta and I am an off island cottage owner as of 2012, I am also a born Islander, and I have to agree that I felt I was doing the right thing by purchasing on the island as opposed to vancouver island. It is more of an expense for me to get to PEI, I pay more in travel fees, more time off from work etc. and if you raise my taxes much more I will be selling, or at least trying to sell.

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  • Username
    P.E.I. KMA
    - March 22, 2013 at 10:24:24

    Does anybody who is a permanent resident on P.E.I. want to buy a low priced winterized 2 bedroom cottage with waterview in York Point? PEI can shove it, I have had enough of their ripping off visitors and will be looking for other more tourism friendly places to vacation.

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  • Username
    Lawrence Millar
    - March 22, 2013 at 10:20:40

    Resident land owners are paying sales tax and supporting the local community so they do pay a significant amount more in taxes than the non resident. The double provincial property tax rate for non- residents has been in existence for many years and for those with acreages over 4.5 hectares who choose to lease fields to a local farmer they can reduce the tax burden closer to that of a resident. The rationale for the double tax is to discourage non residents with deep pockets from buying up farm land and removing it from agricultural use and buying shore front property and denying access to the public shores.

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    • Username
      Bill Kays
      - March 22, 2013 at 16:44:10

      There are no more public beaches so that argument just does not hold, national parks are a laugh, just another revenue getter for the gov., another way to stick it to the poor people of the province. Our government does not want farmers or fishers, only tourism operators, golf courses, and o yea, bio science firms. The gov has effectively killed off our farmming and fisahing industries only to bet the FARM on tourism and bio tech. By the way, the government's action plan is meant to hasten our demise, not make things better for the common person, only corporations.

  • Username
    The Facilitator
    - March 22, 2013 at 09:43:34

    Wow doubling the taxes for non-residents!! Can anyone say EXPLOITATION. " Hey lets stick it to those who don't get to vote for us. Ya good idea!!!" These non residents are probably the same people who actually use very few services that the Town offers because they don't live there.

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  • Username
    I.M. Feddup
    - March 22, 2013 at 08:45:53

    Provincial property tax revenue generated by non-resident property owners in 2010 was $17,352,624 from 13,875 properties. This includes both commercial and non-commercial properties. Property assessments for Non-resident property owners are routinely increased by 10% each year. The property tax rate for non-residents is $1.50 per $100 of assessed value v. $1.00 per $100 for Islanders. Put another way, Islanders sold 13,875 properties to non-residents that would otherwise have remained unsold and undeveloped....then turned around and gouged the non-residents to pay more than their share of property taxes. Real estate agents have noted that the demand for seasonal properties by non-residents has all but disappeared. I can guarantee you that, if Island politicians continue to load their debt onto non-residents to avoid raising the taxes of Island voters, there will soon be more for sale signs than there are Islanders to buy the properties.

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    • Username
      therod
      - March 22, 2013 at 10:47:53

      10% per year? Where are you getting these bogus figures from? Unless there was a reappraisal for shore frontage there is not a single unit where market assessments have increased by 10% in a single year...let alone year after year. Even though the province does have its method for singling out non residents for tax purposes the mass appraisal system doesn't work that way. Owner occupied properties get the benefit of their taxable value increasing at the rate of CPI...but even non owner occupied and base land values have not seen increases like you are implying. Also, any real estate agent worth their salt who specializes in seasonal properties and water frontage will tell you that the lack of demand by non residents in seasonal properties is directly related to the poor US dollar and the economic conditions of the united states. Now that the economy is turning around south of the border the demand is slowly picking up on the island for seasonal properties.

    • Username
      Michael
      - March 23, 2013 at 16:23:35

      Let the conditions be clear: according to Section 5 of the Real Property Tax Act, which extends back to 1993, every property is taxed at $1.50 per $100 of assessment. Resident owners get a credit of $0.50 per $100 of assessment. Therefore, tax is not double for non-residents, but only one-third more due to exclusion from the resident credit. That said, Section 5.1(1) indicates that, as of 2003 (some question due to a 2007 date in 5.1(1)(c)), a credit is available (unspecified amount other than being determined in accordance with regulation) as long as the residence has been occupied by the owner for part of the year, has not been rented during the year and (or) has been owned continuously since 2007. This seems to indicate that there is no non-resident purge, but only an absentee-owner penalty in the form of a restriction from credit. Residents in municipal areas get a credit from the province which is then sopped up by their municipality. I wonder how Cornwall has worded their tax matter.

  • Username
    tim tonkin
    - March 22, 2013 at 07:55:57

    Hugo Chaves ,alive and well in Cornwall!

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  • Username
    This Should
    - March 22, 2013 at 06:30:41

    This should kill any investment in this town by outside people . I hope for Cornwall that they have enought Islanders with money to support growth & services .

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    • Username
      therod
      - March 22, 2013 at 10:50:34

      A lot of residents get around the residential tax credit by keeping an island PO box (or a friend/family members address) for any correspondence related to the property and having someone forward it to their off island residence when something comes in. Pretty easy to get away with since the government does not have the resources to follow up.

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