Proposed federal tax on vacant land creates concerns in BV
Eganville – A proposed tax on vacant land in the federal budget is not sitting well with Bonnechere Valley Mayor Jennifer Murphy.
“I think our residents already pay enough property tax,” she told council last Tuesday.
The 2024 federal budget addresses land which is developable, and the owners are not using it. The budget notes owners of vacant land need to unlock unused lands for homes and the federal government is considering a tax on residential zoned vacant land and there will be consultation, according to the document she read to council.
“I have all sorts of challenges with this,” she said.
While there is an assumption it is more on urban land, this could impact the township as well, she said.
“We definitely need our voices heard if it does apply to us,” she said.
It is also important to note this federal budget is tabled and has not passed, she said.
Residents pay enough property tax and staff does not need to keep a vacant land registry.
“I would prefer we would not be administrators of this tax to be paid to the federal government,” she said. “I know this has not passed.”
“The Crown owns 89 percent of the land in Canada,” said Councillor Brent Patrick. “So, when you are talking about underutilized land…”
People should not be taxed for unused private property when the Crown is sitting on land, he said.
“The Crown owns 89 percent of the land. Are you telling us you have no developable land in that portfolio?” he said.
Mayor Murphy questioned the figure of 89 percent.
“How much is developable is what I would like to know,” she said.
“There is more developable there than there is in Bonnechere Valley or Renfrew County,” Coun. Patrick said.
The mayor said she doesn’t want to see the municipality collecting federal tax on properties.
The Ontario government wants more people on water and sewer, so possibly there could be an incentive for someone to buy land in Eganville, Coun. Patrick suggested. He would like to see development encouraged through incentives similar to what occurs in the United States instead of taxation.
“It is encouraging someone to come in and do something on land that is sitting vacant,” he said.
Mayor Murphy said she has challenges about incentivizing and bonusing for development.
The mayor said although this proposed tax has not passed, discussing the issue is important and there are times the municipality is involved in consultation and needs to be ready.
“This is one of those times with the feds when we need to say, ‘wait a minute’,” she said.
“It is ridiculous you are creating more tax,” said Coun. Patrick.
Debbi Christinck, Local Journalism Initiative Reporter, The Eganville Leader
