Tax Arrears Continue To Grow Especially For Commercial Properties

Moose Jaw’s growing tax arrears were featured in questions from a couple of Councillors surrounding the quarterly reports from Monday night’s meeting of City Council.

Councillor Brian Swanson asked questions about the increases in arrears as he pointed out they were up again this year from last year.

“It shows tax arrears from last year, year over year had increased 58 percent and then the year before it was 33 percent,” he said.

“Seven point seven percent of the tax levy never got paid last year. That number should scare people that is a significant number,” Councillor Swanson said, adding “that is an indicator of your economy no two words about it.”

Tax Arrears Owing December 31, 2019 SOURCE - City of Moose Jaw Quarterly Reports

According to the quarterly reports for October to December 2018 the total tax arrears owing were $934,059 with the total arrears at the end of December 2017 being $591,111 and the total arrears at the end of December 2016 being $445,736.

The report also showed a small increase year over year in current property taxes still not paid by the end of December 2018 with $2,095,196 owing and $1,999,051 owing at the end of December 2017. Property taxes are due June 30th of each year.

In later questioning Councillor Crystal Froese asked if the number of properties in tax arrears had increased?

“Do we have the number of properties that have increased that are in arrears?” Councillor Froese asked.

Finance Director Brian Acker said the City usually did not track the number of properties in arrears but did it by dollar amounts.

“A lot of what we have in tax arrears relates to commercial properties,” Acker stated.

Froese asked if the increase was due to assessment changes on the properties.

Acker replied it had nothing to do with the reassessment as it was not a reassessment year but the answer would have to be a subjective one that it was “there are some businesses which are struggling that is why they are there.”