RCMP headquarters centre of new tax squabble between Halifax and Ottawa
There's another tax dispute brewing between Halifax and the federal government, this time over the value of the RCMP headquarters in Burnside Industrial Park.
Ottawa has paid a total of $4.8 million in payments in lieu of taxes for the 2014, 2015 and 2016 tax years Now the city claims it is being low-balled.
"We are in a bit of a disagreement over what the market value of that building is," said Brendan Elliott, a spokesman for Halifax Regional Municipality.
"The federal government has been paying taxes based on what they think it's worth."
Assessed value of building has changed
An RCMP release issued when the headquarters opened described it as a $113-million project. The 250,000-square-foot building, which holds 512 people, sits on a 6.5-hectare site on Garland Street in Burnside.
In 2015, Property Valuation Services Corporation assessed the RCMP headquarters at $71,175,400.
That assessment changed in 2016, dropping to $60,301,500.
The city has hired Colliers International, a real estate tax services consultant, to do an independent evaulation of the property.
"They're doing their work now, they have until the end of June. Once we have that figure, it will dictate what path we take next," Elliott said.
Halifax won previous tax dispute
This is not the first high-profile tax squabble between Halifax and Ottawa.
It took 18 years for the sides to come to an agreement over the value of Citadel Hill, even after a dispute resolution tribunal ruled in the municipality's favor.
In 2016, Halifax received $20 million in owed taxes after Citadel Hill was determined to be worth $41.2 million.
At one point, federal officials argued the land was only worth $10.
Correction : An earlier version of this story said incorrectly that Ottawa has paid $4.8 million annually in lieu of taxes since the building opened in 2014. In fact, Ottawa has paid a combined total of $4.8 in payments in lieu of taxes for the 2014, 2015 and 2016 tax years.(Jun 02, 2017 8:19 PM)
