By Mark Squibb | May 27, 2021
Witless Bay council says it had no choice but to eliminate the senior’s tax discount.
“There’s been some discussion in the town, and I will tell you that several people have approached me, with respect to why the seniors discount was discontinued,” said Town CAO Pat Curran, who noted council did not have authority to offer the discount in the first place.
Curran said the Municipalities Act does not provide for discounts on the basis of age, or other classes of residents, such as low-income residents or persons with disabilities.
“This guidance provided not only to the Town of Witless Bay, but all municipalities increasingly across the province over the last several years, means that councils are not allowed to provide the discount in the first place, and this council was directed to fix this problem,” said Curran in a follow up email to the Irish Loop Post. “Our sense from the Department is that it was not rigorously enforced until recent years. In short, the Act does not provide councils with that authority. We can offer discounts on basis of early payment, but not otherwise.”
Council does indeed offer discounts for early birds. In the 2021 budget, council offered a discount of eight percent, an increase from the five percent discount of prior years, to those who got their taxes in early. Council also extended the early bird deadline from March 31 until May 31 due to the pandemic, and that deadline extension carried into this year as well.
“I would encourage any resident who has a question or concern with regard to provision of discounts to call the office and, to the extent that I can, readily explain how this works,” said Curran. “It ultimately comes down to the fact that council really didn’t have a choice but to eliminate the seniors discount. It was outside the authority of the town to allow the discount in the first place.”
“I think that pretty well explains the reason,” summarized Mayor Derm Moran. “We would love to be able to give it, but we can’t give it.”
Plenty of towns offer seniors discounts, so how was it that Witless Bay was ‘found out’?
In another follow up e-mail, Curan noted that in the fall of 2018 the Department would have carried out a standard Municipal Review, and it was then the Town's approach to discounts was noted by the Department.
“There is a reference within the summary note on the Town processing discounts without individual application to the Town, as provided for within the Act,” said Curran. “Discounts are reflected within the schedule of fees and taxes and I must assume that it would have been flagged at that point in 2019 budget adoption given the earlier Municipal Review.”
Meanwhile, a spokesperson for The Department of Municipal and Provincial Affairs confirmed the legislation does not allow Seniors Discounts.
“There is no provision under the Municipalities Act to allow for discounts on the basis of age or other classes of residents,” read a statement from an official. “The Department of Municipal and Provincial Affairs will remind municipalities about the stipulations under the Act, as they become aware of incidents of discounts being provided, contrary to legislation.”
The official added that councils, by two thirds of a vote, can grant an exemption, remission or deferment of taxes and interest on taxes, but only when a resident requests it.
“This is at the discretion of council and does not specifically reference factors such as age, income, disabilities, etc.,” reads the release.
On Thursday, May 13, The Irish Loop Post requested an interview with Municipal Affairs Minister Krista Lynn Howell, but a spokesperson said she would not be available by the May 18 print deadline because she was travelling.
However, Howell did have time to phone into the VOCM Open Line Program to wish everyone a happy Municipalities Day, briefly field a question on regionalization, and offered no comment when asked about the unfolding Ragged Beach situation.
The Department, in lieu of Howell’s unavailability, did offer some further clarification on the legislation.
“The rationale for the legislation is to ensure property owners pay taxes to support municipal services, while still allowing individuals to request exemptions, deferrals and remission of taxes in appropriate circumstances,” read a statement. “This provides a way for people in extraordinary circumstances to access some tax relief. As noted, there is no provision allowing for seniors discounts specifically.”
Meanwhile, the Department admits it does not actually have an enforcement policy.
“Regarding enforcement, there are no provisions in the Municipalities Act allowing the Department to enforce legislative compliance,” said the official. “When the Department becomes aware of an issue, it is brought to the attention of the town. It is the town's responsibility to take corrective action. As elected officials, councilors have a responsibility to be familiar with municipal legislation and to help ensure that their respective municipalities are in compliance. The Department is aware that municipalities would like more flexibility in their ability to offer tax discounts. This is something the Department is evaluating as part of the ongoing review of municipal legislation.”
