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Campground Tax Refunds we'll all pay for in 2007

Posted by CL1368 on November 21, 2006 - 7:31pm

Following up on Mayor Noble's campaign comments on the Town having to pay back up to $350,000 in tax dollars in 2007 - just read and weep (that is if you're not a camper).....

Judge's Ruling Aids Canadian Campgrounds Trailers no longer considered "campground property" for purposes of property assesment taxes
(Source: November 7, 2006 Woodalls.biz)

A judge's ruling that trailers can't be assessed as part of campground property is expected to produce tax rebates of about $50 million (Canadian) across Ontario, Canada, for camp operators. According to the London Free Press, Ontario, the Superior Court of Justice ruled the Municipal Property Assessment Corp. (MPAC) acted unlawfully by assessing trailers as land in the case of Sauble Beach campground Carsons' Camp Ltd.

The decision, hailed by winning lawyer Peter Fallis of Durham as "bullet-proof" from appeal, is expected to apply to more than 1,000 private campgrounds around Ontario. They saw their assessments skyrocket in 2003 when MPAC decided to include seasonal trailers on private campgrounds in the calculation of property assessment upon which taxes are based.

The court ordered repayment of the taxes, plus interest, which across Ontario stands at about $50 million, said Murray Lembke of Ayton, chairperson of the RV Action Group.

"All you can tax is the land," said Fallis of the bottom line on the decision. MPAC had insisted trailers on the land were to be included in property assessments. "The government (MPAC) acted without the power of the legislature," he said.

Fallis said municipalities such as South Bruce Peninsula, where Sauble Beach is, will have to refund the millions collected based on the inflated illegal assessments. In the case of Carsons, taxes jumped by more than 400% from $24,868 in 2002 to $103,994 in 2003.

....so lets see how the new council sells this one on our 2007 tax bills! In addition to the refund, those tax dollars previously collected annually will also disappear from the income statement.

‹ VoIP Service Providers Property Taxes Raised 7% net for 2006 ›

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Easy answer

Submitted by bub on November 22, 2006 - 7:28am.

That is about the same money payed to one single conultant for a pipeline, add a few more taken off the payrolls and the effect is a net gain for all SBP.

********************************************************************** "Did A.J.Krapper organize a mass walk-out of latrines?"
-zenGary

Reserve Account?

Submitted by Dodge on November 22, 2006 - 12:11pm.

I wonder if those funds collected were held in a reserve account pending the outcome of the appeal. You might call Pat Stock then post the result here....

It still means the campground residents ride free.

taxes

Submitted by Hew Jass on November 23, 2006 - 3:28pm.

lobby to change the way that the campgrounds are taxed...potty counts, bedrooms, firepits...whatever....do we have a municipal council that can see that far past their noses now or does it have to be done at a higher level?

Campground Tax Refunds postponed

Submitted by CL1368 on December 14, 2006 - 3:12pm.

An update from the London Free Press today...

Two months ago, the Superior Court of Justice ruled the Municipal Property Assessment Corp. (MPAC) acted unlawfully by deciding in 2003 to assess trailers the same way as land, allowing municipalities to collect taxes on them. The ruling gave hope to 700 campgrounds that taxes they paid, totalling about $50 million, would be rebated.
The case revolved around a campground near Sauble Beach and its assessment, which skyrocketed between 2002 and 2003. The ruling was hailed as "bulletproof" by winning lawyer Peter Fallis of Durham.
But MPAC has appealed the ruling to the Ontario Court of Appeal, and a final disposition isn't expected until 2008.
That delay likely will add another $35 million to the rebate if MPAC's appeal fails.
That means assessments that have been disputed will remain in place until the Court of Appeal renders its decision. And that means municipalities will continue to levy taxes based on those assessments.
Two earlier court decisions upheld the decision to assess trailers, so a final verdict by the province's highest court is awaited.
If the decision is the trailers are no longer assessable, we would reduce their assessments for those years and the taxes would have to be refunded.
Because municipalities might have to return tax dollars already spent, several are considering becoming involved in the case as "intervenors." The reason for municipal concern is the need to collect money to pay for police, fire, ambulance, garbage collection and other services. She notes residents of seasonal campgrounds expect most of those services.

Lets see if the TSBP gets involved as an "intervenor", as in my opinion, they should be very active on this issue.

Permanent Trailers Still Pay Taxes-Appeal In Place

Submitted by Dodge on March 13, 2007 - 10:26am.

Campgrounds have become subdivisions and should be considered as such. These campground citizens pay almost nothing towards beach maintenance, roads, fire and policing or the growing cost of adminstration and operations in the Town of South Bruce Peninsula. They appealed and won a court decision absolving them from even paying a token amount of property taxes.

A new appeal is in progress and it is way beyond he financial scope of local municipalities. This new initiative answers questions asked here on this site. The problem is being addressed in a manner that will have the least impact on local ratepayers. Local government is not encumbered with this issue.
Taxes will continue to be collected and held in reserve pending the outcome. Quote follows from the Sun Times:

County joins bid to tax trailers

Don Crosby

Dated March 11, 2007

Bruce County is joining with other Ontario municipalities to fight a superior court ruling that exempts seasonal trailer homes in campgrounds from being assessed for property taxes.

The appeal challenges a decision of the Ontario Superior Court which ruled on Oct. 2, 2006, in favour of Carson’s Camp Ltd. of Sauble Beach.

Carson’s questioned the right of the Municipal Property Assessment Corporation to assess the value of trailers in campgrounds and force campground owners to collect and remit the taxes.

Council was told Thursday the implications of the court ruling is a loss of tax revenue across Ontario that could exceed $50 million.

This decision overturned a 2002 ruling in a challenge by the city of Sarnia in which the judge ruled trailer homes could be assessed under the assessment act.

Carson’s raised two constitutional issues, arguing the taxation of trailers is an indirect taxation because they are owned by a third party or tenant. It was argued the assessment was beyond South Bruce Peninsula’s taxing jurisdiction as well as being an infringement of the equality provisions of the Canadian Charter of Rights and Freedoms.

“This is an issue that has great impact to Bruce County,” said Warden Mitch Twolan.

Approximately 75 campgrounds have been assessed in Bruce County. Without a challenge to the court ruling, the county would have to pay back approximately $200,000 it’s collected since 2004, the year Bruce began assessing such properties.

In the meantime, the county will continue to tax campgrounds.

By joining with other affected municipalities, the Bruce County’s initial legal cost is expected to be about $5,000.

“There is more value to us being part of a consolidated effort. It’s certainly much cheaper working with other municipalities,” said treasurer Bettyanne Cobean. “We’ll get a lot more bang for our buck.”

trailer park boys

Submitted by mxyzptlk on April 2, 2007 - 9:51am.

afaik a trailer is pulled behind a vehicle. some 'trailers' in the campgrounds dont even appear to have wheels. so if you don't want to pay taxes, then bring your trailer with you when you come here, and then take it home with you when you leave. anything permanent or semi-permanent should be taxed.
kltpzyxm