Remote tourism operators hampered by 'excessive' tax.

• Author: McDougall, Douglas

Remote tourism operators hampered by `excessive' tax

Tourist operators north of Lake Superior believe that excessive education taxes are adversely affecting the development and growth of their businesses. And despite their efforts, nothing is being done about it.

"Something has to be done about the political run-around we are getting," said Norm Quan, owner of the White Lake Lodge.

Quan said that he and other operators in the area have been trying for the considers a grave have what he considers a grave injustice corrected.

Quan explained that excessive school tax levies imposed by the Lake Superior Board of Education on seasonal tourism and service operations in the unorganized townships have become an unbearable burden.

Quan claims that he and other tourist operators within the board's jurisdiction are required to pay more education tax than similar businesses in organized townships.

"This is exactly what is happening," said Charles Kneipp, owner of the Coach House Motel near Terrace Bay.

Officials of the Lake Superior Board of Education were unavailable for comment at press time.

Lake Nipigon MPP Gilles Pouliot said Quan "is absolutely right. His taxes are too high, but his case is somewhat unusual."

Pouliot explained that everyone is the riding pays more tax because the townships are unable to tax the underground wealth of mining operations in the Hemlo region.

In a letter to Education Minister Sean Conway, Pouliot reported that "assessment and taxing of these (mining) operations is based on above-ground assets and does not reflect the millions of dollars of underground capital costs in place at these mines."

According to Quan, he pays between $150 and $155 in tax for every $1,000 of assessed property. Similar businesses in towns such as Marathon and Manitouwadge pay about $92 per $1,000.

Quan pays approximately $4,000, based on the $250,000 assessed value of his business.

By comparison, Quan said he knows of a business "just 20 miles down the highway," which is located within the jurisdiction of the Michipicoten Board of Education, which is required to pay "less than $500 per year in taxes."

Located approximately 50 miles from Manitouwadge and Marathon, Quan said he receives no real benefit from the growth of these towns. "However, I am expected to dole out, at an increased mill rate, more than what operations in the towns are paying." Quan made the statement in a letter to Northern Development Minister Rene Fontaine.

The operators...