Letter: ‘Tax fairness’ lost on this commercial ratepayer

I write regarding David Maher’s article Dec. 20, 2017, “Holyrood increases commercial mill rate.”

Holyrood’s mayor says that increasing the mill rate will increase “tax fairness” in Holyrood. I am not the sharpest blade in the drawer, so someone needs to explain to me how this tax fairness works.

The residential mill rate in Holyrood is 6.5 and the commercial mill rate is 11, a 69 per cent spread over the residential rate.

I am a commercial ratepayer in Holyrood; I pay 69 per cent more than my residential neighbour for the same services. In addition, my business pays an extra 10 mill business tax, which brings my tax rate up to 21 mills. As the property owner, I pay the water and sewer rate, and then my two businesses pay water and sewer rates 33 per cent higher for each business despite one pipe entering the premises. Being commercial, I pay a private contractor for garbage collection.

I estimate that as a commercial entity in Holyrood, I’m paying about 300 per cent more than my residential neighbour. What part of tax fairness am I missing?

So, the tax rates in Holyrood are lower than Conception Bay South and Paradise. Both of those communities are dynamic growing towns; they have an expanding business and residential services platform. They can afford to command higher tax rates. They are building business and recreational infrastructure to meet the demands of one of the fastest growing towns in Canada. Holyrood cannot compare itself in any way, shape, or form to these towns, let alone presume to mimic their tax structure. To put this in perspective, the last grocery store in Holyrood is about to close; if you want a can of spaghetti, you will have to go to Conception Bay South or Mount Pearl.

I estimate that as a commercial entity in Holyrood, I’m paying about 300 per cent more than my residential neighbour. What part of tax fairness am I missing?

Perhaps the question of tax fairness should be directed to the Town of Holyrood. Twenty years ago, Holyrood’s tax revenue was about 20 per cent of what it is today; we had twice-weekly garbage collection that is now down to once weekly. Our fire department was volunteer, as it still is, and our local roads were maintained and snow cleared just the same as now. No other services have been added; road improvements have been minimal; any new developments have been at the cost of the developer.

What exactly are we doing with the extra $3 million per year we are collecting in taxes?

Our town staff has increased threefold to provide the same service as we received 20 years ago; our town office space has increased tenfold together with the latest technology innovations, and I estimate the town payroll comprises nearly 50 per cent of the taxes collected. In the meantime, the taxpayer has received nothing. Now, is this fair?

The mayor speaks of $3 million in capital works for water and sewer upgrades, which are “cost shared” with federal and provincial governments. These other levels of government look at these cost-shared projects and consider the financial need of the community; they don’t see a financial need in Holyrood and consequently money from these sources is not forthcoming. Holyrood takes the position that if it is not cost shared, it’s not going to happen. Consequently, nothing gets done. The state of the Northside road is a case in point and there are plenty of other examples.

But, hey, the residential taxpayers feel they’re getting a deal, so I suppose that’s as “fair’ as we can hope for. To reiterate Pat Comerford, all we can do is “grin and bear it.”

Brendan Hunt
Holyrood