Domtar Forced To Pick Up The Tab In 2014

Domtar will be paying a pretty penny for Dryden’s financial troubles.
Council has approved a move to raise the 2014 industrial tax rate for large industrial businesses by 134%, while reducing the residential tax rate.
As it stands now, residential taxpayers would be on the hook for more than $6.9-million, roughly $700,000 less than what it would have been without the move.
The large industrial rate has jumped from $853,000 to nearly $2-million.
Mayor Craig Nuttall stresses this is a one shot deal and it has been approved by the Ministry of Finance.
Nuttall says this will help ease the burden on businesses and ratepayers this year.
He notes Domtar’s taxes will go down over $1-million for the lifetime of the mill after this year and means Domtar will now negotiate terms with the Province.
Councillor Shayne MacKinnon voted against the measure, stating these types of decisions should be discussed at a public meeting and with the company involved.
MacKinnon says the vote circumvents the political process and is unfair.
He notes the large industrial sector believes tax increases are counter-productive and he believes the hike will discourage large businesses from setting up in Dryden.
MacKinnon and Nuttall got involved in a heated discussion during the vote on Friday morning.
MacKinnon says the vote was brought on by the “misguided urging of the Mayor”.
Documents show that not making the move would equate to net taxation increases ranging from 8.9% to 23.9% this year.
The provincial large industrial assessment in Dryden decreased from $41.8-million in 2013 to $15.4-million in 2014, resulting in a $1.3-million yearly loss in revenue for the City.
(Picture: Shayne MacKinnon)