Town of Chelsea wins property tax dispute against NCC

The western Quebec municipality of Chelsea has won a years-long tax dispute with the National Capital Commission, which now owes the town more than half a million dollars.

The Payment In Lieu of Taxes Dispute Advisory Panel, a federal committee, made a ruling this week recommending the NCC pay $590,000 plus interest to the municipality.

The dispute began in 2018 when the commission disagreed with the property assessment for its land in Gatineau Park and submitted $242,000 less than Chelsea demanded. The commission has withheld part of the payment on its entire annual tax bill to the municipality for the last three years.

While Chelsea sends out the tax bills, it's the regional county municipality (RCM) that assesses property value within its member municipalities, including Chelsea.

• Tax dispute between Chelsea, NCC could cost residents

The NCC believes there's been an overestimation in the property valuations, some of which rose by close to 20 per cent. 

Residents have been covering the cost

Mayor Caryl Green said she's pleased with the decision, as are residents, who have paid higher property taxes since the dispute began.

"When a party doesn't pay their share, the other taxpayers must cover for that. So the residents of Chelsea have been paying $166 per tax bill to cover for the loss, the lack of revenue from the NCC for the Gatineau Park," Green said.

NCC should pay $590,000 in back taxes to municipality of Chelsea after years-long dispute, committee says

4 years ago

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Caryl Green, mayor of Chelsea, says the municipality is pleased with a recommendation that the NCC pay several years of back taxes, which the organization withheld due to a dispute over the property assessment for land in Gatineau Park.

"Chelsea would really like to put all of this dispute behind us, and we'd like to be partners," she said.

Green said the municipality is hopeful the NCC recognizes the recommendation by the federal advisory panel and pays the unpaid taxes.

• Dispute with NCC adds to tax increase in Chelsea, Que.

In a statement, the NCC said it's received the recommendation from the Payment In Lieu of Taxes Dispute Advisory Panel.

It wrote that it's "currently reviewing and analyzing the content of the advice," from the panel, "which is a recommendatory, not a judicial body, in order to determine next steps." 

During negotiations, the NCC had committed to abide by the recommendations of the advisory panel.