North Cowichan  - In 2009, Catalyst Paper Corporation filed an petition in the British Columbia courts seeking a reduction in the amount of its property taxes and asking that the bylaw authorizing property taxes be struck down. On October 16, 2009, the Supreme Court of British Columbia ruled that North Cowichan’s 2009 Tax Rates Bylaw was to be upheld, that the bylaw was equitable, the process transparent, and that the bylaw was reasonable and rational at law. The court concluded that North Cowichan’s Council had considered many reports and factors in setting its tax rates, also including the material supplied to North Cowichan by Catalyst.

As the community knows, Catalyst has commenced an appeal of this decision to the BC Court of Appeal. A date for that appeal has not yet been set.

“Council, in consultation with staff and its solicitors, has been quietly considering and reviewing the legal options available with respect to the outstanding taxes owed by Catalyst,” stated Mayor Walker. He added, “We are very pleased to announce that in discussions with Catalyst representatives, they have consented to the appeal being heard on an expedited basis with a hearing set for two days in mid-March. In exchange for this consent to the expedited appeal, North Cowichan will not proceed with any collection proceedings against Catalyst for the outstanding taxes, penalty and interest until seven days after the appeal judgment is handed down. If the BC Court of Appeal dismisses Catalyst’s appeal, Catalyst will then have seven days to decide whether it wishes to seek leave to appeal to the next level – the Supreme Court of Canada. In the event Catalyst does not appeal, it has agreed to pay its outstanding 2009 taxes immediately.”

“We believe this agreement is quite reasonable. Expedited appeal, having a court decision on this appeal, and a decision from Catalyst on further appeals before we have to adopt our 2010 Financial Plan in mid-May will provide us with important information in going forward,” added Mayor Walker.

Outstanding taxes from the Catalyst Paper Corporation owed to the Municipality of North Cowichan as at December 31, 2009, are $4,870,096. The interest penalty on this amount started to accrue on January 1, 2010, and is estimated to be approximately $18,000 per month. North Cowichan adopted a temporary borrowing bylaw for $4,000,000 in anticipation that outstanding taxes may not be paid.

Budget discussions and further tax reapportionment are also currently under review by Council for 2010.