The city of Iqaluit cautions of a 6% property tax spike

Key takeaways: 

• Under the QEC suggestion, the City of Iqaluit faces a 71.5% power rate spike on municipal buildings.
• If a new program for power rates across Nunavut is agreed upon, the City of Iqaluit will face a 71.5 percent hike in its electricity bills. 
• City officials evaluate the effect to be $1.3 million yearly.

The City of Iqaluit is cautioning it will have to increase property surcharges if the Qulliq Energy Corporation’s general rate application is endorsed.

In a move to help reduce living expenses to Nunavuvammiut in smaller communities, the Qulliq Energy Corp. (QEC) has offered to cut commercial electricity rates across the region, except in Iqaluit hike government rates to make up the difference.

QEC needs to retrieve a $6.6 million shortfall with how electricity prices are set. The proposal would establish a territory-wide rate rather than have rates differ by community, a structure that has been in place since before Nunavut separated from the Northwest Territories.

Under the suggested changes, Iqaluit’s commercial government power rates would rise by 71.5 percent for all three levels of government.

Also read: Lumber costs are down, but everything else is up, say Yukon builders

‘Impact is so extreme’

Coun. Kyle Sheppard said the rise would cost the city 1.3 million dollars yearly, demanding a 6 percent hike in property tariffs to make up the difference. However, he said there’s some flexibility in structuring a property tax spike between homeowners, businesses, and the government.

“In reviewing the rate application, my first intuition is to think that it’s an error because of how absurd the effect is to the City of Iqaluit,” Sheppard said.

Iqaluit homeowners and businesses are already facing a 5.1 percent boost to their power bills under QEC’s bid — though those growths are moving on yet, even without executing a territory-wide rate.

Source – cbc.ca