City loses $1.2 million in big-box property tax appeals

City councillors will learn Monday that the City of Sault Ste. Marie has lost big cash in property tax appeals launched by Canadian Tire and Home Deport.

Shelley Schell, the city's treasurer and commissioner of finance, is recommending a $1.24 million payout to settle appeals by the two big-box retailers covering eight years from 2009 to 2016.

The amount of the payout is from a province-wide settlement of Assessment Review Board appeals based on decreased land value, lower sales and changes in the replacement cost of building a new store.

"The city has the right to appeal the minutes of settlement and require a further view," says Schell.

"It is staff's opinion that because there was significant municipal involvement in the process, including representation from Northern Ontario in the municipal working group, the likelihood of being successful is minimal," Schell said in a report.

"Staff has the authority to sign off on the minutes of settlement on behalf of the municipality and will be doing so unless otherwise directed by council."

The proposed settlement would return $931,740 in city taxes to Canadian Tire and $306,010 to Home Depot.

Area school boards are also expected to lose big, with a $333,803 refund to Canadian Tire and $122,996 to Home Depot.

Walmart Canada also appealed its property assessment but subsequently dropped its appeal in Sault Ste. Marie.

Monday's City Council meeting will be livestreamed on SooToday starting at 4:30 p.m.