The Township of Ear Falls is seeking public input regarding the Vacant Unit Rebate program and the Property Tax Treatment of Vacant Commercial and Industrial Land.

June 13, 2018 – The Township of Ear Falls is seeking feedback related to the reform of property tax reduction and rebate program that currently exists for vacant commercial and industrial properties. Those wishing to provide input on these matters may complete an online survey and comment submission form.

The tax rate reduction system for vacant land and the rebate program for vacant units were introduced in 1998 and 2001 respectively as means of more closely mimicking the effects of the Business Occupancy Tax system that was repealed at the end of 1997. 

Vacant commercial and industrial class land is currently subject to discounted property tax rates compared to similarly classified property on which there are buildings. This is administered by way of property sub-classes assigned by the Municipal Property Assessment Corporation (MPAC) based on regulated criteria.  

The Vacant Unit Rebate program allows owners of commercial and industrial buildings to apply for a partial rebate of property taxes if all or part of the property was vacant for at least 90 consecutive days and various other criteria are met.  

While the sub-classes have generally been less of a concern, the rebate program has been marked by some critical weaknesses since its inception and has become increasingly problematic over time. Conceived to address temporary and sporadic conditions, many properties remain eligible for years at a time or indefinitely, thereby receiving ongoing vacancy rebates while also realizing assessment-based reductions to reflect persistently low occupancy rates.  

Ear Falls, like many municipalities across the province, has found the program to be increasingly difficult to manage, budget for and administer. The application and enforcement of eligibility criteria has become particularly difficult due to loosely defined rules and limited compliance provisions.

As of 2017 the Province has provided municipalities with broad flexibility to tailor the treatment of these vacant land and unit programs in response to local circumstances. After careful review municipal staff have recommended that the vacant unit rebate program be eliminated based on the limited benefit it conveys, the pervasive compliance issues and high administrative costs ultimately carried by all taxpayers. 

Input regarding the potential implications of these changes is being sought from landlords, business owners and members of the general public and will inform the final decision-making process. Interested parties are encouraged to submit a formal survey and comment form, which is available online at https://secure.mte.ca/earfalls, or picked up in person at the Municipal Office - Ear Falls Government Building located at 2 Willow Crescent.

The deadline for the submission of input is Wednesday June 27th, 2018.

Contact for More Information 

Kimberly Ballance
Township of Ear Falls
807.222.3624 ext. 27
kballance@ear-falls.com
www.ear-falls.com